Defama Deutsche Fachmarkt Ag · XETR:DEF

Defama Deutsche Fachmarkt — Investor Presentation (September 2020)

29 slides from Defama Deutsche Fachmarkt's investor presentation, September 2020

  1. Slide 1: Company Presentation DEFAMA Deutsche Fachmarkt AG

    Company Presentation DEFAMA Deutsche Fachmarkt AG September 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 our 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: 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

  5. Slide 5: 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

  6. Slide 6: Konzernstruktur

    KONZERNSTRUKTUR • Acquisition and financing always in object subsidiaries • DEFAMA AG as a holding company provides the equity required for the acquisitions • 42 real estate acquisitions so far DEFAMA Deutsche Fachmarkt AG 100% 100% 100% 100% 100% 100% 100% 100% 94% 100% DEFAMA Verwal‐ tungs GmbH DE

  7. Slide 7: Portfolio

    PORTFOLIO Key Figures (as of 30 Sept. 2020) Locations 42 Net Rent (annualised) €14.2m Lettable Space 177,869 sqm Occupancy Rate 96.5% Ø Lease Term (WALT) 4.6 years • 80% of total net rent comes from chain stores with strong solvency • Contracts with anchor tenants have above‐average maturity • Just

  8. Slide 8: Portfolio: Net Rent by Industry and Largest Tenants

    PORTFOLIO Net Rent by Industry Largest Tenants Contracts Share Toom/B1 5 12.6 % Kaufland/LIDL 5 12.3 % REWE/Penny 8 10.2 % EDEKA Group 8 10.2 % Tengelmann Group 16 5.3 % Dän. Bettenlager (= JYSK) 8 4.6 % NORMA 7 4.1 % Aldi Nord 4 3.7 % Takko 5 2.2 % Top 10 leases account for Deichmann 5 1.7 % only a

  9. Slide 9: Portfolio: Local Supply Centre Rendsburg

    PORTFOLIO Local Supply Centre 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 pharmacy, DAA and s

  10. Slide 10: 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

  11. Slide 11: Portfolio: DIY Store Anklam

    PORTFOLIO 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  Acquisition at 11 times annual net rent  Tenant is toom with a most recently extended long‐term lease  Outsta

  12. Slide 12: Portfolio: 3x Dänisches Bettenlager (JYSK)

    PORTFOLIO 3x Dänisches Bettenlager (= JYSK), located in Southern Germany  Year of construction: 1975 / 2019 / 2019  Plot size : each app. 3,000 sqm  Lettable space: each app. 1,000 sqm  Occupancy rate: 100%  Purchase price (eff.): total €3.3m  Annual net rent: total app. €300k  Aquisition wit

  13. Slide 13: Financing

    FINANCING Maturity Profile incl. Repayments Key Figures (as of 30 June 2020) in €m Number of financing partners 28 15 Bank loans 96,7 Mio. € 10 Ø Interest rate 2,26% 5 Ø Initial repayment 1) 4,93% 0 Ø Fixed interest 1) 7,8 Jahre Loan‐to‐value‐ratio (LTV) 61% Loan Radeberg Maturity of Fixed Interest

  14. Slide 14: 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

  15. Slide 15: 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 .

  16. Slide 16: Key Financials H1/2020

    KEY FINANCIALS H1/2020 Portfolio Value Sales in €m in €m 157 160 +32% 8 +21% 6.61 119 120 6 5.47 80 4 40 2 0 0 30.06.2019 30.06.2020 H1/2019 H1/2020 Company Presentation DEFAMA Deutsche Fachmarkt AG 16

  17. Slide 17: Key Financials H1/2020

    KEY FINANCIALS H1/2020 Net Profit Funds from Operations (FFO) in €m in €m . 1,5 . 0,60 . 3,00 +26% 2.77 . 1,20 +20% 1.22 1.02 2.20 . 1,0 . 0,40 . 2,00 . 0,80 0.56 0.63 . 0,5 0.26 0.28 . 0,20 . 1,00 . 0,40 0,0 0,00 0,00 0,00 H1/2019 H1/2020 H1/2019 H1/2020 Ergebnis EPS in € FFO FFO / Aktie in € Compa

  18. Slide 18: Excursus on COVID-19

    EXCURSUS ON COVID‐19 Impact of coronavirus crisis / current situation • > 90% on April/May rents collected, in June/July/Aug./Sept. each > 99% • Suspended rents are just deferred => no effect on results! • Altogether only €180k open, thereof €140k from non‐food retailers; rate payments have already

  19. Slide 19: Current Development: Conversion of Radeberg (I)

    CURRENT DEVELOPMENT Conversion of Radeberg full on track (I) • No delay of refurbishment due to Covid‐19 • Award of contracts nearly finished • Building costs are „in line“ with budget EKZ Radeberg before the conversion The extended ALDI site from outside … … and inside New mall in viewing direction

  20. Slide 20: Current Development: Conversion of Radeberg (II)

    CURRENT DEVELOPMENT Conversion of Radeberg full on track (II) • dm has already taken over its site • Most tenants are taking over their sites within two weeks • Reopening as planned in early November Supply ramp for EDEKA New dm site New KiK site New ALDI site Company Presentation DEFAMA Deutsche Fa

  21. Slide 21: Current Development: Conversion of Radeberg (III)

    CURRENT DEVELOPMENT Conversion of Radeberg full on track (III) • Negotiations with potential buyers • Offers for long‐term refinancing by several banks • Setting free liquidity even without sale possible New sprinklertank The new facade from the front … … and the back Renewed roof with technical fac

  22. Slide 22: Silberberg Center Radeberg after conversion

    CURRENT DEVELOPMENT Silberberg Center Radeberg after conversion Source: I und N Bau GmbH, Hannover Company Presentation DEFAMA Deutsche Fachmarkt AG 22

  23. Slide 23: Ad hoc announcement dated September 9th, 2020

    CURRENT DEVELOPMENT Ad hoc announcement dated September 9th, 2020 • Several offers of potential buyers, that all would have led to a positive one‐off in the high single digit millions • Several offers of banks for long‐term refinancing with credit amounts that were significantly higher than the refu

  24. Slide 24: 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

  25. Slide 25: 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

  26. Slide 26: Investment Case: Value creation on several levels (II)

    INVESTMENT CASE NAV per share Value creation on several levels (II) in € 15.09 16,00 . • 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

  27. Slide 27: 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 Mrz. 17 Nov. 17 Jul. 18 Mrz. 19 Nov. 19 Jul. 20 WKN / ISIN A13SUL / DE000A13SUL5 MSC Invest GmbH / M. Schrade Stock exchange Munich (m:access), Frankfurt, Xetra Geminus GmbH /

  28. Slide 28: 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 28

  29. Slide 29: 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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