Tag Immobilien Ag · XETR:TEG
Tag Immobilien — H1 2012 Earnings Presentation
31 slides from Tag Immobilien's earnings presentation, 2012
Slide 1: TAG Immobilien AG H1 2012
TAG Immobilien AG H1 - 2012 Q1-Q3 2011 TAG I 1
Slide 2: Content
Content I. Highlights H1-2012/ Guidance 2012 page 3-5 II. TAG Growth and profitability page 6-9 III. TAG Portfolio H1-2012 page 10-20 IV. TAG Financials H1-2012 page 21-23 V. TAG Share H1-2012 page 24 VI. TAG Acquisition 2012 – DKBI page 25 VII. Appendix page 26-31 TAG I 2
Slide 3: Highlights H1 2012 figures and Guidance for 2012
Highlights H1 2012 figures Guidance for 2012 • Rental income of EUR 87.4m EBT of EUR 140m (raised from EUR 75m • Rental profit of EUR 67.3m post DKBI acquisition) • EBT of EUR 120.6m • FFO of EUR 16.4m FFO of EUR 40m (raised from EUR 27m post DKBI acquisition) Overview • Net gains from first time co
Slide 4: FFO H1-2012
FFO H1-2012 • TAG well on track for target FFO of EUR 40m for 2012 • Run rate in Q2 already above EUR 40m p.a. (this is pre synergies from DKBI acquisition) Overview TAG I 4
Slide 5: TAG investment case
TAG investment case I. Focus on growth and profitability • Strategy: grow to become more efficient • TAG has grown considerably over the last 3 years – while protecting and increasing the NAV per share • Interest, Costs and Vacancy have been reduced at the same time • Efficiency and sustainability:
Slide 6: TAG Growth and profitability
TAG Growth and profitability • Growth has been a strategic imperative for us in order • achieve economies of scale • benefit from effects of step-fixed costs • become a better quality landlord • reduce variable costs on top Growth& profitability • In parallel we have restructured the business over t
Slide 7: Growth results in higher margins
Growth results in higher margins Rental profit (in % of rental income) Operating expenses (in % of rental income) 90 0 80 66,9 -10 -12 -13 76 -17.8 70 74.4 -20 69.6 18,5 60 63.3 -30.9 Growth& profitability 61 -30 -29,2 -36.8 50 -40 2009 2010 2011 H1-12 2012 (e) 2009 2010 2011 H1-12 2012 (e) Personne
Slide 8: Growth results in higher margins (ctd.)
Growth results in higher margins (ctd.) Employees per 1000 units Other operating expenses EUR per unit (p.a.) 3000 3686 30 35 2500 83,3 2000 2480 20 76 1500 20 22,2 1000 Growth& profitability 10 -24,7 10 500 730 9.2 486 0 0 2009 2011 H1-12 2009 2010 2011 H1-2012 2010 FFO (in % of rental profit) 30 x
Slide 9: TAG future potential once fully stabilised
TAG future potential once fully stabilised • After the growth of the latest 3 years TAG has the portfolio and the structure to earn a meaningful FFO in the medium term • Further efficiency gains should allow Growth& profitability to generate an FFO of EUR 66m on a sustainable basis with the existing
Slide 10: TAG Portfolio H1-2012
TAG Portfolio H1-2012 Units 57,325 Floor Area sqm 3,828,303 Real Estate Volume TEUR 3,063,695 Rental income in TEUR* 192,000 Vacancy % 11.1 Net Actual Rent EUR/sqm 5.15 *2012 (e) Portfolio TAG I 10
Slide 11: TAG Portfolio H1-2012 real estate volume and rental income
TAG Portfolio H1-2012 Real estate volume Rental income per segment Volumen in EUR million in EUR million 192 200 3,064 55 3000 150 2500 1,054 115 1,969 2000 Portfolio 100 87 109 1500 1,545 87 18 318 12.8 1,502 978 52 1000 770 46 50 55 499 26 318 21 500 479 467 465 25 26 28 28 452 14 0 0 12/31/09 12/
Slide 12: TAG Portfolio residential by region
TAG Portfolio residential by region xxxxxxxxxxxxxxxxxxx Salzgitter x Region 14% Hamburg 16% NRW 10% Greater Berlin 23% Portfolio Thuringia/ Saxony 37% x *as of 6/30/12 by book value TAG I 12
Slide 13: TAG Portfolio residential - Hamburg
TAG Portfolio residential - Hamburg • Strong need for new residential units • Increase of single tenant and elderly people households • Homeownership 22% • Strong spillover effects into periphery / commuter towns. • Biggest vacancy upside in communter town north of Hamburg (Elmshorn) Portfolio • Fro
Slide 14: TAG Portfolio residential - Berlin
TAG Portfolio residential - Berlin • TAG is in Berlin regions where demographics show a growing population • TAG is happy to buy in the centre as well in the outskirts as long as the relative value is right • In 2011 TAG bought for over 9% Strausberg gross yield in Berlin Elstal Portfolio 12,675 uni
Slide 15: TAG Portfolio residential - Berlin
TAG Portfolio residential - Berlin • Increasing lack of new residential units • Average letting size 54 sqm • Strong like-for-like rental growth • 11% homeowner ship in Berlin Portfolio • Berlin is growing and increasingly attracting people • Building substance not good as in the rest of Germany • A
Slide 16: Berlin examples
Berlin examples Steglitz Units 286 Floor area in sqm 19,839 Net rental EUR/sqm 5.58 Vacancy 4.4% Zehlendorf Portfolio Units 229 Floor area in sqm 10,645 Net rental EUR/sqm 5.74 Vacancy 2.2% Lankwitz Units residential 229 Floor area in sqm 12,976 Net rental EUR/sqm 6.09 Vacancy 3.7% TAG I 16
Slide 17: Greater Berlin example Bestensee
Greater Berlin example Bestensee Bestensee Units inventory 1,100 Units for sale/ investment 135 Floor area in sqm 76,156 Actual net rental EUR/sqm 4.66 New letting EUR/sqm 3,70-6,50 Vacancy 8.7% Vacancy inventory* 2.1% Portfolio 5% of the residential portfolio (by book value) *not including properti
Slide 18: TAG Portfolio residential – Thuringia/ Saxony
TAG Portfolio residential – Thuringia/ Saxony Portfolio • Average asset rent: EUR 4.54 • Very attractive concentration of cities like Leipzig, Dresden, • Number of accommodation Erfurt, Weimar and Gera units: 22,461 • Good infrastructure, good demographics and partly strong • 37% of the residential
Slide 19: TAG Portfolio residential – Salzgitter region
TAG Portfolio residential – Salzgitter region Vacancy reduction • Overall vacancy in Salzgitter: 10% • Vacancy in our portfolio 22.5% (from 24.4%) • We are in above-average location • 2,000 units market demand for elderly tenants • Chances/angles for marketing: - having a decent product - take tenan
Slide 20: TAG Portfolio residential – North Rhine Westphalia
TAG Portfolio residential – North Rhine Westphalia • Agglomeration of at least 30 cities (29 of 80 metropolises in Germany) • 22% of the German GDP (BIP) • Centres of economic growth • Homeownership 39% Portfolio in Portfolio • Dusseldorf, Leverkusen • Dortmund, Cologne • Siegburg, Moers • Average a
Slide 21: TAG Group financials (IFRS)
TAG Group financials (IFRS) Consolidated balance sheet (in EUR m) 12/31/2011 6/30/2012 2,048 2,048 3,199 219 3,199 204 2000 3000 826 2,960 595 2500 1600 1,922 Group finanicals 2,002 2000 1,208 1200 1500 800 1000 400 500 245 371 126 239 0 0 Assets Liabilities Assets Liabilities Non-current assets Equ
Slide 22: Financial structure - debt maturity improved
Financial structure - debt maturity improved in EUR million 500 400 Debt structure at H1-2012 Financial structure 293 • EUR 1,984m 300 39 • 40 German Banks 200 122 332 • 7.3 years ø maturity 236 100 211 206 164 • Interest costs of 4.0% 103 115 56 45 43 0 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 23: Financial structure – Convertible Bonds
Financial structure – Convertible Bonds in EUR million EUR 8.85 TAG share price EUR 8.00 EUR 7.20 as of 8/6/2012 EUR 5.22 Financial structure 5.5% EUR 5.01 • 3 of 4 Convertibles are in the money 80 6.5% 85.3 70 • the first has been prematurely converted in 60 66.6 July this year 50 6.38% 66 40 • Con
Slide 24: Stock market data TAG as of H1-2012
Stock market data TAG as of H1-2012 High/Low (H1 2012) EUR 8.00/EUR 5.77 Shareholder structure Number of shares 96.731m Ruffer LLP, UK* 18% IP Concept, Flossbach von Storch SICAV, L* 10% Market capitalisation 717,741EUR m Taube Hodson Stonex, UK* 5% Stock exchange SDAX/EPRA DWS Fund, D * 5% Free Flo
Slide 25: TAG Acquisition 2012 – DKBI
TAG Acquisition 2012 – DKBI History of the portfolio 1995 DKB Immobilien was founded 2007 DKB Immobilien and GBW legally separated Saxony- Anhalt Mecklenburg- 8% Acquisition Vorpommern 9% Thuringia 50% 85% refurbished Saxony 9% newly built 15% 6% unrefurbished 15% conventional buildings 50% pre fabr
Slide 26: Appendix
Appendix Markets, Commercial TAG I
Slide 27: Markets in key Eastern German cities have improved
Markets in key Eastern German cities have improved • Purchase power, population and employment have Market rents (EUR per sqm)* improved since 2006 4.0 7.0 Magdeburg 3.5 6.1 • Average population growth of 4.2% expected for 4.0 5.8 Dresden, Erfurt, Jena, Leipzig, Potsdam and Weimar Leipzig 3.8 7.1 un
Slide 28: Portfolio commercial
Portfolio commercial 12/31/2009 12/31/2010 12/31/2011 • sqm total 342,911 sqm 335,686 sqm 348,403 sqm • sqm rental 324,971 sqm 323,063 sqm 319,940 sqm • current rental p.a. net of charged costs (EUR m) 26.6 26.0 28.8 • current rental net of charged costs (EUR/sqm) 6.81 6.70 7.51 • vacancy 5.2% 3.8%
Slide 29: Management Board
Management Board Rolf Elgeti, CEO TAG Immobilien AG, Management Board (since July 2009), Supervisory Board from 2008 onwards Setting up and management of various German real estate investment funds (since 2003) UBS Warburg, Commerzbank, ABN Amro: (chief) equity strategist, London (1999 – 2007)
Slide 30: Contacts
Contacts TAG Immobilien AG Rolf Elgeti CEO Steckelhörn 5 Telefon: +49 40 380 32-307 20457 Hamburg Telefax: +49 40 380 32-388 ir@tag-ag.com Telefon: +49 40 380 32-0 Telefax: +49 40 380 32-388 Britta Wöhner/ Dominique Mann Appendix www.tag-ag.com Investor & Public Relations info@tag-ag.com Telefon: +4
Slide 31: Disclaimer
Disclaimer Disclaimer and Copyright This document (presentation) does not constitute an offer or invitation or form part of an offer or invitation to subscribe for or purchase any securities and, neither this document or anything contained herein shall form the basis of any contract of commitment wh