Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — FY2021/2022 Earnings Presentation
48 slides from Deutsche Konsum Real Estate's earnings presentation, Dec 20, 2022
Slide 1: FY 2021/2022 Financial Results
1 FY 2021/2022 FINANCIAL RESULTS 1 OCTOBER 2021 – 30 September 2022 20 December 2022 FY 2021/2022 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
3 HIGHLIGHTS FY 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 4: Highlights FY 2021/2022
HIGHLIGHTS FY 2021/2022 4 Solid performance in a volatile environment Strong operational business and significant rent increases ➢ Rental income 74.4m EUR (up 7% y-o-y) ➢ FFO 41.1m EUR (-0.1% y-o-y) / FFO per share 1.17 EUR (-0.1% y-o-y) – impacted by property disposals and higher maintenance costs
Slide 5: Key drivers of value creation
KEY DRIVERS OF VALUE CREATION 5 Buy and hold - strategy with proactive asset management and opportunistic capital recycling 1 Acquisition of high-yielding basic retail properties ➢ Initial yield averaging of 8-10% expected (by accepting shorter WALTs) ➢ Focusing on stable and established micro locat
Slide 6: Financial key figures
FINANCIAL KEY FIGURES 6 Solid business development Rental income FFO FFO per share (k EUR) (k EUR) (EUR) 0% 0% 74,390 1,17 1,17 69,667 41,168 41,115 FY 2020/2021 FY 2021/2022 FY 2020/2021 FY 2021/2022 FY 2020/2021 FY 2021/2022 aFFO per share Investment properties EPRA NTA per share (fully diluted) (
Slide 7: Acquisitions
ACQUISITIONS 7 Property acquisitions in FY 2021/2022 >> Acquisition overview: Annualised Space WALT Initial Transfer of Location State Type rent Main tenants Vacancy (sqm) (years) yield ownership (kEUR) Altenburg-Nobitz Thuringia Retail park 20,259 688 Marktkauf (EDEKA), ALDI, Poco 5.2 12% > 11.1% F
Slide 8: Acquisitions
ACQUISITIONS 8 Property acquisitions in FY 2021/2022 >> Acquisition overview: Annualised Space WALT Initial Transfer of Location State Type rent Main tenants Vacancy (sqm) (years) yield ownership (kEUR) Schmiedeberg Saxony Discounter 1,169 99 Penny (REWE) 2.7 0% > 8.2% November 2022 Grünhain- Saxony
Slide 9: Acquisitions
ACQUISITIONS 9 Property acquisitions in FY 2021/2022 >> Impressions of property acquisitions in the current FY: FY 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 10: Acquisitions
ACQUISITIONS 10 Property acquisitions in FY 2021/2022 >> Impressions of property acquisitions in the current FY: Schmiedeberg Grünhain-Beierfeld Coswig Kemberg Köthen Olbernhau Cottbus Staßfurt Osterfeld Ensdorf >> Acquired after balance sheet date: Suhl FY 2021/2022 financial results | Deutsche Kon
Slide 11: Property portfolio
11 PROPERTY PORTFOLIO FY 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 12: Property portfolio
PROPERTY PORTFOLIO 12 Pro forma portfolio consists of 185 properties with approx. 1,087,000 sqm >> Portfolio development within the last 24 months: Schleswig- Mecklenburg Holstein - Pommerania 30.09.2020 30.09.2021 30.09.2022 Pro Forma (incl. notarised disposals and acquisitions) Lower Saxony Number
Slide 13: Property portfolio
PROPERTY PORTFOLIO 13 Steady portfolio growth and stable property KPIs Annualised rent (m EUR) Vacancy (%) 72.9 73.2 63.1 11.7 48.7 10.7 9.6 9.9 9.9 35.5 30.09.2018 30.09.2019 30.09.2020 30.09.2021 30.09.2022 30.09.2018 30.09.2019 30.09.2020 30.09.2021 30.09.2022 Initial yield (%) WALT (years) 11.7
Slide 14: Tenant structure
TENANT STRUCTURE 14 66% Rent contribution from non-cyclical tenants (80% including DIY) >> Rent contribution by tenant classification (m EUR)1: >> Rent contribution by major tenants1 : Non- Rent WALT Tenant group Brands cyclical (m EUR) in years Other cyclical rents uses Edeka Group 8.7 5.0 Schwarz
Slide 15: Tenant structure
TENANT STRUCTURE 15 Resilient and inflation-linked rental income >> Strategy with focus to tenants with daily-needs supply pays off: ➢ Cyclical and lockdown-affected tenants amount to a low percentage of all rents (e.g. electronic retail, furnitures, textiles, restaurants, three cinema theatres) ➢ M
Slide 16: Tenant structure
TENANT STRUCTURE 16 DKR is a reliable partner for the tenants >> Number of leases with the same tenant group1: >> Annualised rents allocated to years of lease contract maturities1: 40 70 1 1 35 6 60 6 30 50 No. of lease contracts 25 Rent p.a. mEUR 22 40 20 3 30 6 8 15 20 11 4 10 32 4 25 10 18 5 14 1
Slide 17: Valuation potential of the portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 17 Share currently trades at > 8.3% yield (fully diluted) >> NAV impact from factor increases (c.p.) shows further upside potential: Hypothetical Annualised Hypothetical Portfolio Net debt Number of NAV EPRA NTA total portfolio valuation Yield value Net LTV outst
Slide 18: Financing
18 FINANCING FY 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 19: Financing
FINANCING 19 Solid debt structure with low cost of capital >> Financial KPIs: Debt allocation (m EUR outstanding debt) Corporate bond 30.09.2022 30.09.2021 % 2018/2024 Corporate bond Total financial debt (loans + bonds), m EUR 637.2 609.3 4.6 12.9 35.3 40.0 2019/2024 (unsecured) Ø Senior secured deb
Slide 20: Financials FY 2021/2022
20 FINANCIALS FY 2021/2022 FY 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 21: Condensed IFRS balance sheet
FINANCIALS FY 2021/2022 21 Condensed IFRS balance sheet k EUR 30/09/2022 30/09/2021 k EUR 30/09/2022 30/09/2021 Assets Equity and liabilities Pro forma portfolio currently 1,083m Investment properties 1,030,959.1 944,019.6 Subscribed capital 35,155.9 35,155.9 EUR (including Other non-current assets
Slide 22: LTV and NAV / EPRA NTA
FINANCIALS FY 2021/2022 22 LTV and NAV / EPRA NTA >> LTV (loan-to-value): >> NAV / EPRA NTA per share: k EUR 30/09/2022 30/09/2021 EPRA NAV Conversion EPRA NTA (undiluted) effects of (diluted) Bank loans 418,044.2 401,289.4 k EUR convertible Convertible bonds 36,609.3 36,457.7 30/09/2022 bonds 30/09
Slide 23: Condensed IFRS income statement
FINANCIALS FY 2021/2022 23 Condensed IFRS income statement 01/10/2021 – 01/10/2020 – k EUR % 30/09/2022 30/09/2021 Rental income increased due to the Rental income 74,390.2 69,667.0 6.8 property portfolio growth Income from recharched operating costs 13,959.8 10,675.0 30.8 Operating expenses -40,906
Slide 24: FFO reconciliation
FINANCIALS FY 2021/2022 24 FFO reconciliation >> FFO/aFFO: 01/10/2021 01/10/2020 % k EUR – – 30/09/2022 30/09/2021 Total period income 60,386.7 91,373.2 -33.9 +/- Income taxes 0.0 0.0 0.0 Contains non-cash items due to IFRS valuation of debt instruments (0.7m) + Depreciation of other assets 35.1 12.
Slide 25: HEPS reconciliation according to JSE rules
FINANCIALS FY 2021/2022 25 Headline Earnings per share (HEPS) reconciliation according to JSE rules >> HEPS: 01/10/2021 01/10/2020 % k EUR – – 30/09/2022 30/09/2021 Total period income (undiluted) 60,386.7 91,373.2 -33.9 -/+ Revaluation gains / losses, IAS 40 -28,438.2 -57,760.9 -50.8 -/+ Revaluatio
Slide 26: Outlook
26 OUTLOOK FY 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 27: Guidance FY 2022/2023
GUIDANCE FY 2022/2023 27 FFO and dividends >> Guidance for FY 2022/2023: Date of guidance 20.12.2022 FFO (m EUR) 40.0 – 44.0 >> Dividend policy: ➢ Distribution of a stable base dividend ➢ Steady increase of the regular dividend in the course of DKRs further growth planned ➢ Additional dividend in ca
Slide 28: Share information
28 Share information FY 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 29: Share information
SHARE INFORMATION 29 >> Basic Share Information >> Shareholder Structure As at 16.12.2022 Paladin Asset Management / ISIN DE000A14KRD3 Marcel Maschmeyer Share price (Xetra, 16 December 2022) EUR 7.88 5.09% MFS Investment Management Symbol DKG 5.24% Shares outstanding 35,155,938 Zerena GmbH Share cla
Slide 30: Financial calendar and IR contact
30 Financial calendar and IR contact FY 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 31: Financial calendar and IR contact
FINANCIAL CALENDAR AND IR CONTACT 31 >> Financial calendar Date Publication of the final annual statements/annual 20.12.2022 financial report for the 2021/2022 financial year Publication of the quarterly statement for the first 14.02.2023 quarter of 2022/2023 financial year 16.03.2023 Annual General
Slide 32: ESG
32 ESG FY 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 33: ESG aspects at DKR
ESG aspects at DKR 33 DKR has set up the following measures to enhance ESG conformity Environmental Social Governance • 148 of DKRs locations are currently being • International and diverse staff • High conformity to rules of German equipped with state-of-the-art charging corporate governance codex
Slide 34: Roll-out of electric charging points
ESG aspects at DKR 34 Example: Roll-out of electric charging points at DKR‘s locations >> Summary ➢ DKR is equipping 148 of its locations with state-of-the-art rapid charging infrastructure for electric vehicles ➢ The project is carried out in cooperation with German energy supplier EnBW ➢ Overall,
Slide 35: Sustainability Report recently published
ESG aspects at DKR 35 DKRs current Sustainability Report recently published >> ESG reporting ➢ Sustainability Report for the calendar year 2021 published and available on DKR’s website in English and German ➢ DKR‘s Sustainability Reports for the calendar years 2019 and 2020 have been awarded with th
Slide 36: Appendix
36 APPENDIX FY 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 37: Historical KPI development
HISTORICAL KPI DEVELOPMENT 37 Continuously high growth since inception Financial year 2021/2022 2020/2021 2019/2020 2018/2019 2017/2018 2016/2017 2015/2016 Income statement Rental income (k EUR) 74,390 69,667 56,231 41,978 28,601 19,249 11,437 FFO (k EUR) 41,115 41,168 34,991 25,041 16,647 10,260 5,
Slide 38: DKR business model at a glance
DKR BUSINESS MODEL AT A GLANCE 38 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 • 185 retail properties • F
Slide 39: Investment approach
STRATEGY 39 Investment approach >> Growing BASIC RETAIL investor – biggest niche player in Germany: WALT 5 Yield 10 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 40: Bundling single properties into an institutional asset class
STRATEGY 40 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 41: Capital recycling as sub-strategy
STRATEGY 41 Capital recycling as sub-strategy to grow on its own >> Investment criteria: General value cycle of a retail property • Retail properties in established and stable micro locations and Possible sale catchment areas in regional and mid-sized cities in Germany • Retail tenants that supply g
Slide 42: Basic retail sector remains stable with best outlook
STRATEGY 42 Basic retail sector remains stable with best outlook >> Market research according to 16. Retail Real Estate Report 2021/2022 by bulwiengesa / Hahn / CBRE1: 39m 4.1% sqm Growth of the Total grocery German retail & drugstore sector in 2020 retail lease area in Germany • Strong German econo
Slide 43: Basic retail resilient to E-Commerce (1)
STRATEGY 43 Basic retail resilient to E-Commerce (1) >> Market research according to 16. Retail Real Estate Report 2021/2022 by bulwiengesa / Hahn / CBRE1: fig. 1 fig. 2 Results of the statistical data: • Food sector and other goods of daily needs (basic retail) are resilient to E-Commerce which has
Slide 44: Basic retail resilient to E-Commerce (2)
STRATEGY 44 Basic retail resilient to E-Commerce (2) >> Market research according to 16. Retail Real Estate Report 2021/2022 by bulwiengesa / Hahn / CBRE1: fig. 3 fig. 4 Results of the statistical data: • Recently increased annual growth rate of total E-Commerce (fig. 3) • E-Commerce growth mainly d
Slide 45: Sourcing process for retail properties
ASSET SOURCING 45 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 46: Management
MANAGEMENT 46 Experienced and committed management Alexander Kroth (CIO) Rolf Elgeti (CEO) Christian Hellmuth (CFO) Alexander joined DKR in January Rolf is the founder of Deutsche Konsum REIT- Christian joined DKR in January 2017 2017 and initially set up the company AG, which is a spin-off of his i
Slide 47: Partners
PARTNERS 47 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 FY 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 48: Portfolio details
PORTFOLIO DETAILS 48 DKRs detailed property portfolio Please find a detailed overview of DKR‘s property portfolio online under the following links: DKR property portfolio overview as at 30 September 2022 (Excel file) Interactive Map FY 2021/2022 financial results | Deutsche Konsum REIT-AG
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