Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Q2 2021 Earnings Presentation
46 slides from Tag Immobilien's earnings presentation, August 2021
Slide 1: Conference call presentation Q2 2021
Conference call presentation Q2 2021
Slide 2: Content
Content 22 I. TAG highlights Q2 2021 3 II. TAG financials Q2 2021 6 III. TAG German portfolio Q2 2021 12 IV. TAG portfolio valuation H1 2021 16 V. TAG Poland business update 18 VI. TAG ESG ratings 23 VII. TAG guidance FY 2021 25 VIII. Appendix 27 German portfolio details by region German portfol
Slide 3: TAG highlights Q2 2021
33 TAG highlights Q2 2021 TAG Immobilien AG | August 2021 | 3
Slide 4: TAG highlights Q2 2021
TAG highlights Q2 2021 44 Q2 2021 Q1 2021 Q4 2020 FY 2020 Vacancy (residential units) 5.8% 5.9% 5.3%*/4.5% 5.3%*/4.5% Vacancy (total portfolio) 6.1% 6.1% 5.6% 5.6% Operational performance L-f-l rental growth y-o-y 1.6% 1.4% 1.4% 1.4% German portfolio L-f-l rental growth y-o-y (incl. vacancy
Slide 5: TAG highlights Q2 2021
TAG highlights Q2 2021 55 H1 2021 Q1 2021 FY 2020 Revenues from sale of properties (in EURm) 40.8 19.2 73.4 Results operations Poland (FFO II impact, in EURm) 4.5 1.9 0.1 Units handed over 390 198 719 Operational performance Units sold 267 163 509 Poland Build-to-hold units (contractually secured pi
Slide 6: TAG financials Q2 2021
66 TAG financials Q2 2021 TAG Immobilien AG | August 2021 | 6
Slide 7: TAG income statement
TAG income statement* 77 (in EURm) Q2 2021 Q1 2021 H1 2021 H1 2020 FY 2020 1 Slightly reduced net actual rent q-o-q as a result of ongoing sales (signed in 2020 with closing in 2021); increase in net actual rent in H1 2021 in comparison to H1 2020 by EUR 6.3m (3.9%), thereof 1.6% from total l-f-l re
Slide 8: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation 88 (in EURm) Q2 2021 Q1 2021 H1 2021 H1 2020 FY 2020 Consolidated net profit 289.6 34.5 324.1 212.8 402.6 - Net income Poland -6.9 -0.8 -7.7 3.0 -3.6 1 EBITDA q-o-q nearly unchanged; increase by EUR 1.2m in H1 Net income Germany 282.7 33.7 316.4 215.8 399.1 2021
Slide 9: TAG balance sheet
TAG balance sheet 99 (in EURm) 30 Jun-2021 31 Dec-2020 Non-current assets 6,334.7 5,949.2 Investment property 1 6,206.4 5,819.2 1 Increase in book value of investment properties by EUR 387.2m mainly result of portfolio valuation gain (EUR 310.4m) and capex in H1 2021 (EUR 29.6m). Deferred tax assets
Slide 10: TAG EPRA NTA calculation
TAG EPRA NTA calculation 10 10 EPRA Net Tangible Assets (in EURm) 30 Jun-2021 31 Dec-2020 Equity (without minorities) 2,787.9 2,602.6 + Effect from conversion of convertible bonds 2017/2022 27.2 25.9 + Deferred taxes on investment properties and financial derivatives 633.3 567.4 + Fair value of fina
Slide 11: TAG financing structure
TAG financing structure 11 11 Debt structure as of 30 Jun-2021 Key financial KPIs as of 30 Jun-2021 Ø Maturity total financial debt 6.6 years 9% Ø Maturity bank loans 7.7 years Debt volume Ø interest rate % fixed rates 8% Ø Interest rate total financial debt 1.45% EUR 2,084m 1.69% 97% EUR 488m 0.63%
Slide 12: TAG German portfolio Q2 2021
12 12 TAG German portfolio Q2 2021 TAG Immobilien AG | August 2021 | 12
Slide 13: TAG at a glance
TAG at a glance 13 13 Leading company in the affordable housing sector in Northern and Eastern Germany Strategy TAG is a specialist for affordable housing in Eastern and Northern Germany and among the largest owners of residential properties in Eastern Gdansk Germany Fully integrated platform vi
Slide 14: TAG German portfolio rental growth and capex allocation
TAG German portfolio rental growth and capex allocation 14 14 Rental growth achieved with moderate capex investments due to strong underlying fundamentals Rental growth achieved with moderate investments Maintenance & capex development (in EUR/sqm/year) 19.2 20.4 21.6 18.8 TAG creates attractive r
Slide 15: TAG German portfolio vacancy reduction residential units
TAG German portfolio vacancy reduction residential units 15 15 Strong track record of vacancy reduction; temporary increases in H1 2020 and Q1 2021 as a result of the Covid-19-pandemic Acquisitions +0.5% Acquisitions 6.1% Acquisitions +0.8% 5.9% +0.3% Acquisitions 5.9% 5.8% 5.7% 5.6% 5.5% +0.1% 5.3%
Slide 16: TAG portfolio valuation H1 2021
16 16 TAG portfolio valuation H1 2021 TAG Immobilien AG | August 2021 | 16
Slide 17: TAG portfolio valuation overview
TAG portfolio valuation overview 17 17 Portfolio valuation result Development of gross yield 7.1% H1 2021 vs. H1 2020 H1 2021 H1 2020 6.7% 305.6* 174.0 6.5% in EUR m 6.3% semi-annual valuation uplift (w/o capex) 5.2% 3.3% 6.1% 5.9% thereof from yield compression 89% 83% 5.7% 5.5% thereof from op
Slide 18: TAG Poland business update
18 18 TAG Poland business update TAG Immobilien AG | August 2021 | 18
Slide 19: Poland portfolio overview
Poland portfolio overview 19 19 Unlocking superior returns by addressing the growing demand of the Polish residential-for-rent market Strategic rationale Current locations/ projects Against the backdrop of its strong macroeconomic and demographic growth, Poland is experiencing a structural gap bet
Slide 20: Poland build-to-hold pipeline
Poland build-to-hold pipeline 20 20 Polish build-to-hold projects currently concentrated in growth regions in Poland’s largest regional hubs Build-to-hold projects overview Build-to-hold projects locations Pipeline locations Wroclaw Poznan Lodz Gdansk Total Gdansk Total number of projects 10 12 4 1
Slide 21: Poland rental units in offer
Poland rental units in offer 21 21 First Build-to-hold projects in Poland finished in Wroclaw in Q2 2021, first tenants moved in (www.vantagerent.pl) Build-to-hold projects in Wroclaw in offer Dorzecze Legnickiej IV Buforowa 89 III Legnicka 33 Total Total number of units in offer as of 31 Jul-2021 5
Slide 22: Poland build-to-sell pipeline
Poland build-to-sell pipeline 22 22 Attractive build-to-sell projects offering strong cashflows and significant support to FFO II Build-to-sell projects overview Build-to-sell projects locations Pipeline location Wroclaw Gdansk Total Total number of projects 10 1 11 Gdansk Total number of project st
Slide 23: TAG ESG ratings
23 23 TAG ESG ratings TAG Immobilien AG | August 2021 | 23
Slide 24: TAG ESG ratings
TAG ESG ratings 24 24 TAG ranks among the top ratings in the real estate sector ESG Rating and Award improvements TAG’s ESG disclosure improvement In 2020, we have placed particular emphasis on improving our ESG performance and reporting in order to better meet the expectations of Sustainalytics a
Slide 25: TAG guidance FY 2021
25 25 TAG guidance FY 2021 TAG Immobilien AG | August 2021 | 25
Slide 26: TAG FFO and dividend guidance FY 2021 (unchanged)
TAG FFO and dividend guidance FY 2021 (unchanged) 26 26 For purpose of the guidance no further acquisitions/disposals in 2021 assumed FFO I +4% 178-182m (EUR) vs. 2020 FFO I guidance 2021 purely refers to German rental business as rental activities in Poland just started in Jun-2021 (FFO I from
Slide 27: Appendix
27 27 APPENDIX TAG Immobilien AG | August 2021 | 27
Slide 28: TAG German portfolio details by region
TAG German portfolio details by region 28 28 Region Units Rentable IFRS BV Gross Vacancy Vacancy Net actual Re-letting l-f-l rental l-f-l rental Mainte- Capex # area EURm yield Jun- Dec- rent rent growth growth nance EUR/sqm sqm Jun- 2021 2020* EUR/ sqm EUR/ y-o-y y-o-y incl. EUR/sqm 2021 sqm vacanc
Slide 29: TAG German portfolio vacancy reduction and rental growth
TAG German portfolio vacancy reduction and rental growth 29 29 Vacancy development 6M 2021* l-f-l rental growth (y-o-y) 6M 2021 APPENDIX Berlin 3.8% Berlin from 3.9% to 3.8% -0.1% 3.0% Hamburg 2.2% Erfurt from 2.4% to 2.4% +/-0% 2.4% Erfurt 2.2% Dresden from 1.9% to 2.1% +0.2% 1.6% Chemnitz 2.2% Che
Slide 30: TAG German portfolio valuation details
TAG German portfolio valuation details 30 30 Share of Jun-2021 Jun-2021 Jun-2021 operational Dec-2020 Dec-2020 Dec-2020 Region YTD-2021 Share of yield Fair value Fair value Implied performance/ Fair value Fair value Implied (in EURm) Valuation result compression (IFRS) (EUR/sqm) multiple other marke
Slide 31: TAG income statement details Germany and Poland
TAG income statement details Germany and Poland 31 31 Germany Poland Total Germany Poland Total Germany Poland Total (in EURm) Q2 2021 Q2 2021 Q2 2021 Q1 2021 Q1 2021 Q1 2021 FY 2020 FY 2020 FY 2020 APPENDIX Net actual rent* 82.9 0.0 82.9 83.1 0.0 83.1 322.5 0.0 322.5 Expenses from property -14.4 0.
Slide 32: TAG EPRA NAV calculations
TAG EPRA NAV calculations 32 32 EPRA NRV EPRA NTA EPRA NDV APPENDIX Net reinstatement value Net tangible assets Net disposal value (in EURm) 30 Jun-2021 30 Jun-2021 30 Jun-2021 Equity (before minorities) 2,787.9 2,787.9 2,787.9 Effect from conversion of convertible bonds 2017/2022 27.2 27.2 27.2 Dif
Slide 33: TAG EPRA Earnings
TAG EPRA Earnings 33 33 (in EURm) Q2 2021 Q1 2021 H1 2021 H1 2020 FY 2020 Net income Germany 282.7 33.7 316.4 212.8 399.1 Valuation result -306.3 0.7 -305.6 -172.4 -327.0 APPENDIX Deferred income taxes on valuation result 58.9 3.2 62.1 47.2 64.3 Net income from sales 0.3 -1.1 -0.8 1.4 -40.2 Cash tax
Slide 34: TAG LTV calculation
TAG LTV calculation 34 34 APPENDIX (in EURm) 30 Jun-2021 31 Mar-2021 31 Dec-2020 31 Dec-2019 Non-current and current liabilities to banks 2.072,9 2,041.0 1,977.9 1,901.2 Non-current and current liabilities from corporate bonds and other loans 544.6 597.7 495.9 403.0 Non-current and current liabiliti
Slide 35: TAG interest coverage ratio (ICR) calculation
TAG interest coverage ratio (ICR) calculation 35 35 (in EURm) Q2 2021 Q1 2021 H1 2021 H1 2020 FY 2020 APPENDIX + Interest income 0.5 0.1 0.6 9.9 10.2 - Interest expenses -18.3 -12.2 -30.4 -25.6 -116.6 + Other financial result 2.0 -1.2 0.7 1.4 -0.7 = Net financial result -15.8 -13.3 -29.1 -14.3 -107.
Slide 36: TAG cost of debt and LTV
TAG cost of debt and LTV 36 36 Cost of debt Ø in % LTV in % APPENDIX 3.45 3.15 62.7 2.34 57.1 1.92 52.3 1.73 47.3 1.49 1.45 44.8 45.1 44.1 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 30 Jun- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 30 Jun- 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017
Slide 37: TAG strong development of financing metrics
TAG strong development of financing metrics 37 37 ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm APPENDIX 479 481 460 453 450 449 445 5.7 5.2 13.4 4.7 12.5 3.8 11.6 11.6 3.0 11.3 11.2 10.9 1.9 2.3 2015 2016 2017 2018 2019 2020 H1 2021 2015 2016 2017 2018 2019 2020 H1 2021 201
Slide 38: TAG ESG strategy and core axes
TAG ESG strategy and core axes 38 38 Sustainability is an essential part of TAG’s corporate vision APPENDIX Improving energy efficiency and reducing emissions Sustainability principles and guidelines at TAG Environment Best possible cost-benefit ratio Business Anti- Anti- principles discrimination c
Slide 39: TAG ESG commitments
TAG ESG commitments 39 39 TAG continues to implement sustainable development goals TAG’s sustainability goals TAG’s commitment to the implementation of UNSDG APPENDIX Our economic goal At TAG, we make it part of Secure future viability by maintaining and expanding the value of our the corporate resp
Slide 40: TAG Affordable and liveable housing
TAG Affordable and liveable housing 40 40 A social purpose as a base of TAG’s business model APPENDIX A business answering social needs TAG’s business is tackling social issues for affordable, liveable housing • Provide affordable housing • Core business of affordable housing • Make affordable housi
Slide 41: TAG Corporate ESG management structure
TAG Corporate ESG management structure 41 41 Integration of ESG issues in corporate decision-making processes APPENDIX ESG corporate structure Smooth channels for implementation and communication Decision making and tactical Yearly ESG meeting to review the ESG Approval of main pillar strategies
Slide 42: TAG Developing our portfolio responsibly
TAG Developing our portfolio responsibly 42 42 TAG is committed to decarbonizing its existing portfolio; investments of more than EUR 1 bn in highly energy efficient buildings in Poland Sustainable residential housing Case study: Buforowa 89 – development project in Wroclaw APPENDIX 1 2 3 Project Bu
Slide 43: TAG Our responsibility to society
TAG Our responsibility to society 43 43 TAG contributes to a more sustainable society through affordable and liveable housing APPENDIX Key areas of tenant support Case study: digitalisation in the city of Gera 1 2 Tenant satisfaction Liveable and progressive neighbourhoods • On-site services to sati
Slide 44: TAG Our employees shape our future
TAG Our employees shape our future 44 44 TAG is committed to offering a fair, supportive, empowering working environment to its employees APPENDIX Key areas of employee empowerment TAG commitment to its employees 1 2 3 Inaugural TAG Award in 2020 We live our values Ready for the Responsibility and f
Slide 45: TAG share data
TAG share data 45 45 Shareholder structure as of 30 Jun-2021 Share information as of 30 Jun-2021 APPENDIX Market cap EUR 3.9bn 9.9% MFS (Massachusetts Financial Services Company), USA NOSH issued 146.5m 9.9% 7.7% The Capital Group Companies Inc., USA NOSH outstanding 146.4m 7.7% 7.9% BlackRock Inc.,
Slide 46: TAG contacts
TAG contacts 46 46 Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-305 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 Fax: +49 40 380 32-388 ir@tag-ag.com ir@tag-ag.c