Defama Deutsche Fachmarkt Ag · XETR:DEF

Defama Deutsche Fachmarkt — Investor Presentation (June 2020)

28 slides from Defama Deutsche Fachmarkt's investor presentation, June 2020

  1. Slide 1: Company Presentation DEFAMA Deutsche Fachmarkt AG

    Company Presentation DEFAMA Deutsche Fachmarkt AG June 2020

  2. Slide 2: Equity Story

    EQUITY STORY In order to build up a long‐term portfolio, DEFAMA seeks and acquires: • Well‐established retail parks and small shopping centres • With at least two chain stores with strong solvency as (anchor) tenants • Without larger vacancies and/or investment needs • Purchase price per property us

  3. Slide 3: Equity Story: Three good 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

  4. Slide 4: Excursus on COVID-19 (I)

    EXCURSUS ON COVID‐19 Impact of coronavirus crisis / current situation (I) • >90% on April and May rents collected • Suspended rents are just deferred => no effect on results! • As end of May only €220k open, thereof >€170k from non‐food‐retailers • Potencially higher rent losses than 2019 can be com

  5. Slide 5: Excursus on COVID-19 (II)

    EXCURSUS ON COVID‐19 Impact of coronavirus crisis / current situation (II) • By end of March precautiounary request for suspension of repayments and received uncomplicated approval by most banks (on average for 6 months) • No change in banking lending practices visible • Annual general meeting with

  6. Slide 6: Management

    MANAGEMENT Matthias Schrade (CEO / Member of the Management Board) • Many years of experience as a financial analyst and entrepreneur • Excellent network in the areas of retail, real estate and banking • Responsible for property selection, purchase negotiations, financing, main tenants and PR / IR S

  7. 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

  8. Slide 8: Konzernstruktur

    KONZERNSTRUKTUR • Acquisition and financing always in object subsidiaries • DEFAMA AG as a holding company provides the equity required for the acquisitions • 38 real estate acquisitions so far DEFAMA Deutsche Fachmarkt AG 100% 100% 100% 100% 100% 100% 100% 100% 94% 100% DEFAMA Verwal‐ tungs GmbH DE

  9. Slide 9: Portfolio Key Figures

    PORTFOLIO Key Figures (as of 31 March 2020) Locations 38 Net Rent (annualised) €13.2m Lettable Space 167,139 sqm Occupancy Rate 96.5% Ø Lease Term (WALT) 4.3 years • 80% of total net rent comes from chain stores with strong solvency • Contracts with anchor tenants have above‐average maturity • Seven

  10. Slide 10: Portfolio: Net Rent by Industry and Largest Tenants

    PORTFOLIO Net Rent by Industry Largest Tenants Contracts Share Kaufland/LIDL 5 13.1 % REWE/Penny 8 11.5 % EDEKA Group 8 10.9 % Toom/B1 4 9.4 % Tengelmann Group 16 5.7 % NORMA 7 4.4 % Aldi Nord 4 3.9 % Dän. Bettenlager 5 2.8 % Takko 5 2.3 % All „Top 5“‐contracts combined stand Deichmann 5 1.7 % for l

  11. Slide 11: Portfolio: Retail Park Dinslaken

    PORTFOLIO Retail Park Dinslaken  Year of construction: app. 1975  Plot size: 19,849 sqm  Lettable space: 10,163 sqm  Occupancy rate: 100%  Purchase price: €7.6m  Annual net rent: > €750k  Acquisition at 10 times annual net rent  Key tenants are B1 Baumarkt, Trinkgut, KiK and Askania  Very w

  12. Slide 12: Portfolio: Retail Park Albstadt

    PORTFOLIO Retail Park Albstadt  Year of construction: 2004  Plot size: 6,882 sqm  Lettable space: 1,526 sqm  Occupancy rate: 100%  Purchase price: €1.875m  Annual net rent: > €160k  Acquisition at 11.5 times annual net rent  Key tenants are Penny and Fristo  Located perfectly visibly at a v

  13. Slide 13: Portfolio: Local Supply Center Rendsburg

    PORTFOLIO Local Supply Center Rendsburg  Year of construction: 1996  Plot size: 7,929 sqm  Lettable space: 3,921 sqm  Occupancy rate: 95%  Purchase price: €4.5m  Annual net rent: > €450k  Acquisition at 10 times annual net rent  Key tenants are Penny, Matratzen Concord, a drugstore, DAA and

  14. Slide 14: Portfolio: Retail Park Zeitz

    PORTFOLIO 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  Acquisition at 7 times annual net rent  Key tenants are Kaufland and toom, also represented KiK, Mayer`s Schuhe, Wreesma

  15. Slide 15: Financing

    FINANCING Maturity Profile incl. Repayments Key Figures (as of 31 May 2020) in €m 15 Number of financing partners 27 Bank loans €93.4m 10 Ø Interest rate 2.27% 5 Ø Initial repayment 4.88% 0 Ø Fixed interest 7.5 years Loan‐to‐value ratio (LTV) 61.0% Maturity of Fixed Interest Repayments • Financing a

  16. Slide 16: Key Financials 2016-2019

    KEY FINANCIALS 2016‐2019 Portfolio Value Sales in €m in €m 150 137 11,21 . CAGR 12 CAGR +43% 108 +50% 9,09 . 100 73 8 5,83 . 48 3,44 . 50 4 0 0 2016 2017 2018 2019 2016 2017 2018 2019 Net Profit Funds From Operations (FFO) in €m in €m 2,4 . CAGR 5,4 . CAGR 4,615 . 2,068 . +33% 1,701 . +44% 3,647 . 1

  17. Slide 17: Key Financials 2016-2019

    KEY FINANCIALS 2016‐2019 Earnings per share FFO per share in € in € CAGR CAGR 1,14 . 0,60 . 0,51 . 1,20 . 1,01 . +19% 0,46 . +29% 0,38 . 0,73 . 0,40 . 0,30 . 0,80 . 0,54 . 0,20 . 0,40 . 0,00 0,00 2016 2017 2018 2019 2016 2017 2018 2019 Dividend per share in € Guiding principles for expansion 0,60 .

  18. Slide 18: Key Financials Q1 2020

    KEY FINANCIALS Q1 2020 Portfolio Value Sales in €k in €k 160.000 , 151,340 4.000 , +39% +16% 3,129 120.000 , 108,530 3.000 , 2,707 80.000 , 2.000 , 40.000 , 1.000 , 0 0 31.03.2019 31.03.2020 Q1/2019 Q1/2020 Company Presentation DEFAMA Deutsche Fachmarkt AG 18

  19. Slide 19: Key Financials Q1 2020

    KEY FINANCIALS Q1 2020 Net Profit Funds From Operations (FFO) in €k in €k 750 . 0,30 1.500 +16% 1,305 . 0,60 +11% 593 536 1,126 500 . 0,20 1.000 . 0,40 . 0,14 . 0,29 . 0,30 250 . 0,13 . 0,10 500 . 0,20 0 0,00 0 0,00 Q1/2019 Q1/2020 Q1/2019 Q1/2020 Ergebnis EPS in € FFO FFO / Aktie in € Company Prese

  20. Slide 20: Status and Outlook

    STATUS AND OUTLOOK Guidance for 2020 Prior Year • Net Profit (German GAAP): €2.5m €2.1m €0.56 per share €0.51 per share • Funds From Operations (FFO): €5.7m €4.6m €1.30 per share €1.14 per share • Annualized FFO: at least €7m €5.6m • Further dividend increase €0.45 per share 1) • Sale of or signific

  21. Slide 21: Status and Outlook: Preparation of Radeberg refurbishment

    STATUS AND OUTLOOK Preparation of Radeberg refurbishment • Conversion proceeding according to • New building structure developed plan despite coronavirus crisis, to • Building permission received be carried out by November 2020 • Longterm rental contracts with all tenants for post‐conversion signed

  22. Slide 22: EKZ Radeberg before conversion

    STATUS AND OUTLOOK EKZ Radeberg before conversion Source: Immobilien Zeitung, Creator: Christoph von Schwanenflug Company Presentation DEFAMA Deutsche Fachmarkt AG 22

  23. Slide 23: Silberberg Center Radeberg after conversion

    STATUS AND OUTLOOK Silberberg Center Radeberg after conversion Source: I und N Bau GmbH, Hannover Company Presentation DEFAMA Deutsche Fachmarkt AG 23

  24. Slide 24: 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 very little equity needed, therefore high return on equity FFO per share in € • Strong growth based on additional acquisitio

  25. Slide 25: Investment Case: Value creation on several levels (II)

    INVESTMENT CASE NAV per share Value creation on several levels (II) in € 16,00 . 14.78 • Complex individual purchases at favourable prices 13.46 11.02 12,00 . 8.42 • Professionally managed portfolios trade 8,00 . 5.50 at much higher multiples on net rent 4,00 . 0,00 NAV per share +145% 2016 2017 201

  26. Slide 26: Share

    SHARE Share price development since IPO at 13 July 2016 Shareholder structure 2) 19 € 15 € 29% 11 € 7€ 65% 4% 2% 3€ Jul. 16 Feb. 17 Sep. 17 Apr. 18 Nov. 18 Jun. 19 Jan. 20 WKN / ISIN A13SUL / DE000A13SUL5 MSC Invest GmbH / M. Schrade Stock exchange Munich (m:access), Frankfurt, Xetra Geminus GmbH /

  27. Slide 27: Contact

    CONTACT DEFAMA Deutsche Fachmarkt AG Nimrodstr. 23 D 13469 Berlin www.defama.de Matthias Schrade Member of the Management Board Telephone +49 (0) 30 / 555 79 26 ‐ 0 Fax +49 (0) 30 / 555 79 26 ‐ 2 E‐mail schrade@defama.de Company Presentation DEFAMA Deutsche Fachmarkt AG 27

  28. Slide 28: 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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