Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — Q1 2020/2021 Earnings Presentation
37 slides from Deutsche Konsum Real Estate's earnings presentation, Feb 11, 2021
Slide 1: Q1 2020/2021 Financial Results
1 Q1 2020/2021 FINANCIAL RESULTS 1 OCTOBER 2020 – 31 DECEMBER 2020 11 February 2021 Q1 2020/2021 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 Q1 2020/2021
HIGHLIGHTS Q1 2020/2021 Deutsche Konsum REIT-AG
Slide 4: Highlights Q1 2020/2021
HIGHLIGHTS Q1 2020/2021 4 Steady growth and stable cashflows Steady portfolio growth ➢ Acquisition of 11 retail properties with a total investment volume of 73m EUR at an average yield of 9.4% ➢ (Proforma) Property portfolio amounts to c. 890m EUR with an annualised rent of c. 69m EUR ➢ Acquisition
Slide 5: Financial Key Figures
FINANCIAL KEY FIGURES 5 Steady and consistent growth Rental income FFO FFO per share (kEUR) (kEUR) (EUR) 10,156 16,172 0.29 7,345 63% of 0.23 12,239 RI 60 % of RI Q1 2019/2020 Q1 2020/2021 Q1 2019/2020 Q1 2020/2021 Q1 2019/2020 Q1 2020/2021 aFFO per share Investment properties EPRA NAV per share (EU
Slide 6: Property Portfolio
PROPERTY PORTFOLIO Deutsche Konsum REIT-AG
Slide 7: Property Portfolio: Key portfolio figures as at December 2020
PROPERTY PORTFOLIO 7 Key portfolio figures as at 31 December 2020 >> Portfolio snapshot: Annualised rent (mEUR) Vacancy (%) ➢ Key portfolio figures based on 164 properties accounted as at 31.12.2020 63.1 64.2 9.9 10.1 30.09.2020 31.12.2020 30.09.2020 31.12.2020 Initial yield (%) WALT (years) 10.5 10
Slide 8: Property Portfolio: Portfolio development
PROPERTY PORTFOLIO 8 Proforma portfolio consists of 172 properties with > 980,000 sqm >> Portfolio development within the last 24 months: Schleswig- Mecklenburg Holstein - Pommerania 30.09.2019 30.09.2020 31.12.2020 Pro Forma (including notarised properties) Lower Saxony Number of 123 161 164 172 pr
Slide 9: Acquisitions: Selection of last property acquisitions (1)
ACQUISITIONS 9 Selection of last property acquisitions (1) >> Latest acquisitions: Location Northeim (Lower Saxony) Type Retail center Space (sqm) 19,744 Annualised rent (kEUR) 2,583 (including parking fees) Main tenants Netto Marken-Discount, Rossmann, H&M, C&A, Woolworth WALT c. 5 years Vacancy 7.
Slide 10: Acquisitions: Selection of last property acquisitions (2)
ACQUISITIONS 10 Selection of last property acquisitions (2) >> Latest acquisitions: Location Zittau (Saxony) Type Retail center Space (sqm) 15,173 Annualised rent (kEUR) 776 Main tenants Kaufland, Euronics, Multi-Möbel WALT c. 5 years Vacancy 33.0% Initial yield > 8.6% Transfer of ownership expected
Slide 11: Tenant Structure
TENANT STRUCTURE 11 65% Rent contribution from non-cyclical tenants (80% including DIY) >> Rent contribution by tenant classification (m EUR)1: >> Rent contribution by major tenants1 : Rent WALT Tenant group Brands (mEUR) in years Edeka Group 8.7 5.6 Other cyclical Schwarz Group 10.2 4.6 uses 14.7 M
Slide 12: Tenant Structure: DKR becomes a reliable partner for tenants
TENANT STRUCTURE 12 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 5 60 6 30 50 25 Rent p.a. mEUR No. of lease contracts 24 40 20 4 30 15 15 2 6 20 10 32 10 10 21 3 5 12 11
Slide 13: Investments in the Portfolio
INVESTMENTS IN THE PORTFOLIO 13 CAPEX measures lift up property values >> Major capex measures in Q1 2020/2021: Location / Property Description of capex measures CAPEX (mEUR) Hohenmölsen, retail Step-by-step revitalisation and space optimisation of the whole neighborhood centre in order to prolong t
Slide 14: Value-add by opportunistic property revitalisations
INVESTMENTS IN THE PORTFOLIO 14 Value-add by opportunistic property revitalisations >> Revitalisation example retail centre “Kolumbuspassage Rostock”: >> Measures: • Merge of small vacant shop units to large units • New parking space • Improvement of tenant mix • Started in autumn 2020 / finished in
Slide 15: Valuation Potential of the Portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 15 Share price currently trades above 7.0% 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 (mEU
Slide 16: Financial Structure
FINANCIAL STRUCTURE Deutsche Konsum REIT-AG
Slide 17: Financial Structure: Solid and cost-efficient debt structure
FINANCIAL STRUCTURE 17 Solid and cost-efficient debt structure Debt allocation (m EUR outstanding debt) >> Financial KPIs: Corporate bond 31.12.2020 30.09.2020 % 2018/2024 Total financial debt (loans + bonds), m EUR 534.0 527.7 +1.2 Corporate 14.1 23.7 40.0 bond Avg. loan interest, % p.a. 1.81 1.81
Slide 18: Financials Q1 2020/2021
FINANCIALS Q1 2020/2021 Deutsche Konsum REIT-AG
Slide 19: Condensed IFRS balance sheet
FINANCIALS Q1 2020/2021 19 Condensed IFRS balance sheet kEUR 31.12.2020 30.09.2020 kEUR 31.12.2020 30.09.2020 Pro forma Assets Equity and liabilities portfolio currently mEUR 890 Investment properties 831,562.0 809,928.6 Subscribed capital 35,155.9 35,155.9 (including the Other non-current latest no
Slide 20: LTV and EPRA NAV
FINANCIALS Q1 2020/2021 20 LTV and EPRA NAV >> LTV (loan-to-value): >> EPRA NAV: kEUR 31.12.2020 30.09.2020 kEUR 31.12.2020 30.09.2020 Bank loans 324,545.3 319,377.8 Total equity 398,746.6 390,664.5 Convertible bonds 36,345.6 36,308.6 Conversion of convertible bonds 0.0 0.0 Corporate bonds 152,074.4
Slide 21: Condensed IFRS income statement
FINANCIALS Q1 2020/2021 21 Condensed IFRS income statement 01.10.2020 – 01.10.2019 – kEUR % 31.12.2020 31.12.2019 Rental income increased due to the property portfolio growth Rental income 16,172.1 12,238.9 32.1 Income from recharged operating costs 2,504.4 2,478.8 1.0 Operating expenses -7,902.6 -6
Slide 22: FFO reconciliation
FINANCIALS Q1 2020/2021 22 FFO reconciliation >> FFO/aFFO: 01.10.2020 01.10.2019 % kEUR – – 31.12.2020 31.12.2019 Contains non-cash items due to Total period income 8,082.1 6,394.3 26.4 IFRS valuation of debt instruments and short term +/- Income taxes 0.0 0.0 0.0 receivables (impairment of + Deprec
Slide 23: Outlook
OUTLOOK Deutsche Konsum REIT-AG
Slide 24: Outlook Q1 2020/2021: Guidance
OUTLOOK Q1 2020/2021 24 Guidance >> Guidance for FY 2020/2021: Date of guidance 17.12.2020 FFO (m EUR) 42.0 – 45.0 FFO Run Rate as per 30- Sep-2021 (m EUR) 47.0 – 51.0 Q1 2020/2021 financial results | Deutsche Konsum REIT-AG
Slide 25: Appendix
APPENDIX Deutsche Konsum REIT-AG
Slide 26: Share Information
SHARE INFORMATION 26 >> Basic Share Information >> Shareholder Structure MFS Investment Zerena Management As at 31.12.2020 GmbH 5,24% ISIN DE000A14KRD3 9,00% Share price (Xetra, 10-February-2021) EUR 15.45 Parson Free Float Symbol DKG GmbH 40,63% 5,11% Shares outstanding 35,155,938 Goebel Share clas
Slide 27: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT 27 >> Financial calendar >> Roadshows / Investor meetings Date Date Country Publication of the quarterly statement for the first ODDO SEYDLER Digital Small & Mid Cap 11.02.2021 25.02.2021 quarter of 2020/2021 financial year Conference 2021 (virtual event) Commerzban
Slide 28: DKR Business Model at a Glance
DKR BUSINESS MODEL AT A GLANCE 28 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 • 172 retail properties • F
Slide 29: Strategy: Investment approach
STRATEGY 29 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 30: Bundling single properties into an institutional asset class
STRATEGY 30 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 31: Basic retail sector remains stable with best outlook
STRATEGY 31 Basic retail sector remains stable with best outlook >> Market research according to 15. Retail Real Estate Report Germany 2020/2021 by bulwiengesa / Hahn / CBRE1: 38m 3.2 % sqm Growth of the Total grocery & stationery retail drugstore retail in 2019 lease area in Germany • Strong German
Slide 32: Basic retail resilient to E-Commerce (1)
STRATEGY 32 Basic retail resilient to E-Commerce (1) >> Market research according to 15. Retail Real Estate Report Germany 2020/2021 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 w
Slide 33: Basic retail resilient to E-Commerce (2)
STRATEGY 33 Basic retail resilient to E-Commerce (2) >> Market research according to 15. Retail Real Estate Report Germany 2020/20201 by bulwiengesa / Hahn / CBRE1: fig. 3 fig. 4 Results of the statistical data: • Yearly growth rate of total E-Commerce still moderate • E-Commerce growth mainly drive
Slide 34: Asset Sourcing: Sourcing process for retail properties
ASSET SOURCING 34 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 35: Management
MANAGEMENT 35 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 36: Partners
PARTNERS 36 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 2020/2021 financial results | Deutsche Konsum REIT-AG
Slide 37: Portfolio Details
PORTFOLIO DETAILS 37 DKRs detailed property portfolio Find DKR‘s current portfolio in a detailed overview online under the following links: DKR property portfolio overview as at 31 December 2020 DKR property portfolio Excel file Q1 2020/2021 financial results | Deutsche Konsum REIT-AG
Deutsche Konsum REIT-AG — Q1 2020/2021 Earnings Presentation on 6ix