TAG IMMOBILIEN AG
TAG Immobilien AG concludes 2020 financial year successfully despite the difficult
circumstances
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DGAP-News: TAG Immobilien AG / Key word(s): Annual Results/Annual Report
TAG Immobilien AG concludes 2020 financial year successfully despite the
difficult circumstances
17.03.2021 / 06:59
The issuer is solely responsible for the content of this announcement.
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PRESS RELEASE
TAG Immobilien AG concludes 2020 financial year successfully despite the
difficult circumstances
- FFO grows by more than 7% year-on-year (EUR 172.6m vs. EUR 160.6m);
dividend per share also increases 7% to EUR 0.88 vs. EUR 0.82
- Business operations remain nearly unaffected by the Covid-19 pandemic;
tenants offered secure homes and good service even in difficult times
- Successful acquisitions in 2020: close to 4,600 units acquired in Germany,
residential project pipeline in Poland expanded by c. 4,900 units
- TAG is among leading real estate companies in the field of sustainability
based on available ESG ratings
Hamburg, 17 March 2021
TAG Immobilien AG (TAG) today published its 2020 Annual Report, reporting on
another successful financial year. TAG COO Claudia Hoyer comments: "For all
of us, 2020 was marked by the special challenge of the Covid-19 pandemic. As
a residential company, we bear a very special responsibility during this
time and lend a helping hand to our tenants. This was reflected not only in
our decision to voluntarily refrain rent increases over a period of several
months, but also in the further intensification of our debt advising
activities and support. Social involvement, which we have been practicing
for years in many of our residential neighbourhoods, is more important to us
than ever. TAG's business model as a portfolio owner for affordable housing
has proven to be extremely robust during this period and our company is well
positioned. We would particularly like to thank our employees, who have
worked hard over the past year to make this positive performance and TAG's
continued growth possible under the most difficult conditions."
Successful business operations
FFO (defined as FFO I excluding net income from sales) increased by EUR
12.0m or more than 7% to EUR 172.6m (EUR 1.18 per share) compared to the
previous year, reaching the upper end of the guidance range of EUR 170-173m,
which had already been raised in November 2020. In addition to the good
operating performance, this increase was also due in particular to the
successful acquisitions in 2019 and 2020.
At EUR 21.95, net asset value in the form of EPRA net tangible assets (NTA
per share) was approximately 9% above the level of EUR 20.22 reported at 31
December 2019. The result from portfolio valuation contributed significantly
to this development. The total year-on-year portfolio value growth was 7.5%
(of which 6.2% from valuation gains and 1.3% from investments). As of the
reporting date, TAG's residential portfolio is valued at an average of
around EUR 1,100 per sqm or a 5.7% gross yield.
At 45.1%, the loan-to-value (LTV) ratio as at 31 December 2020 is almost
unchanged from the previous year (44.8%). The average interest rate on
financial debt decreased from 1.7% to 1.5% in 2020, with an average
remaining maturity of 6.8 (previous year: 7.4) years.
TAG's annual like-for-like rental growth of 1.4% and 1.5% (including the
effects of vacancy reduction) was below the previous year's figures of 1.9%
and 2.4% respectively. The main reasons for this were the voluntary refrain
of ongoing rent increases in the months of March to June 2020, as well as
lower tenant turnover (and thus lower rent increases in re-letting) as a
result of the Covid-19 pandemic.
At the end of 2020, vacancy in the Group's residential units reduced to
4.5%, down from 4.8% at the end of the previous quarter and 5.1% at 30 June
2020. At the beginning of the year, vacancy had been at 4.6%. Across the
entire portfolio, i.e. including the portfolios newly acquired in 2020 and
the commercial units, the vacancy rate is 5.6% after 4.9% at the beginning
of the year.
Since the beginning of the 2020 financial year, TAG has also been active in
the Polish residential market and is planning to build a high-yielding
new-construction portfolio of around 8,000 to 10,000 rental apartments
within the next 3 to 5 years. In 2020, the focus of business activities was
still on sales. Even though the sales revenues of EUR 73.4m were below the
planned EUR 80-85m due to a postponement of the handover of around 140
apartments to January and February 2021, the result of operations in Poland
as a contribution to FFO II reached the guidance range of EUR 9-11m at EUR
9.1m thanks to the positive development in prices.
The guidance for the 2021 financial year, as published in November 2020,
remains unchanged as follows:
- FFO I: EUR 178-182m or EUR 1.23 per share (+4%)
- Dividend per share: EUR 0.92 (+4%)
Successful acquisitions in Germany and Poland
In 2020, TAG acquired 4,578 apartments in Germany for a total purchase price
of EUR 174.7m. All locations in these portfolios are in TAG's core regions
in East Germany. On average, the acquisition multiple was 14.7 times the
current annual net rent, or an annual gross yield of 6.8%. The average
vacancy of 21.1% at the time of acquisition offers good development
opportunities for TAG's active asset management.
In Poland, the contractually secured pipeline for the construction of
apartments comprises a total of approx. 8,700 units as of 31 December 2020.
Of these, around 3,000 apartments are earmarked for sale, while approx.
5,700 units are available for the letting business upon completion. Rental
income is first expected upon completion of the first rental projects at the
end of FY 2021. Until then, the business activity in Poland will continue to
consist mainly of sales.
Sustainable business development as the basis for future success
In 2020, TAG systematically continued the sustainability activities it has
been following for years. A holistic understanding of sustainability forms
the basis of all business decisions, so as to balance economic, ecological,
and social interests. Besides ecological goals and professional corporate
governance, social targets are a particular priority. Developing liveable
residential quarters at affordable rents in "B and C locations" not only
increases tenant satisfaction, but has also been the basis of TAG's
successful business performance for years.
Not least with this in mind, in June 2020, Sustainalytics as a leading ESG
rating company, rated TAG among the top 5% of companies in the real estate
sector worldwide. TAG also improved its ranking with other renowned ESG
rating agencies. Detailed reporting on the topic of sustainability will be
presented in a separate annual sustainability report, to be published on 22
April 2021.
"Our German business model, under which we actively manage and develop
high-yield yet affordable real estate outside the major metropolises, has
proven stable and reliable even in the Covid-19 pandemic. In addition, we
can offer our shareholders the prospect of promising results from our
long-term investments in Poland," says TAG CFO Martin Thiel, commenting on
TAG's outlook. "We are strategically well positioned to offer our tenants
affordable housing and our shareholders attractive dividends in the years
ahead."
Key figures for the 2020 financial year and as at 31 December 2020
Income statement key figures in EURm 2020 2019 2018
Rental income (net rent) 322.5 315.0 302.2
EBITDA (adjusted) 222.3 214.7 206.4
Consolidated net profit 402.6 456.4 488.2
FFO I per share in EUR 1.18 1.10 1.00
FFO I 172.6 160.6 146.5
AFFO per share in EUR 0.69 0.64 0.60
AFFO 100.9 93.9 88.4
Balance sheet key figures in EURm as at 2020 2019 2018
12/31/
Total assets 6,478.0 5,647.0 5,033.3
EPRA NTA (fully diluted) per share in EUR 21.95 20.22 17.35
LTV in % 45.1 44.8 47.3
Portfolio data as at 12/31/ 2020 2019 2018
Units Germany 88,313 84,510 84,426
Units Poland (contractually secured 8,742 - -
pipeline)
Real estate volume (in EURm) 5,834.3 5,302.4 4,815.5
Vacancy in % (total) 5.6 4.9 5.3
Vacancy in % (residential units) 4.5 4.5 4.7
l-f-l rental growth in % 1.4 1.9 2.3
l-f-l rental growth in % (incl. vacancy 1.5 2.4 2.6
reduction)
Employees 2020 2019 2018
Number of employees 1,354 1,160 993
Please refer to the presentation published today and TAG's Annual Report
2020 at
https://www.tag-ag.com/en/investor-relations/financial-statements/annual-reports
for further details on the past financial year.
Press enquiries
TAG Immobilien AG
Dominique Mann
Head of Investor & Public Relations
Phone +49 (0) 40 380 32 305
Fax +49 (0) 40 380 32 390
ir@tag-ag.com
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17.03.2021 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
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Language: English
Company: TAG Immobilien AG
Steckelhörn 5
20457 Hamburg
Germany
Phone: 040 380 32 0
Fax: 040 380 32 388
E-mail: ir@tag-ag.com
Internet: http://www.tag-ag.com
ISIN: DE0008303504
WKN: 830350
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Hanover, Stuttgart, Tradegate Exchange
EQS News ID: 1176034
End of News DGAP News Service
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1176034 17.03.2021
°
TAG Immobilien AG concludes 2020 financial year successfully despite the difficult circumstances (english)
Am 17. März 2021 um 06:59 Uhr
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