Tag Immobilien Ag · XETR:TEG

Tag Immobilien — Q1 2017 Earnings Presentation

31 slides from Tag Immobilien's earnings presentation, May 2017

  1. Slide 1: Conference call presentation Q1 2017

    Conference call presentation Q1 2017 1

  2. Slide 2: Content

    Content 22 CONTENT I. TAG highlights Q1 2017 3 II. TAG financials Q1 2017 6 III. TAG portfolio Q1 2017 13 IV. TAG acquisitions Q1 2017 17 V. TAG outlook 2017 19 VI. Appendix 21  Portfolio details by region  Portfolio valuation  EPRA Earnings  Capex and maintenance  Shareholder structure  Manag

  3. Slide 3: TAG highlights Q1 2017

    3 TAG TAG acquisitions highlights Q1 2016 2017

  4. Slide 4: TAG highlights Q1 2017

    TAG highlights Q1 2017 44 Q1 2017 Q4 2016 Q1 2016  Vacancy (residential units) 5.9% 6.1% 7.5% HIGHLIGHTS Operational  L-f-L rental growth Y-o-Y 1.9% 2.0% 1.9% performance  L-f-L rental growth Y-o-Y incl. vacancy reduction 3.4% 3.7% 3.8%  FFO I (EUR/m) 28.5 27.1 21.6  FFO I (EUR/share) 0.20 0.19

  5. Slide 5: TAG highlights Q1 2017

    TAG highlights Q1 2017 55 HIGHLIGHTS  ABB transaction on 6 Mar-2017  Placement price: EUR 12.48/s Treasury  8.1% premium to last EPRA NAV/s share placement  Only 2.0% discount to last XETRA closing price in Q1 2017  Gross proceeds of EUR 51.1m for new acquisitions and for further optimising the

  6. Slide 6: TAG financials Q1 2017

    6 TAG TAG acquisitions financials Q1 2016 2017

  7. Slide 7: TAG income statement (IFRS)

    TAG income statement (IFRS) 77 (in EUR millions) Q1 2017 Q4 2016 FY 2016  Rental income in Q1 2017 increased due to INCOME STATEMENT acquisitions at year-end 2016 and further rental Rental income 71.5 70.0 275.2 growth and vacancy reduction in Q1 2017. Expenses from property management -12.5 -10.2

  8. Slide 8: TAG EBITDA, FFO and AFFO calculation

    TAG EBITDA, FFO and AFFO calculation 88 (in EUR m) Q1 2017 Q4 2016 FY 2016 Net income  EBITDA (adjusted) decreased slightly by EUR 22.1 26.6 200.7 0.1m in Q1 2017 compared to Q4 2016. EBITDA / FFO/ AFFO + Income tax 5.8 0.1 46.0 Reduced net rental income is almost offset by + Net financial result 1

  9. Slide 9: TAG balance sheet (IFRS)

    TAG balance sheet (IFRS) 99 (in EUR millions) 31 Mar-2017 31 Dec-2016 BALANCE SHEET  Increase in cash and cash equivalents mainly Non-current assets 3,842.2 3,843.6 due to placement of 4.1m treasury shares in Investment property 3,772.0 3,777.8 Mar-2017. Deferred tax assets 38.3 38.8  Purchase pri

  10. Slide 10: TAG NAV calculation

    TAG NAV calculation 10 10 NAV (in EUR millions) 31 Mar-2017 31 Dec-2016  NAV per share development of EUR +0.20 in Equity (without minorities) 1,423.2 1,350.9 Q1 2017: + Deferred taxes on investment properties  c. EUR +0.02 placement of treasury shares 290.9 287.1 and financial derivatives  c. EU

  11. Slide 11: TAG cost of debt and LTV

    TAG cost of debt and LTV 11 11  Cost of debt Ø FINANCIALS  Continuous reduction of average cost of debt in FY 2015-2017.  Upcoming refinancings of bank loans and 3.74% corporate bond in 2017 and 2018 will reduce 3.45% 3.15% 3.09% borrowing costs further. Chemnitz 31 Dec- 31 Dec- 31 Dec- 31 Mar- 2

  12. Slide 12: TAG debt financing structure

    TAG debt financing structure 12 12  Debt maturity profile as of 31 Mar-2017 in EUR millions  Interest rates and maturities (1) FINANCING STRUCTURE Corporate bonds EUR 435m (EUR 310m) Bank loans EUR 1,860m (EUR 524m) Ø interest rate: 4.52% (4.83%) Ø interest rate: 100% fixed rates 2.75% (3.46%) Tot

  13. Slide 13: TAG portfolio Q1 2017

    13 TAGTAG acquisitions portfolio Q1 2016 2017

  14. Slide 14: TAG portfolio in total as of Mar-2017

    TAG portfolio in total as of 31 Mar-2017 14 14  TAG is a leader in affordable housing in Northern and Eastern Germany PORTFOLIO  East Germany in all its fundamentals is catching up – real estate investments in these regions are highly profitable  TAG’s employees are located throughout 10 defined

  15. Slide 15: TAG strong vacancy reduction track record

    TAG strong vacancy reduction track record 15 15 Vacancy development residential units in total Vacancy development residential units per region Q1 2017 PORTFOLIO 2016 Elmshorn TAG Immobilien AG | May 2017

  16. Slide 16: TAG attractive rental growth

    TAG attractive rental growth 16 16 L-f-l rental growth residential units L-f-l rental growth per region Q1 2017 PORTFOLIO 2016 Investments residential units in EUR/sqm 2014 2015 2016 Q1 2017 (12 months) (12 months) (12 months) (3 months) Maintenance and 13.37 15.15 15.41 3.21 capex Basis l-f- l Incl

  17. Slide 17: TAG acquisitions Q1 2017

    17 TAG acquisitions Q1 2016 2017

  18. Slide 18: TAG acquisitions Q1 2017

    TAG acquisitions Q1 2017 18 18 ACQUISITIONS Signing Brandenburg Saxony- Anhalt Total Feb-2017 Mar-2017 Q1 2017 Units 1,441 1,252 2,693 Rentable area sqm 73,312 65,112 138,424 Current net cold rent Brandenburg EUR/sqm/month 4.77 4.82 --- Vacancy 19.3% 7.2% 13.7% Purchase price in EUR m 41.9 42.9 84.8

  19. Slide 19: TAG outlook 2017

    19 TAG acquisitions TAG outlook2016 2017

  20. Slide 20: TAG outlook 2017

    TAG outlook 2017 20 20  FFO EUR 110m – EUR 112m (FY 2016: EUR 97.0m) OUTLOOK Guidance  FFO/s EUR 0.77 (FY 2016: EUR 0.72) FY 2017  Dividend/s EUR 0.60 (FY 2016: EUR 0.57) FFO per share in EUR Dividend per share in EUR 0.72 0.77 0.58 0.62 0.50 0.55 0.57 0.60 2014 2015 2016 2017E 2014 2015 2016 201

  21. Slide 21: Appendix

    21 21 APPENDIX APPENDIX TAG Immobilien AG | May 2017

  22. Slide 22: TAG portfolio details by region Q1 2017

    TAG portfolio details by region Q1 2017 22 22 Region Units Rentable IFRS BV In- Vacancy Vacancy Actual Re- L-f-l rental L-f-l rental Mainte- Capex # area TEUR place Mar. L-f-l Dec. net letting growth growth nance EUR/ sqm yield 2017 2016 cold rent y-o-y y-o-y incl. EUR/ sqm APPENDIX rent EUR/ vacanc

  23. Slide 23: TAG annual valuation by CBRE

    TAG annual valuation by CBRE 23 23 Main results of last annual valuation carried out in Q3 2016 Key metrics  Valuation gains from strong operational development APPENDIX (i.e. vacancy reduction and rental growth) as a sign of strong Mar-2017 Dec-2016 Dec-2015 underlying business fundamentals and TA

  24. Slide 24: TAG portfolio valuation details Q1 2017

    TAG portfolio valuation details Q1 2017 24 24 Region Mar–2017 Mar-2017 Mar-2017 Q1 2017 Q1 2017 Q1 2017 Q1 Q1 2017 Dec-2016 Dec-2016 Dec-2016 Fair Value Fair Value Implied Revaluation Share of yield Share of 2017 Net Fair Value Fair Value Implied (in EUR millions) (IFRS) (EUR/sqm) multiple gain / lo

  25. Slide 25: TAG EPRA Earnings

    TAG EPRA Earnings 25 25 (in EUR millions) Q1 2017 Q4 2016 FY 2016 Net income 22.1 26.6 200.7 APPENDIX Valuation result 0.3 0.6 -163.1 Deferred income taxes on valuation result 3.7 -0.2 43.6 Net revenues from sales -0.1 0.0 -1.8 Cash taxes on net revenues from sales 0.0 0.2 0.7 Fair value valuation o

  26. Slide 26: TAG capex and maintenance

    TAG capex and maintenance 26 26 APPENDIX in EUR millions 2016 2017 Total portfolio Q1 Q2 Q3 Q4 Total FY Q1 Maintenance 6.6 6.6 5.8 6.0 25.0 7.3 Capex 9.6 11.7 13.6 11.6 46.5 7.9 Total 16.2 18.3 19.4 17.6 71.5 15.2 in EUR/sqm 2016 2017 Residential units Q1 Q2 Q3 Q4 Total FY Q1 Maintenance 1.43 1.44 1

  27. Slide 27: TAG return on capex

    TAG return on capex 27 27  Modernization is key element of TAG’s strategy  Methodology APPENDIX Capex measures can be broken down into 1 Incremental revenues = Return on investment  Modernization during re-letting Total investment (tenant turnover)  Modernization of vacant flats 2 Incremental re

  28. Slide 28: TAG return on capex

    TAG return on capex 28 28 Total capex Q1 2017: EUR 7.9m FY 2016: EUR 46.5m APPENDIX (FY 2015: EUR 40.1m) Single unit program Property based program (Equity financed) (Modernisation capex, partly debt financed) Share of total capex: c.65% in Q1 2017 Share of total capex: c.35% in Q1 2017 (c.56% in FY

  29. Slide 29: TAG shareholder structure

    TAG shareholder structure 29 29 Shareholder structure as of 31 Mar-2017  Number of shares (issued) APPENDIX 146.5m  Market capitalisation (31 Mar-2017) EUR 1.8bn  Stock indices MDAX/EPRA  Free Float * 100%  National and international investors with long term investment strategy represent the ma

  30. Slide 30: TAG management board

    TAG management board 30 30 APPENDIX Claudia Hoyer Martin Thiel Dr. Harboe Vaagt COO CFO CLO  Key responsibilities: Property and  Key responsibilities: Controlling,  Key responsibilities: Legal, Human Asset Management, Acquisitions and Accounting, Financing, Taxes, Resources and Transactions Dispo

  31. Slide 31: TAG Contacts

    31 31 TAG Contacts APPENDIX Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-222 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 ir@tag-ag.com ir@tag-ag.com Fax: +49 40

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