TAG Immobilien AG · XETR:TEG
TAG Immobilien — Q1 2011 Earnings Presentation
32 slides from TAG Immobilien's earnings presentation, 2011
Slide 1: TAG Immobilien AG Q1 2011
TAG Immobilien AG Q1 2011 Q1 - 2011 TAG I 1
Slide 2: Content
Content I. Group overview page 3-8 • Investment case/strategy, structure • Combined entity TAG – Colonia II. Portfolio page 9-20 • Overview • Residential • Commercial • Vacancy reduction III. Group financials page 21-22 Overview • Consolidated balance sheet IV. Financial structure page 23-25 • Overv
Slide 3: TAG investment case
TAG investment case I. Focus: High-quality EUR 1.3 bn German residential real estate in metropolitan regions such as Hamburg, Berlin, North Rhine Westphalia, Salzgitter, Leipzig and Munich II. Plus: Solid EUR 477m German commercial real estate with solvent tenants (45% Siemens) III. Solid financing
Slide 4: Strategic situation of the Group
Strategic situation of the Group I. Consolidation mostly completed • No more write-downs/depreciation of the properties expected • No refinancing issues • Significant reduction in non-property-related costs • Personnel costs dropped to EUR 8.8 m (in total 2010) for the period compared to the previou
Slide 5: Combined entity TAG – Colonia: Strategic rationale – business plan
Combined entity TAG – Colonia: Strategic rationale – business plan Critical mass The combined entity becomes a serious player in terms of size, market liquidity, investability etc. Both companies have high fixed costs. Combined entity can improve profitability significantly Strong potential
Slide 6: Combined entity TAG - Colonia: Portfolio
Combined entity TAG - Colonia: Portfolio Total TAG Colonia Units 26,517 7,508 19,009 Floor Area sqm 1,971,613 799,270 1,172,343 Real Estate Volume TEUR 1,679,929 862,983 816,946 Vacancy % 12.5 7.4 15.9 Net Actual Rent EUR/sqm 5.23 6.05 4.78 Combined entity Q1 - 2011 TAG I 6
Slide 7: Synergies, attractive platform and critical mass
Combined entity TAG - Colonia: Synergies, attractive platform and critical mass General overhead reductions Branches, administration, management Strong potential Lower vacancies expected at Colonia as TAG has proven track record of reducing vacancies rapidly revenue and cost Combination of t
Slide 8: Restructuring and integration
Combined entity TAG - Colonia: Restructuring and integration Already initiated : • Merge the asset management business • Sell Colonia’s housing privatisation business • Review outsourced services, taking them over in the Group (accounting, administrative departments a.o.) Combined entity • Merge the
Slide 9: Portfolio total: real estate volume and rental profit
Portfolio total Real estate volume Rental profit per segment Volumen in EUR million in EUR million 1,793 40.2 40 2000 34.4 35.0 1600 30 826 Portfolio 17.3 1200 12.8 978 19.1 15.8 804 20 22.2 22.9 770 318 800 18.6 6.5 479 490 418 452 10 6.5 400 499 477 386 318 6.1 0 0 12/31/08 12/31/09 12/31/10 03/31
Slide 10: Portfolio residential
Portfolio residential Total TAG Colonia Units 26,517 7,508 19,009 Floor Area sqm 1,692,491 463,593 1,165,898 Real Estate Volume TEUR 1,263,095 458,049 805,046 Vacancy % 13.3 6.3 16.0 Net Actual Rent EUR/sqm 4.98 5.56 4.72 Portfolio Q1 - 2011 TAG I 10
Slide 11: Residential by region
Portfolio residential by region* Munich 2% Leipzig 6% Hamburg 21% NRW Portfolio 13% Others 4% Berlin 27% Salzgitter 27% *as of 03/31/2011 by book value Q1 - 2011 TAG I 11
Slide 12: Residential by region
Portfolio residential by region Region Hamburg Region Berlin Region Saxony/Leipzig Average asset rent: EUR 5.33 Average asset rent: EUR 4.78 Average asset rent: EUR 4.35 – Number of accommodation – Number of accommodation – Number of accommodation units: 5,105 units: 7,208 units: 1,797 – 21% of the
Slide 13: Salzgitter – concrete next steps
Portfolio Salzgitter – concrete next steps Vacancy reduction • Overall vacancy in Salzgitter: 10% • Vacancy in our portfolio: 24% • We are in above-average location…making a single digit vacancy target obvious • 2,000 units are missing for elderly tenants • Chances/angles for marketing: Portfolio 1.
Slide 14: Salzgitter – concrete next steps
Portfolio Salzgitter – concrete next steps Service charge leakage • Vacancy reduction alone helps • We are missing meters for most utilities • Unfortunate contractual issues • Mistakes in previous year’s service charges reconciliation • Opportunities in changing service charge accounting circles (wa
Slide 15: Portfolio commercial
Portfolio commercial 12/31/2009 12/31/2010 03/31/2011 • sqm total 342,911 sqm 335,686 sqm 342,122 sqm • sqm rental 324,971 sqm 323,063 sqm 312,617 sqm • current rental p.a. net of charged costs (EUR m) 26.6 26,0 25.9 • current rental net of charged costs (EUR/sqm) 6.81 6.70 6.91 • vacancy 5.2% 3.8%
Slide 16: Commercial: rental agreement duration and top tenants
Portfolio commercial Duration of commercial rental agreements* TOP 5 tenants** in % of unlimited Rental p.a. annualised 14% Tenants in TEUR rental 2010 past 2018 20% Siemens AG 11,527 45% State/City authorities 1,676 7% 2011 Federal Employment Office 984 4% Portfolio 12% Linde Gas Therapeutics 506 2
Slide 17: Vacancy rate reduction – total
Portfolio – vacancy rate reduction – total * Portfolio * includes a former Siemens office in Munich which is now for sale Q1 - 2011 TAG I 17
Slide 18: Vacancy rate reduction – residential
Portfolio – vacancy rate reduction – residential Portfolio Q1 - 2011 TAG I 18
Slide 19: Vacancy rate reduction – residential
Portfolio – vacancy rate reduction – residential Proven track record of reducing Portfolio vacancies rapidly and steadily in new acquisitions Q1 - 2011 TAG I 19
Slide 20: Vacancy rate reduction – commercial
Portfolio – vacancy rate reduction – commercial * Portfolio * includes a former Siemens office in Munich which is now for sale Q1 - 2011 TAG I 20
Slide 21: Consolidated balance sheet
Group financials (IFRS) Consolidated balance sheet (in EUR m) 12/31/2010 03/31/2011 1,930 1,930 219 204 2000 2000 479 1600 1600 1,701 Group finanicals 1,191 1,191 1200 1200 365 1,211 918 800 800 658 400 400 273 229 240 168 0 0 Assets Liabilities Assets Liabilities Non current assets Equity Current a
Slide 22: TAG rental financial result (without Colonia)
Group financials (IFRS) TAG rental financial result (without Colonia) 13 12.5 11 • Rental profit in TAG even before Colonia acquisition • Vacancy reduction Group finanicals 9 9.7 • Better cost structure 7 8.9 • Carry after interest shows 7.9 that growth is profitable 5 6.4 6.4 3 4.6 3.3 2.6 1 Q1 - 2
Slide 23: Financial structure: credit periods
Financial structure TAG Credit periods as of 12/31/2010: EUR m 2011: 114 17% 2012: 117 18% Financial structure 2013: 54 8% 2014: 62 10% 2015: 57 9% 2016: 44 7% 2017: 146 23% 2018: 15 2% 2019: 0 0% 2020: 38 6% Total 647 100% Stahltwiete, Hamburg Q1 - 2011 TAG I 23
Slide 24: Financial structure: borrowings and interest levels
Financial structure 12/31/2010 12/31/2009 12/31/2008 Bank borrowings in TEUR 647,655 525,856 538,042 non-current 523,512 400,939 407,980 current 124,143 124,917 130,062 net borrowing costs -31,185 -25,329 -27,910 Financial structure Average interest levels in % 12/31/2010 12/31/2009 12/31/2008 non-c
Slide 25: Bank borrowings and loan to value
Financial structure Bank borrowings Loan to Value / Equity ratio in EUR m in % 1000 70 1.029 67.4 60 Financial structure 800 60.0 50 52.9 600 40 130.1 30 400 29.9 400.9 20 24.5 200 19.3 10 124.9 124,1 111.9 0 0 12/31/2009 12/31/2010 03/31/2011 12/31/2009 12/31/2010 03/31/2011 current liabilities LTV
Slide 26: Stock market data TAG
Stock market data TAG as of 03/31/2011 High/Low (Q1- 2011) EUR 7.10/EUR 6.39 Shareholder structure Number of shares 58.57 m Ruffer LLP, UK 20% Taube Hodson Stonex, UK 7% Market capitalisation EUR 403 m Asset Value Investors, UK 6% Stock exchange SDAX/EPRA IPConcept/FvS Strategie SICAV, L 5% Free Flo
Slide 27: Capital increases and acquisitions of TAG in 2010
Capital increases and acquisitions of TAG in 2010 Share Q1 - 2011 TAG I 27
Slide 28: Outlook 2011
Outlook 2011 Operations successfully strengthened Vacancy reduction further intensified Portfolio optimised and strategically expanded Active asset and property management bears fruit Liquidity secured with stable cash flows Continued systematic optimisation of cost processes and efficie
Slide 29: Appendix
TAG TAG Immobilien AG Appendix see
Slide 30: Management Board
Management Board Rolf Elgeti, CEO Colonia Real Estate AG, Management Board since February 2011) TAG Immobilien AG, Management Board (since July 2009), supervisory board from 2008 onwards Bau-Verein zu Hamburg AG, Management Board (since July 2009) Founder of Elgeti Ashdown Advisors Ltd. (200
Slide 31: Contacts
Contacts Rolf Elgeti CEO Telefon: +49 40 380 32-307 TAG Immobilien AG Telefax: +49 40 380 32-390 ir@tag-ag.com Steckelhörn 5 20457 Hamburg Hans-Ulrich Sutter CFO Telefon: +49 40 380 32-300 Telefon: +49 40 380 32-171 Telefax: +49 40 380 32-390 Telefax: +49 40 380 32-390 ir@tag-ag.com www.tag-ag.com A
Slide 32: 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