Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — 9M 2019/2020 Earnings Presentation
41 slides from Deutsche Konsum Real Estate's earnings presentation, Aug 13, 2020
Slide 1: 9M 2019/2020 Results
1 9M 2019/2020 RESULTS 1 OCTOBER 2019 – 30 JUNE 2020 13 August 2020 9M 2019/2020 financial results | Deutsche Konsum REIT-AG
Slide 2: Disclaimer
Disclaimer 2 The material in this presentation has been prepared by Deutsche Konsum REIT-AG (“DKR”) and is general background information about DKR’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in
Slide 3: Highlights
HIGHLIGHTS Deutsche Konsum REIT-AG
Slide 4: Highlights 9M 2019/2020
HIGHLIGHTS 9M 2019/2020 4 Strong growth combined with declining refinancing costs and resilient rental income Strong portfolio growth ➢ Acquisition of 43 retail properties with a total investment volume of 182 mEUR at an average yield of 9.3% ➢ (Proforma) portfolio now generates annualised rents of
Slide 5: Financial Key Figures
FINANCIAL KEY FIGURES 5 Consistent growth Rental income FFO FFO per share 0,9 (kEUR) (kEUR) (EUR) 40,323 25,194 0,7 0.78 30,136 0.62 18,399 63% of 0,5 RI 61 % of RI 0,3 9M 2018/2019 9M 2019/2020 9M 2018/2019* 9M 2019/2020 9M 2018/2019* 9M 2019/2020 aFFO per share Investment properties EPRA NAV per s
Slide 6: Property Portfolio
PROPERTY PORTFOLIO Deutsche Konsum REIT-AG
Slide 7: Property Portfolio
PROPERTY PORTFOLIO 7 Key portfolio figures as at 30 June 2020 >> Portfolio snapshot: Annualised rent (mEUR) Vacancy (%) ➢ Key portfolio figures based on 139 properties accounted as at 30.06.2020 60.7 11.3 ➢ Increase of vacancy results from the latest acquisitions with higher vacant 48.7 9.9 space e.
Slide 8: Acquisitions
ACQUISITIONS 8 Acquisition overview: High acquisition volume in 9M 2019/2020 with more deals to come >> Acquisitions notarised since 1 October 2019: ➢ 43 retail properties with about 200,000 sqm ➢ Total investment volume of 182 mEUR ➢ Acquired rents of 17.0 mEUR ➢ Average yield of 9.3% ➢ 70% food-an
Slide 9: Property Portfolio
PROPERTY PORTFOLIO 9 Proforma portfolio consists of 165 properties with > 930,000 sqm >> Portfolio development within the last 24 months: Schleswig- Mecklenburg Holstein - Pommerania 30.09.2018 30.09.2019 30.06.2020 Pro Forma (including notarised properties) Lower Saxony Number of 90 123 139 165 pro
Slide 10: Selection of last property acquisitions (1)
ACQUISITIONS 10 Selection of last property acquisitions (1) >> Latest acquisitions: Location Stendal (Saxony-Anhalt) Type Retail park Space (sqm) 19,800 Annualised rent (kEUR) 1,267 Main tenants Dänisches Bettenlager, tedox (DIY), Roller, development area WALT c. 7 years Vacancy 0% Initial yield > 9
Slide 11: Selection of last property acquisitions (2)
ACQUISITIONS 11 Selection of last property acquisitions (2) >> Latest acquisitions: Location Rövershagen (Mecklenburg-Pommerania) Type Grocery discounter situated in a retail agglomeration Space (sqm) 2,200 Annualised rent (kEUR) 214 Main tenants Penny (REWE), Bakery, Beverage store WALT c. 6 years
Slide 12: Selection of last property acquisitions (3)
ACQUISITIONS 12 Selection of last property acquisitions (3) >> Latest acquisitions: Location Zerbst (Sachsen-Anhalt) Type Retail centre Space (sqm) 2,550 Annualised rent (kEUR) 218 Main tenants Netto (Edeka), Action, Takko, Bakery WALT c. 5 years Vacancy 0% Initial yield > 8.7% Transfer of ownership
Slide 13: Selection of last property acquisitions (4)
ACQUISITIONS 13 Selection of last property acquisitions (4) >> Latest acquisitions: Location Schöneck (Saxony) Type Grocery discounter Space (sqm) 1,386 Annualised rent (kEUR) 86 Main tenants Diska (EDEKA), Beverage store WALT c. 4 years Vacancy 0% Initial yield > 19% Transfer of ownership expected
Slide 14: Selection of last property acquisitions (5)
ACQUISITIONS 14 Selection of last property acquisitions (5) >> Latest acquisitions: Location „Parchim Center“ Parchim (Mecklenburg-Pommerania) Type Retail centre Space (sqm) 13,000 Annualised rent (kEUR) 810 Main tenants Norma, Kik, TEDI, Deichmann, Dänisches Bettenlager, others WALT c. 4 years Vaca
Slide 15: Tenant Structure
TENANT STRUCTURE 15 65% Rent contribution from non-cyclical tenants (80% including DIY) >> Rent contribution by tenant classification (mEUR)1: >> Rent contribution by major tenants1 : Rent WALT Tenant group Brands (mEUR) in years Edeka Group 8.5 5.6 Other cyclical uses Schwarz Group 9.6 4.6 12.7 Met
Slide 16: Tenant Structure: DKR becomes a reliable partner
TENANT STRUCTURE 16 DKR becomes a reliable partner for the tenants >> Number of leases with the same tenant group1: >> Annualised rents allocated to years of lease contract maturities1: 70 35 1 4 60 30 6 50 25 No. of lease contracts Rent p.a. mEUR 40 20 33 4 30 2 15 12 6 20 10 11 10 21 19 3 5 4 11 9
Slide 17: Portfolio Revaluation on 30 June 2020
PORTFOLIO REVALUATION ON 30 JUNE 2020 17 Moderate valuation uplift of 0.9% >> Key valuation results: ➢ Valuation as at 30 June 2020 conducted by CBRE Berlin ➢ In total moderate valuation uplift balance of 6.8 mEUR or 0.9% ➢ Portfolio as at 30 June 2020 valued at 12.9x times annual rent or 7.8% yield
Slide 18: Investments to the Portfolio
INVESTMENTS TO THE PORTFOLIO 18 CAPEX measures lift up property values >> Major capex measures in 9M 2019/2020 (examples): Location / Property Description of capex measures CAPEX (mEUR) Grevenbroich, Retail DKR had modernised, enlighted and improved the existing old parking garage which is essential
Slide 19: Valuation Potential of the Portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 19 Share price currently trades at a 6.9% yield >> NAV impact from factor increases (c.p.) shows upside potential: Annualised Hypothetical Hypothetical Portfolio Net debt NAV Number of total portfolio valuation Yield Net LTV NAV per value (mEUR) outstanding (mEUR
Slide 20: Financing
FINANCING Deutsche Konsum REIT-AG
Slide 21: Financing
FINANCING 21 Conservative and efficient debt structure >> Financial KPIs: Debt allocation (mEUR initial nominal debt) Corporate 30.06.2020 30.09.2019 % bond 2020/2025 Total financial debt (loans + bonds), mEUR 509.6 354.1 +44 (unsecured) Avg. loan interest, % p.a. 1.83 1.94 -6 Corporate 10.0 37.0 bo
Slide 22: Financials 9M 2019/2020
FINANCIALS 9M 2019/2020 Deutsche Konsum REIT-AG
Slide 23: Condensed IFRS balance sheet
FINANCIALS 9M 2019/2020 23 Condensed IFRS balance sheet kEUR 30.06.2020 30.09.2019 kEUR 30.06.2020 30.09.2019 Pro forma Assets Equity and liabilities portfolio currently mEUR 830 Investment properties 785,935.6 619,881.3 Subscribed capital 35,155.9 31,959.9 (including the Other non-current latest no
Slide 24: LTV and EPRA NAV
FINANCIALS 9M 2019/2020 24 LTV and EPRA NAV >> LTV (loan-to-value): >> EPRA NAV: kEUR 30.06.2020 30.09.2019 kEUR 30.06.2020 30.09.2019 Bank loans 322,592.7 206,998.7 Total equity 383,734.4 317,362.2 Convertible bonds 36,271.7 36,162.1 Conversion of convertible bonds 0.0 0.0 Corporate bonds 150,695.6
Slide 25: Condensed IFRS income statement
FINANCIALS 9M 2019/2020 25 Condensed IFRS income statement 01.10.2019 – 01.10.2018 – kEUR % 30.06.2020 30.06.2019 Rental income has mainly Rental income 40,322.9 30,136.0 increased in the course of the property portfolio growth Income from recharged operating costs 8,739.2 4,289.3 Operating expenses
Slide 26: FFO reconciliation
FINANCIALS 9M 2019/2020 26 FFO reconciliation >> FFO/aFFO: 01.10.2019 01.10.2018 % kEUR – – 30.06.2020 30.06.2019 Contains non-cash items due to Total period income 27,243.6 50,193.1 IFRS valuation of convertible bonds and short term receivables +/- Income taxes 0.0 0.0 (impairment of deferred rents
Slide 27: Outlook
OUTLOOK Deutsche Konsum REIT-AG
Slide 28: Outlook FY 2019/2020
OUTLOOK FY 2019/2020 28 Guidance confirmed >> Current guidance for FY 2019/2020: Date of guidance 14.05.2020 update 13.08.2020 FFO (EUR m) 34.0 – 36.0 34.0 – 36.0 FFO Run Rate as per 30- Sep-2020 (EUR m) 40.0 – 42.0 40.0 – 42.0 Dividend (EUR per share) 0.55 0.55 Net-LTV 50.0 50.0 9M 2019/2020 financ
Slide 29: Appendix
APPENDIX Deutsche Konsum REIT-AG
Slide 30: Share Information
SHARE INFORMATION 30 >> Basic Share Information >> Shareholder Structure Rocket MFS Investment Internet SE As at 11.08.2020 Zerena GmbH 3,36% Management 5,65% 3,13% ISIN DE000A14KRD3 Share price (Xetra, 11-August-2020) EUR 15.70 Parson GmbH Symbol DKG 5,93% Free Float Shares outstanding 35,155,938 4
Slide 31: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT 31 >> Financial calendar >> Roadshows / Investor meetings Date Date Country Publication of the quarterly statement for the third Bankhaus Lampe Summer Conference, virtual 13.08.2020 19.08.2020 quarter of 2019/2020 financial year event Publication of the final annual
Slide 32: DKR Business Model at a Glance
DKR BUSINESS MODEL AT A GLANCE 32 Investment Highlights >> Growing BASIC RETAIL investor – biggest niche player in Germany: Retail property portfolio in Defensive and solvent tenant Stock exchange listed Solid and efficient funding established micro locations mix investor • 165 retail properties • F
Slide 33: Investment approach
STRATEGY 33 Investment approach >> Growing BASIC RETAIL investor – biggest niche player in Germany: WALT 5 Yiel 10 d Highly fragmented niche to be Accepting short WALTs High-speed acquisition Value enhancing asset consolidated process management • Niche of properties in a • DKR make use of the • DKR
Slide 34: Bundling single properties into an institutional asset class
STRATEGY 34 Bundling single properties into an institutional asset class Owner B Owner C Owner A Owner E Owner F Owner D Owner: Deutsche Konsum REIT • Strong and effective risk diversification of single properties by bundling them into a portfolio • Synergies and stronger position towards tenants •
Slide 35: Basic retail sector remains stable with best outlook
STRATEGY 35 Basic retail sector remains stable with best outlook >> Market research according to 14. Retail Real Estate Report Germany 2019/2020 by bulwiengesa / Hahn / CBRE1: 125m 4.1 % sqm Growth of the stationery Total retail retail in 2018 lease area in Germany • Strong German economy and • Mark
Slide 36: Basic retail resilient to E-Commerce (1)
STRATEGY 36 Basic retail resilient to E-Commerce (1) >> Market research according to 14. Retail Real Estate Report Germany 2019/2020 by bulwiengesa / Hahn / CBRE1: fig. 3 fig. 4 Results of the statistical data: • Food sector and other goods of daily needs (basic retail) are resilient to E-Commerce w
Slide 37: Basic retail resilient to E-Commerce (2)
STRATEGY 37 Basic retail resilient to E-Commerce (2) >> Market research according to 14. Retail Real Estate Report Germany 2019/2020 by bulwiengesa / Hahn / CBRE1: fig. 1 fig. 2 Results of the statistical data: • Yearly growth rate of total E-Commerce swings declined below 9% • E-Commerce growth mai
Slide 38: Sourcing process for retail properties
ASSET SOURCING 38 Sourcing process for retail properties Private owners Funds in Remaining liquidation properties of large portfolio transactions Deep asset Public analysis before auctions acquisition Tenants DKR network Brokers • Investment team analyses a yearly property volume of up to 3bn EUR •
Slide 39: Experienced and committed management
MANAGEMENT 39 Experienced and committed management Alexander Kroth (CIO) Rolf Elgeti (CEO) Christian Hellmuth (CFO) Alexander joined DKR in January Rolf has been the founder of Deutsche Konsum Christian joined DKR in January 2017 2017 and initially set up the company REIT-AG, which is a spin-off of
Slide 40: Strong external property partners
PARTNERS 40 Strong external property partners >> DKRs main external management partners: Asset Manager Elgeti Brothers GmbH Property Manager Appraiser Technical Property Developer IT and Management Software Providers 9M 2019/2020 financial results | Deutsche Konsum REIT-AG
Slide 41: DKR's detailed property portfolio
PORTFOLIO DETAILS 41 DKRs detailed property portfolio Please find DKR‘s current portfolio in a detailed overview online under the following link: DKR property portfolio overview as at 30 June 2020 plus latest acquisitions 9M 2019/2020 financial results | Deutsche Konsum REIT-AG
Deutsche Konsum REIT-AG — 9M 2019/2020 Earnings Presentation on 6ix