Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — Q1 2019/2020 Earnings Presentation
38 slides from Deutsche Konsum Real Estate's earnings presentation, Feb 13, 2020
Slide 1: Q1 2019/2020 Results
1 Q1 2019/2020 RESULTS 1 OCTOBER 2019 – 31 DECEMBER 2019 13 February 2020 Q1 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 Q1 2019/2020
HIGHLIGHTS Q1 2019/2020 4 Acquisitions already exceeded total prior year‘s investment volume Strong portfolio growth ahead ➢ Already acquired 44 retail properties with a total investment volume of 170 mEUR at an average yield of 9.2% ➢ (Proforma) portfolio now generates annualised rents of 64.4 mEUR
Slide 5: Financial Key Figures
FINANCIAL KEY FIGURES 5 Consistent growth Rental income FFO FFO per share (kEUR) (kEUR) (EUR) 12,239 7,345 0.23 9,515 5,518 60 % of 0.19 RI 58 % of RI Q1 2018/2019 Q1 2019/2020 Q1 2018/2019* Q1 2019/2020 Q1 2018/2019* Q1 2019/2020 aFFO per share Investment properties EPRA NAV per share (EUR) 650 (kE
Slide 6: Property Portfolio
PROPERTY PORTFOLIO Deutsche Konsum REIT-AG
Slide 7: Property Portfolio
PROPERTY PORTFOLIO 7 Key portfolio figures as at 31 December 2019 >> Portfolio snapshot: Annualised rent (mEUR) Vacancy (%) ➢ Key portfolio figures based on 125 properties accounted as at 31.12.2019 48.7 48.8 ➢ Recent high acquisition volume not yet 10.2 included 9.9 30.09.2019 31.12.2019 30.09.2019
Slide 8: Acquisitions
ACQUISITIONS 8 Acquisition overview: Very strong acquisition volume in the new FY 2019/2020 >> Acquisitions notarised since 1 October 2019 FY 2019/2020: ➢ 44 retail properties with about 180,000 sqm ➢ Total investment volume of 170 mEUR ➢ Acquired rents of 15.6 mEUR ➢ Average yield of 9.2% ➢ 70% foo
Slide 9: Selection of last property acquisitions (1)
ACQUISITIONS 9 Selection of last property acquisitions (1) >> Acquisitions at the beginning of the new FY 2019/2020: Location „PEP“ Grimma (Saxony) Type Retail centre Space (sqm) 15,500 Annualised rent (kEUR) 1,600 Main tenants Kaufland, Rossmann, NKD, Zoo, Others WALT c. 4 years Vacancy 11% Initial
Slide 10: Selection of last property acquisitions (2)
ACQUISITIONS 10 Selection of last property acquisitions (2) >> Acquisitions at the beginning of the new FY 2019/2020: Location „City Center“ Eisenhüttenstadt (Brandenburg) Type Retail centre Space (sqm) 28,900 Annualised rent (kEUR) 2,100 Main tenants Edeka, Penny, Rossmann, Woolworth, Hammer, Other
Slide 11: Selection of last property acquisitions (3)
ACQUISITIONS 11 Selection of last property acquisitions (3) >> Acquisitions at the beginning of the new FY 2019/2020: Location „Bavaria“ Portfolio consisting of 27 grocery stores througout Bavaria* Type Grocery stores in the towns of Beratzhausen, Cham, Chamerau, Falkenstein, Fürstenstein, Gangkofen
Slide 12: Selection of last property acquisitions (4)
ACQUISITIONS 12 Selection of last property acquisitions (4) >> Acquisitions at the beginning of the new FY 2019/2020: Location Schönwalde-Glien (Brandenburg) Type Grocery discounter Space (sqm) 1,100 Annualised rent (kEUR) 130 Main tenants Netto (Edeka) WALT c. 4 years Vacancy 0% Initial yield > 8%
Slide 13: Proforma portfolio consists of properties with > 900,000 sqm
PROPERTY PORTFOLIO 13 Proforma portfolio consists of 166 properties with > 900,000 sqm >> Portfolio development within the last 24 months: Schleswig- Mecklenburg Holstein - Pommerania 30.09.2018 30.09.2019 31.12.2019 Pro Forma (including notarised properties) Lower Saxony Number of 90 123 125 166 pr
Slide 14: Tenant Structure
TENANT STRUCTURE 14 65% Rent contribution from non-cyclical tenants >> Rent contribution by tenant classification (mEUR)1: >> Rent contribution by major tenants1 : Rent WALT Tenant group Brands (mEUR) in years Edeka Group 9.9 6.0 Other cyclical uses Schwarz Group 9.6 5.0 12.4 Metro Group 4.6 5.9 Rew
Slide 15: DKR becomes a reliable partner for the tenants
TENANT STRUCTURE 15 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: 80 25,00 1 70 3 7 60 20,00 No. of lease contracts 50 Rent p.a. mEUR 15,00 40 39 4 30 10,00 3 12 6 20 10 5,00 10 21
Slide 16: Valuation Potential of the Portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 16 Share price currently trades at a 8.0% 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 17: Financing
FINANCING Deutsche Konsum REIT-AG
Slide 18: Conservative and efficient debt structure
FINANCING 18 Conservative and efficient debt structure >> Financial KPIs: Debt allocation (mEUR initial nominal debt) 31.12.2019 30.09.2019 % Total financial debt (loans + bonds), mEUR 382.0 354.1 +8 Corporate bond 2019/2024 10.0 37.0 Avg. loan interest, % p.a. 1.91 1.94 -2 (unsecured) Avg. total de
Slide 19: Financials Q1 2019/2020
FINANCIALS Q1 2019/2020 Deutsche Konsum REIT-AG
Slide 20: Condensed IFRS balance sheet
FINANCIALS Q1 2019/2020 20 Condensed IFRS balance sheet kEUR 31.12.2019 30.09.2019 kEUR 31.12.2019 30.09.2019 Pro forma Assets Equity and liabilities portfolio currently mEUR 795 Investment properties 625,813.4 619,881.3 Subscribed capital 31,959.9 31,959.9 (including the Other non-current latest no
Slide 21: LTV and EPRA NAV
FINANCIALS Q1 2019/2020 21 LTV and EPRA NAV >> LTV (loan-to-value): >> EPRA NAV: kEUR 31.12.2019 30.09.2019 kEUR 31.12.2019 30.09.2019 Bank loans 234,308.8 206,998.7 Total equity 323,751.7 317,362.2 Convertible bonds 36,198.5 36,162.1 Conversion of convertible bonds 0.0 0.0 Corporate bonds 111,478.4
Slide 22: Condensed IFRS income statement
FINANCIALS Q1 2019/2020 22 Condensed IFRS income statement 01.10.2019 – 01.10.2018 – kEUR % 31.12.2019 31.12.2018 Rental income has mainly Rental income 12,238.9 9,515.2 28.6 increased in the course of the property portfolio growth Income from recharched operating costs 2,478.8 1,775.4 39.6 Operatin
Slide 23: FFO reconciliation
FINANCIALS Q1 2019/2020 23 FFO reconciliation >> FFO/aFFO: 01.10.2019 01.10.2018 % kEUR – – 31.12.2019 31.12.2018 Total period income 6,394.3 5,560.9 15.0 Contains non-cash items due to +/- Income taxes 0.0 0.0 0.0 IFRS valuation of convertible + Depreciation of other assets 0.5 0.3 69.0 bonds and s
Slide 24: Outlook
OUTLOOK Deutsche Konsum REIT-AG
Slide 25: Outlook FY 2019/2020: Guidance increased
OUTLOOK FY 2019/2020 25 Guidance increased >> Current guidance for FY 2019/2020: Date of guidance 18.12.2019 update 13.02.2020 FFO (EUR m) 34.0 – 36.0 34.0 – 36.0 FFO Run Rate as per 30- Sep-2020 (EUR m) 38.0 – 40.0 40.0 – 42.0 Dividend (EUR per share) 0.55 0.55 Net-LTV 50.0 50.0 >> Due to the very
Slide 26: Appendix
APPENDIX Deutsche Konsum REIT-AG
Slide 27: Share Information
SHARE INFORMATION 27 >> Basic Share Information >> Shareholder Structure MFS Investment Management As at 12.02.2020 Lotus AG 3,13% 4,55% ISIN DE000A14KRD3 Zerena GmbH 5,30% Share price (Xetra, 12-Feb-2020) EUR 16.00 Parson GmbH Symbol DKG 5,93% Free Float Shares outstanding 31,959,944 38,30% Goebel
Slide 28: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT 28 >> Financial calendar >> Roadshows Date Date Country Publication of the quarterly statement for the first 13.02.2020 24.02.2020 Roadshow, Frankfurt/Main quarter of 2019/2020 financial year Prior Capital Market Conference, Dreieich- 05.03.2020 Annual General Meeti
Slide 29: DKR Business Model at a Glance
DKR BUSINESS MODEL AT A GLANCE 29 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 • 166 retail properties • F
Slide 30: Investment approach
STRATEGY 30 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 31: Bundling single properties into an institutional asset class
STRATEGY 31 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 32: Basic retail sector remains stable with best outlook
STRATEGY 32 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 33: Basic retail resilient to E-Commerce (1)
STRATEGY 33 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 34: Basic retail resilient to E-Commerce (2)
STRATEGY 34 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 35: Sourcing process for retail properties
ASSET SOURCING 35 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 36: Experienced and committed management
MANAGEMENT 36 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 37: Strong external property partners
PARTNERS 37 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 Q1 2019/2020 financial results | Deutsche Konsum REIT-AG
Slide 38: DKR's detailed property portfolio
PORTFOLIO DETAILS 38 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 31 Dec 2019 plus latest acquisitions Q1 2019/2020 financial results | Deutsche Konsum REIT-AG
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