Tag Immobilien Ag · XETR:TEG

Tag Immobilien — FY2016 Earnings Presentation

31 slides from Tag Immobilien's earnings presentation, Feb 22, 2017

  1. Slide 1: Conference call presentation FY 2016

    Conference call presentation FY 2016

  2. Slide 2: Content

    Content 22 CONTENT I. TAG highlights Q4 and FY 2016 3 II. TAG financials Q4 and FY 2016 6 III. TAG portfolio FY 2016 13 IV. TAG acquisitions 2016 18 V. TAG revised guidance 2017 20 VI. Appendix 22  Valuation  Capex and maintenance  Corporate bonds  Management Board TAG Immobilien AG | February 2

  3. Slide 3: TAG highlights Q4 and FY 2016

    3 TAG highlights TAG acquisitions Q4 and 2016 FY 2016

  4. Slide 4: TAG highlights Q4 and FY 2016

    TAG highlights Q4 and FY 2016 44 FY 2016 FY 2015 Q4 2016 Q3 2016  Vacancy (residential units) 6.1% 7.5%/7.7%* 6.1% 6.7% HIGHLIGHTS Operational  L-f-L rental growth Y-o-Y 2.0% 1.6% 2.0% 1.9% performance  L-f-L rental growth Y-o-Y incl. vacancy reduction 3.7% 3.3% 3.7% 3.8%  FFO I (EUR/m) 97.0 76.

  5. Slide 5: TAG highlights FY 2016

    TAG highlights FY 2016 55  Strong increase in 2016 FFO and  FFO I up Y-o-Y by EUR 20.7m (+27%) and by EUR 0.10 (+16%) on a per share basis HIGHLIGHTS AFFO  AFFO up Y-o-Y by EUR 14.3m (+40%) and by EUR 0.08 (+28%) on a per share basis  Significant improvements in 2016 NAV and  NAV/s increase to

  6. Slide 6: TAG financials Q4 and FY 2016

    6 TAG financials TAG acquisitions Q4 and FY 2016 2016

  7. Slide 7: TAG income statement (IFRS)

    TAG income statement (IFRS) 77 (in EUR millions) FY 2016 FY 2015 Q4 2016 Q3 2016  Strong increase in rental income by EUR 15.9m FINANCIALS Rental income 275.2 259.3 70.0 69.2 in 2016 compared to 2015 due to external growth (rent new acquisitions less rent Expenses from property management -50.5 -53

  8. Slide 8: TAG FFO calculation

    TAG FFO calculation 88 (in EUR millions) FY 2016 FY 2015 Q4 2016 Q3 2016 Net income 200.7 147.3 26.6 134.0 FINANCIALS + Taxes 46.0 27.8 0.1 40.6 + Net financial result 89.5 96.0 18.8 27.4  FFO I in Q4/FY 2016 increased by EBIT 336.2 271.1 45.5 202.0 - Net financial result  EUR 2.1m compared to Q3

  9. Slide 9: TAG balance sheet (IFRS)

    TAG balance sheet (IFRS) 99 (in EUR millions) 31 Dec-2016 30 Sep-2016 31 Dec-2015 FINANCIALS Non-current assets 3,843.6 3,804.9 3,605.4  Increase in real estate inventory by EUR 42.0m Investment property 3,777.8 3,742.6 3,531.1 in Q4 2016 mainly result of IFRS reclassification from investment prope

  10. Slide 10: TAG NAV calculation

    TAG NAV calculation 10 10 (in EUR millions) 31 Dec-2016 30 Sep-2016 31 Dec-2015  NAV per share development of EUR +0.89 FINANCIALS (+8%) in FY 2016: Equity (without minorities) 1,350.9 1,324.7 1,085.1  EUR -0.55 reduction due to dividend + Deferred taxes on investment 287.1 287.8 245.1 payment pro

  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 during 2015 and 2016.  Upcoming refinancings of bank loans 3.74% and corporate bond in 2017 and 2018 3.45% 3.15% will reduce borrowing costs further (current run rate: reduction of c. 30 Chemni

  12. Slide 12: TAG debt financing structure

    TAG debt financing structure 12 12  Debt maturity profile as of 31 Dec-2016 in EUR millions  Interest rates and maturities (1) Corporate bonds FINANCIALS EUR 435m (EUR 310m) Bank loans EUR 1,826m (EUR 550m) Ø interest rate: 4.52% (4.83%) Ø interest rate: 100% fixed rates 2.82% (3.54%) Total: 94% f

  13. Slide 13: TAG portfolio FY 2016

    13 TAGTAG acquisitions 2016 portfolio FY 2016

  14. Slide 14: TAG portfolio in total as of Dec-2016

    TAG portfolio in total as of 31 Dec-2016 14 14  Geographic regions in accordance with decentralized management PORTFOLIO clusters and strategic relevance.  Change in 2016: split of region “Dresden” into two regions (“Dresden” and “Chemnitz”) in accordance with new internal management and reporting

  15. Slide 15: TAG vacancy reduction and rental growth

    TAG vacancy reduction and rental growth 15 15 PORTFOLIO  Vacancy development residential units  L-f-l rental growth development residential units  Total investments residential units 2014 2015 2016 maintenance and 13.37 15.15 15.41 capex in EUR/ sqm TAG Immobilien AG | February 2017

  16. Slide 16: TAG return on capex

    TAG return on capex 16 16 PORTFOLIO Total capex FY 2016: EUR 46.5m (FY 2015: EUR 40.1m) Single unit program Property based program Share of total capex: c.56% (c.65% FY 2015) Share of total capex: c.44% (c.35% FY 2015) Return on total investment: c.30%-35% Return on total investment: c.8%-12% Return

  17. Slide 17: TAG portfolio in total – FY 2016 by region

    TAG portfolio in total – FY 2016 by region 17 17 Region Units Rentable IFRS BV In- Vacancy Vacancy Current Re- L-f-l L-f-l rental Mainte- Capex Comments # area TEUR place Dec. Dec. net letting rental growth nance EUR/ sqm yield 2016 2015 cold rent growth y-o-y incl. EUR/ sqm rent EUR/ y-o-y vacancy

  18. Slide 18: TAG acquisitions 2016

    18 TAG acquisitions 2016

  19. Slide 19: TAG acquisitions 2016

    TAG acquisitions 2016 19 19 Signing Thuringia/ Saxony- Anhalt Thuringia Saxony-Anhalt NRW Total Nov-2016 Dec-2016 Dec-2016 Dec-2016 FY2016 ACQUISITIONS 2016 Units 353 887 303 107 1,651 Rentable area 20,370 48,803 18,246 9,369 96,788 sqm Current net cold rent 4.42 4.66 4.66 4.68 4.61 EUR/sqm/month Va

  20. Slide 20: TAG revised guidance 2017

    20 TAG revised guidance 2017

  21. Slide 21: TAG revised guidance 2017

    TAG revised guidance 2017 21 21  FFO EUR 104m – EUR 106m (EUR 97.0m in FY 2016) OUTLOOK Previous Guidance FY 2017  FFO/share EUR 0.74 (EUR 0.72 in FY 2016) (Nov-2016)  Dividend EUR 0.59 per share (EUR 0.57 for FY 2016)  FFO EUR 110m – EUR 112m, increase in FFO-Guidance by c. EUR 6m mainly driven

  22. Slide 22: Appendix

    22 22 APPENDIX APPENDIX TAG Immobilien AG | February 2017

  23. Slide 23: TAG annual valuation by CBRE

    TAG annual valuation by CBRE 23 23  Main results of annual valution carried out in Q3 2016: APPENDIX 30 Sep- 30 Sep- 30 Sep-  Yield compression in “A-Locations” as well as in “B-Locations”. Key assumptions / drivers 2016 2015 2014  Valuation gains also from strong operational development Cap rate

  24. Slide 24: TAG portfolio valuation

    TAG portfolio valuation 24 24 Region Dec-2016 Dec-2016 Dec-2016 2016 2016 2016 2016 2016 Dec-2015 Dec-2015 Dec-2015 Fair Value Fair Value Implied Revaluation Share of yield Share of Capex Net Fair Value Fair Value Implied (in EUR millions) (IFRS) (EUR/sqm) multiple gain / loss compression operationa

  25. Slide 25: TAG capex and maintenance

    TAG capex and maintenance 25 25 APPENDIX in EUR millions 2015 2016 Total portfolio Q1 Q2 Q3 Q4 Total FY Q1 Q2 Q3 Q4 Total FY Maintenance 6.6 7.1 5.6 5.9 25.2 6.6 6.6 5.8 6.0 25.0 Capex 6.8 9.9 13.7 9.7 40.1 9.6 11.7 13.6 11.6 46.5 Total 13.4 17.0 19.3 15.6 65.3 16.2 18.3 19.4 17.6 71.5 in EUR/sqm 20

  26. Slide 26: TAG return on capex

    TAG return on capex 26 26  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

  27. Slide 27: TAG capital markets data

    TAG capital markets data 27 27 Institution Analyst Recommen- Price Target Date  High/Low (Q1-Q4 2016) EUR 13.15/EUR 9.85 dation in EUR MM Warburg Moritz Rieser Hold 13.60 22-Feb-17 APPENDIX  Number of shares (issued) 146.5m Berenberg Kai Klose Buy 15.00 20-Feb-17 Baader Bank André Remke Hold 13.60

  28. Slide 28: TAG corporate bonds

    TAG corporate bonds 28 28 APPENDIX  Two corporate bonds outstanding until Aug-2018 (EUR 310m) and Jun-2020 (EUR 125m).  Bonds are included in the Open Market (Entry Standard) of the Frankfurt Stock Exchange Erfurt with participation in the Prime Standard for corporate bonds.  Aug 2013/Feb-2014 –

  29. Slide 29: TAG management board

    TAG management board 29 29 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

  30. Slide 30: TAG management board compensation (bonus)

    TAG management board compensation (bonus) 30 30 APPENDIX  Components  50% paid in cash  50% in shares (treasury shares)  Criteria Based in full on per share data, i.e. annual increase compared to previous year in Dresden  Share price (adjusted for dividend payments)  FFO/s  NAV/s (adjusted fo

  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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