LEG IMMOBILIEN SE March
2024
LEG Immobilien SE
Company Presentation
March 2024
LEG Immobilien SE
Disclaimer
While LEG Immobilien SE ("The Company") has taken all reasonable care to ensure that the facts stated in this presentation are accurate and that the opinions contained in it are fair and reasonable, this presentation is selective in nature and is intended to provide an introduction to, and an overview of the Company's business. Any opinions expressed in this presentation are subject to change without notice and neither the Company nor any other person is under any obligation to update or keep current the information contained in this presentation. Where this presentation quotes any information or statistics from any external sources, you should not interpret that the Company has adopted or endorsed such information or statistics as being accurate.
This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realised from the proposals described herein. Forward-looking statements may include, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation, and supply and demand. The Company has based these forward- looking statements on its views and assumptions with respect to future events and financial performance. Actual financial performance could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. The information contained in this presentation is subject to change without notice and the Company does not undertake any duty to update the information and forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.
This presentation does not constitute an offer or invitation to purchase or sell any shares in the Company and neither this presentation or anything in it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.
Company Presentation March 2024 - LEG Immobilien SE | 2 |
Company Presentation
Agenda
Page | ||
1 | FY-2023 | 4-21 |
- Highlights FY-2023
- Portfolio & Operating Performance
- Financial Performance
- Outlook
- Who we are and what we stand for
- ESG Agenda
- Portfolio Overview
- Management
- Regulation & Social Security in Germany
- Investor & Creditor Relations
22-32
33-45
46-52
53-56
57-62
63-70
Company Presentation March 2024 - LEG Immobilien SE | 3 |
1.1 Highlights FY-2023
Company Presentation March 2024 - LEG Immobilien SE | 4 |
Highlights FY-2023
Financial Summary
FY-2023
Operating results | FY-2023 | FY-2022 | +/- % | Balance sheet | 31.12.2023 | 31.12.2022 | +/- % | |||||||||||
Net cold rent | €m | 834.3 | 799.1 | +4.4% | Investment properties | €m | 18,101.8 | 20,204.4 | -10.4% | |||||||||
405.5 | ||||||||||||||||||
NOI (recurring) | €m | 683.8 | 660.4 | +3.5% | Cash and cash equivalents3 | €m | 402.2 | +0.8% | ||||||||||
EBITDA (adjusted) | €m | 672.8 | 638.1 | +5.4% | Equity | €m | 7,488.2 | 9,083.9 | -17.6% | |||||||||
FFO I1 | €m | 453.9 | 482.0 | -5.8% | Total financing liabilities | €m | 9,375.8 | 9,460.8 | -0.9% | |||||||||
AFFO | €m | 181.2 | 108.8 | +66.5% | Net debt4 | €m | 8,954.4 | 9,036.6 | -0.9% | |||||||||
AFFO per share | € | 2.44 | 1.48 | +64.9% | LTV | % | 48.4 | 43.9 | +450bps | |||||||||
Operating cashflow | € | 447.9 | 389.0 | +15.1% | Average debt maturity | years | 6.2 | 6.5 | -0.3y | |||||||||
NOI margin (recurring) | % | 82.0 | 82.6 | -60bps | Average debt interest cost | % | 1.58 | 1.26 | +32bps | |||||||||
EBITDA margin (adjusted) | % | 80.6 | 79.9 | +70bps | Equity ratio | % | 38.8 | 42.5 | -370bps | |||||||||
9,379.9 | ||||||||||||||||||
FFO I margin | % | 54.4 | 60.3 | -590bps | EPRA NTA, diluted | €m | 11,377.2 | -17.6% | ||||||||||
AFFO margin | % | 21.7 | 13.6 | +810bps | EPRA NTA per share, diluted | € | 126.57 | 153.52 | -17.6% | |||||||||
Dividend per share | € | 2.45 | 0.00 | - | Employees | +/- | ||||||||||||
Portfolio | ||||||||||||||||||
31.12.2023 | 31.12.2022 | +/- % | 31.12.2023 | |||||||||||||||
31.12.2022 | %/bps | |||||||||||||||||
Residential units | number | 166,546 | 167,040 | -0.3% | No. of employees | 2,003 | 2,040 | -1.8% | ||||||||||
In-place rent (l-f-l) | €/sqm | 6.58 | 6.33 | +4.0% | ||||||||||||||
Investments (adj.)2 | €/sqm | 35.01 | 40.61 | -13.8% | ||||||||||||||
EPRA vacancy rate (l-f-l) | % | 2.4 | 2.7 | -30bps |
1 No steering KPI - for information purpose only. 2 Excl. new construction activities on own land, own work capitalised, consolidation effects and after subsidies. 3 Including short term deposits of €128.0m as of FY-2023(FY-2022: €40.0m). 4 Excl. lease liabilities according to IFRS 16 and incl. short term deposits.
Company Presentation March 2024 - LEG Immobilien SE | 5 |
Highlights FY-2023
Cash is King - Strategy pays out
AFFO of €181.2m above upper guidance level - strong operations - DPS24 of €2.45
Financials | Operations |
AFFO +66.5% to €181.2m | Net cold rent +4.4% |
Operating Cashflow +15.1% to €447.9m | l-f-l rental growth +4.0% |
FFO I -5.8%to €453.9m | l-f-l vacancy 2.4% (-30bps) |
Adj. EBITDA-Margin80.6% | |
LTV 48.4% | |
Debt @ 1.58% for 6.2y | |
NTA p.s. €126.57 |
ESG
- SBTi approved in 2024
- Despite much lower investments CO2 reduction of ~8,700t realised vs. target of 4,000t, as
modernisations contributed ~2,700t and nudging effects ~ 6,000t
- CO2-footprint expected to come down by 4% to 27.3 CO2ekg/sqm
FY-2023 | |
4.9% property devaluation in H2-2023 | Resumption of dividend with DPS24 of €2.45 |
Total devaluation of 11.9% in FY2023 - bottoming out expected | 100% of AFFO - net disposal proceeds (€55m) to be retained |
Resilient balance sheet - fully refinanced until mid 2025 | Guidance 2024 confirmed - midpoint +5% vs. 2023 |
LTV of 48.4% backed by strong financing structure | €180 - 200m AFFO driven by strong fundamentals |
Company Presentation March 2024 - LEG Immobilien SE | 6 |
Highlights FY-2023
A very resilient business set-up: Offering sufficient optionality to also shift gears - Very reliable and growing cashflows provide a sustainable base for the dividend
Driver
Growing, reliable cash inflows
ILLUSTRATIVE
Cash outflows/ AFFO
Structural supply/ demand imbalance support market rent growth
- New development project starts in GER -75%1
- Rent table dynamics continue
LEG specific growth driver in 2026 and 2028 from rent restricted units
High rent collection of >99%
Growing importance from value add business and Green JV's like
Optionality from disposals on dividend base and/ or capital strengthening
- Net cold rent via core business
- Value add & third party decarbonisation business
Net disposal proceeds
- Investments
- Maintenance
- Capex
- New development2
- Operating & admin costs
- Interest expenses
- Taxes
AFFO
Improve efficiency from decarbonisation capex (fully self- funded) via own tools and initiatives
Strict cost discipline
Fully refinanced until mid 2025
Attractive financing conditions with avg. 1.58% for avg. 6.2 years
Potential dividend base, fully self-funded
Scrip offering limiting cash outflows
1 Bulwiengesa New Development Monitor for all German project starts Q4 23 vs Q4 22, see also appendix. 2 In run-off: Total remaining outflows until YE 2025 €82m.
Company Presentation March 2024 - LEG Immobilien SE | 7 |
1.2 Portfolio & Operating Performance
Company Presentation March 2024 - LEG Immobilien SE | 8 |
Portfolio & Operating Performance
Portfolio transactions: c.2,000 units sold for total proceeds of c.€155m
€80m of proceeds reflected within 2023 figures - remainder of €75m to provide a good start to 2024
Number of units based on date of transfer of ownership1,2
167,040 | -53 | -97 | -63 | -281 | 166,546 | ||||||
31.12.2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | 31.12.2023 | ||||||||
Additions | 1,412 | 381 | 135 | 102 | 297 | 915 | |||||||
Divestments | -561 | -434 | -232 | -165 | -578 | -1,409 | |||||||
Change | 851 | -53 | -97 | -63 | -281 | -494 | |||||||
1 Residential units. 2 Note: The date of the transaction announcement and the transfer of ownership are usually several months apart. The number of units may therefore differ from other disclosures, depending on the data basis.
Additions
- In Q1 transfer of ownership of one larger portfolio (Düsseldorf and Cologne) signed in 2022
- Since Q2 nearly all additions from finished new construction projects
Disposals
- Disposal incl. transfer of ownership of ~1,300 units at a volume of c. €80m - at around book value in FY-2023, net proceeds of €55m
- Disposal contracts for around 700 residential units signed but not yet transferred for a volume of c.€40m
- Additionally commercial non-core units sold at book value (c.€35m) with cash-inflow expected in Q1 2024
- Total disposals in 2023 include three larger portfolios (in total >800 units) and several small ticket sales of non-core units particular in Eastern Germany
Company Presentation March 2024 - LEG Immobilien SE | 9 |
Portfolio & Operating Performance
Immediate cash generation via dynamic rent growth
Additional contribution from cost rent adjustment
l-f-l rent development | Residential rent | l-f-l free financed rent development |
€/sqm/month | €/sqm/month |
FY-
2023
FY-
2022
6.58 | +4.0% | FY-2023 | |
Rent table | +1.7% | FY-2022 | |
6.33 | Modernisation/ | ||
Re-letting | +1.5% | ||
Cost rent | +0.8% | FY-2023 | |
FY-2022 |
High-growth
7.92 | +3.9% | ||||
7.62 | |||||
6.64 | Stable | ||||
+3.9% | |||||
6.39 | |||||
FY-
2023
FY-
2022
6.90 | Free financed rent | |
+3.6% | FY-2023 | |
6.66 | FY-2022 |
Higher-yielding
6.23 6.06+2.8%
- Residential rent increase of 4.0% driven by rent table adjustments and re-letting
- Cost rent increase of 5.7% for the subsidised units contributed 0.8%-pts.
- Free financed rent increased by 3.6% on average
- New rent table examples for LEG: Bergkamen +14.8%, Castrop-Rauxel+18.1%, Krefeld +10.2% (based on local reference rent (OVM))
Company Presentation March 2024 - LEG Immobilien SE | 10 |
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LEG Immobilien SE published this content on 14 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2024 13:25:30 UTC.
