UBM Development. - strongly embedded in its attractive home markets

Transcription

1 UBM Development - strongly embedded in its attractive home markets

2 Disclaimer This presentation was prepared by UBM Realitätenentwicklung Aktiengesellschaft ( the Company ; UBM Development ) solely for use at investors meetings and is furnished to you solely for informational purposes. This presentation dates as of. The facts and information contained herein might be subject to revision in the future. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. None of the Company or any of its parents or subsidiaries or any of such person's directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied as to, and no reliance should be placed on, the accuracy or completeness of the information contained in this presentation. None of the Company or any of its parents or subsidiaries or any of their directors, officers, employees and advisors nor any other person shall have any liability whatsoever for any loss howsoever arising, directly or indirectly, from any use of this presentation. The same applies to information contained in other material made available at the meeting. This document is selective in nature and is intended to provide an introduction to, and overview of, the business of the Company. Wherever external source are quoted in this presentation, such external information or statistics should not be interpreted as having been adopted or endorsed by the Company as being accurate. This presentation contains forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which the Company operates. These statements generally are identified by words such as "believes", "expects", "predicts", "intends", "projects", plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including but not limited to assumptions, opinions and views of the Company or information from third party sources, contained in this presentation are based on current plans, estimates, assumptions and projections and involve uncertainties and risks. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. The Company does not represent or guarantee that the assumptions underlying such forward-looking statements are free from errors nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation. No obligation is assumed to update any forward-looking statements. By accepting this presentation you acknowledge that you will be solely responsible for your own assessment of the market and of the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company s business. 1

3 COMPANY OVERVIEW Highly experienced and committed management team with strong track record Karl Bier, CEO >30 years of industry experience Responsibility for: Strategy, Communication, IR, Internal Audit, Risk - Management, HR, Integration >40 years of industry experience and group tenure Responsibility for: Accounting, Controlling, Audit, Tax, Compliance Heribert Smolé, CFO >24 years of industry experience Responsibility for: Development in Austria, Southeastern Europe, IT, QM Claus Stadler, COO 1 >21 years of industry experience Responsibility for: Asset Management, Transaction, Marketing, Legal Michael Wurzinger, COO >10 years of industry experience Responsibility for: Development in Germany, Poland, Czech Rep., Western Europe, Hotel Management Martin Löcker, COO 2 1 Designated as an additional member of the Managing Board, pending his formal appointment requires an amendment to the Articles of Association to increase the maximum number of members of the Managing Board.

4 COMPANY OVERVIEW UBM Development combines the strengths of UBM and S+P Milestones in UBM's history 1873: UBM listed on Vienna Stock Exchange : UBM enters CZ, PL and GER 2000: S+P founded, asset-light approach : UBM enters opportunistic markets with hotels (FR, NL) 2015/2016: Successful capital increase Realization of synergies New strategy: divestment of asset management portfolio Clear dividend policy 1990: Transformation from real-estate company to trade developer 2014/2015: Spin off and Merger of UBM and Strauss & Partner UBM Independent developer 2016/2017: Pure-play developer Portfolio reduction completed Goal: Prime Market at Vienna Stock Exchange 3

5 CAPITAL MARKET STRATEGY UBM Development with stronger capital market focus and attractive dividend development Capital Market Strategy Dividend per share Shareholder Structure Strong capital market focus and commitment to active investor relations approach After capital increase Capital increase in 2015 to enable further growth, strengthen equity ratio and increase free float High management incentive due to direct shareholdings in course of higher free-float Listed on Standard Continuous Market, Goal: Prime Market % Dividend policy going forward, aiming for payout ratio 2 of 30-50% Free Float 52,38% Management + Supervisory Board 8,82% Syndicate (Ortner/ Strauss) 38,83% 4 1 Subject to decision of Annual General Meeting 2 Based on net income of the period

6 VALUE CREATING STRATEGY Key strategic pillars of UBM Development Strategic focus Focus on home markets: Austria, Germany and Poland and on three asset classes: Residential, Hotel and Office Portfolio roadmap Exit of large share of current investment portfolio (EUR 250m planned) Strong project backlog secures development flow for the next few years 5 Pure play trade developer Full coverage of the value chain Following the asset light model In-house technical expertise along the value chain Operational efficiency Lean company structure Growth in profitability and dividend capacity Performance and risk management secure project returns

7 VALUE GENERATION Typical value-add potential of a fully-integrated real estate developer Development process broken down into key steps Value Creation Exit with insignificant discount possible in earlier stages of development in current market environment Green field Development of green field Developed plot Development planning Marketing of property/ hotel management Pre-Marketing of property General Contracting Construction Finalized project Divested building 6

8 PURE-PLAY DEVELOPER UBM Development s competitive strengths along the cash re-investment cycle Reinvestment & dividends Proceeds from high sales turnover rate used for future projects and dividends Acquisition Local network & know-how: helps securing attractive locations, converting land, acquiring permits Good reputation: makes UBM partner of choice Standardized due diligence to minimize risk 32 land bank acquisitions in last 4 years Concept and design In-house experts carry out all customer-facing activities High level of cost control and flexibility 7 Optimized exit timing & yield Established contacts: help identifying right buyers Central transaction team & experience: higher number & frequency of transactions Good reputation: investors want to participate early in project 74 transactions in last 3 years Established strengths guarantee optimal development process Asset-light approach Operating in partner structures where projects are not fully consolidated Furthermore, engaging in forward deals to limit capital exposure 140 experts Implementation Overpriced tenders prevented by in-house experts Tight cost and quality control during execution Flexible on-site management through in-house project managers

9 PURE-PLAY DEVELOPER Example of a typical development project Albert Roßhaupter Straße 43 in Munich Acquisition of plot as a commercial property. Original plan was to build offices and a hotel. Negotiations with the city of Munich followed to convert the plot partly into residential property in order to increase value. Development of several concept studies (school, office, hotel, boarding house) to get permit for residential part. Breakthrough: Agreement with authorities to build 26 flats, a hotel with 207 rooms and an office part (3,200m 2 ) Individual sale of flats to private individuals. The hotel and office parts were sold to a large international investor. Implementation of construction works. Carcass done by general contractor. UBM responsible for fit out works, project management and controlling. 8

10 DIVERSIFICATION Current portfolio 1 UBM Development asset values Segment Matrix UBM Development balance sheet view 2,3 Land Bank 2,3 Book value, in m Portfolio share in % 13.5m 119.3m 108.1m 99.1m 94.7m 1.3% 11.0% 10.0% 9.2% 8.6% 84.0m 54.9m 89.8m 53.8m Regional split 1.6m 7.8% 119.1m 5.1% 53.6m 42.2m 8.3% 42.7m 5.0% 0.2% 11.0% 4.95% 3.9% 3.9% 21.9m 22.0m 19.1m 16.1m 26.6m Other 2.0% 2.0% 1.8% 1.5% 2.5% 9 Residential Office Other Split by segment Hotel 864.4m m 1 Portfolio consists of completed projects held for sale and current developments 2 All data as of December 31 st Including 100% of value of fully consolidated assets and respective value shares of at equity held assets

11 Very positive development of the hotel market Hotel-Transactions Amsterdam: Tourist Arrivals and Accommodated Bednights² 14,4 bn transaction volume +86% Y-o-Y 2013 only 3 bn volume in Germany (= Place 2 after UK) Example Amsterdam: Increase from 2013 to % Overnight stays + 6 % RevPAR (2014: 125) + 4 % ADR (2014: 153) + 1,2 % Occupancy (2014: 81%) SOURCE: 1 : HVS Transaction Report, March 2015, ²: HVS in focus: Amsterdam Hotel Market update, May

12 Projekt Berlin: Arena Boulevard Office Market Germany 1. Quarter Positive trend in the Big 7 Big 7 = Berlin, Dusseldorf, Frankfurt, Hamburg, Cologne, Munich, Stuttgart Decreasing vaccancy rate (~ 7,5%) Decreasing completion volume (-12% in 1. Q 2014) + 6% sales volume More than sqm rented Stable prime rent (+ 0,6% Y-o-Y) No increase of new construction volume high occupancy rate SOURCE: 1 : JLL Büromarktüberblick 1. Quartal

13 Projekt QBC in Vienna Office Market Vienna: Increase of occupany rate at stable rents Mieten 1 Vienna current Overall portfolio: m² Vaccancy rate 6,6% Prime rent 26 /sqm /Month Rent 12,5-16 /sqm /Month, first time occupancy in good location ÖBB-Zentrale with sqm completed since Erste Campus with sqm completion in 2015 Economic Data Austria ,40 % economic growth in Q ,3% unemployment rate (11,6% Eurozone) 1,60% Inflation 330 bn EUR BIP (+2,16%)* SOURCE: 1 : EHL Büromarktbericht Frühjahr 2015, * : Prognosis 12

14 Office Market Poland 1. Quarter 2015 Warsaw full pipeline in the center 1 Total portfolio: m² under construction further sqm 40% of which situated in the center 13% vaccancy rate (14,4% in the center) Prime rent 24,5 /sqm/month Miete 18 /sqm/month, central, A-Class Crakow strong increase of enterprises 2 Overall portfolio: sqm 5,2 % vaccancy rate Prime rent 13,5 /sqm/month Breslau top outsourcing target area 3 Overall portfolio: sqm 10,9 % vaccancy rate Prime rent 14,5 /sqm/month SOURCE: 1 : CBRE Office Market Overview Q for Warsaw, 2 : CBRE Office Market Overview Q for Krakow 3 : CBRE Office Market Overview Q for Wroclaw 13

15 Market attractiveness DIVERSIFICATION Go-to-market approach defined in terms of markets and asset classes Geographies: Targeting European metropolitan regions with high growth dynamics Segments: Increasing focus on Residential and Hotel while maintaining a diversified portfolio "Follow the Customer" European metropolitan regions with growth potential Focus on hotel Successful examples: Amsterdam, Paris Focus on Growth Top metropolitan areas in Germany, such as Frankfurt, Berlin, Munich, Hamburg, Stuttgart, Cologne, and Düsseldorf plus Vienna, Warsaw, Krakow Strengthen the Core Other large cities in core markets such as Graz, Salzburg (AT), Wroclaw (PL) Strategy for Sector relative share Details / Approach Residential Focus on mid- and high price segment Close look on attractive niches markets (e.g., student or elderly housing) Hotel Focus on European cities with top RevPar-development 1 Coverage of 3* to 5* segments, long stay apartments, and boarding houses Office Focus on CBD locations and business parks with good public infrastructure (e.g., near airports) Reduced share due to high volatility in the segment No coverage Market experience Deepen basis Other Combination of multiple asset classes in one project or other legacy assets Opportunistic approach due to limited number of projects 1 RevPar = Revenue per Room Available 14

16 HOTEL RESIDENTIAL DIVERSIFICATION Attractive project pipeline in metropolitan cities (1/2) St. Peter, Graz Land area: 1,740 m² Number of units: 36 Sales volume: 7,5 mn 05/2014 / 07/2015 Keibelstraße, Berlin Land area: 3,944 m² Sales volume: mn 04/2014 / 09/2015 Central Living, Frankfurt Land area: 3,643 m² GFS above ground: 7,423 m² Number of units: 78 BA II: 02/2014 / 02/2016 KAHN 1, Graz Land area: 4,549 m² GFS above ground: 3,648 m² Number of units: 48 07/2014 / 07/2016 St. Peter Hauptstraße Graz Keibelstraße Berlin Friedrich-Dessauer Straße Frankfurt a. M. Kahngasse Graz Holiday Inn, Berlin Category: Holiday Inn Express Rooms: 184 Operator: IHG 04/2015 / 11/2016 Holiday Inn, Munich Category: Holiday Inn Express Rooms: 302 Operator: IHG 04/2014 / 11/2016 Gateway Gardens, Frankfurt Category: 3-4* Rooms: /2015 / 12/2016 Hyatt Regency, Amsterdam Category: 5* Rooms: 211 Operator: Hyatt Regency 2015 / Klosterstaße 48 Berlin Birketweg Munich Bessie-Coleman-Str Frankfurt a. M. Sarphatistraat GV Amsterdam

17 MIXED OFFICE DIVERSIFICATION Attractive project pipeline in metropolitan cities (2/2) Arena Boulevard, Berlin Land area: 1,692 m² ~ 8,700 m² GFS above ground 06/2014 / 09/2015 Trikot, Munich Land area: 4,886 m² GFS above ground: 12,976 m² 04/2013 / 04/2015 Poleczki Business Park, Warsaw Poleczki B2: Land area: 6,533 m² GFS above gr. 9,600 m², in construction Poleczki B3: land area: 7,668 m² GFS above ground 9,600 m², 01/2016 / 04/2017 Poleczki C2: Land area: 7,700 m² GFS above ground 14,600 m², Start / Completion : 01/2017 / 06/2018 Am Ring 20, Munich Land area: 9,190 m² GFS above ground: 12,453 m² 04/2015 / 04/2017 Valeska-Gert Straße Berlin Elsenheimerstraße Munich Poleczki Warsaw Leuchtenbergring Munich Office: Residential: QBC ½ land area: 6,531 m² / GFS 47,000 m² / QBC 3 land area: 1,090 m² / GFS 8,900 m² / QBC 4 land area: 2,510 m² / GFS 20,000 m² / Hotel: Land area: 2,362 m² GFS: 14,100 m² (incl. loggia) Sales volume: 35.7 mn Number of apartments: 135 Start / Completion: 2015 / 2017 Boarding-House: 16 Category: 3- and 4 star Rooms: 311 (3*) and 266 (4*) Operator: Accor / Ibis (3*) and Novotel (4*) Start / Completion: 2015 / 2016 Land area: 1,014 m² GFS: 11,300 m² Serviced apartments: 175 Start / Completion: 2015 / 2017 Quartier Belvedere Central, Main Railway Station, Vienna, Austria

18 SOLID FINANCIAL BASE Strong financial growth trajectory expected to continue UBM Realitätenentwicklung stand alone UBM Development xx Growth, in % Production output Production output (in EURm) and growth (yoy) Merger 483 EBITDA EBIT 54 Net profit (in EURm) Net profit

19 SOLID FINANCIAL BASE. and is backed up by a solid financing structure UBM Development 2014 Mid- and mid-term targets UBM Headquarter Wien 2014 preliminary Total assets: EUR bn Equity: EUR 265 mn Net debt 1 : EUR 571mn Targets (mid-term) Equity ratio: 30 40% Payout ratio: 30 50% LTV: 40 50% Net debt 1 : Mid-term 18 1 Net Debt: debt resulting from bonds, financial liabilities, liabilities to affiliated companies, financing of working capital reduced by liquid funds and excess cash

20 COMPANY OVERVIEW EBT and equity development of UBM EBT development ( m) Profit and loss transfer agreement EBT Thereof paid dividend Pro-forma EBT Dividend proposal AGM 3,3 3,1 6,8 4,1 3,9 3,1 3, ,4 4,9 8,3 4,4 7,2 11,4 6,7 7,2 8,2 13,3 13,5 11,2 11,1 11,3 9,6 3,3 3,3 3,3 3,3 3,3 14,1 1) 3,7 21,3 7,5 Equity development ( m) Other Equity attributable to shareholders of the parent 265,3 52,4 54,7 58,4 58,3 59,1 59,8 59,4 58,5 60,0 64,4 72,4 72,0 77,6 86,6 90,1 102,0 108,5 122,8 132,5 139,5 144,8 153,7 163,7 131,4 133,9 Positive earnings since 1991 despite of several financial and economic crises Sustainable increase of equity due to stable earnings development and stable dividend policy 19 1 restated; the comparative figures have been adjusted in accordance to IAS 8 April 2015

21 INVESTOR RELATIONS IR Information for UBM Development Share Information Merger PIAG/UBM 19 Feb 2015 Share price 1 36,50 EUR Market capitalisation ~273 m EUR Official market Vienna Stock Exchange Std. Auction Market No indices Number of shares outstanding Ticker symbol UBS VI ISIN AT IR Calendar Annual report Press conference Q th Annual General Meeting Trade Ex-dividend Payment dividend Half-year report Q IR Contact Do you have any questions? For further information please contact the department Investor Relations. Julia Kozielski T +43 (0) investor.relations@ubm.at 20 1 Stand 16. Juni 2015