Tag Immobilien Ag · XETR:TEG
Tag Immobilien — FY2012 Earnings Presentation
34 slides from Tag Immobilien's earnings presentation, 2013
Slide 1: Growing Assets – Full year figures 2012
11 2012 Growing Assets Full year figures 2012 TAG Immobilien Q1-Q3 2011 AG | Q1 – Q4 2012 Full year figures
Slide 2: Content
Content 22 I. TAG Overview/ Highlights FY 2012 4 CONTENT II. TAG FFO 2012 / Guidance 2013 5 III. TAG Strategy / Growth and Margins 7 IV. TAG Portfolio / 5 regions 8 V. TAG Acquisitions 2011/ 2012 / DKBI & TLG Wohnen 16 VI. TAG Sales 2012 21 VII. TAG Financials FY 2012 / Balance sheet / Debt / Financ
Slide 3: TAG Strategic achievements 2012
TAG Strategic achievements 2012 33 Acquisitions DBKI 25,000 Residential Units / EUR 960m (13.2 multiple) OVERVIEW TLG 11,350 Residential Units / EUR 471m (11.0 multiple) Eberswald 1,100 Residential Units / EUR 30m (10.6 multiple) Erfurt 360 Residential Units / EUR 29m (10.5 multiple) Disposals 1,384
Slide 4: TAG Highlights FY 2012
TAG Highlights FY 2012 44 Rental income of EUR 192.5m OVERVIEW Rental profit of EUR 144.5m EBT of EUR 202.6m FFO of EUR 39.6m (EUR 12.0m in Q4) FFO per share of EUR 0.42 Vacancy residential portfolio 9.9% Salzgitter 21.3% NAV of EUR 9.96 per share LTV of 58.9% (ex convertibles) down from 62.2% in Q3
Slide 5: TAG FFO FY 2012
TAG FFO FY 2012 55 OVERVIEW TAG Immobilien AG | 2012 Full year figures
Slide 6: TAG FFO Guidance 2013
TAG FFO Guidance 2013 66 Not including: Lower refinancing costs OVERVIEW Vacancy cost reduction Synergies from TLG acquisition in EUR Mio. +3 -2 +5 Disposals 68 Growth +15 Further improvements / Vacancy reduction +7 TLG Wohnen 40 Synergies DKBI FFO FFO 12 / 31 / 2012 12 / 31 / 2013 TAG Immobilien AG
Slide 7: TAG Growth and profitability
TAG Growth and profitability 77 Growth has been a strategic imperative for us in order to Adj. EBIT and FFO Margin (in %) (1) achieve economies of scale GROWTH& PROFITABILITY 31,6% 49,9% 28,0% 10,1% benefit from effects of step-fixed costs 20,6% 0% become a better quality landlord reduce variable co
Slide 8: TAG Portfolio end of 2012
TAG Portfolio end of 2012 88 PORTFOLIO Rental Real income Net Estate in m actual Volume (annua- Vacancy EUR / Portfolio Units Floor area sqm in m lised) in % sqm TAG 33.290 2,372,697 2,039 139,8 11.5 5.55 DKBI 24,870 1,475,808 1,053 73,6 10.9 4.67 TLG 11,500 711,561 571 42,6 4.8 5.25 Total 2012 69,6
Slide 9: TAG Portfolio residential by region
TAG Portfolio residential by region 999 9 Residential real estate portfolio by region* Net Target 41 % PORTFOLIO Floor Va- Va- actual rent Book area cancy can- TEUR Net actual TEUR value Region Units sqm sqm cy % p. a. EUR / sqm p. a. TEUR 23 % Overall portfolio 68,781 4,201,135 415,411 9,9 225,968
Slide 10: Portfolio residential by region – Hamburg
Portfolio residential by region – 10 10 Hamburg PORTFOLIO Average asset rent: EUR 5.12 Number of accommodation units: 11,240 17% of the residential portfolio (by book value) Vacancy 8.3% Strong need for new residential units in Hamburg overall Increase of single tenant and elderly people households
Slide 11: Portfolio residential by region – Berlin
Portfolio residential by region – 11 11 Berlin PORTFOLIO Average asset rent: EUR 4.94 Number of accommodation units: 14,758 23% of the residential portfolio (by book value) Vacancy 5.1% Increasing lack of new residential units Average letting size 54 sqm Strong like-for-like rental growth. 14% homeo
Slide 12: Portfolio residential – Berlin
Portfolio residential – 12 12 Berlin PORTFOLIO TAG is in Berlin regions where demographics Existing show a growing population TAG Portfolio TAG is happy to buy in the centre as well in New Acquisitions in 2011/2012 the outskirts as long as the relative value is right TAG Potsdam (DKBI) Portfolio In
Slide 13: Portfolio residential by region – Thuringia/Saxony
Portfolio residential by region – 13 13 Thuringia/ Saxony PORTFOLIO Average asset rent: EUR 4.81 Number of accommodation units: 29,692 41% of the residential portfolio (by book value) Vacancy 10.0% Very attractive concentration of B cities between Erfurt, Leipzig, Gera and Dresden. Good infrastructu
Slide 14: Portfolio residential by region – North Rhine Westphalia
Portfolio residential by region – 14 14 North Rhine Westphalia PORTFOLIO Average asset rent: EUR 5.50 Number of accommodation units: 3,888 8% of the residential portfolio (by book value) Vacancy4.6% Portfolio of TAG in Düsseldorf, Leverkusen Dortmund, Köln Siegburg, Moers Agglomeration of at least 3
Slide 15: Portfolio residential by region – Salzgitter
Portfolio residential by region – 15 15 Salzgitter PORTFOLIO Average asset rent: EUR 5.12 Number of accommodation Units: 9,203 11% of the residential portfolio (by book value) Vacancy 21.3% Vacancy reduction Overall vacancy in Salzgitter: 10% Vacancy in our portfolio 21.3% (down from 24.4%) We are i
Slide 16: TAG Acquisition principals
TAG Acquisition principals 16 16 I. NAV & Cash flow & FFO enhancive ACQUISITIONS II. Portfolio at existing TAG locations – with focus on TAG 5 regions Low marginal costs for Asset and Property Management Scale economies III. Deal size < EUR 30m – too big for retail investors, too small for family of
Slide 17: TAG Acquisition 2011
TAG Acquisition 2011 17 17 Marzahn/DOM Portfolio Hellersdorf/Marzahn Units 612 Units 461 ACQUISITIONS Floor area in sqm 43,591 Floor area in sqm 26,921 Net rental EUR/sqm 4.29 Net rental EUR/sqm 5.20 Vacancy 1.47% Vacancy 6% Purchase price EURm 25.2 Purchase price EURm 18.7 North Germany/Saxony Chem
Slide 18: TAG Acquisitions 2012
TAG Acquisitions 2012 18 18 DKBI/ TAG Potsdam Break down by region Units 50 % ACQUISITIONS 25,000 Floor area in sqm 1,500,000 17 % Net rental EUR/sqm 4.60 Vacancy 10.9% 15 % Purchase price EURm 960 9% (including debt financing) 8% Thuringia / Saxony Saxony Mecklenburg- Berlin-Brandenburg NRW Vorpomm
Slide 19: TAG Acquisition 2012 – DKBI
TAG Acquisition 2012 – DKBI 19 19 History of the portfolio 1995 ACQUISITIONS DKB Immobilien was founded 2007 DKBI and GBW legally separated Quality 85% refurbished 19% rental upside to local market 9% newly built 6% unrefurbished Capex EUR 18/sqm EUR 185m over the last 5 y 15% conventional buildings
Slide 20: TLG Wohnen acquisition and integration
TLG Wohnen acquisition and integration 20 20 Seller Federal Republic of Germany Closing December 2012 ACQUISITIONS Purchase price EUR 471m Multiple 11.1, NRI yield of 9% Number of units: 11,500 Vacancy 4.8% Rental income EUR 42m p.a. Gains from first time consolidation EUR 49m Integration of central
Slide 21: TAG Sales 2012
TAG Sales 2012 21 21 Residential Units in Berlin 1,384 Price in EUR/m 87 SALES Pre tax earnings EUR/m 12 Equity inflow in EUR/m 40 Buyer: Union Investment Institutional Property GmbH Value optimizing strategy Improve operating profitability Improve the FFO Reinvestments in portfolio with higher init
Slide 22: TAG Group financials (IFRS) – Consolidated balance sheet
TAG Group financials (IFRS) 22 22 Consolidated balance sheet (in EUR m) GROUP FINANCIALS 12/31/2011 12/31/2012 4000 4000 3,800 3,800 3600 3600 3200 3200 3,495 1,156 2800 2800 2400 2,048 2,048 2400 2000 2000 595 1,922 1600 1600 2,134 1200 1200 1,208 800 800 400 400 305 510 0 126 245 0 Assets Liabilit
Slide 23: TAG Debt structure
TAG Debt structure 23 23 Debt structure at year end 2012 including TLG GROUP FINANCIALS EUR 2,227m 47 German Banks 9.2 years ø maturity Interest costs of 4.2% TAG debt in EUR million 600 584 500 400 326 300 277 248 225 221 TAG debt 200 99 100 20 30 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 24: TAG Financial structure – Convertible Bonds
TAG Financial structure – Convertible Bonds 24 24 all 4 Convertibles trade in or close to the money in EUR million EUR 8.85 TAG share price EUR 9.10 as the first has been converted in July 2012 ahead of maturity GROUP FINANCIALS of 4/12/2013 EUR 7.20 Convertibles have enabled TAG to grow in a capita
Slide 25: TAG Group financials (IFRS) – Profit & loss
TAG Group financials (IFRS) 2012 2011 25 25 Profit & loss (in EUR m) GROUP FINANCIALS TAG Immobilien AG | 2012 Full year figures
Slide 26: Consolidated income statement 2012 (IFRS)
Consolidated income statement 2012 (IFRS) 26 26 EBITDA before fair value remeasurement (in € m) EBT (in € m) GROUP FINANCIALS 250 275 202.6 200 150 100 83.3 120 50 13.7 22.2 31.4 -24.7 0 2009 2010 2011 2012 2009 2010 2011 2012 Consolidated net profit (in € m) Earnings per share (in €) 1.88 179.1 1.0
Slide 27: TAG Stock market data 2012
TAG Stock market data 2012 27 27 High/Low (Dec/Jan 2012) EUR 9.59/EUR 5.77 Shareholder structure acc. to the notifications to the company Number of shares 130.738m SHAREHOLDER VALUE Ruffer LLP, UK* 15% Market capitalisation 1,240,703 EUR IP Concept, Flossbach 12% Stock indices MDAX/EPRA von Storch S
Slide 28: TAG - The way forward: value enhancing asset management
TAG - The way forward: 28 28 value enhancing asset management OUTLOOK Focus on residential property segment Continuously work the existing portfolio Dispose of commercial properties in value maximizing manner Increase rents – lfl rental growth 3.2% in 2012 over time Reversionary rent potential vs. i
Slide 29: Appendix
APPENDIX 29 29 Growing Assets TAG Immobilien AG | Q1 – Q4 2012 Full year figures
Slide 30: TAG Management Board
TAG Management Board 30 30 Rolf Elgeti, CEO TAG Immobilien AG, Management Board (since July 2009), Supervisory Board Claudia Hoyer, COO from July 2012 onwards APPENDIX from 2008 onwards DKBI Management Board (since July 2010) Setting up and management of various German real estate investment funds (
Slide 31: TAG Portfolio commercial
TAG Portfolio commercial 31 31 Commercial real estate holdings by region* Portfolio 12/31/2009 12/31/2010 12/31/2011 12/31/2012 APPENDIX sqm total 342,911 335,686 348,403 348,560 50 % sqm rental 324,971 323,063 319,940 295,820 26 % current rental income p.a. net of charged costs (EUR m) 26.6 26.0 28
Slide 32: East Germany is catching up
East Germany is catching up… 32 32 …making it an attractive investment region for TAG APPENDIX GDP growth per employee (1991-2009) Disposable income growth per household Residential market rents (1991-2008) (€ per sqm per month) (1) West Germany + 37% (1) 4,4 8,2 East Germany (2) + 149% West Germany
Slide 33: Top Cities of TAG residential portfolio
Top 20 Cities of TAG residential portfolio 33 33 IFRS Book Value Book Value Net actual rent Recent lettings Top-20 City Region Units TEUR EUR/sqm EUR/sqm EUR/sqm APPENDIX 1 Salzgitter SZ 8,741 306,411 574 4.76 4.50 up to 6.79 2 Gera T/S 7,187 272,606 631 4.40 3.99 up to 6.36 3 Berlin (City) B 6,947
Slide 34: TAG Contacts
TAG Contacts 34 34 TAG Immobilien AG Rolf Elgeti Dominique Mann CEO Investor & Public Relations Steckelhörn 5 APPENDIX 20457 Hamburg Telefon: +49 40 380 32-307 Telefon: +49 40 380 32-305 Telefax: +49 40 380 32-388 Telefax: +49 40 380 32-388 Telefon: +49 40 380 32-0 Telefax: +49 40 380 32-388 ir@tag-