Tag Immobilien Ag · XETR:TEG
Tag Immobilien — FY2020 Earnings Presentation
43 slides from Tag Immobilien's earnings presentation, March 2021
Slide 1: Conference call presentation FY 2020
Conference call presentation FY 2020
Slide 2: Content
Content 22 I. TAG highlights FY 2020 3 II. TAG financials Q4 2020 6 III. TAG German portfolio Q4 2020 12 IV. TAG portfolio valuation FY 2020 17 V. TAG acquisitions/disposals Germany FY 2020 19 VI. TAG Poland business update 22 VII. TAG sustainability rating 26 VIII. TAG guidance FY 2021 28 IX. Appen
Slide 3: TAG highlights FY 2020
33 TAG highlights FY 2020 TAG Immobilien AG | March 2021 | 3
Slide 4: TAG highlights FY 2020
TAG highlights FY 2020 44 FY 2020 FY 2019 Q4 2020 Q3 2020 Vacancy (residential units) 4.5% 4.5%/4.6%* 4.5% 4.8% Vacancy (total portfolio) 5.6% 4.9% 5.6% 5.3% Operational performance L-f-l rental growth y-o-y 1.4% 1.9% 1.4% 1.4% Germany L-f-l rental growth y-o-y (incl. vacancy reduction) 1.5%
Slide 5: TAG highlights FY 2020
TAG highlights FY 2020 55 4,578 units acquired in FY 2020 (FY 2019: 1,331 units). Total purchase price of EUR 174.7m (FY 2019: EUR 50.1m) and current net rent of EUR 11.9m p.a. (FY 2019: EUR 4.1m) leads to acquisition multiple of 14.7x or gross yield of 6.8% (FY 2019: 12.1x multiple or 8.3% gross
Slide 6: TAG financials Q4 2020
66 TAG financials Q4 2020 TAG Immobilien AG | March 2021 | 6
Slide 7: TAG income statement
1 Increase in net actual rent y-o-y by EUR 7.5m as a result of l-f-l- rental growth of TAG income statement* 1.5% p.a. and portfolio acquisitions. Rental growth q-o-q of EUR 2.6m mainly driven by acquisitions. 77 2 Net rental income increased y-o-y by EUR 4.5m primarily as a result of higher net act
Slide 8: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation 88 (in EURm) FY 2020 FY 2019 Q4 2020 Q3 2020 1 For reasons of comparability to FY 2018, effects from first time application of IFRS 16 were eliminated in FFO in FY 2019. In Net income 402.6 456.4 213.5 -23.7 line with most peers, this adjustment no longer takes p
Slide 9: TAG balance sheet
TAG balance sheet 99 (in EURm) 31 Dec-2020 31 Dec-2019 1 EUR 647.7m higher investment properties driven by EUR 328.4m valuation result, Non-current assets 5,949.2 5,301.5 EUR 71.8m capex, EUR 256.1m acquisitions and first-time consolidation Vantage. Investment property 1 5,819.2 5,200.0 Furthermore,
Slide 10: TAG EPRA NTA calculation
TAG EPRA NTA calculation 10 10 EPRA Net Tangible Assets EPRA NTA bridge in EUR/share (in EURm) 31 Dec-2020 31 Dec-2019 + 0.32 Equity (without minorities) 2,602.6 2,342.6 + 2.23 + Effect from conversion of convertible bond - 0.82 25.9 324.2 2017/2022 + Deferred taxes on investment properties and 567.
Slide 11: TAG financing structure
TAG financing structure 11 11 Debt structure as of 31 Dec-2020 Key financial KPIs as of 31 Dec-2020 Ø Maturity total financial debt 6.8 years 2% Ø Maturity bank loans 7.9 years 6% Ø Interest rate total financial debt 1.49% Debt volume Ø interest rate % fixed rates 8% Ø Interest rate bank loans 1.76%
Slide 12: TAG German portfolio Q4 2020
12 12 TAG German portfolio Q4 2020 TAG Immobilien AG | March 2021 | 12
Slide 13: TAG at a glance
TAG at a glance 13 13 Leading company in the affordable housing sector in Northern and Eastern Germany Strategy TAG is a specialist for affordable housing in Eastern and Northern Germany and among the largest owners of residential properties in Eastern Germany Fully integrated platform via lean
Slide 14: TAG German portfolio rental growth and capex allocation
TAG German portfolio rental growth and capex allocation 14 14 Rental growth achieved with moderate capex investments due to strong underlying fundamentals Rental growth achieved with moderate investments Maintenance & capex development (in EUR/sqm/year) 15.1 19.2 20.4 21.6 TAG creates attractive r
Slide 15: TAG German portfolio vacancy reduction residential units
TAG German portfolio vacancy reduction residential units 15 15 Strong track record of vacancy reduction due to TAG’s active asset management approach Acquisitions Vacancy rate +0.5% 6.1% 5.9% Acquisitions 5.7% 5.6% +0.3% Acquisitions 5.5% 5.3% 5.3% 5.2% 5.2% 5.2% +0.1% 5.0% 5.1% 4.8% 4.9% 4.9% 4.8%
Slide 16: TAG services business – FFO contribution 2020
TAG services business – FFO contribution 2020 16 16 More than 6% (EUR 10.6m) of FFO generated from services business in 2020 Quality improvement FFO generation FFO FFO Facility Craftsmen Energy Multimedia Condominium 2) 1) 1) Others services Total rental management services services services managem
Slide 17: TAG portfolio valuation FY 2020
17 17 TAG portfolio valuation FY 2020 TAG Immobilien AG | March 2021 | 17
Slide 18: TAG German portfolio valuation overview
TAG German portfolio valuation overview 18 18 Portfolio valuation result Development of gross yield 7.1% FY 2020 vs. FY 2019 FY 2020 FY 2019 6.7% 328.4* 414.1 6.5% in EUR m 6.3% annual valuation uplift (w/o capex) 6.2% 8.6% 6.1% 5.9% 5.7% thereof from yield compression 85% 73% thereof from opera
Slide 19: TAG acquisitions/ disposals FY 2020
19 19 TAG acquisitions/ disposals FY 2020 TAG Immobilien AG | March 2021 | 19
Slide 20: TAG acquisitions Germany FY 2020
TAG acquisitions Germany FY 2020 20 20 Signing 2020 2019 4,578 1,331 Units Bernburg Net actual rent 4.93 5.81 in EUR/sqm/month Vacancy 21.1% 11.0% Purchase price in EURm 174.7 50.1 Net actual rent in EURm p.a. 11.9 4.1 Dessau Merseburg, Plauen, Gotha, Magdeburg, Thuringia, Saxony-Anhalt, Mecklenburg
Slide 21: TAG disposals Germany FY 2020
TAG disposals Germany FY 2020 21 21 Signing 2020 2020 2020 2019 Total Total Units 213 796 1,009 568 Bad Frankenhausen Net actual rent in EUR/sqm/month 6.56 5.00 5.38 4.05 Vacancy 4% 22% 18% 19% Selling price in EURm 25.5 29.8 55.3 18.2 Net actual rent in EURm p.a. 0.98 2.23 3.21 1.51 Net cash procee
Slide 22: TAG Poland business update
22 22 TAG Poland business update TAG Immobilien AG | March 2021 | 22
Slide 23: Poland overview current and planned projects
Poland overview current and planned projects 23 23 Unlocking superior returns by addressing the growing demand of the Polish residential-for-rent market Strategic rationale Current locations and projects Against the backdrop of its strong macroeconomic and demographic growth, Poland is experiencin
Slide 24: Poland build-to-hold pipeline
Poland build-to-hold pipeline 24 24 Polish build-to-hold projects currently concentrated in growth regions of Wroclaw and Poznan Build-to-hold projects overview Build-to-hold pipeline locations Pipeline locations Wroclaw Poznan Lodz Total Total number of projects 11 12 8 31 Total number of project s
Slide 25: Poland build-to-sell pipeline
Poland build-to-sell pipeline 25 25 Attractive build-to-sell projects in Wroclaw offering strong cashflows and significant support to FFO II Build-to-sell projects overview Build-to-sell pipeline locations Pipeline location Wroclaw Total number of projects 8 Total number of project stages 24 Number
Slide 26: TAG sustainability rating
26 26 TAG sustainability rating TAG Immobilien AG | March 2021 | 26
Slide 27: TAG environmental, social and governance
TAG environmental, social and governance 27 27 TAG ranks among the top ratings in the real estate sector ESG Rating and Award improvements TAG 2020 29.5/100 35**/100 D** TAG 2019 8.9**/100 No Award N/A D** Rank 81 out of 1,026 Industry adjusted score 0-10 1st participation of Most improved 60-100 =
Slide 28: TAG guidance FY 2021
28 28 TAG guidance FY 2021 TAG Immobilien AG | March 2021 | 28
Slide 29: TAG FFO and dividend guidance FY 2021
TAG FFO and dividend guidance FY 2021 29 29 based on the current portfolio including all signed acquisitions/disposals until Dec-2020 FFO I (for purpose of the guidance no further acquisitions/disposals in 2020/2021 assumed) +4% 178-182m (EUR) vs. 2020 FFO I guidance 2021 purely refers to German
Slide 30: APPENDIX
30 30 APPENDIX TAG Immobilien AG | March 2021 | 30
Slide 31: TAG income statement details Germany and Poland
TAG income statement details Germany and Poland 31 31 Germany Poland Total Germany Poland Total Germany Poland Total (in EURm) Q4 2020 Q4 2020 Q4 2020 FY 2020 FY 2020 FY 2020 FY 2019 FY 2019 FY 2019 APPENDIX Net actual rent* 82.7 0.0 82.7 322.5 0.0 322.5 315.0 0.0 315.0 Expenses from property -16.3
Slide 32: TAG German portfolio details by region
TAG German portfolio details by region 32 32 Region Units Rentable IFRS BV Gross Vacancy Vacancy Net actual Re-letting l-f-l rental l-f-l rental Mainte- Capex # area EURm yield Dec- Dec- rent rent growth growth nance EUR/sqm sqm Dec- 2020 2019* EUR/ sqm EUR/ y-o-y y-o-y incl. EUR/sqm 2020 sqm vacanc
Slide 33: TAG German portfolio vacancy reduction and rental growth
TAG German portfolio vacancy reduction and rental growth 33 33 Vacancy development 12M 2020* l-f-l rental growth (y-o-y) 12M 2020 APPENDIX Chemnitz -0.7% from 7.6% to 6.9% 2.7% Hamburg 2.1% Hamburg -0.4% from 4.1% to 3.7% 2.3% Chemnitz 1.5% from 2.9% to 2.5% Rhine- 2.2% Erfurt -0.4% Ruhr 1.7% Rhein-
Slide 34: TAG German portfolio valuation details
TAG German portfolio valuation details 34 34 Share of Dec-2020 Dec-2020 Dec-2020 operational Dec-2019 Dec-2019 Dec-2019 Region YTD-2020 Share of yield Fair value Fair value Implied performance/ Fair value Fair value Implied (in EURm) Valuation result compression (IFRS) (EUR/sqm) multiple other marke
Slide 35: TAG EPRA NAV calculations
TAG EPRA NAV calculations 35 35 New EPRA metrics APPENDIX EPRA NAV EPRA NRV EPRA NTA EPRA NDV Net asset value Net reinstatement value Net tangible assets Net disposal value (in EURm) Q4 2020 Q4 2020 Q4 2020 Q4 2020 Equity (before minorities) 2,602.6 2,602.6 2,602.6 2,602.6 Effect from conversion of
Slide 36: TAG EPRA Earnings
TAG EPRA Earnings 36 36 (in EURm) FY 2020 FY 2019 Q4 2020 Q3 2020 Net income Germany 399.1 456.4 208.2 -25.0 Valuation result -327.0 -414.1 -152.8 -0.2 APPENDIX Deferred income taxes on valuation result 64.3 76.7 21.0 0.6 Net income from sales -40.2 0.4 -41.2 0.0 Cash taxes on net income from sales
Slide 37: TAG cost of debt and LTV
TAG cost of debt and LTV 37 37 Cost of debt Ø in % LTV in % APPENDIX 3.45 3.15 62.7 2.34 57.1 1.92 52.3 1.73 47.3 1.49 44.8 45.1 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Continuous re
Slide 38: TAG strong development of financing metrics
TAG strong development of financing metrics 38 38 ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm APPENDIX 479 460 453 450 449 445 5.2 13.4 4.7 12.5 3.8 11.6 3.0 11.3 11.2 10.9 2.3 1.9 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Slide 39: TAG LTV calculation
TAG LTV calculation 39 39 APPENDIX (in EURm) 31 Dec-2020 31 Dec-2019 31 Dec-2018 Non-current and current liabilities to banks 1,977.9 1,901.2 1,855.5 Non-current and current liabilities from corporate bonds and other loans 495.9 403.0 285.8 Non-current and current liabilities from convertible bonds
Slide 40: TAG interest coverage ratio (ICR) calculation
TAG interest coverage ratio (ICR) calculation 40 40 (in EURm) FY 2020 FY 2019 Q4 2020 Q3 2020 APPENDIX + Interest income 10.2 0.5 0.3 0.1 - Interest expenses -116.6 -79.4 -15.9 -75.1 + Other financial result -0.7 1.4 0.1 -2.1 = Net financial result -107.0 -77.6 -15.5 -77.1 + Financial result from co
Slide 41: TAG return on capex calculation 2020
TAG return on capex calculation 2020 41 41 APPENDIX Total capex* (EUR 71.7m) Equity (EUR 32.8m) Equity + Debt (EUR 38.9m) Modernisation of flats Large modernisation measures Share of total capex: c.54% Share of total capex: c.46% Return on total investment: 8%-15% Return on equity invested:
Slide 42: TAG share data
TAG share data 42 42 Shareholder structure as of 31 Dec-2020 Share information as of 31 Dec-2020 APPENDIX Market cap EUR 3.8bn 9.9% MFS (Massachusetts Financial Services Company), USA NOSH issued 146.5m 9.9% 7.5% 7.5% The Capital Group Companies Inc., USA NOSH outstanding 146.3m 5.9% BlackRock Inc.,
Slide 43: TAG contacts
TAG contacts 43 43 Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-305 Phone: +49 40 380 32-305 20457 Hamburg Fax: +49 40 380 32-388 Fax: +49 40 380 32-388 Phone: +49 40 380 32-0 Fax: +49 40 380 32-388 ir@tag-ag.com ir@tag-ag.c