Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — 9M 2022/2023 Earnings Presentation
46 slides from Deutsche Konsum Real Estate's earnings presentation, Aug 14, 2023
Slide 1: 9M 2022/2023 Financial Results
1 9M 2022/2023 FINANCIAL RESULTS 1 October 2022 – 30 June 2023 14 August 2023 9M 2022/2023 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 9M 2022/2023 financial results | Deutsche Konsum REIT-AG
Slide 4: Highlights 9M 2022/2023
HIGHLIGHTS 9M 2022/2023 4 Strong and resilient business model Strong and steady operational business with ongoing rent increases / FFO reduction mainly due to higher debt costs ➢ Rental income 58.7m EUR (up 6.0% y-o-y) ➢ FFO 27.0m EUR (-14.6% y-o-y) / FFO per share 0.77 EUR (-14.6% y-o-y) ➢ AFFO per
Slide 5: Financial Key Figures
FINANCIAL KEY FIGURES 5 Solid business development Rental income FFO FFO per share (k EUR) (k EUR) (EUR) 0.90 58,718 31,677 55,395 0.77 27,044 9M 2021/2022 9M 2022/2023 9M 2021/2022 9M 2022/2023 9M 2021/2022 9M 2022/2023 aFFO per share Investment properties EPRA NTA per share (fully diluted) (EUR) (
Slide 6: Property Portfolio
6 PROPERTY PORTFOLIO 9M 2022/2023 financial results | Deutsche Konsum REIT-AG
Slide 7: Property Portfolio
PROPERTY PORTFOLIO 7 Pro forma portfolio consists of 183 properties with approx. 1,073,000 sqm >> Portfolio development within the last 21 months: Schleswig- Mecklenburg Holstein - Pommerania 30/09/2021 30/09/2022 30/06/2023 Pro Forma (incl. notarised disposals and acquisitions) Lower Saxony Number
Slide 8: Property Portfolio: Steady growth and stable KPIs
PROPERTY PORTFOLIO 8 Steady portfolio growth and stable property KPIs Annualised rent (m EUR) Vacancy (%) 78.9 72.9 73.2 10.5 without 63.1 sold property 11.7 11.5 in Trier 48.7 10.7 9.9 9.9 30.09.2019 30.09.2020 30.09.2021 30.09.2022 30.06.2023 30.09.2019 30.09.2020 30.09.2021 30.09.2022 30.06.2023
Slide 9: Tenant Structure
TENANT STRUCTURE 9 67% 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 (m EUR) in years Other cyclical Non- uses cyclical Edeka Group 8.8 5.1 rents Schwarz G
Slide 10: Tenant Structure: Resilient and inflation-linked rental income
TENANT STRUCTURE 10 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 11: Tenant Structure: Reliable partner for tenants
TENANT STRUCTURE 11 DKR is a reliable partner for its tenants >> Number of leases with the same tenant group1: >> Annualised rents allocated to years of lease contract maturities1: 80 40 70 35 1 1 6 60 30 6 No. of lease contracts 50 25 Rent p.a. mEUR 22 40 20 3 30 6 10 15 20 11 10 4 31 4 25 10 5 15
Slide 12: CAPEX investments
CAPEX investments 12 DKR has been investing in value-enhancing measures on various properties >> Selection of properties with capex investments in 9M 2022/2023: Haff-Center Ueckermuende Lindencenter Stralsund PEP Grimma Capex invested: Capex invested: Capex invested: • 5.0m EUR • 6.0m EUR • 3.0m EUR
Slide 13: CAPEX investments
CAPEX investments 13 DKR has been investing in value-enhancing measures on various properties >> Selection of properties with capex investments in 9M 2022/2023: to come to come Plauen DUDO-Galerie Saarbrücken Grevenbroich Montanushof Totally invested: Total investment volume planned: Total investmen
Slide 14: Valuation Potential of the Portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 14 Share currently trades at > 9.1% yield (fully diluted) >> EPRA NTA impact from factor increases (c.p.) shows further upside potential: Hypothetical Annualised Hypothetical Portfolio Net debt EPRA NTA Number of EPRA NTA total portfolio valuation Yield value Net
Slide 15: Financing
15 FINANCING 9M 2022/2023 financial results | Deutsche Konsum REIT-AG
Slide 16: Financing: Solid debt structure with low cost of capital
FINANCING 16 Solid debt structure with low cost of capital >> Financial KPIs: Debt allocation (m EUR outstanding debt) Corporate bond 30/06/2023 30/09/2022 % 2018/2024 Corporate bond Total financial debt (loans + bonds), m EUR 640.3 636.7 0.6 8.7 35.9 2019/2024 12.3 (unsecured) 70.0 Ø Senior secured
Slide 17: Financials 9M 2022/2023
17 FINANCIALS 9M 2022/2023 9M 2022/2023 financial results | Deutsche Konsum REIT-AG
Slide 18: Condensed IFRS balance sheet
FINANCIALS 9M 2022/2023 18 Condensed IFRS balance sheet k EUR 30/06/2023 30/09/2022 k EUR 30/06/2023 30/09/2022 Assets Equity and liabilities Upcoming property Investment properties 1,104,645.3 1,030,959.1 Subscribed capital 35,155.9 35,155.9 portfolio valuation Other non-current assets 961.1 4,974.
Slide 19: LTV and NAV / EPRA NTA
FINANCIALS 9M 2022/2023 19 LTV and NAV / EPRA NTA >> LTV (loan-to-value): >> NAV / EPRA NTA per share: k EUR 30/06/2023 30/09/2022 EPRA NAV Conversion EPRA NTA (undiluted) effects of (diluted) Bank loans 428,236.7 418,044.2 k EUR convertible Convertible bonds 36,724.8 36,609.3 30/06/2023 bonds 30/06
Slide 20: Condensed IFRS income statement
FINANCIALS 9M 2022/2023 20 Condensed IFRS income statement 01/10/2022 – 01/10/2021 – k EUR % 30/06/2023 30/06/2022 Split of net operating costs: Rental income 58,717.8 55,395.1 6.0 thereof 9M 9M (k EUR) 2022/2023 2021/2022 Income from recharched operating costs 12,240.7 9,168.3 33.5 Non-recs -7,058
Slide 21: FFO reconciliation
FINANCIALS 9M 2022/2023 21 FFO reconciliation >> FFO/aFFO: 01/10/2022 01/10/2021 % k EUR – – 30/06/2023 30/06/2022 Total period income 19,670.6 92,614.9 -78.8 +/- Income taxes 0.0 0.0 0.0 Contains non-cash items due to IFRS valuation of debt instruments (0.5m) + Depreciation of other assets 25.6 15.
Slide 22: Headline Earnings per share reconciliation (JSE rules)
FINANCIALS 9M 2022/2023 22 Headline Earnings per share (HEPS) reconciliation according to JSE rules >> HEPS: 01/10/2022 01/10/2021 % k EUR – – 30/06/2023 30/06/2022 Total period income (undiluted) 19,670.7 92,614.9 -78.8 -/+ Revaluation gains / losses, IAS 40 0.0 -64,544.0 100.0 -/+ Revaluation gain
Slide 23: Outlook
23 OUTLOOK 9M 2022/2023 financial results | Deutsche Konsum REIT-AG
Slide 24: Guidance FY 2022/2023: FFO and dividends
GUIDANCE FY 2022/2023 24 FFO and dividends >> Guidance for FY 2022/2023: Date of guidance 20/12/2022 04/05/2023 FFO (m EUR) 40.0 – 44.0 36.0 – 39.0 >> Dividend history (EUR per share*): 0.40 0.40 0.35 0.20 0.12 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 * Based on 35,16m shares outstanding 9M
Slide 25: Share information
25 Share information 9M 2022/2023 financial results | Deutsche Konsum REIT-AG
Slide 26: Share Information
SHARE INFORMATION 26 >> Basic Share Information >> Shareholder Structure As at 10/08/2023 Paladin Asset Management / ISIN DE000A14KRD3 Marcel Maschmeyer Share price (Xetra, 10 August 2023) EUR 6.22 5.09% MFS Investment Management Symbol DKG 5.24% Shares outstanding 35,155,938 Zerena GmbH Share class
Slide 27: Financial calendar and IR contact
27 Financial calendar and IR contact 9M 2022/2023 financial results | Deutsche Konsum REIT-AG
Slide 28: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT 28 >> Financial calendar >> Roadshows / Investor meetings Date Date Country Publication of the quarterly statement for the third Berenberg and Goldman Sachs Twelfth 14/08/2023 18/09/2023 quarter of 2022/2023 financial year German Corporate Conference, Munich Publica
Slide 29: ESG
29 ESG 9M 2022/2023 financial results | Deutsche Konsum REIT-AG
Slide 30: ESG aspects at DKR
ESG aspects at DKR 30 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 31: Roll-out of electric charging points
ESG aspects at DKR 31 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 32: Sustainability Report recently published
ESG aspects at DKR 32 DKRs current Sustainability Report recently published >> ESG reporting ➢ Sustainability Report for the calendar year 2022 published and available on DKR’s website ➢ DKR‘s Sustainability Reports for the calendar years 2019 and 2020 have been awarded with the EPRA sBPR Silver Awa
Slide 33: Appendix
33 APPENDIX 9M 2022/2023 financial results | Deutsche Konsum REIT-AG
Slide 34: Key Drivers of Value Creation
KEY DRIVERS OF VALUE CREATION 34 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 loca
Slide 35: Historical KPI Development
HISTORICAL KPI DEVELOPMENT 35 Continuously high growth since inception Financial year 9M 2022/2023 2021/2022 2020/2021 2019/2020 2018/2019 2017/2018 2016/2017 2015/2016 Income statement Rental income (k EUR) 58,718 74,390 69,667 56,231 41,978 28,601 19,249 11,437 FFO (k EUR) 27,044 41,115 34,991 25,
Slide 36: DKR Business Model at a Glance
DKR BUSINESS MODEL AT A GLANCE 36 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 • 184 retail properties • F
Slide 37: Investment approach
STRATEGY 37 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 38: Bundling single properties into an institutional asset class
STRATEGY 38 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 39: Capital recycling as sub-strategy
STRATEGY 39 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 40: Basic retail sector remains stable with best outlook
STRATEGY 40 Basic retail sector remains stable with best outlook >> Market research according to 17. Retail Real Estate Report 2022/2023 by bulwiengesa / Hahn / CBRE1: 39m 2.1% sqm Growth of the Total grocery German retail & drugstore sector in 2021 retail lease area in Germany • Strong German econo
Slide 41: Basic retail resilient to E-Commerce (1)
STRATEGY 41 Basic retail resilient to E-Commerce (1) >> Market research according to 17. Retail Real Estate Report 2022/2023 by bulwiengesa / Hahn / CBRE1: Online share of total turnover Top 5 in food retail in 2021 Figures in % Turnover Change since Food Drugstore products in € billion previous yea
Slide 42: Basic retail resilient to E-Commerce (2)
STRATEGY 42 Basic retail resilient to E-Commerce (2) >> Market research according to 17. Retail Real Estate Report 2022/2023 by bulwiengesa / Hahn / CBRE1: fig. 3 fig. 4 Results of the statistical data: • The growth rate of E-Commerce reduces slightly in 2022. In absolute revenue figures, 2022 is th
Slide 43: Sourcing process for retail properties
ASSET SOURCING 43 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 44: Management
MANAGEMENT 44 Experienced and committed management Alexander Kroth (CIO) Christian Hellmuth (CFO) Alexander joined DKR in January 2017 and initially Christian joined DKR in January 2017 and is set up the Company together with Rolf Elgeti. He is responsible for Finance, Accounting and IR. Prior to in
Slide 45: Partners
PARTNERS 45 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 2022/2023 financial results | Deutsche Konsum REIT-AG
Slide 46: Portfolio Details
PORTFOLIO DETAILS 46 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 June 2023 (Excel file) Interactive Map 9M 2022/2023 financial results | Deutsche Konsum REIT-AG
Deutsche Konsum REIT-AG — 9M 2022/2023 Earnings Presentation on 6ix