Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — H1 2017/2018 Earnings Presentation
62 slides from Deutsche Konsum Real Estate's earnings presentation, May 2018
Slide 1: Deutsche Konsum REIT-AG (DKR) H1 Results 2017/2018
Deutsche Konsum REIT-AG (DKR) H1 Results 2017/2018
Slide 2: Contents
Contents Summary of the H1 2017/2018 Real Estate Portfolio – Key figures, recent developments, tenancy and valuation potential Financial structure Financials H1 2017/2018 DKR shares, analysts, guidance and dividend policy Finance calendar FY 2017/2018 Appendices Strategy Management External partners
Slide 3: Summary of the H1 2017/2018
Summary of the H1 2017/2018 3
Slide 4: DKR's major achievements in H1 2017/2018
Summary DKR‘s major achievements in H1 2017/2018 >> Running the growth path: ➢ Investments in 27 new properties with a total volume of circa 107 mEUR within the first seven months of the FY 2017/2018 in line with DKR’s investment criteria ➢ Proforma portfolio now consists of 89 properties with a boo
Slide 5: Financial key figures
Financial key figures Continuous solid growth of financial figures in H1 2017/2018 Rental income (kEUR) FFO (kEUR) FFO per share (EUR) 15,000 13,550 8,000 7,263 0,3 0.28 0.22 8,861 6,000 10,000 4,474 0,2 4,000 5,000 0,1 2,000 0,000 0,000 0 H1 2016/2017 H1 2017/2018 H1 2016/2017 H1 2017/2018 H1 2016/
Slide 6: Real Estate Portfolio
Real Estate Portfolio 6
Slide 7: Portfolio: Key portfolio figures as at 31.03.2018
Portfolio Key portfolio figures as at 31.03.2018 Annualised rent (mEUR) Vacancy (%) >> Portfolio snapshot 27 15,0 14.6 ➢ Key figures based on 70 properties accounted as 26 25.6 at 31.03.2018 24.8 25 14,0 24 13.6 ➢ Portfolio GAV of about 297 mEUR 23 ➢ Vacancy level dropped due to the latest addition
Slide 8: Property map
Property map 89 properties with about 500,000 sqm lettable space and 400 mEUR GAV >> Top 8 assets as at 31.03.2018: City Greifswald City Ludwigslust Lettable space (sqm) 9,410 Lettable space (sqm) 14,386 Construction 1997 Construction 2000 Schleswig- Annual rent (mEUR) 1.1 Holstein Annual rent (mEUR
Slide 9: Portfolio: Acquisition overview
Portfolio Acquisition overview >> Bow wave of ownership transfers with high FFO contribution ahead in H2 2017/2018: Transfer of Annualised rent # Location Main tenants Investment (mEUR) Details ownership (mEUR) 67 Finsterwalde OBI January 18 0.5 68 Jestetten Kik, Tedi January 18 0.2 69 Zeulenroda Ha
Slide 10: Portfolio: Latest major investments
Portfolio Latest major investments >> FFO contribution in H2 2017/2018: Location 1 Torgelow Location 2 Elsterwerda „Elster Location 3 Werdau (Zwickau) Location 4 Weißwasser Centre“ „Pleissen Centre“ „Südpassage“ Space (sqm) 7,519 Space (sqm) 34,420 Space (sqm) 39,390 Space (sqm) 13,228 Annualised re
Slide 11: Tenant mix
Tenant mix High quality tenants and 70% non-cyclical rents >> Rent contribution by sector (mEUR)1: >> Annualised rent contribution by major tenants1 : Rents WALT in Tenant group Brands (mEUR) years Edeka Group 5.4 3.6 Other cyclical uses Schwarz Group 5.6 6.3 5,7 Metro Group 2.0 11.9 Bartels-Langnes
Slide 12: Leases: DKR as a reliable partner for long-lasting tenancies
Leases DKR as a reliable partner for long-lasting tenancies >> Multiple leases with the same tenants foster the relationship1: >> Annualised rents allocated to years of lease contract maturities of the portfolio1: 35 1 16.000.000 30 14.000.000 12 No. of lease contracts 25 12.000.000 Rent p.a. EUR 20
Slide 13: Revitalisation projects
Revitalisation projects Well on track >> Impressions of DOMCENTER Greifswald to be finalised until July 2018: Before revitalisation After revitalisation 13
Slide 14: Valuation potential
Valuation potential Share price currently trades at attractive 7.6% yield >> NAV impact derived from factor increases (c.p.) leads to upside potential: Annualised total Hypothetical Hypothetical Portfolio value Net debt NAV Number of portfolio rent valuation Yield Net LTV NAV per share (mEUR) outsta
Slide 15: Financial structure
Financial structure 15
Slide 16: Financial structure: Refinancing to be closed
Financial structure Refinancing to be closed >> Debt structure of DKR as at 31.03.2018: Debt allocation (mEUR initial nominal debt) 31.03.2018 30.09.2017 18.4 Debt from loans and convertible bonds (IFRS), mEUR 114.3 118.9 Convertible bonds I and II 37.0 Average nominal interest of loans, % p.a. 2.37
Slide 17: Financials H1 2017/2018
Financials H1 2017/2018 17
Slide 18: Condensed IFRS balance sheet
Financials H1 2017/2018 Condensed IFRS balance sheet kEUR 31.03.2018 30.09.2017 kEUR 31.03.2018 30.09.2017 Assets Equity and liabilities Pro forma portfolio of Investment properties 297,644.7 275,443.9 Subscribed capital 27,236.3 24,760.3 Increased Equity due mEUR 400 including the latest notarised
Slide 19: Condensed IFRS income statement
Financials H1 2017/2018 Condensed IFRS income statement kEUR 01.10.2017 – 01.10.2016 – 31.03.2018 31.03.2017 Rental income 13,550.4 8,860.5 Opportunistic sale of an unused part of the Operating expenses -3,666.1 -2,003.6 acquired property in Schwerte. Rent increases due to various acquisitions Net r
Slide 20: FFO and EPRA NAV reconciliation
Financials H1 2017/2018 FFO and EPRA NAV reconciliation >> FFO/aFFO: >> EPRA NAV: kEUR 01.10.2017 – 01.10.2016 – 31.03.2018 30.09.2017 kEUR 31.03.2018 31.03.2017 Total period income 6,364.3 5,575.9 +/- Income taxes 10.5 0.0 Total equity 185,240.5 154,736.0 + Depreciation of assets 0.5 0.4 Conversion
Slide 21: DKR shares, analysts, guidance and dividend policy
DKR shares, analysts, guidance and dividend policy 21
Slide 22: DKR Shares
DKR Shares Share price reflects the steady and accretive growth of DKR >> DKR share: 14.05.2018 ISIN DE000A14KRD3 WKN A14KRD3 Symbol DKG Number of shares 27,236,313 Nominal capital (kEUR) 27,236 Share class Bearer shares Stock exchanges XETRA, Frankfurt, Berlin Segment Prime Standard Indizes Prime a
Slide 23: DKR Shares: Analysts
DKR Shares Analysts >> Analyst coverage: Publication date Bank Analyst Recommendation Price target 24 April 2018 Thomas Effler „Buy“ EUR 11.90 26 April 2018 Kai Klose „Buy“ EUR 11.50 24 April 2018 Dr. Georg Kanders „Buy“ EUR 12.00 23
Slide 24: DKR Shares: Increased free float after capital increase
DKR Shares Increased free float after capital increase >> Recent DKR share developments: >> Current shareholder structure (14.05.2018) : Carmignac Gestion Aramis Holding GmbH ➢ Successful 10% share capital increase closed on 8 Dec 2017 Obotritia Capital Group 30,41% 2.46 3.49 Tiven GmbH 9.53 ➢ Issua
Slide 25: FFO-Guidance and dividend policy for Fiscal Year 2017/2018
DKR Shares FFO-Guidance and dividend policy for Fiscal Year 2017/2018 >> FFO-Guidance for FY 2017/2018: ➢ FFO guidance is mainly driven by successful futurous acquisitions ➢ DKR plans to invest between 75 and 100 mEUR in the FY 2017/2018 ➢ Based on current projections DKR expects FFO between 16.0 mE
Slide 26: Finance calendar
Finance calendar 26
Slide 27: Finance calendar: We keep you informed
Finance calendar We keep you informed >> Finance calendar: >> Events: Date Date 14.02.2018 Publication of Q1 2017/2018 quarterly statement 11.01.2018 ODDO BHF Forum Lyon 08.03.2018 Annual General Meeting in Berlin 21.02.2018 12th ODDO BHF German Conference Frankfurt 15.05.2018 Publication of H1 2017
Slide 28: Appendices
Appendices 28
Slide 29: DKR Strategy at a Glance (1) - Focussing on high cashflows
Appendix I DKR Strategy at a Glance (1) - Focussing on high cashflows 2a Efficient Asset Management 1 ➢ Experienced inhouse 3 4a Sourcing and AM Lean admin Investment Collecting cash ➢ Stabilising assets structure and flows 5 ➢ Acquisition of retail ➢ Prolongation of access to capital properties in
Slide 30: DKR Strategy at a Glance (2) - Opportunities and capital recycling
Appendix I DKR Strategy at a Glance (2) - Opportunities and capital recycling >> Value add strategy: ➢ DKR invests in properties in stable and established micro locations at a low level 4b Sale of the value cycle (1) ➢ In many cases these properties are slightly undermanaged or need new concepts or
Slide 31: Experienced and committed management
Appendix II Experienced and committed management Rolf Elgeti (CEO) Rolf has been the founder of Deutsche Konsum REIT-AG, which is a spin-off of his investment company Obotritia Capital. Before he was the CEO of TAG Immobilien AG, Hamburg, which experienced an enormous growth under his leadership and
Slide 32: Strong external partners
Appendix III Strong external partners >> DKRs external management partners: Elgeti Brothers 32
Slide 33: Value add by extensive property redevelopments
Appendix IV Value add by extensive property redevelopments >> Current major revitalisation projects: Location Domcenter Location Kirschbergcenter Location Kolumbuspassage Location Lindencenter Greifswald Hohenmölsen Rostock Stralsund Space (sqm) 9,410 Space (sqm) 7,797 Space (sqm) 4,492 Space (sqm)
Slide 34: Case 1: Bitterfeld - Revitalisation of BiTZ retail store
Appendix IV Case 1: Bitterfeld - Revitalisation of „BiTZ“ retail store At purchase Now progress Revitalisation process: Results: 1 New attractive tenants REWE (15 New utilisation concept by DKR‘s AM and years contract) and DM (12 years activation of unused land by new construction contract) and incr
Slide 35: Case 2: Ludwigslust - Extending the anchor of Lindencenter
Appendix IV Case 2: Ludwigslust - Extending the anchor of „Lindencenter“ At purchase Now progress Value-add measures: Results: 1 Prolongation of food retail anchor by At purchase through DKR the anchor tenant 10 years with same conditions was about to leave the asset. Started which increased the WAL
Slide 36: Case 3: Greifswald - Vacancy reduction through new attractive concept
Appendix IV Case 3: Greifswald - Vacancy reduction through new attractive concept At purchase After rebuilding progress Revitalisation process: Results: 1 At purchase the retail centre had an uncertain Space expansion of food retail future stucking in a liquidation for years. anchor and fashion stor
Slide 37: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 1 Bad Oeynhausen, Mindener Local retail NP, TEDi 4.590 2,1% 4,93 22.158 265.899 3,7 Straße 67/Alter Rehmer centre Weg 22 2 Bitterfeld, Br
Slide 38: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 5 Neumünster, Rendsburger DIY Store tedox KG 4.630 0,0% 4,14 19.167 230.004 8,8 Straße 16 6 Altentreptow, Fritz-Reuter- Local retail EDEK
Slide 39: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 9 Bad Dürrenberg, Ostrauer Discounter Pfennigpfeiffer 3.384 61,7% 3,78 4.900 58.800 2,8 Straße 5 10 Meißen, Berghaus Straße DIY Store too
Slide 40: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 13 Wandlitz, Bahnhofstraße Local retail Netto 1.608 0,0% 9,20 14.789 177.474 6,8 35-36 centre 14 Marlow, Carl-Cossow- Discounter Netto 1.
Slide 41: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 17 Gräfenhainichen, Rosa- Discounter ALDI 1.087 0,0% 6,72 7.299 87.589 2,9 Luxemburg-Straße 47 18 Bitterfeld-Wolfen, Local retail Siemes
Slide 42: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 21 Kleinwelka, Hoyerswerdaer Discounter Penny 1.138 0,0% 11,47 13.050 156.600 9,6 Straße 136 22 Niesky, Am Bahnhof 8 Discounter Penny 1.3
Slide 43: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 25 Berlin-Konradshöhe, Discounter Nahkauf 580 0,0% 7,78 4.513 54.160 8,6 Habichtstraße 16 (REWE) 26 Ludwigsfelde, Albert- Local retail No
Slide 44: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 29 Leipzig, Merseburger Local retail ALDI, 23.382 8,3% 6,27 134.525 1.614.305 3,9 Straße 255-263 centre BabyOne 30 Rostock, Kolumbusring
Slide 45: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 33 Laucha, Am Stadtfeld 2 Discounter NP 1.110 0,0% 8,52 9.455 113.457 4,0 34 Gröbers, Lange Straße 3 Discounter NP 986 0,0% 9,09 8.966 10
Slide 46: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 37 Goldbeck, Babener Straße Discounter NP 982 0,0% 8,80 8.640 103.676 3,9 43 38 Stendal, Nordwall 12b Discounter EDEKA 1.107 0,0% 10,67 1
Slide 47: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 41 Krakow am See, Discounter EDEKA 3.474 5,3% 8,38 27.594 331.126 3,2 Bahnhofsplatz 3 42 Franzburg, Abtshäger Local retail EDEKA 1.320 0,
Slide 48: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 45 Ueckermünde, Haffring 24 Local retail REWE, TEDI 4.620 44,0% 4,21 10.883 130.591 8,6 centre 46 Kaltennordheim, Discounter Tegut 927 0,
Slide 49: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 49 Dautphe, Gladenbacher Discounter REWE 1.600 0,0% 4,25 6.800 81.600 2,9 Straße 43 50 Schwedt, Platz der Local retail DM, 10.533 0,2% 5,
Slide 50: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 53 Bergen, Harburger Straße Local retail EDEKA 6.393 0,0% 11,55 73.809 885.711 1,9 30 centre 54 Drebkau, Drebkauer Discounter NP 965 0,0%
Slide 51: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 57 Meißen, Schützestraße 1 Hypermarket Kaufland, Gym 24.475 30,6% 6,10 103.505 1.242.063 3,1 58 Plauen, Morgenbergstraße Hypermarket Kauf
Slide 52: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 61 Eisenhüttenstadt, Karl- Discounter Netto 1.153 0,0% 9,28 10.700 128.400 2,2 Marx-Straße 33 62 Limbach-Oberfrohna, Discounter Diska 1.8
Slide 53: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 65 Langenwolschendorf, Local retail REWE 3.072 0,0% 7,57 23.267 279.204 7,0 Heinrich-Wobst-Straße 1 centre 66 Schwerte, Hagener Straße Di
Slide 54: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 69 Glauchau, Discounter Netto 1.153 0,0% 8,58 9.900 118.800 2,5 Schönburgstraße 40 70 Zeulenroda, Heinrich-Wobst- DIY Store Hagebaumarkt
Slide 55: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 71 Weilheim, Lohgasse 4 Discounter Netto 1.824 0,0% 4,83 8.810 105.717 3,3 72 Dierdorf, Königsberger Discounter KiK, Fessnapf 1.391 0,0%
Slide 56: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 74 Waldbröl, Kaiserstraße 36 Discounter Rossmann 938 0,0% 6,30 5.911 70.935 #NV 75 Seebach, Am Rötelstein 3 / Discounter Nahkauf 1.120 2,
Slide 57: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 78 Niesky, Rothenburger Discounter Penny 1.080 0,0% 9,87 10.656 127.872 13,2 Straße 23 79 Halberstadt, Breiter Weg 13 Local retail black.
Slide 58: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 82 Weißwasser, Hypermarket Kaufland, 13.228 0,0% 6,35 84.041 1.008.494 3,8 Sachsendamm 32 Hammer 83 Torgelow, Pasewalker Local retail OBI
Slide 59: DKRs current portfolio
Appendix V DKRs current portfolio DKR Portfolio Rental Rent level Monthly Annual # Address Use Tenant space Vacancy rent rent WALT sqm % €/sqm € p.m. € p.a. years 86 Angermünde, Rudolf- Discounter Norma, 4.018 6,2% 6,69 25.209 302.508 1,6 Breitscheid-Straße 27 Pharmacy 87 Pfullingen, Römerstraße Hyp
Slide 60: Glossary
Glossary >> Calculation of financial figures: Financial KPI Calculation Average debt interest rate Weighed average interest rates of financial instruments divided by nominal financial debt EPRA NAV per share Total equity modified according to EPRA guidelines divided by number of shares FFO Funds Fro
Slide 61: IR contact: Get in touch with us
IR contact Get in touch with us >> IR contact: Stefanie Frey August-Bebel-Str. 68 14482 Potsdam sf@deutsche-konsum.de + 49 (0331) 740 076 533 61
Slide 62: Disclaimer
Disclaimer The material in this presentation has been prepared by Deutsche Konsum REIT-AG (Deutsche Konsum) and is general background information about Deutsche Konsum’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be compl
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