Branicks Group Ag · XETR:BRNK
Branicks — DIC Asset — Investor Presentation (June 2016)
32 slides from Branicks's investor presentation, June 2016
Slide 1: Company Presentation H1 2016
COMPANY PRESENTATION H1 2016
Slide 2: Agenda
1. BUSINESS MODEL 2. CO-INVESTMENTS 3. FINANCIAL HIGHLIGHTS 4. OUTLOOK 5. SHARE 6. APPENDIX 2
Slide 3: Management Board
MANAGEMENT BOARD Aydin Karaduman Sonja Wärntges Johannes von Mutius CEO since January 2016 CFO since June 2013 CIO since April 2015 Certified economic engineer Certified economist Business Administration Graduate Extensive leadership experience Longtime financial expert with track Approximately 20 y
Slide 4: Strong Footprint in Germany
STRONG FOOTPRINT IN GERMANY Well diversified investments all over Germany One of the biggest listed real estate companies in Germany with c. € 550 mn market cap € 3.2 bn Assets under Management, main focus on office properties (approx. 70%) Balanced investments with around 40% in major metropolitan
Slide 5: Pure Play Commercial Real Estate Platform
PURE PLAY COMMERCIAL REAL ESTATE PLATFORM Commercial Portfolio 5 Note: as of 31. March 2016, thereof € 1.8 bn attributable to DIC Asset AG
Slide 6: Performance Real Estate Management-Platform
PERFORMANCE REAL ESTATE MANAGEMENT-PLATFORM Growing Assets under Management Transaction Volume Assets under Management Sales of € 24.5 mn YTD, with 3 in € mn in € bn properties from Commercial Portfolio (€ 5.0 mn) and 2 properties from Co- Investments (€ 19.5 mn) Acquisitions of around € 35 mn YTD f
Slide 7: Diversified Rental Income
DIVERSIFIED RENTAL INCOME Portfolio Metrics Q1 2016 Q1 2015 Broadly diversified sector and tenant Number of properties 216 236 structure Market value AuM in € bn 3.2 3.3 − 216 properties with rental area of c. 1.7 mn sqm Annualised rental income in € mm 117.5 148.5 − attractive mix of approx. 1,300
Slide 8: Key Strengths
KEY STRENGTHS Strong management Dynamic local expertise with proven track record in German real estate Investment Highlights Own asset & property Long-term secured management platform and stable cash flows from diversified investment portfolio Solid and diversified financial structure 8
Slide 9: Recent Highlights
RECENT HIGHLIGHTS FFO grew strongly by 20% to 14.5 mn Assets under Management in the fund business exceed € 1.1 bn Management fees up more than 100% to € 7.4 mn High sales profits after „DIC Office Balance III“ transaction LTV at 58.8% 9
Slide 10: LTV Target Achieved – Main Goals Going Forward
LT V TARGET ACHIEVED – MAIN GOALS GOING FORWARD Grow Assets under Management in the fund and 3rd party business Expand product and investor base in Germany Increase fees and equity returns through real LTV Target estate management platform of 58.8% Active asset management of own portfolio – successf
Slide 11: Agenda
1. BUSINESS MODEL 2. CO-INVESTMENTS 3. FINANCIAL HIGHLIGHTS 4. OUTLOOK 5. SHARE 6. APPENDIX 11
Slide 12: Fund Business – Strong Growth Planned
FUND BUSINESS – STRONG GROWTH PLANNED Two steady sources of income: equity returns and real estate management fees Strategic approach: − investment criteria differ from Commercial Portfolio − niche products in core segment − equity-efficient double-digit returns (10-15%) − attracts additional German
Slide 13: Assets Under Management Crossed €1 Billion Threshold
ASSETS UNDER MANAGEMENT CROSSED €1 BILLION THRESHOLD FFO contribution Funds volume (AuM) Transfer of properties with a market value in € mn in € mn of around € 270 mn in January to new fund „DIC office Balance III“ Two properties worth € 35 mn acquired YTD for „DIC Office Balance II“ and „DIC HighSt
Slide 14: Launch of New Office Fund in Q1 2016
LAUNCH OF NEW OFFICE FUND IN Q1 2016 DIC Office Balance III – Key Data Properties 9 office properties Successful placement among German institutional Locations Berlin, Cologne, Munich, Frankfurt, and investors (pension funds, superannuation schemes, other economically strong regions savings banks) L
Slide 15: MainTor – The Riverside Financial District
MAINTOR- THE RIVERSIDE FINANCIAL DISTRIC T 1 „MAINTOR PRIMUS“ 6 „WINX“ - Office 5,500 sqm - Office 35,000 sqm - Sold in 2011 - 60% pre-let to Union Investment - DIC headquarter - sold to well-known German HNWI - Completion 2014 - Completion end of 2017 New urban riverside landmark in CBD/banking dis
Slide 16: Agenda
1. BUSINESS MODEL 2. CO-INVESTMENTS 3. FINANCIAL HIGHLIGHTS 4. OUTLOOK 5. SHARE 6. APPENDIX 16
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS FFO grew strongly by 20% to € 14.5 mn Real estate management fees rose >100% to € 7.4 mn Profit for the period at € 11.8 mn (>100%) Significant progress in deleveraging – LtV decreased to 58.8% Interest result improved by 26% to € -11.6 mn 17 Note: FFO: Earnings before depreciat
Slide 18: LTV Significantly Reduced to <60%
LT V SIGNIFICANTLY REDUCED TO <60% Loan-to-value ratio Target of Strategy 2016 already in % achieved in January Total equity € 8.5 mn higher, mainly attributable to increased profit in Q1 2016 Loan-to-value ratio reduced by 380 bp to 58.8% (YE 2015: 62.6%) Equity and Liabilities in EUR thousand 18
Slide 19: Optimised Financial Structure
OPTIMISED FINANCIAL STRUC TURE Interest rate Interest result improved 26% to € -11.6 mn Debt Maturities in % in % (Q1 2015: € -15.6 mn) based on lower average interest rate and reduced debt after repayment of loans Average interest rate at 3.4% after favourable refinancings in 2015 Average debt mat
Slide 20: Operating Result
OPERATING RESULT Gross rental income Management fees Sales proceeds in €mn in € mn in € mn Gross rental income lower at € 27.6 mn (Q1 2015: € 35.1 mn) after high sales activities from Commercial Portfolio in 2015 Management fees rose to € 7.4 mn mainly due to partially recognised set-up fee for the
Slide 21: Efficient Cost Ratio
EFFICIENT COST RATIO Operating costs rose by 5% to € 6.1 mn Operating costs Cost ratio1 in € mn in % Cost ratio down to 4.5%, adjusted by set-up fee for DIC OB III transaction 21 Note 1. adjusted by set-up fee for DIC OBIII transaction on quarterly basis
Slide 22: Substantially Higher Operative Earnings
SUBSTANTIALLY HIGHER OPERATIVE EARNINGS FFO Profit for the period Earnings per share FFO considerably improved to € 14.5 mn in € mn in € mn in € (Q1 2015: € 12.1 mn) Profit for the period strongly increased to € 11.8 mn (Q1 2015: € 1.3 mn) attributable to improved net interest income and impact of D
Slide 23: Agenda
1. BUSINESS MODEL 2. CO-INVESTMENTS 3. FINANCIAL HIGHLIGHTS 4. OUTLOOK 5. SHARE 6. APPENDIX 23
Slide 24: Guidance 2016
GUIDANCE 2016 Targets for 2016 − Gross rental income of c. € 100 mn − FFO of € 43 – 45 mn − Strong growth of fund business, acquisition volume of € 400 – 450 mn planned* − Ongoing portfolio optimisation with disposals of around € 80 – 100 mn * Transaction of DIC Office Balance III not included 24
Slide 25: Agenda
1. BUSINESS MODEL 2. CO-INVESTMENTS 3. FINANCIAL HIGHLIGHTS 4. OUTLOOK 5. SHARE 6. APPENDIX 25
Slide 26: DIC Asset Share
DIC ASSET SHARE Shareholder structure thereof: Free float Total shares: 68,577,747; main shareholders 68.2% are long-term investors solvia family office 5.1% RAG Foundation DIC Asset listed in SDAX, EPRA and DIMAX 4.8% British Empire and General Trust Proposed dividend payment of € 0.37 3.1% Deutsch
Slide 27: Agenda
1. BUSINESS MODEL 2. CO-INVESTMENTS 3. FINANCIAL HIGHLIGHTS 4. OUTLOOK 5. SHARE 6. APPENDIX 27
Slide 28: Net Asset Value Increased
NET ASSET VALUE INCREASED € mn Sales reduced portfolio market value by € 261 mn to € 2,199.2 mn (YE 2014: € 2,396.9 mn) Market value portfolio as at 31.12.2014 2,396.9 NAV per share increased to € 12.89 (YE 2014: € 12.61) Disposals Co-Investments -1.2 Investments 43.2 Additions Funds 18.5 Net asset
Slide 29: Profit and Loss Account
PROFIT AND LOSS ACCOUNT € mn Q1 2016 Q1 2015 Gross rental income 27.6 35.1 -27% Net rental income 23.5 31.0 -24% Administr./Personnel expenses -6.1 -5.8 +5% Management fee income 7.4 1.4 >100% Depreciation -9.1 -11.0 -17% Net other income 0.1 0.1 +0% Profit on property disposals 9.9 0.3 >100% Share
Slide 30: Balance Sheet Overview
BALANCE SHEET OVERVIEW € mn 31.03.2016 31.12.2015 Total assets 2,200.4 2,456.1 Non-current assets 2,025.0 1,961.6 Current assets 175.5 494.5 Equity 800.6 792.1 Non-current liabilities 1,307.9 1,342.2 Current liabilities 91.9 321.8 Other liabilities 26.8 26.4 Total liabilities 1,399.8 1,664.0 Balance
Slide 31: FFO Reconciliation
FFO RECONCILIATION € mn Q1 2016 Q1 2015 FFO margin (FFO in relation to gross 31.0 -24% rental income) increased significantly Net rental income 23.5 by around 19 pp to 53% due to the Administrative expenses -2.2 -2.0 +10% decrease in interest expenses and Personnel expenses -3.9 -3.8 +3% higher mana
Slide 32: Get in Touch
GET IN TOUCH Peer Schlinkmann DIC Asset AG Neue Mainzer Str. 20 MainTor Head of Investor Relations 60311 Frankfurt am Main phone: +49 69 94 54 858-1221 fax: +49 69 94 54 858-9399 web: www.dic-asset.de/ir e-mail: [email protected] DISCLAIMER: This publication constitutes neither an offer to sell nor a