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TRANSCRIPT
April 2020
This document is not a securities prospectus, and theinformation contained therein does not constitute an offer tosell, or a solicitation of an offer to buy, securities of Noratis AG(“Noratis”) in the Federal Republic of Germany or in any othercountry, specifically not if such an offer or solicitation isprohibited or not approved.
The information contained in this document may not bedistributed outside the Federal Republic of Germany, specificallynot in the United States of America, to US persons (as defined inRegulation S under the United States Securities Act of 1933) or topublications with a general circulation in the United States,unless such distribution outside the Federal Republic of Germanyis prescribed by mandatory provisions of applicable law. Anyviolation of these restrictions may constitute a breach of thesecurities laws of certain countries, in particular those of theUnited States of America. Securities of Noratis are not publiclyoffered for sale outside the Federal Republic of Germany.
This document contains forward-looking statements based oncurrent estimates and assumptions made by the seniormanagement of Noratis. Such statements are not to beunderstood as guarantee that predictions of this sort will prove
to be correct. In particular, any statements on acquisitionspresuppose the actual signing of the necessary contracts or thesuccessful procurement of the necessary equity and debt capital.The future development and actual results achieved by Noratisand its affiliates are subject to a number of risks anduncertainties, and may therefore differ materially from theseforward-looking statements. Many of these factors are beyondNoratis' control and cannot be accurately appraised in advance,including the future economic environment or the actions ofcompetitors and other market players. Noratis does not intend toupdate its forward-looking statements.
Disclaimer
Agenda
1. Company overview 04
2. Projects 12
3. Market 18
4. Financials 21
5. Strategy and summary 25
6. Appendix 29
1. Company overview
Location Krefeld
5
1. COMPANY OVERVIEW
Noratis – Enhancement of property values
Covering all core functions along thevalue chain (acquisition, technicaland commercial development,sales) with own employees
Focus on portfolios from around 20residential units of basic to mediumstandard with potential for deve-lopment
Enhancement of property values inthe interest of all stakeholders,from tenants and employees tofinancing partners and investors
Listed, specialised developer-traderof residential property portfoliosbased in Eschborn near Frankfurtam Main
Investments across Germany withfocus on peripheral regions ofmetropolitan areas and cities withstable demographic development
Preferably housing estates, emplo-yee housing and quarters; flexibilityregarding vacancy rate or propertyconditions
6
Development of existing properties with clear exit strategy for each portfolio 1. COMPANY OVERVIEW
Development
Increase in value through invest-ments and active asset manage-ment
Acquisition
Focus on housing stocks with po-tential for development in secon-dary locations
Sales
Two exit strategies: disposalthrough block sales and / or salesof individual apartments
Reinvestment
Reinvestment of disposal proceeds;positioning as attractive dividendstock
7
1. COMPANY OVERVIEW
Holding structure of Noratis AG(1)
(1) As of December 31, 2019; (2) According to German GAAP
Noratis Wohnen GmbH
Project in Neu-Isenburg
Merged with 2. HeBa ImmobilienUG and Noratis Residential GmbH
Noratis Habitat GmbH
Project in Frankfurt
Noratis Living GmbH
Currently no projects
Sales completed
Registered office: Eschborn near Frankfurt am Mayn
Employees: 47.6 (FTE Q4 2019)(2)
Foundation year: 2002 (2012 first full operational year)
Noratis AG
Holding company directly owns properties (several projects) and provides services to subsidiaries (project companies without employees)
100 % 100 %94 %
8
Established network with over 4,000 contacts
Outstanding access to sellers and brokers with a high number of off-market offers
Doubling of the offers received to more than 165,000 residential units since 2015(1)
Specific contact and information management tool
Collection and assessment of all incoming offers through the Company‘s customised IT tool
Market information for secondary locations available internally
Team with great expertise in planning and managing development measures executed by external partners
High specialisation and process standardisation including technical due diligence
High cost transparency and planning security
Asset management team monitors external facility managers and realises rent potentials
Continuous reduction of vacancy rates, increase of rents and improvement of payment behaviour
High flexibility and use of local know-how
Exit strategy with two distribution channels
Block sales
Sales of individual apartments
Own sales employees on site in case of sales of individual apartments
No remaining apartments (“Swiss cheese”)
High acceptance and trust of residents
No dependency on external sales partners
High consulting quality
Identification of sales team with both the asset and the Company
Transparent and efficient communication with tenants
Our strengths along the value chain1. COMPANY OVERVIEW
Acquisition Development Sales
(1) As of December 31, 2019
9
Excess return: through realisation of developer margin upon disposal
Potential: reduction of vacancy rates and increase of rents due to development measures
Exit orientation: clear definition of development measures and exit strategy for each portfolio
... the advantages of a portfolio holder
Substance: stable assets with significant hidden reserves
Secure cash flows: recurring cash flows from rents
Stability: rents cover both capital and operating costs
Risk avoidance: no increase in vacancy rate through tenant-friendly modernisation of the portfolios
... the advantages of a property developer with …
Business model with an attractive risk-return profile combines ...1. COMPANY OVERVIEW
+RISK
+
RE
TU
RN
Portfolio holder
Project developer
-
10
15
18
21
24
27
Jun
17
Sep
17
Dec
17
Mar
18
Jun
18
Sep
18
Dec
18
Mar
19
Jun
19
Sep
19
Dec
19
Mar
20
Capital markets information(1)
1. COMPANY OVERVIEW
Key data(1) Shareholder structure (in %)
Development of share price since IPO (in EUR)
(1) As of December 31, 2019
ISIN/WKN DE000A2E4MK4 / A2E4MK
Ticker symbol NUVA
Type of shares 3,601,897 no-par value ordinary bearer shares
Market capitalisation c. 78.2 m EUR
Share capital 3,601,897.00 EUR
Initial listing June 30, 2017
Initial issuing price 18.75 EUR (capital increase for 22.50 EUR May 2018)
Segment Frankfurt Stock Exchange (Scale Segment)
Designated sponsor ICF BANK AG
Research
SMC Research (Mar 26, 2020) „buying“target price: 30.50 EUR
Warburg Research (Mar 25, 2020) „buying“ target price: 25.00
Free float
Igor C. Bugarski
Hansaco AS
Terratis GmbH
18.5
12.2
18.8
50.5
11
Management with long-standing experience in the real estate sector1. COMPANY OVERVIEW
Since 2015 at Noratis
Long-standing real estate investmentbanking background (i.e. MorganStanley and Deutsche Bank)
Since 2011 shareholder of Noratis
Long-standing real estate and corpo-rate development experience (i.e.CBRE and DeTeImmobilien)
Operations l Sales l Legal l HR
Igor Christian Bugarski
CEO | Civil Engineer
Financing l Controlling l IR l IT
André Speth
CFO | MBA
2. Projects
Location Neu-Isenburg
13
2. PROJECTS
Locations of current and sold projects with residential units (1)
(1) As of December 31, 2019; units including commercial properties and secured acquisitions; exclusively projects from 2014 onwards mentioned here; (2) Thereof 47 already acquired in 2008
Bad Hersfeld l 55
10
Heddesheim l 16
1
Neu-Isenburg l 12
2
Bad Homburg l 18
3
Krefeld l 36
5
Dormagen l 755
6
Ulm l 104
4
Steinau l 128
9
Großkrotzenburg l52
7
Koblenz l 24
8
Friedberg l 72
11
Zweibrücken l 32
12
Mayen l 176(2)
13
Frankfurt l 179
15
Schwarzenbek l 99
16
Trier l 100
17
Bünde l 240
14
Gladbeck l 32
6
Celle / Königslutterl 410
Ratzeburg / Möllnl 355
Ratingen l 156
87 9
Freital l 93
10
Krefeld l 48 Magdeburg l 149 Leipzig l 60
14 15 16
Frankfurt l 415
4
Zweibrücken l 24
1
Riedstadt l 24
2
Erlensee l 46
3
Neuruppin l 165
17
6
5
3
4
14
13 8
119
10
12
17
16
4
5
7
18 10
11
8
9
15 2 7
1
32 121
136
Sold projects
Currentprojects
Rügen l 142
5
Kassel l 36 Neu-Isenburg l 185 Steinfurt l 111
11 12 13
Raum Erfurt l 121
18
14
15
16
17
14
Track record: all projects concluded successfully(1)
2. PROJECTS
(1) As of December 31, 2019; exclusively completed projects from 2014 onwards mentioned here; (2) Units including commercial properties; (3) Thereof 47 al ready acquired in 2008
Project Acquisition Sales completion Duration (months) Units(2) Rental area (in m²)
Ret
ail
Heddesheim Jan 12 Dec 15 47 16 1,600
Neu-Isenburg May 13 Jan 15 20 12 800
Bad Homburg Jan 14 Jul 15 18 18 1,300
Ulm I Jul 14 Oct 16 27 72 5,300
Krefeld I / II Jun 14 / Jan 15 Jan 18 / Jun 17 43 / 29 30 / 6 3,500
Dormagen IV Oct 15 Aug 18 34 88 5,900
Großkrotzenburg Aug 16 Mar 19 31 52 4,000
Blo
ck
Koblenz Sep 12 Dez 14 27 24 2,000
Steinau Jan 13 Jun 15 29 128 8,800
Bad Hersfeld Jan 13 Sep 15 32 55 3,700
Friedberg May 13 Dec 14 19 72 3,800
Zweibrücken Sep 13 Sep 15 24 32 1,900
Mayen Feb 14 Mar 16 25 176(3) 11,300
Ulm II Jul 14 Mar 15 8 32 2,400
Frankfurt Niederrad Nov 14 Dec 18 51 100 5,400
Bünde Dec 14 Oct 16 22 240 11,800
Dormagen I / II / III Oct 15 Oct 16 / Jan 17 / Dec 17 12 / 15 / 26 137 / 309 / 221 45,000
Schwarzenbek Jun 15 Jun 18 36 99 6,800
Raum Erfurt Feb 17 Dec 19 34 121 7,300
Trier I / II May 17 / Jul 18 Jan 19 20 / 6 80 / 20 8,500
Frankfurt Bornheim Jul 17 May 19 22 60 4,900
Frankfurt Fechenheim Dec 17 Dec 19 24 19 1,500
Total ∅ 25 2,219 147,500
15
2. PROJECTS
Current stock of over 2,400 units(1)
(1) As of December 31, 2019; (2) Units including commercial properties
Project Acquisition Sales completion Duration (months) Units(2)
Re
tail
Zweibrücken Sep 13 1 of 24 100 before 2019
Riedstadt Sep 15 13 of 24 1,200 in 2019
Erlensee Sep 16 36 of 46 2,700 in 2019
Frankfurt Ginnheim Sep 18 363 24,200 in 2020
Blo
ck
Dranske (Rügen) Mar 17 67 4,600 after 2020
Sagard (Rügen) Mar 17 75 4,300 after 2020
Gladbeck May 17 32 3,400 after 2020
Ratzeburg / Mölln Nov 17 355 20,600 partial sale in 2020
Celle / Königslutter Jun 18 345 24,700 after 2020
Frankfurt Rödelheim Aug 18 9 500 after 2020
Ratingen Dec 18 156 11,000 after 2020
Freital Feb 19 93 8,900 after 2020
Kassel Mar 19 36 2,400 after 2020
Neu-Isenburg I May 19 35 3,000 after 2020
Frankfurt Innenstadt Jul 19 25 2,100 in 2020
Steinfurt Aug 19 111 6,200 after 2020
Neu-Isenburg II Aug 19 150 8,600 after 2020
Celle II Oct 19 65 3,700 after 2020
Krefeld Dec 19 48 3,200 after 2020
Magdeburg Dec 19 149 8,900 after 2020
Frankfurt Höchst Dec 19 18 800 after 2020
Leipzig Dec 19 60 3,100 after 2020
Neuruppin Dec 19 165 13,200 after 2020
Total 2,407 161,200
16
Distribution by region (in % based on m²)
Distribution by use (in % based on m²)
Portfolio book value as of December, 31: 238.8 m EUR accounted at cost(1)
(1) As of December 31, 2019
Portfolio overview as of 30 June 2019
Number of assets (in units) 2,407
thereof residential (in units) 2,347
thereof commercial (in units) 60
Number of garages and parking 1,413
Total rental space (in '000 m²) 161.2
thereof residential (in '000 m²) 149.7
thereof commercial (in '000 m²) 11.5
,
Total vacancy (in %) 5.6
In-place net rent annualised (in m EUR) 11.6
Total book value (in m EUR) 238.8
2. PROJECTS
9
30
625
12
6
6
15Brandenburg
Hesse
Mecklenburg-W. Pomerania
Lower Saxony
North Rhine-Westphalia
Saxony
Saxony-Anhalt
Schleswig-Holstein
98 2Residential use
Commercial use
17
Incoming offers 2019
2. PROJECTS
Outstanding market access with competitive advantages in acquisitions
Competitive advantages
Deep market penetration with know-how and network also for small and medium-sized portfolios as well as secondary locations
Flexibility regarding portfolio size, location and property conditions
Strong market position as a reliable, renowned partner
Speed due to size and efficiency of the Company
Standardised processes for a short due diligence period with high cost accuracy
Period from offer received to signature of purchase contract possible within 8 weeks
Contract signed
820 units
98 m EUR
Offers received
220,200 units
22.7 bn EUR
Bids placed
11,100 units
1.1 bn EUR
3. Market
Location Leipzig
19
Construction costs at the time of permission (in EUR/m2)
Favourable supply – demand dynamics for German residential properties3. MARKET
Growth in population and households due to immigration, singularisation and rising demand for space per capita
Price increases due to shortage of supply and insufficient construction activity
Stable economic growth with a positive trend in the labour market and rising incomes
Favourable financing environment with historically low interest rates and insufficient supply of investment opportunities
Completed and required construction activities (in '000 units)Socio-economic development
Sources: BBSR, Statistisches Bundesamt
1,2981,359
1,4331,528
1,624
1,776
2008 2010 2012 2014 2016 2018
0
200
400
2010 2012 2014 2016 2018 2020
Taus
ende
Completion Permits Demand
Continuously strong demand for high quality and affordable housing (rental rates below 10 EUR/m² living space per month)
Profitable leasing of newly developed apartments not possible below 10 EUR/m² p.m.
Increase of construction costs by 40 % from c. 1,300 EUR/m² in 2008 to c. 1,800 EUR/m² in 2018
Further rising construction costs expected due to an increase in regulations
Significantly higher returns in secondary locations versus prime locations
Residential property market
20
Sustainable market potential due to aging of a large national housing stock (need for renovation and modernisation)
Targeted market segment (construction year between 1919 and 1986) comprising c. 60 % of the existing housing stock
Insufficient capital expenditure throughout the nation-wide housing stock to fulfil modern requirements
Housing stock by construction year (in %)Market potential
Stable market segment with sustainable growth potential3. MARKET
Stable trading levels of portfolios with 100 to 800 units compared to the total market with significantly lower volatility
Relatively stable trading volumes also during the financial crisis 2009 and 2010
On average c. 22,000 p.a. residential units sold within the segment of small transactions from 2008 to 2018
Number of residential units sold (in '000)Market segment
Sources: BBSR, Statistisches Bundesamt
0
100
200
300
400
0
10
20
30
2008 2010 2012 2014 2016 2018
Tau
sen
de
Portfolios (100 to 800 units) Total transaction volume
13 10
41
93
12
6
5
before 1919
1919 to 1948
1949 to 1978
1979 to 1986
1987 to 1990
1991 to 2000
2001 to 2010
2011 and later
> 42 m units
4. Financials
Location Freital
22
Gross sales profit (in m EUR)
Accounting according to German GAAP l Revenues primarily driven by portfolio sales l No comparison (financial ratios etc.) to portfolio holders lStable profitability growth with continuously rising sales margins
EBIT (in m EUR) EBT (in m EUR) Net profit (in m EUR)
4. FINANCIALS
Significant increase of both revenues and earnings
Total revenues (in m EUR) Gross rental profit (in m EUR)
Sales margin (in %)
Gross sales profitRental revenuesSales revenues
2.3
3.9 3.84.3
7.2
2015 2016 2017 2018 2019
19.037.8
61.948.2
63.04.8
6.7
6.17.9
12.9
2015 2016 2017 2018 2019
3.8
9.9
15.2 15.6 15.8
2015 2016 2017 2018 2019
1.5
6.0
12.2 12.8 12.1
2015 2016 2017 2018 2019
1.1
4.2
8.7 9.3 8.7
2015 2016 2017 2018 2019
3.89.2
17.7 17.314.4
2015 2016 2017 2018 2019
19.824.4
28.6 35.9
22.9
23
4. FINANCIALS
Bilanzsumme AktivaAssets (in m EUR)
Total equity and liabilities
Equity and liabilities (in m EUR)
German GAAP accounting does not reflect hidden reserves of the portfolio
Total assets 258.9 214.1 127.8 258.9214.1127.8
2018 20172019 20182017 2019
Other liabilities
Primarily provisions for pending capex of sales and profit-related tax provisions
Shareholders' equity
Improvement through both operating success and capital raising; hidden reserves not reflected
Bond
Unsecured bond issued before IPO (including accrued interest)
Bank debt
Secured and unsecured bank loans, also includes leasing and accrued interest
Cash and other current short-term assets
Primarily liquid funds from the sales inthe first half-year 2019
Other assets
Non-current assets and prepaid expenses
Inventory properties
German GAAP accounting of all proper-ties as inventory at cost (trading); hidden reserves not reflected
2.9 3.2 1.2
238.8
176.7
99.2
17.2
34.2
27.4
2019 2018 2017
12.3 9.724.5
80.3
149.1
175.1
5.9
5.9
5.9
29.3
49.4
53.4
24
Financing structure(1)
(1) As of December 31, 2019
Maturity profile of financial liabilities (in m EUR)Financing structure (in m EUR)
4. FINANCIALS
Covenants
180.7 m EUR
up to 1 year
over 5 years
1 to 5 years
Secured bank loans
Average interest rate p.a.: 1.5 %
Usually regional savings banks
Secured by land charges
Usually no SPV financing
Unsecured bank debt
Average interest rate p.a.: 2.9 %
Bond
Interest rate p.a.: 7.5 %
Shareholders and „friends & family“
Issued before IPO
∑ 180.7 (total average cost of debt of 1.7 %)
116911
173.4
1.6
5.7
0
20
40
60
80
100
120
140
160
180
200
5. Summary
Location Neuruppin
26
Focused strategy
Continuing growth
Proven acquisition profile
Sustainable dividends
• Development of residential property portfolios with a clear exit strategy for each portfolio
Revenues primarily driven by portfolio sales, but increasing share of rental revenues
High yields compared to portfolio holders and lower risks compared to property developers
Growth of the project portfolio
Continuous generation of disposal profits by simultaneously selling multiple projects
Use of economies of scale with costs rising slower than revenues
• Investment focus on portfolios up to c. 1,000 residential units
Attractive niche with stable trading volumes and room for further growth
Transaction processes of smaller portfolios less competitive
• High dividend potential
Positioning as attractive dividend stock
C. 50 % of annual profits based on German GAAP accounting distributed to shareholders
Key strategic objectives5. STRATEGY AND SUMMARY
27
Focused business model
Attractive market segment
High growth potential
Scalability of the platform
Co-investing with management
Hiddenreserves
Attractive risk-return profile between portfolio developer and portfolio holder
Positioning as dividend stock with c. 50 % of annual profits distributed to shareholders
Market segment with lower volatility (prices and rents) as well as attractive returns
Stable trading levels of portfolios with up to 800 residential units
Preferred portfolio size usually too big for private investors and too small for institutional investors
Sustainable market potential due to aging of existing housing stock; new construction significantly more expensive
Main platform investments already made; economies of scale are realisable
Covering all core functions along the value chain with own employees
Long-standing track record with solely successfully sold portfolios
Excellent market reputation
Hidden reserves in the balance sheet (German GAAP) as additional stabilisation factor and proof of the portfolio value
Investment highlights5. STRATEGY AND SUMMARY
28
The average annualgrowth in profit (2014to 2019)amounting to
61 % 4,000Established network of over
contacts
2,400Current portfolio of c.
residential units(²)
The average projectduration (since 2014)from acquisition todisposal amounting to
25months
240with c. 2,250 units success-fully sold since 2014
mEUR
Volume of more than
(1) As of December 31, 2019; (2) Units including commercial properties and secured acquisitions
Noratis in numbers at a glance(1)
755with a rental area ofaround 50,000 m² as thelargest project so far
residential units
The acquisition of theDormagen portfolio in2015 comprising
360of c. 4,000 apartmentsacquired since 2014
mEUR
Volume of more than
5. STRATEGY AND SUMMARY
43 mEUR
pre-tax profit generated since 2016
More than
6. Appendix
Location Dormagen
30
APPENDIX 1 – FINANCIALS
Consolidated balance sheet as of December 31, 2019(1)
(1) Differences due to rounding possible
Assets (in '000 EUR) 2019 2018 2017
A. Fixed assets 427.7 509.9 445.9
I. Intangible assets 33.6 50.9 68.2
II. Property, plant and equipment 394.1 459.0 377.7
1. Properties 9.6 10.1 10.6
2. Other assets, equipment 384.5 448.9 367.1
B. Current assets 256,061.3 210,830.7 126,464.9
I. Properties for sale 238,848.8 176,670.9 99,026.8
II. Receivables and other current assets 8,593.5 24,500.5 5,618.5
1. Accounts receivable 8,220.9 24,051.2 1,671.0
2. Other (current) assets 372.6 449.4 3,947.5
III. Securities 1,652.2 1,808.6 3,927.6
IV. Cash and cash equivalents 6,966.8 7,850.7 17,892.1
C. Prepaid expenses 2,260.2 2,725.2 747.6
D. Deferred tax assets 200.2 0.0 0.0
Total assets 258,949.3 214,065.7 127,838.4
Equity and liabilities (in '000 EUR) 2019 2018 2017
A. Shareholders' equity 53,427.4 49,460.8 29,274.5
I. Subscribed capital 3,601.9 3,601.9 2,920.0
II. Capital reserve 31,490.8 31,490.8 16,830.0
III. Retained profit 18,116.3 14,149.7 9,284.9
IV. Non-controlling interests 218.5 218.5 239.7
B. Provisions 4,989.7 5,435.1 7,273.5
1. Tax provisions 2,678.7 2,793.2 4,355.9
2. Other provisions 2,311.0 2,641.9 2,917.6
C. Liabilities 200,259.6 157,587.7 90,204.6
1. Bonds 5,925.6 5,928.0 5,946.1
2. Liabilities to financial institutions 175,062.8 149,088.1 80,250.0
3. Advance payments 3.0 7.2 107.5
4. Accounts payable 18,451.7 1,914.8 818.5
5. Other liabilities 816.5 649.5 3,082.5
D. Deferred income 272.6 210.0 134.0
E. Deferred tax liabilities 0.0 1,372.1 951.8
Total equity and liabilities 258,949.3 214,065.7 127,838.4
31
Consolidated income statement(1)
APPENDIX 1 – FINANCIALS
(1) Differences due to rounding possible
in '000 EUR 2019 2018 2017
1. Total revenues 75,950.5 56,120.6 67,988.7
2. Increase/reduction of inventory property 62,710.8 76,915.8 1,760.5
3. Other operating income 1,001.7 698.4 169.5
4. Expenses -116,063.2 -111,420.6 -48,225.8
a) Expenses from sale of inventory property -110,311.4 -107,784.2 -45,934.4
b) Rental expenses -5,751.8 -3,636.4 -2,291.4
5. Personnel expenses -4,057.2 -3,526.7 -2,380.1
6. Depreciation on intangible fixed assets and property, plant and equipment -187.3 -170.7 -95.8
7. Other operating expenses -3,591.6 -3,072.1 -3,994.4
8. Other interest and similar income 150.4 208.2 150.2
9. Interest and similar expenses -3,829.2 -2,979.5 -3,133.6
10. Taxes on income and earnings -3,411.7 -3,504.2 -3,564.5
11. Other taxes -2.9 -3.1 -2.8
12. Profit for the period 8,670.2 9,266.0 8,672.0. .
13. Minority interest -21.2 -21.2 -7.6
14. Profit attributable to shareholders 8,649.1 9,244.8 8,664.4
32
Consolidated income statement by revenue categories(1)
APPENDIX 1 – FINANCIALS
(1) Differences due to rounding possible
in m EUR 2019 2018 2017
Units sold 339 294 587
Revenues 75.9 56.1 68.0
Revenues from sale of inventory property 63.0 48.2 61.9
Expenses from sale of inventory property (incl. pending capex measures) -48.6 -30.9 -44.2
Gross profit from sales 14.4 17.3 17.7
Rental revenues 12.9 7.9 6.1
Rental expenses -5.7 -3.6 -2.3
Gross profit from letting 7.2 4.3 3.8
Gross profit 21.6 21.6 21.5
Other operating income 1.0 0.7 0.2
Personnel costs -4.1 -3.5 -2.4
Depreciation -0.2 -0.2 -0.1
Other operating expenses -2.6 -2.3 -2.5
Costs of IPO/capital increase 0.0 -0.8 -1.5
EBIT 15.8 15.6 15.2
Net interest expenses -3.7 -2.8 -3.0
EBT 12.1 12.8 12.2
Income taxes -3.4 -3.5 -3.6
Consolidated income 8.7 9.3 8.6
33
Track record in Dormagen demonstrates successful business modelAPPENDIX 2 – CASE STUDY
Image enhancement and improved living quality of the whole quarter
Extensive investments in the building substance
Facades, balconies, entrances, staircases
Walls, roofs, floor coverings, bathrooms, kitchens, mould removal
Optical enhancement of the surrounding
grounds
Residential units: 755
Rental area: c. 50,000 m²
Construction year: 1965
Acquisition: October 2015
Property condition
Buildings: substance diverging from sufficient to good, maintenance backlog
Apartments: partly in great need for modernisation
Reduction of a 30 % vacancy rate due to capex spending and active management
Monthly rents of new leases higher than expected with an increase from 6.50 EUR/m² up to 7.60 EUR/m²
Attractive margins generated by both block sales and retail sales
First block sale already after 12 months
Additional block sales after 15 and 26 months
Acquisition Development Sales
34
Upgrading the entire residential area: outdoor areas and buildingsAPPENDIX 2 – CASE STUDY
35
Renovation work in kitchen and bathroom APPENDIX 2 – CASE STUDY
Bef
ore
Kitchen Bathroom
Aft
er
Hauptstraße 129 +49 (0)69 170 77 68 20
65760 Eschborn +49 (0)69 170 77 68 24
www.noratis.de [email protected]
Noratis AG