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Patrizia — PATRIZIA Immobilien — Investor Presentation (March 2014)

48 slides from Patrizia's investor presentation, March 2014

  1. Slide 1: PATRIZIA Immobilien AG

    PATRIZIA Immobilien AG The fully integrated real estate investment company Business Model, Financials and Market March/April 2014 PATRIZIA Immobilien AG PATRIZIA Bürohaus | Fuggerstrasse 26 | 86150 Augsburg | T +49 821 50910-000 | F +49 821 50910-999 | [email protected] | www.patrizia.ag

  2. Slide 2: Agenda

    Agenda  BUSINESS MODEL  OUTLOOK FY 2014  FINANCIALS FY 2013  PATRIZIA SHARE  APPENDIX  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2014 2

  3. Slide 3: PATRIZIA − Owner-led and Independent of Banks since 1984

    PATRIZIA − Owner-led and Independent of Banks since 1984 ASSETS UNDER MANAGEMENT (IN EUR BILLION)  Founded in 1984 by Wolfgang Egger, CEO and majority shareholder (51.62%) 13 11.8 12  PATRIZIA is a real estate investment house, i.e. a real estate investor and full service provider 11 10  Offering

  4. Slide 4: The PATRIZIA Real Estate Value Chain

    The PATRIZIA Real Estate Value Chain – Covering the Whole Life-Cycle of Real Estate Re-Investment Research Options Sales Acquisition Real Estate Development Asset Management/ Refurbishment Management Portfolio Property Management Management PATRIZIA Immobilien AG| © 2014 4

  5. Slide 5: Overview – Own Portfolio

    Overview – Own Portfolio SALE OF PATRIZIA‘S OWN PORTFOLIO1 UNTIL YEAR-END 2015  Sale of approx. 1,800 units per year  Sale of 1,714 units in FY 2013 (746 individual sales, 968 en bloc)  Stable to increasing sales prices in residential property resale (EUR 2,640/sqm) and block sales (EUR1,618/sqm)

  6. Slide 6: Overview – Co-Investments

    Overview – Co-Investments CONTINUE THE EVOLUTION OF PATRIZIA TO A EUROPEAN MULTI-SECTOR INVESTMENT AND ASSET MANAGER GERMANY RESIDENTIAL  WohnModul I  Süddeutsche Wohnen GmbH - "Südewo"  GBW AG COMMERCIAL  PATRoffice Real Estate GmbH & Co. KG  sono west  DEIKON UK COMMERCIAL  Plymouth Sound H

  7. Slide 7: Co-Investments Germany – WohnModul I

    Co-Investments Germany – WohnModul I Business Case: Acquire – Add value – Sell; PATRIZIA is doing the entire management RESIDENTIAL / REAL ESTATE DEVELOPMENTS WOHNMODUL I SICAV-FIS (balanced as participation)  Actively managed co-investment with a German pension fund:  Promised total equity of EUR

  8. Slide 8: Co-Investments Germany – WohnModul I

    Co-Investments Germany – WohnModul I  WohnModul I portfolio – breakdown by region as at 31 December 2013 AREA IN SQM NUMBER OF UNITS NUMBER OF UNITS AREA IN SQM REGION/CITY AT THE TIME OF AT THE TIME OF PURCHASE 31.12.2013 31.12.2013 PURCHASE Munich 1,702 114,244 1,175 79,482 Copenhagen 484 39,036

  9. Slide 9: Co-Investments Germany – Residential

    Co-Investments Germany – Residential Business Case: Buy to long-term hold SÜDDEUTSCHE WOHNEN GMBH FORMERLY LBBW IMMOBILIEN GMBH Closing in March 2012  Gross purchase price: EUR 1.435bn  PATRIZIA’s equity stake in the co-investment: EUR15mn (2.5% of equity), 13 partners  21,000 residential units,

  10. Slide 10: Co-Investments Germany – Residential

    Co-Investments Germany – Residential Business Case: Buy to long-term hold GBW AG PATRIZIA WINS BID FOR BAYERNLB’ SHARES IN GBW Closing in May 2013  Acquisition of 96.52% of all shares on day one  Thereof 91.93% from BayernLB, 1.62% from DKB and 2.97% from a private investor  Gross purchase price:

  11. Slide 11: Co-Investments Germany – Commercial

    Co-Investments Germany – Commercial Business Case: Acquire – Add value – Sell; PATRIZIA is doing the entire management PATROFFICE FIRST PATRIZIA CO-INVESTMENT  Founded in 2007, planed duration 7 years  Investment in German real estate, mixed use properties with commercial focus  Co-investors are

  12. Slide 12: Co-Investments Germany – Commercial

    Co-Investments Germany – Commercial Business Case: Buy to long-term hold DEIKON ACQUISITION OF A PORTFOLIO OF 86 GERMAN RETAIL PROPERTIES Closing in December 2013  PATRIZIA holds a 5.1% stake (EUR 5.1mn)  Gross purchase price of EUR 178mn  Annual net basic rent of EUR 16mn  Five largest tenants:

  13. Slide 13: Co-Investments UK – Commercial

    Co-Investments UK – Commercial Business Case: Acquire – Add value – Sell; PATRIZIA is doing the entire management PLYMOUTH SOUND HOLDINGS LP  Open-ended fund, 10% PATRIZIA stake in equity, acts as investment and asset manager  Four assets acquired:  Birmingham for GBP 8mn  Bracknell (Western Lon

  14. Slide 14: PATRIZIA Capital Allocation

    PATRIZIA Capital Allocation ASSETS UNDER INVESTMENT PARTICIPATION MANAGEMENT CAPITAL IN % AS OF 31 DECEMBER 2013 IN EUR MN IN EUR MN OWN INVESTMENTS 6,169 266.2 Investment property (fair value) and inventories (at cost)1 539 220.9 100 Operating companies2 5,630 45.3 100 CO-INVESTMENTS 5,602 119.2 RE

  15. Slide 15: Third Party Business – German Spezialfonds

    Third Party Business – German "Spezialfonds" Business Case: Buy to long-term hold, no PATRIZIA equity stake in it TWO ASSET MANAGEMENT COMPANIES OFFER SPECIAL FUNDS  GROWTH OF 1BN P.A. RESIDENTIAL: PATRIZIA WOHNINVEST KAG, AUGSBURG  Founded and built up in 2007 COMMERCIAL: PATRIZIA GEWERBEINVEST K

  16. Slide 16: Third Party Business – Hessen Portfolio LEO II

    Third Party Business – German "Spezialfonds" Business Case: Buy to long-term hold, no PATRIZIA equity stake in it COMMERCIAL: PATRIZIA GEWERBEINVEST KAG, HAMBURG "HESSEN PORTFOLIO" – LEO II LARGEST TRANSACTION INVOLVING COMMERCIAL REAL ESTATE IN GERMANY IN 2013 Closing in December 2013  Transaction

  17. Slide 17: Third Party Business – Hessen Portfolio LEO I

    Third Party Business – German "Spezialfonds" Business Case: Buy to long-term hold, no PATRIZIA equity stake in it COMMERCIAL: PATRIZIA GEWERBEINVEST KAG, HAMBURG "HESSEN PORTFOLIO" – LEO I Closing expected for Q1 2014  Transaction volume of around EUR 1.0bn  Asset purchase agreement signed on 14 F

  18. Slide 18: Growth of PATRIZIA since 2007

    Growth of PATRIZIA since 2007 DEVELOPMENT ASSETS UNDER MANAGEMENT1, 2 (IN EUR BILLION) / EMPLOYEES  Increase by 71%, EUR 4.9bn from 2012 to 2013 712 (688 FTE) +71% 11.8 12 Further increase by at least EUR 2bn in 2014  700  Increase in AuM from 2007 to 2013: 436% 10 586 600  Increase in employees

  19. Slide 19: Income Structure – Service Business

    Income Structure – Service Business INCREASING ASSETS UNDER MANAGEMENT WILL GENERATE A HIGHER PROPORTION OF INCOME AND INCREASE EARNINGS VISIBILITY Management services generated revenues of EUR 94.8mn in FY 2013, thereof EUR 39.2mn out of co-investments and EUR 55.6mn from third parties 2013: EUR 94

  20. Slide 20: Asset Allocation of Funds and Co-Investments

    Asset Allocation of Funds and Co-Investments Capital Commitments by Investor Type1 6% 13% 8% 38% 23% 87% 25% Pension funds National institutional investors Saving banks Insurances International institutional investors Banks, Endowments and Corporates Other As of 31 December 2013 1 Only funds and co-

  21. Slide 21: Asset Allocation of Funds and Co-Investments

    Asset Allocation of Funds and Co-Investments Sectors Geographical Footprint of Assets2 1.9% 1.0% 2.0% 2.6% 2.7% 10.9% 5.0% 78.6% 3.8% 54.3% 3.5% 2.5% 24.6% 1.6% 1.2% 1.7% 0.7% 0.3% 0.3% 0.5% 0.1% 0.2% Residential Logistic Germany Netherlands Ireland Office Health / Care France Denmark Norway Retail

  22. Slide 22: Agenda

    Agenda  BUSINESS MODEL  OUTLOOK FY 2014  FINANCIALS FY 2013  PATRIZIA SHARE  APPENDIX  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2014 22

  23. Slide 23: Outlook 2014

    Outlook 2014  Operating result for 2014 of at least EUR 50mn  About 80% of the operating result should come from the service business  Reduction of bank liabilities to EUR 180 included the bonded loans, almost debt free until December 2015  Equity ratio increasing to 80-90% by the end of 2015 

  24. Slide 24: Agenda

    Agenda  BUSINESS MODEL  OUTLOOK FY 2014  FINANCIALS FY 2013  PATRIZIA SHARE  APPENDIX  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2014 24

  25. Slide 25: Key Performance Indicators

    Key Performance Indicators WHAT WE HAVE REACHED SO FAR  Operating result FY 2013: EUR 38.1mn  Equity ratio as of 31 December 2013: 41.9%  Gross sales margin FY 2013: 11.3% investment property, 14.3% inventories Operating result Equity ratio Gross sales margins 50 50% 30% 43.9 41.9% 40 38.1 40% 22

  26. Slide 26: Development of the Operating Result

    Development of the Operating Result OPERATING RESULT 55 45 at least 35 43.9 50 38.1 25 12.4 28.8 15 4.0 2.7 5 -5 -15 2008 2009 2010 2011 2012 2013 2014e INVESTMENTS MANAGEMENT SERVICES 100% 100% Target 2015 80% 80% 80% 77% 80% 60% 67% 60% 40% Target 52% 48% 40% 2015 20% 20% 33% 23% 20% 20% 0% 0% 201

  27. Slide 27: Development of IFRS Figures

    Development of IFRS Figures EBT 45.0 25.0 39.6 8.0 11.5 28.6 5.0 19.9 -15.0 -32.4 -35.0 2008 2009 2010 2011 2012 2013 CONSOLIDATED ANNUAL PROFIT/LOSS 45.0 25.0 37.2 6.2 25.5 5.0 13.5 -15.0 -9.5 -34.1 -35.0 2008 2009 2010 2011 2012 2013 As of 31 December 2013 in EUR million PATRIZIA Immobilien AG| ©

  28. Slide 28: Development of Revenues from FY 2012 to FY 2013

    Development of Revenues from FY 2012 to FY 2013 -5.1% 400 407.5 178.3 169.4 386.8 350 300 250 +17.2 229.2 -29.0 +3.0 -12.0 +10.4 200 -1.3 217.4 150 100 50 0 Total Purchase Total Purchase Purchase Rental Revenues Revenues Other Total Purchase Total receipts price revenues price Price revenues from fr

  29. Slide 29: Split of Revenues – FY 2013

    Split of Revenues – FY 2013  Purchase price revenues from investment property exceed once again those of inventories (EUR 169.4mn vs. EUR 80.3mn)  Revenues from management services improved by 41% to EUR 94.8mn (FY 2012: 67.3mn) 500  Co-investments: FY 2013 EUR 39.2mn (+35.9%) 450  Revenues othe

  30. Slide 30: Staff Costs

    Staff Costs DEVELOPMENT OF STAFF COSTS  Increase by 38.2% to EUR 65.7mn (FY 2012: EUR 47.6mn)  Increased staff costs due to new appointments in Germany and other countries in FY 2013  FY 2013/2012 in comparison: staff: 712 vs. 586 (+21.5%), FTE: 688 vs. 532 (+29.3%)  Higher provisions for long-t

  31. Slide 31: Income from Co-Investments

    Income from Co-Investments  The co-investment business:  The acquisition fee is accounted in the P&L in the "revenues" item  Regular co-investment business is accounted in the P&L in the item "revenues"  Südewo and GBW are accounted in the P&L item "income from participations"  WohnModul I is a

  32. Slide 32: Further Improvement of the Financial Situation

    Further Improvement of the Financial Situation BANK LOANS VS. EQUITY RATIO  Bank loans incl. bonded loans have been reduced by 23% to EUR 399mn (FY 2012: EUR 521mn)  Expectation for indebtedness in FY 2014: reduction to EUR 180mn (including around EUR 100mn in bank loans and around EUR 80 mn bonde

  33. Slide 33: Net Asset Value

    Net Asset Value NAV / INVESTMENTS SEGMENT REPRESENTS 23% OF THE OPERATING RESULT FOR FY 2013  Investment property and inventories were sold in FY 2013 at a profit with a gross margin of 11.3% and 14.3% respectively, thus confirming the value retention of the properties  The whole service business

  34. Slide 34: Own Portfolio – Single Unit and Block Sales

    Own Portfolio – Single Unit and Block Sales RELEVANT START OF SALES IN 2008 1,714 UNITS SOLD IN FY 2013 OUT OF THE OWN PORTFOLIO units 2,000 1,803 1,842 1,800 1,709 1,714 1,002 1,097 1,600 785 968 7 1,400 1,198 1,200 722 1,000 946 289 924 800 801 745 746 600 487 657 400 487 476 200 0 2007 2008 2009

  35. Slide 35: Co-Investments and Third Parties – Single Unit and Block Sales

    Co-Investments and Third Parties – Single Unit and Block Sales RELEVANT START OF SALES IN 2011 1,722 UNITS SOLD IN FY 2013 OUT OF CO-INVESTMENTS AND FOR THIRD PARTIES units 1,800 1,722 1,600 1,400 662 7 1,200 987 1,000 311 800 408 6 600 509 77 20 400 743 406 200 482 20 42 0 41 2007 -2010 2011 2012 2

  36. Slide 36: Agenda

    Agenda  BUSINESS MODEL  OUTLOOK FY 2014  FINANCIALS FY 2013  PATRIZIA SHARE  APPENDIX  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2014 36

  37. Slide 37: PATRIZIA Share

    PATRIZIA Share PATRIZIA SHARE AT A GLANCE SHARE PRICE DEVELOPMENT 2013: +18.7% ISIN DE000PAT1AG3 10.0 € SIN (Security Identification Number) PAT1AG 9.5 € Code P1Z 9.0 € No. of shares in issue 63,077,300 8.5 € 2013 high*/ low* EUR 9.75 / EUR 6.05 8.0 € Closing price at 31 December 2013* EUR 7.67 7.5

  38. Slide 38: Market Cap of PATRIZIA since April 2006

    Market Cap of PATRIZIA since April 2006 DEVELOPMENT OF THE PATRIZIA MARKET CAP  Increase in market cap from January 2012 to February 2014 by 159% 31.12.2006: EUR 1,176mn 1,200 1,000 800 28.02.2014: EUR 513mn 600 400 200 28.11.2008: EUR 50mn 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 PATRIZIA Im

  39. Slide 39: Share Price Development of PATRIZIA

    Share Price Development of PATRIZIA SHARE PRICE DEVELOPMENT OF PATRIZIA LAST 12 MONTHS: +25% 10 € 9€ 8€ 7€ 6€ 5€ 4€ PATRIZIA Immobilien AG| © 2014 39

  40. Slide 40: Agenda

    Agenda  BUSINESS MODEL  OUTLOOK FY 2014  FINANCIALS FY 2013  APPENDIX  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2014 40

  41. Slide 41: 30 years – PATRIZIA Milestones

    30 years – PATRIZIA Milestones 2013 Acquisition of the 2012 GBW AG Acquisition of the 2011 LBBW Immobilien GmbH (today Acquisition of Tamar Capital Partners (today SÜDEWO) PATRIZIA UK) Second 2007 Co-Investment PATRIZIA Foundation of the WohnModul I international Foundation of 2006 PATRIZIA WohnInve

  42. Slide 42: PATRIZIA – Organisational Growth

    PATRIZIA – Organisational Growth PATRIZIA PURSUES THREE DIFFERENT MODELS FOR ORGANISATIONAL GROWTH DISTINGUISHED INDIVIDUAL EXPERIENCED TEAM INCOME PRODUCING ENTITY PATRIZIA builds up a country PATRIZIA signs an experienced PATRIZIA acquires, integrates and organisation from scratch around a Team sp

  43. Slide 43: PATRIZIA Strategy

    PATRIZIA Strategy PATRIZIA – THE LEADING FULLY INTEGRATED REAL ESTATE INVESTMENT COMPANY IN EUROPE REAL ESTATE LEADING FULLY INTEGRATED INVESTMENT COMPANY EUROPE  PATRIZIA is the  Covering the complete  Investment for third  Focus on European preferred contact for real estate value chain parties

  44. Slide 44: The Strategy of Co-Investments

    The Strategy of Co-Investments SIGNIFICANT INCREASE OF INVESTMENT VOLUME  In addition to funds in which PATRIZIA has no equity stake of its own, we intend to offer a larger number of co-investments that will increasingly replace our own 100% investments  Our own stake depends on the investment and

  45. Slide 45: Agenda

    Agenda  BUSINESS MODEL  OUTLOOK FY 2014  FINANCIALS FY 2013  APPENDIX  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2014 45

  46. Slide 46: Financial Calendar, Conferences and Roadshows

    Financial Calendar, Conferences and Roadshows 2014 March 27  Financial statements 2013 April 1  Commerzbank German Residential Day, London 3  9th HSBC Real Estate and Construction Conference, Frankfurt/Main 4  Bankhaus Lampe Conference, Baden-Baden 7 - 11  Roadshow with Berenberg Bank, USA 15 –

  47. Slide 47: Financial Calendar, Conferences and Roadshows

    Financial Calendar, Conferences and Roadshows July 1  Roadshow with Kepler Cheuvreux, Zurich and Geneva 2  Roadshow with Galfin Investment AG, Bern and Basel 8-9  Roadshow with Berenberg Bank, Milan and Lugano 16  Roadshow with Close Brothers Seydler Bank AG, London August 6  Interim report for

  48. Slide 48: Contact Details

    Contact Details ARWED FISCHER VERENA SCHOPP DE CFO ALVARENGA MANAGER IR PATRIZIA Immobilien AG PATRIZIA Immobilien AG PATRIZIA Bürohaus PATRIZIA Bürohaus Fuggerstrasse 26 Fuggerstrasse 26 86150 Augsburg 86150 Augsburg T +49 821 50910-351 F +49 821 50910-399 M +49 151 65279782 verena.schoppdealvareng

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