3 rd quarter 2019 results presentation 12 December 2019
Agenda I Financial and Operational Highlights Q3 2019 Financial and Operational Highlights Q3 2019 3 II II Portfolio Update Portfolio Update 7 III III Financial Results Q3 2019 Financial Results Q3 2019 15 15 IV IV Outlook Outlook 24 24 V Appendix Appendix 27 27 2 Consus Real Estate AG
Titel I. Financial and Operational Highlights Q3 2019 Consus Real Estate AG VAI Campus in Stuttgart with a GDV of €1,127m the largest development project of Consus
I. Q3 2019 Highlights – Consus delivering on its strategy Q3 Highlights Q3 Highlights Portfolio Update Results Q3 2019 Outlook Appendix Financial Highlights – continued growth trajectory Total revenue of € 525.0 million (Q3 2018 : € 170.6 million), overall performance of € 608.6 million (Q3 2018 : € 327.5 million) – Growth of 209% Adjusted EBITDA of € 285.2 million (Q3 2018 : € 93.4 million) reflecting upfront sale of Leipzig plus income from property development – Adjusted EBITDA margin of 54% Pro Forma Adjusted LTM EBITDA (“PF LTM EBITDA”) of € 438 million (FY 2018: € 246 million) – Reflecting income from property development, plus Leipzig upfront sale and benefit of upfront sale in Q4 2018 Pro Forma LTM Adjusted Net Income of € 127 million, and reported Net Income of € 29 million, reflecting increasing profitability as business grows Continued strong growth in the business 4 Consus Real Estate AG
I. Q3 2019 Highlights – Consus delivering on its strategy Q3 Highlights Q3 Highlights Q3 Highlights Q3 Highlights Portfolio Update Portfolio Update German Real Estate Results Q3 2019 Results Q3 2019 Outlook Appendix Outlook Financial Highlights – deleveraging in progress Significant reduction in leverage : Net debt / PF LTM EBITDA reduced to 5.7x (Q2 2019: 7.8x) – Reflects strong upfront sales and strength of portfolio – Includes benefit of Q3 2019 and Q4 2018 upfront sales Net debt reduced marginally to € 2,480 million (H1 2019: € 2,503 million) Average run-rate interest rate at 7.9%, down 60 basis points sequentially – Q2 2019 : 8.5% reflecting impact of bond issuance High cost mezzanine debt reduced by over € 125 million in the third quarter 2019 to further reduce interest rate – Amount of high cost mezzanine targeted to be no longer be material by end H1 2020 – Consus medium term target to reduce financing costs by 200 basis points to c. 6% ‘Tap’ of € 50 million senior secured notes in October to further reduce average interest rate going forward Deleveraging and reduction in interest rate demonstrating improved financing efficiency and repayment of expensive debt 5 Consus Real Estate AG
I. Q3 2019 Highlights – Consus delivering on its strategy Q3 Highlights Q3 Highlights Portfolio Update Results Q3 2019 Outlook Appendix Portfolio Highlights and recent developments Continued portfolio growth: GDV (1) increases from € 10.0 billion to € 10.3 billion, with further project acquisitions in progress Market Gross Asset Value of € 3.39 billion as at 30 September (H1 2019: € 3.28 billion) Forward Sales volume at € 2.8 billion (H1 2019: € 2.8 billion) with three new Forward sale LOIs signed post September 30, 2019 bringing the total of both forward sales signed and LOI’s signed to €419 million for the year to date. Six projects, with a total GDV of c. € 650 million, currently in negotiation for a forward sale Successful closure in July of upfront sale in Leipzig, with c. € 160 million of net debt repaid and significant profit – Further upfront sale expected to sign in Q1 2020 Berlin (13% of portfolio) market update: no material impact expected on Consus business model due to focus on new built residential Target €450 million Adjusted EBITDA in 2020 Outlook Target Net Debt / Adjusted EBITDA of c.3x in the medium term confirmed Target Adjusted EBITDA margin of 20% (1) As of September 30, 2019, Includes one projects signed but not yet closed. On a 100% basis 6 Consus Real Estate AG
Titel II. Portfolio Update Consus Real Estate AG ‚Königshöfe im Barockviertel‘ in Dresden forward sold to institutional investor with a GDV of €68m
II. Consus - the leading real estate developer in Germany Q3 Highlights Portfolio Update Portfolio Update Results Q3 2019 Outlook Appendix Portfolio with increased share of Forward sales Key financials + KPIs € 10.3 billion GDV (1) € 10.3 billion GDV (1) € 2.8 billion € 2.8 billion € 450 million € 450 million development development GDV in forward sales volume GDV in forward sales volume Targeted Adjusted EBITDA (4) Targeted Adjusted EBITDA (4) portfolio across portfolio across Target Forward Sales (3) Forward Sold (2) 67 projects 67 projects contracted + LOI (2) contracted + LOI (2) 2020 2020 42% 27% GDV: €10.3bn (1) ~20% ~20% 3.0x 3.0x € 3.39 billion € 3.39 billion Targeted Medium-term Targeted Medium-term Targeted Medium-term Net Targeted Medium-term Net Market GAV (5) Market GAV (5) Adjusted EBITDA margin Adjusted EBITDA margin Debt / Adjusted EBITDA Debt / Adjusted EBITDA Condominium sales Upfront sale LOI signed 22% 9% Consus continues to acquire attractive development projects… Breakdown of the development portfolio by city (3) € billion (1) Dresden 10.3 1.2 Munich 10 3.5 3% 5% 9 Hamburg 0.8 Dusseldorf 19% 8 - 10% 7 0.9 6 Cologne 67 projects 0.7 11% 5 4.6 in total (6) Stuttgart 4 Leipzig 21% 3 5% 2 Frankfurt 1 13% Berlin 0 13% GDV as of Dec Organic Organic SSN Closing upfront New GDV 2017 acquisitions acquisitions acquisition sale Q3 acquisitions H1 2018 H2 2018 YTD (1) As of September 30, 2019, including acquisition signed but not yet closed. On a 100% basis; (2) Incl. Forward sales in negotiation and LOI signed of €820m and pre-sold condominiums of €210m; (3) Including yielding assets, which will be sold over time; (4) EBITDA pre Purchase Price Allocation (PPA) and pre one-off costs; (5) Based on Market GAV of the Consus property assets on 100% basis as estimated by management as of September 30 2019 (6) Dortmund is included in Düsseldorf, Erfurt is included in Leipzig; Böblingen, Karlsruhe and Mannheim are included in Stuttgart, Bayreuth and Passau are included in Munich, Offenbach is included in Frankfurt am Main 8 Consus Real Estate AG
II. Attractive development portfolio Q3 Highlights Portfolio Update Portfolio Update Results Q3 2019 Outlook Appendix Strong footprint in Germany’s top economic regions 67 projects with GDV of € 10.3 billion (1) and thereof 33% under construction Stuttgart/Karlsruhe Berlin Munich GDV in €m: 2,139 GDV in €m: 1,355 GDV in €m: 483 Area in k m²: 545 Area in k m²: 207 Area in k m²: 67 Hamburg 19% Avg. Sales Price: 3.923 Avg. Sales Price: 6.534 Avg. Sales Price: 7.233 % of total GDV: 21% % of total GDV: 13% % of total GDV: 5% Projects: 9 Projects: 9 Projects: 3 13% Berlin Hamburg Cologne Leipzig/Erfurt GDV in €m: 1,081 GDV in €m: GDV in €m: 1,960 531 Area in k m²: 359 Area in k m²: 240 Area in k m²: 321 Avg. Sales Price: 5.464 Avg. Sales Price: 4.500 Avg. Sales Price: 3.139 (2) Leipzig Dresden Dusseldorf 10% 5% % of total GDV: 11% % of total GDV: 19% % of total GDV: 5% 3% Projects: 6 Projects: 7 Projects: 16 Cologne 11% Frankfurt/Offenbach Duesseldorf Dresden GDV in €m: 1,365 GDV in €m: 1002 GDV in €m: 345 Area in k m²: 182 Area in k m²: 218 Area in k m²: 72 Frankfurt 13% Avg. Sales Price: 7.493 Avg. Sales Price: 4.590 Avg. Sales Price: 4.815 % of total GDV: 13% % of total GDV: 10% % of total GDV: 3% Projects: 7 Projects: 5 Projects: 5 Stuttgart 21% Main focus on residential and “quartier” developments Munich 5% Approach to develop large projects in phases All “quartier” developments include commercial properties Consus has a flexible portfolio extending until 2026 under the current business plan Consus has a flexible portfolio extending until 2026 under the current business plan (1) As of September 30, 2019, including one acquisition signed, but not closed. On a 100% basis; (2) Adjusted for dilution from Leipzig 416 upfront sale Note: Dortmund is included in Düsseldorf, Erfurt is included in Leipzig; Böblingen, Karlsruhe and Mannheim are included in Stuttgart, Bayreuth and Passau are included in Munich, Offenbach is included in Frankfurt am Main 9 Consus Real Estate AG
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