Defama Deutsche Fachmarkt Ag · XETR:DEF
Defama Deutsche Fachmarkt — Investor Presentation (March 2021)
27 slides from Defama Deutsche Fachmarkt's investor presentation, March 2021
Slide 1: Company Presentation DEFAMA Deutsche Fachmarkt AG
Company Presentation DEFAMA Deutsche Fachmarkt AG March 2021
Slide 2: Equity Story
EQUITY STORY In order to build up a long‐term portfolio, DEFAMA acquires: Pasewalk, Mecklenburg Western Pomerania • Well‐established retail parks and small shopping centres • With chain stores with strong solvency as (anchor) tenants • Without larger vacancies and/or investment needs • Purchase pric
Slide 3: Equity Story: three reasons for the strategy
EQUITY STORY Three good reasons why we pursue this strategy: Property size usually Too small for most Favourable prices due to lack of between €1m and €5m institutional investors competition on the buyer’s side Focus on typical local No issues with Sustainable rentability shopping centres e‐commerce
Slide 4: Investment Case: Value creation on several levels (I)
INVESTMENT CASE Value creation on several levels (I) • Acquisition of properties with initial yield of 10% p.a. • Refinancing of > 80% of investment with app. 2% p.a. possible Albstadt, Baden‐Wuerttemberg little equity needed, therefore high return on equity FFO per share in € • Strong growth based
Slide 5: Investment Case: Value creation on several levels (II)
INVESTMENT CASE NAV per share Value creation on several levels (II) in € > 16.70 16 • Complex single purchases at favourable prices 11.02 13.46 12 8.42 • Professionally managed portfolios trade 8 5.50 at much higher multiples on net rent 4 0 NAV per share +203% 2016 2017 2018 2019 2020e within four
Slide 6: Management
MANAGEMENT Matthias Schrade (CEO) Matthias Stich • Many years of experience as a • More than 20 years working for financial analyst and entrepreneur the BBE/IPH Group • Excellent network in the areas of • Specialist in valuation and (re‐) retail, real estate and banking development of retail real es
Slide 7: Management: Supervisory Board
MANAGEMENT Supervisory Board Peter Schropp (Chairman) • Managing Director of several real estate companies within Primepulse Group • Until 9/2014 Member of the Management Board of VIB Vermögen AG responsible for Real Estate • Significantly involved in the expansion of the portfolio to just under €1b
Slide 8: Portfolio: Key Figures
PORTFOLIO Key Figures (as of 31 December 2020) Locations 43 Net Rent (annualised) €14.3m Lettable Space 179,402 sqm Occupancy Rate 96.3% Ø Lease Term (WALT) 5.0 years • 80% of total net rent come from chain stores with strong credit ratings • Contracts with anchor tenants have above‐average maturity
Slide 9: Portfolio: Net Rent by Industry and Largest Tenants
PORTFOLIO Net Rent by Industry Largest Tenants Contracts Share Toom/B1 5 12.4 % Kaufland/LIDL 5 12.2 % EDEKA Group 10 10.8 % REWE/Penny 9 9.1 % Tengelmann Group 17 5.1 % Dän. Bettenlager (= JYSK) 8 4.5 % Aldi Nord 4 4.3 % NORMA 7 4.0 % Takko 5 1.9 % „Top 10“ leases account for Deichmann 5 1.6 % only
Slide 10: Portfolio: Retail Park Zeitz
PORTFOLIO Transaction/Purchase Retail Park Zeitz Year of construction: 1993 Plot size: 67,851 sqm Lettable space: 20,219 sqm Occupancy rate: 100% Investment: €9m Annual net rent: €1.28m Zeitz, Saxonia‐Anhalt Acquisition at 7 times annual net rent Key tenants are Kaufland and toom, al
Slide 11: Portfolio: DIY Store Anklam
PORTFOLIO Transaction/Purchase DIY Store Anklam Year of construction: 1999 / 2019 Plot size: 21,625 sqm Lettable space: 7,981 sqm Occupancy rate: 100% Purchase price: €6.2m Annual net rent: €560k Anklam, Mecklenburg Western Pomerania Acquisition at 11 times annual net rent Tenant is
Slide 12: Portfolio: 3x Dänisches Bettenlager
PORTFOLIO Transaction/Purchase 3x Dänisches Bettenlager (= JYSK), located in Southern Germany Year of construction: 1975 / 2009 / 2009 Plot size : each app. 3,000 sqm Lettable space: each app. 1,000 sqm Occupancy rate: 100% Michelstadt, Hesse Purchase price (eff.): total €3.3m Annual net
Slide 13: Financing
FINANCING Maturity Profile incl. Repayments Key Figures (as of 31 December 2020) in €m Number of financing partners 32 24 Bank loans 110 Mio. € 16 Ø Interest rate 2.12% 8 Ø Initial repayment 1) 4.60% 0 Ø Fixed interest 1) 7.8 Jahre Loan‐to‐value‐ratio (LTV) 61.0% Maturity of Fixed Interest Repayment
Slide 14: Key Financials 2017-2020
KEY FINANCIALS 2017‐2020 Portfolio Value Sales in €m in €m CAGR 179 CAGR 14.8 +35% +37% 137 11.2 108 9.1 73 5.8 2017 2018 2019 2020 2017 2018 2019 2020 Net Profit Funds from Operations (FFO) in €m in €m CAGR CAGR +22% 2.5 +31% 5.8 2.1 1.7 4.6 1.4 3.6 2.6 2017 2018 2019 2020 2017 2018 2019 2020 Compa
Slide 15: Kennzahlen 2017-2020
KENNZAHLEN 2017‐2020 Earnings per share FFO per share in € in € CAGR CAGR +14% 0.57 +22% 1.32 0.51 1.14 0.46 1.01 0.38 0.73 2017 2018 2019 2020 2017 2018 2019 2020 Dividend per share in € Guiding principles for expansion CAGR +12% 1) 0.45 0.48 0.40 • Company growth not for its own sake, but always w
Slide 16: Highlights 2020
HIGHLIGHTS 2020 Refurbishment Radeberg completed as planned • No delay of building measures due to Covid‐19 • Building costs in line with budget • Reopening as planned on November 5th, 2020 Quelle: I und N Bau GmbH, Hannover Radeberg, Saxonia • Several offers of potential buyers, that all would have
Slide 17: Highlights 2020: Tenant contracts
HIGHLIGHTS 2020 Prolongation or new contracts signed with important tenants in 2020 ALDI Staßfurt Dänisches Bettenlager Wittenburg Deichmann Genthin Getränke Sagasser Königsee Getränke Hoffmann Gebhardshain Hahn Getränke‐Union Waldeck K+K Shoe Market Schneeberg LIDL Waldeck + Traben‐Trarbach NKD Kön
Slide 18: Current Development: Investments within existing portfolio
CURRENT DEVELOPMENT Investments within the existing portfolio (examples) Merseburg • Settlement of ACTION completed app. €50m Sangerhausen • Expansion of TEDi‘s area completed app. €80k Löwenberg • Acquisition of neighbour parcel completed in total • Expansion of ALDI‘s area in process, completion e
Slide 19: Current Development: Impact of coronavirus crisis
CURRENT DEVELOPMENT Impact of coronavirus crisis / current situation • First lockdown: temporarily 20% rents in April and 10% in May not paid, which means app. €300k; today €100k left, very few rent losses/abandonments • Second lockdown: a few not paid rents in December (esp fitness, gastronomy), co
Slide 20: Current Development: Transaction/Sale
CURRENT DEVELOPMENT Transaction/Sale REWE City Center Bleicherode Year of construction: 1993 Lettable space: 4,044 m2 Occupancy rate: 88% Annual net rent: €350k Tenants i.a. REWE, Ernsting‘s family, pharmacy Bleicherode, Thuringia Ad hoc announcement dated February 24th, 2021 • First sale in company
Slide 21: Status and Outlook: Guidance for 2021
STATUS AND OUTLOOK Guidance for 2021 Prior Year • Net Profit (German GAAP): €3.1m €2.5m €0.69 per share €0.57 per share • Funds From Operations (FFO): €7.1m €5.8m €1.61 per share €1.32 per share • Annualized FFO: at least €8m €7.1m • Dividend: > €0.48 per share €0.48 per share 1) • Increase of exist
Slide 22: Status and Outlook: Typical year for DEFAMA
STATUS AND OUTLOOK Development in a typical year for DEFAMA • Aquisition of five to eight objects for €15m to €20m • Financing of > 80% of the total investment via bank loans • Need of about €3m liquidity for the purchases • Additional net rents of €1,5m to €2m with > 45% FFO margin • > €2m addition
Slide 23: Status and Outlook: Long-term guidance DEFAMA 2025
STATUS AND OUTLOOK Portfolio Value in €m Long‐term guidance „DEFAMA 2025“ 260‐300 • Portfolio value reaches €260m to €300m ca. 200 179 137 • Annualised net rents of €24m 108 • FFO of > €11m resp. > €2,50 per share 2018 2019 2020 2021e 2025e • Targets can be achieved without capital increase Net Rent
Slide 24: Share
SHARE Share price development since IPO at 13 July 2016 Shareholder structure 2) 20 € 16 € 29% 12 € 8€ 65% 4% 4€ 2% Jul. 16 Apr. 17 Jan. 18 Okt. 18 Jul. 19 Apr. 20 Jan. 21 WKN / ISIN A13SUL / DE000A13SUL5 MSC Invest GmbH / M. Schrade Stock exchange Munich (m:access), Frankfurt, Xetra Geminus GmbH /
Slide 25: Why to Invest
WHY TO INVEST Highly Profitable thanks to favourable purchase prices and lean structures Solid Financing via object subsidiaries with local and savings banks Down‐to‐Earth Team with great experience in the real estate and retail sector Shareholder‐friendly with high transparency and yearly dividend
Slide 26: Contact
CONTACT DEFAMA Deutsche Fachmarkt AG Nimrodstr. 23 D 13469 Berlin www.defama.de Matthias Schrade CEO Telephone +49 (0) 30 / 555 79 26 ‐ 0 Fax +49 (0) 30 / 555 79 26 ‐ 2 E‐mail schrade@defama.de Apolda, Thuringia Company Presentation DEFAMA Deutsche Fachmarkt AG 26
Slide 27: Disclaimer
DISCLAIMER Important Notice: Forward Looking Statement The information or opinions contained in this document have not been independently verified and no express or implied warranty or representation is made as to their suitability, accuracy or completeness or the recipient may not rely on them. Thi
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