Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — H1 2019/2020 Earnings Presentation
36 slides from Deutsche Konsum Real Estate's earnings presentation, May 14, 2020
Slide 1: H1 2019/2020 Results
1 H1 2019/2020 RESULTS 1 OCTOBER 2019 – 31 MARCH 2020 14 May 2020 H1 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 H1 2019/2020
HIGHLIGHTS H1 2019/2020 4 High acquisition volume and increased financial flexibility Strong portfolio growth ➢ Acquisition of 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 mEUR with a book valu
Slide 5: Financial Key Figures
FINANCIAL KEY FIGURES 5 Consistent growth Rental income FFO FFO per share 0,5 (kEUR) (kEUR) (EUR) 25,044 0.48 15,306 11,920 0.41 61 % of 19,472 RI 61 % of RI 0,3 H1 2018/2019 H1 2019/2020 H1 2018/2019* H1 2019/2020 H1 2018/2019* H1 2019/2020 aFFO per share Investment properties EPRA NAV per share (E
Slide 6: COVID-19 impact on basic retail
COVID-19 impact on basic retail 6 Return of customers to basic retail stores in Germany in May >> Google detected an extensive recovery of footfall in grocery stores and pharmacies in Germany*: * Source: Google data 13-May-2020 H1 2019/2020 financial results | Deutsche Konsum REIT-AG
Slide 7: Property Portfolio
PROPERTY PORTFOLIO Deutsche Konsum REIT-AG
Slide 8: Property Portfolio: Key portfolio figures
PROPERTY PORTFOLIO 8 Key portfolio figures as at 31 March 2020 >> Portfolio snapshot: Annualised rent (mEUR) Vacancy (%) ➢ Key portfolio figures based on 135 9.9 properties accounted as at 31.03.2020 54.7 48.7 9.2 30.09.2019 31.03.2020 30.09.2019 31.03.2020 Initial yield (%) WALT (years) 11 10.9 10.
Slide 9: Acquisitions
ACQUISITIONS 9 Acquisition overview: High acquisition volume in H1 2019/2020 – filled pipeline ahead >> Acquisitions notarised since 1 October 2019: ➢ 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% food-an
Slide 10: Acquisitions: Selection of latest property acquisitions
ACQUISITIONS 10 Selection of latest property acquisitions >> Impressions of last acquisitions: Food discounter Schönwalde-Glien „City Center“ Eisenhüttenstadt Food discounter portfolio consisting of 27 markets throughout in Bavaria Kaufland Hypermarket Centre Gera DIY Portfolio consisting of 7 locat
Slide 11: Property Portfolio
PROPERTY PORTFOLIO 11 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 31.03.2020 Pro Forma (including notarised properties) Lower Saxony Number of 90 123 135 166 pr
Slide 12: Tenant Structure
TENANT STRUCTURE 12 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 9.3 5.8 Other cyclical uses Schwarz Group 9.6 4.9 12.5 Metro Group 4.6 5.6 Rew
Slide 13: Tenant Structure: reliable partner for tenants
TENANT STRUCTURE 13 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 35 1 70 3 30 7 60 25 No. of lease contracts 50 Rent p.a. mEUR 20 40 39 4 15 30 3 12 6 10 20 10 10 21 3 5 19 11
Slide 14: Valuation Potential of the Portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 14 Share price currently trades at a 6.8% 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 15: Financing
FINANCING Deutsche Konsum REIT-AG
Slide 16: Financing
FINANCING 16 Conservative and efficient debt structure >> Financial KPIs: Debt allocation (mEUR initial nominal debt) 31.03.2020 30.09.2019 % Corporate bond Total financial debt (loans + bonds), mEUR 445.0 354.1 +26 2020/2025 (unsecured) 10.0 37.0 Avg. loan interest, % p.a. 1.87 1.94 -4 40.0 Avg. to
Slide 17: Financials H1 2019/2020
FINANCIALS H1 2019/2020 Deutsche Konsum REIT-AG
Slide 18: Condensed IFRS balance sheet
FINANCIALS H1 2019/2020 18 Condensed IFRS balance sheet kEUR 31.03.2020 30.09.2019 kEUR 31.03.2020 30.09.2019 Pro forma Assets Equity and liabilities portfolio currently mEUR 795 Investment properties 702,878.6 619,881.3 Subscribed capital 31,959.9 31,959.9 (including the Other non-current latest no
Slide 19: LTV and EPRA NAV
FINANCIALS H1 2019/2020 19 LTV and EPRA NAV >> LTV (loan-to-value): >> EPRA NAV: kEUR 31.03.2020 30.09.2019 kEUR 31.03.2020 30.09.2019 Bank loans 256,630.0 206,998.7 Total equity 318,898.3 317,362.2 Convertible bonds 36,235.0 36,162.1 Conversion of convertible bonds 0.0 0.0 Corporate bonds 152,123.3
Slide 20: Condensed IFRS income statement
FINANCIALS H1 2019/2020 20 Condensed IFRS income statement 01.10.2019 – 01.10.2018 – kEUR % 31.03.2020 31.03.2019 Rental income has mainly Rental income 25,388.8 19,471.9 30.4 increased in the course of the property portfolio growth Income from recharched operating costs 5,473.7 3,405.7 60.7 Operati
Slide 21: FFO reconciliation
FINANCIALS H1 2019/2020 21 FFO reconciliation >> FFO/aFFO: 01.10.2019 01.10.2018 % kEUR – – 31.03.2020 31.03.2019 Total period income 12,726.9 11,484.7 10.8 Contains non-cash items due to +/- Income taxes 0.0 0.0 0.0 IFRS valuation of convertible + Depreciation of other assets 5.4 0.6 >100 bonds and
Slide 22: Outlook
OUTLOOK Deutsche Konsum REIT-AG
Slide 23: Outlook FY 2019/2020
OUTLOOK FY 2019/2020 23 Guidance confirmed >> Current guidance for FY 2019/2020: Date of guidance 13.02.2020 update 14.05.2020 FFO (EUR m) 34.0 – 36.0 34.0 – 36.0 FFO Run Rate as per 30- Sep-2020 (EUR m) 40.0 – 42.0 40.0 – 42.0 Dividend (EUR per share) 0.55 0.55 Net-LTV 50.0 50.0 H1 2019/2020 financ
Slide 24: Appendix
APPENDIX Deutsche Konsum REIT-AG
Slide 25: Share Information
SHARE INFORMATION 25 >> Basic Share Information >> Shareholder Structure MFS Investment Management; Zerena GmbH; As at 11.05.2020 3,13 5,30 Parson GmbH; ISIN DE000A14KRD3 5,93 Share price (Xetra, 11-May-2020) EUR 17.00 Free Float; Symbol DKG Goebel Home 41,98 Accessories Shares outstanding 31,959,94
Slide 26: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT 26 >> Financial calendar >> Roadshows / Investor meetings Date Date Country Publication of the half-yearly financial report of 14.05.2020 20.08.2020 5. Hamburger Investorentag – HIT, Hamburg 2019/2020 financial year Publication of the quarterly statement for the thi
Slide 27: DKR Business Model at a Glance
DKR BUSINESS MODEL AT A GLANCE 27 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 28: Strategy: Investment approach
STRATEGY 28 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 29: Bundling single properties into an institutional asset class
STRATEGY 29 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 30: Basic retail sector remains stable with best outlook
STRATEGY 30 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 31: Basic retail resilient to E-Commerce (1)
STRATEGY 31 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 32: Basic retail resilient to E-Commerce (2)
STRATEGY 32 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 33: Sourcing process for retail properties
ASSET SOURCING 33 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 34: Experienced and committed management
MANAGEMENT 34 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 35: Strong external property partners
PARTNERS 35 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 H1 2019/2020 financial results | Deutsche Konsum REIT-AG
Slide 36: Portfolio Details
PORTFOLIO DETAILS 36 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 March 2020 plus latest acquisitions H1 2019/2020 financial results | Deutsche Konsum REIT-AG
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