Tag Immobilien Ag · XETR:TEG

Tag Immobilien — 9M 2014 Earnings Presentation

36 slides from Tag Immobilien's earnings presentation, Jun 11, 2014

  1. Slide 1: 9M 2014 Figures

    9M 2014 Figures

  2. Slide 2: Content

    Content 22 CONTENT I. Highlights 9M 2014 3 II. Financials 5 III. Portfolio and Platform 11 IV. Acquisitions and Disposals 16 V. TAG Share 19 VI. TAG Management Team 22 VII. Outlook / Guidance 25 VIII. Strategy Update 27 IX. Appendix 29 TAG Immobilien AG | 9M 2014

  3. Slide 3: Highlights 9M 2014

    33 Highlights 9M 2014 TAG Immobilien AG | H1 figures 2014

  4. Slide 4: TAG Highlights 9M 2014

    TAG Highlights 9M 2014 44  Overview of financial metrics (9M 2014)  Sale of properties in Berlin (Marzahn) in Nov. 2014 OVERVIEW  Rental income (total): EUR 192.9m  Purchase price: EUR 170.4m, book profit (IFRS, after (EUR 188.0m in 9M 2013) annual revaluation): approx. EUR 35m  Net rental inco

  5. Slide 5: Financials

    55 Financials TAG Immobilien AG | H1 figures 2014

  6. Slide 6: TAG Income Statement (IFRS)

    TAG Income Statement (IFRS) 66 Including commercial sDisposal of commercial (in EUR millions) 9M 2014 9M 2013 FY 2013 Q3 2014 Q3 2013 portfolio in May 2014; closing of FINANCIALS Rental income  192.9  188.0 251.0  62.4 62.5 3,000 unit acquisition during H1, closing of 4,000 unit acquisition Expe

  7. Slide 7: TAG FFO Calculation (Re-defined)

    TAG FFO Calculation (Re-defined) 77 (in EUR millions) 9M 2014 9M 2013 FY 2013 Q3 2014 Q3 2013 Net income 63.5 38.2 27.0 49.3 11.8 FFO + Taxes 19.4 0.4 -3.9 10.1 1.8 + Net financial result 83.0 76.2 104.5 24.5 25.4 EBIT 165.9 114.8 127.6 83.9 39.0 - Net financial result (cash) -70.3 -72.7 -97.7 -23.0

  8. Slide 8: TAG Balance Sheet (IFRS)

    TAG Balance Sheet (IFRS) 88 (in EUR millions) 30-Sep-2014 30-Jun-2014 31-Dec-2013 KEY BALANCE SHEET ITEMS Non-current assets 3,560.4 3,359.5 3,581.2  Increase in Q3 due to closing Investment property  3,493.7 3,293.4 3,544.1 of 4,000 unit acquisition in Other financial assets 47.9 47.5 18.2 August

  9. Slide 9: TAG Valuation – NAV (Re-defined)

    TAG Valuation – NAV (Re-defined) 99 NAV (in EUR millions) 30-Sep-2014 30-Jun-2014 31-Dec-2013 Equity (without minorities) 1,007.8 1,079.7 1,107.3 + Deferred taxes 126.2 116.5 120.1 + Fair value of financial derivatives 8.0 8.0 13.8 = EPRA NAV (as previously reported) 1,142.0 1,204.0 1,241.2 + Deferr

  10. Slide 10: TAG Debt financing structure

    TAG Debt financing structure 10 10 Debt maturity profile as of 30-Sep-2014 Interest rates and maturities Current Average Maturing Average DEBT FINANCING STRUCTURE amount interest in the next interest rate rate 3 years (maturing in the next (in EUR millions) 3 years) in EURm 310 Bonds 435 4.52% - - 7

  11. Slide 11: Portfolio and Platform

    11 11 Portfolio and Platform TAG Immobilien AG | H1 figures 2014

  12. Slide 12: TAG Portfolio in total 9M 2014

    TAG Portfolio in total 9M 2014 12 12  Growth in recent years and disposal of PORTFOLIO commercial portfolio has triggered the need for an update of geographic portfolio regions  Renewed definitions of geographic regions in accordance with decentralized management clusters and strategic relevance 

  13. Slide 13: TAG Portfolio – 9M 2014 by region

    TAG Portfolio – 9M 2014 by region 13 13 Region Units IFRS BV In-place Vacancy Net in- Re- L-f-l Mainte- Capex Comments yield place letting rental nance rent rent growth PORTFOLIO EUR / EUR / y-o-y EUR / EUR / # TEUR % % sqm sqm % sqm sqm Berlin 13,241 683,550 6.7% 4.7% 5.09 5.75 2.2% 3.33 5.44 Consi

  14. Slide 14: TAG Annual portfolio valuation by CBRE

    TAG Annual portfolio valuation by CBRE 14 14 Region 2014 Fair 2014 Fair 2014 Implied Revaluation Capex Net 2013 Fair 2013 Fair 2013 Implied PORTFOLIO VALUATION Value (IFRS) Value / sqm multiple gain / loss acquisitions Value (IFRS) Value / sqm multiple (in EUR millions) and other movements Berlin 67

  15. Slide 15: TAG Property Platform

    TAG Property Platform 15 15 TAG runs the most efficient Property and Asset Management platform PROPERTY PLATFORM  Property and Asset Management FTE / 1000 units  Up to 10 LIMs (“Leiter Immobilien-Management”/ Head of 24.02 Real Estate Management) to oversee and manage TAG’s in EUR regional sub-pla

  16. Slide 16: Acquisitions and Disposals

    16 16 Acquisitions and Disposals TAG Immobilien AG | H1 figures 2014

  17. Slide 17: TAG Acquisitions 2014

    TAG Acquisitions 2014 17 17 Erfurt Leipzig Dresden ACQUISITIONS Units 3,985 270 1,503 Floor area in sqm 236,000 17,703 85,452 Net rental EUR/sqm/month 5.24 5.00 4.20 Vacancy 10.7% 0.4% 12,9% Purchase price EURm 120.5 11.3 37.8 Erfurt Net actual rent p.a. EURm 12.4 1.05 3.75 Location Hermsdorf, Jena,

  18. Slide 18: TAG Disposals 2014

    TAG Disposals 2014 18 18 Berlin (Marzahn) Commercial portfolio DISPOSALS Units 2,600 21 Floor area in sqm 162,656 270,000 Net rental EUR/sqm/month 4.89 7.50 Vacancy 1.2% 10% Commercial, Planckstraße, Hamburg Book profit (IFRS) EURm approx. 35 1.0 Selling price / net cash proceeds EURm 170.4 / approx

  19. Slide 19: TAG share

    19 19 TAG share TAG Immobilien AG | H1 figures 2014

  20. Slide 20: TAG Share repurchase

    TAG Share repurchase 20 20  Rationale  Details SHARE REPURCHASE PROGRAMME  Successful disposals with high cash inflows  Tender period between 15-Sep-2014 and 14-Oct- 2014 at a range of EUR 8.35 to EUR 9.35 per  Excess cash on balance sheet given currently limited share opportunities for accreti

  21. Slide 21: TAG Capital markets heads-up

    TAG Capital markets heads-up 21 21  Broker recommendations update  High/Low (Jan/Oct 2014) Institution Broker Recommen- Target Date CAPITAL MARKETS HEADS-UP EUR 8.52/EUR 9.65 dation price  Number of shares (issued) 131.3m Lampe Georg Kanders Buy 10.5 03-Nov-14 HSBC Thomas Martin Neutral 10.1 03-N

  22. Slide 22: TAG Management Team

    22 22 TAG Management Team TAG Immobilien AG | H1 figures 2014

  23. Slide 23: TAG Management Board

    TAG Management Board 23 23 MANAGEMENT TEAM 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 Transaction

  24. Slide 24: TAG Supervisory Board

    TAG Supervisory Board 24 24  Current composition of the TAG Supervisory Board  Appointment process of Rolf Elgeti to the SUPERVISORY BOARD Supervisory Board  Lothar Lanz (Chairman) - since 2013, prior CFO of Axel Springer AG from 2009 to 2014, member of various supervisory  Dr. Ingo-Hans Holz to

  25. Slide 25: Outlook / Guidance

    25 25 Outlook / Guidance TAG Immobilien AG | H1 figures 2014

  26. Slide 26: TAG Guidance

    TAG Guidance 26 26 GUIDANCE (in EUR) 2014E 2015E FFO per share (re-defined) 0.64 0.67 - 0.69 FFO per share (as previously reported) 0.69 0.71 - 0.73 Dividend per share 0.50 0.55 Dividend per share (EUR) FFO I per share (EUR, re-defined) 0.67 0.55 - 0.69 0.50 0.64 0.35 0.47 2013A 2014E 2015E 2013A 20

  27. Slide 27: Strategy Update

    27 27 Strategy Update TAG Immobilien AG | H1 figures 2014

  28. Slide 28: TAG Strategy update

    TAG Strategy update 28 28 The three pillar TAG investment case and strategy framework STRATEGY UPDATE  “High Yield” investment profile  Highest FFO and dividend yield profile amongst peer group  Total return focus on distributions to shareholders rather than un-crystalized NAV growth  Anti-cycli

  29. Slide 29: Appendix

    29 29 Appendix TAG Immobilien AG | H1 figures 2014

  30. Slide 30: TAG Capex and Maintenance

    TAG Capex and Maintenance 30 30 APPENDIX 2014 2013 in EUR millions Q1 Q2 Q3 Total Q1 Q2 Q3 Q4 Total Maintenance Residential 5.75 5.89 6.05 17.69 6.66 5.64 6.69 7.39 26.40 Commercial 0.59 0.53 0.06 1.18 0.53 0.13 0.29 0.54 1.50 Capex Residential 7.73 6.55 6.98 21.26 1.55 5.98 3.88 7.84 19.26 Commerci

  31. Slide 31: TAG P&L positions (residential/commercial)

    TAG P&L positions (residential/commercial) 31 31 Residential Commercial Continuing Discontinued Total 9M Residential Commercial Continuing Discontinue Total Q3 9M 2014 properties operations operation 2014 Q3 2014 properties operations d operation 2014 APPENDIX and 9M 2014 (sold and serviced Q3 2014

  32. Slide 32: TAG Annual Valuation by CBRE 2014

    TAG Annual Valuation by CBRE 2014 32 32  Details on asset vs. share deals APPENDIX  For valuation purposes TAG divides its regions in two Assumptions / drivers 2014 2013 markets: assets deal markets and share deal markets, Cap rate (%) 5.56 5.52 determined on public available information (e.g. dat

  33. Slide 33: TAG Convertible Bonds

    TAG Convertible Bonds 33 33  All Convertibles trade in the money APPENDIX  The first has been converted in July 2012 ahead of maturity  Partly buy back in 2013 to reduce dilution effect on NAV  Convertibles have enabled TAG to grow in a capital efficient and NAV accretive manner TAG Immobilien A

  34. Slide 34: TAG Notes

    TAG Notes 34 34 APPENDIX TAG Immobilien AG | 9M 2014

  35. Slide 35: TAG Notes

    TAG Notes 35 35 APPENDIX TAG Immobilien AG | 9M 2014

  36. Slide 36: TAG Contacts

    36 36 TAG Contacts Martin Thiel CFO Dominique Mann TAG Immobilien AG Head of Investor & Public Relations Fon: +49 40 380 32-222 Steckelhörn 5 ir@tag-ag.com Fon: +49 40 380 32-305 20457 Hamburg Fax: +49 40 380 32-388 Fon: +49 40 380 32-0 ir@tag-ag.com Fax: +49 40 380 32-388 www.tag-ag.com info@tag-ag

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