Deutsche Euroshop Ag · XETR:DEQ
Deutsche Euroshop — Deutsche Euroshop Ag Akt — FY 2021 Earnings Presentation
38 slides from Deutsche Euroshop's earnings presentation, Mar 23, 2022
Slide 1: Conference Call Preliminary Results FY 2021
Conference Call Preliminary Results FY 2021 23 March 2022
Slide 2: Update on Business Activities – Summary: Rents
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Update on Business Activities – Summary Rents Collection ratio : 2021: 95% (after rent concessions) YTD 2022: 99% (very limited rent concessions) Negotiations with tenants concerning (temporary) relief measures for lock down periods c
Slide 3: Update on Business Activities – Financials & Liquidity
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Update on Business Activities – Summary Financials & Liquidity Solid cash position DES Group: €329m (31 December 2021) Refinancing activities for 2021 finalized at attractive terms 4 loans with a total volume of €191m Closing of a l
Slide 4: Update on Business Activities – Forecast FY 2022
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Update on Business Activities – Summary Forecast FY 2022 Dividend proposal to be announced with publication of the Annual Report end of April FFO 2021: €1.98 (incl. “Ü3” state aid) Forecast: FFO 2022 between €1.95 and €2.05 per shar
Slide 5: Long-term Store Closures in DES' Markets
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Long-term Store Closures in DES’ Markets Number of full Shop closing periods lockdown days 2020 2021 Czech Republic 235 Germany 187 Poland 159 Austria 131 Hungary 68 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Slide 6: Current Regulations in DES' Markets
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Current Regulations in DES’ Markets1 Germany Stepwise Normalisation – until April 2022 Masks are mandatory (FFP2) F&B open (mostly only for vaccinated/recovered or tested guests “3G”) Local limitations on access per sqm (1 customer
Slide 7: Corona Impact – Footfall
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Corona Impact – Footfall Development of the daily footfall compared to the average of the respective month in 2019 2020 20211 2022 Lockdown I Reopening Limited Operation Lockdown II Reopening 2G2 New restrictions in Germany² and lockdown
Slide 8: Corona Impact – Retail Turnover
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Corona Impact – Retail Turnover1 Development of retail turnover of centers in Germany compared to 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jan 100.0% 88.7% 88.0% New restrictions in 85.8% 83.7% Germany² and lockdown in Austria³ 80.0% 7
Slide 9: Corona Impact – Collection Rates
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Corona Impact – Collection Rates1 2021: 95% Q1 2020: 99% Q2 2020: 71% Q3 2020: 96% Q4 2020: 93% Q1 2021: 89% Q2 2021: 93% Q3 2021: 99% Q4 2021: 98% Q1 2022 98% 100% 98% 64% 72% 76% 96% 96% 95% 97% 92% 90% 90% 89% 88% 92% 91% 95% 99% 99% 1
Slide 10: Maturity Distribution of Rental Contracts
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Maturity Distribution of Rental Contracts1 2022 2027 ET SQQ 5% 2023 Long-term contracts base 10% rental income 2024 Weighted maturity 5.3 years (H1 2021: 5.0 years) 11% 46% 10% 2025 Occupancy rate: 94.3% (H1 2021: 93.8%) 18% 2026 10 1
Slide 11: Tenant Structure – Top 10 Tenants
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Tenant Structure – Top 10 Tenants1 2021 2020 Low level of dependence on the Top 10 Tenants H&M 2.8% 3.3% Peek & Cloppenburg 2.5% 2.5% Ceconomy 2.4% 2.4% 21% Deichmann 2.2% 2.1% New Yorker 2.2% 2.1% C&A 2.1% 2.1% Douglas 2.0% 1.9% dm-droge
Slide 12: Sector Mix
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Sector Mix1 Department stores & hypermarkets 9.0% Food & supermarkets 6.7% Non-food/electronics 17.2% Health & beauty 7.0% Catering 4.9% Services 1.8% Balanced sector diversification Fashion 53.5% 12 1 As % of rental space as at 31 Decemb
Slide 13: Valuation – Investment Properties December 2021
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Valuation1 – Investment Properties 31 December 2021 in € thousand 2021 2020 CHANGE Valuation result slightly negative in a changed Revaluation -62,323 -400,204 337,881 market environment Revaluation at-equity 4,092 -73,786 77,878 Net In
Slide 14: Revenues – Effected by Corona-Pandemic
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Revenues – Effected by Corona-Pandemic Revenue 3 231.5 Recognition of rental income according to lease contracts in € million 3 225.0 224.1 218.5 5.54 211.8 Decrease in revenues to €211.8m (-5.5%) 5.74 5.74 Influenced mainly by rent
Slide 15: EBIT – Continued strong impact from Corona Rent Concessions
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 EBIT – Continued strong impact from Corona Rent Concessions EBIT 192.4 199.1 197.5 EBIT decreased to €152.5m (-5.4%) in € million Decline due to Corona-related decrease in revenues and higher 161.2 152.5 vacancy-related non-allocable
Slide 16: Financial result – Further improvement
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Financial result1 – Further improvement Financial result1 Financial result improved: €+6.7m in € million 2017 2018 2019 2020 2021 Interest expenses reduced by €4.5m due to favorable refinancings (City-Arkaden Wuppertal, Billstedt-Cent
Slide 17: EBT – higher impact of the Corona-Pandemic in 2021
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 EBT1 – higher impact of the Corona-Pandemic in 2021 (vs. 2020) EBT1 EBT (excl. valuation) below previous year -1.6% in € million (€-2.0m) due lower operating results 160.9 163.1 153.3 Interest savings with positive impact (€+4.5m) 127
Slide 18: EPRA earnings
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 EPRA earnings EPRA earnings EPRA earnings declined by €2.5m to €122.0m in € million EPRA earnings per share decreased from €2.02 to €1.97 (per share in €) 158.3 147.4 141.3 EPRA earnings 01.01. – 31.12.2021 01.01. – 31.12.2020 in € th
Slide 19: Consolidated result
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Consolidated result Consolidated profit Consolidated result increased in total by €311.6m. in € million (per share in €) 134.3 112.1 The following effects are included in that change: 79.4 59.9 (€2.31) (€1.29) (€1.81) (€0. 97) Reduced r
Slide 20: Development of Funds From Operations (FFO)
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Development of Funds From Operations (FFO) FFO FFO declined from €123.3m to €122.3m, mainly influenced by in € million Corona-related lower revenues, high allowances for rent (per share in €) receivables and provisions for non-recoverab
Slide 21: Balance Sheet – Solid and Robust Structure
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Balance Sheet – Solid and Robust Structure Balance sheet structure Equity ratio stands at a solid 55.6% in € million LTV to 30.5% (“look-through” 33.3%3) Group liquidity: €328.8m 4,237.4 4,278.8 4,278.8 4,237.4 303.7 377.9 279.2 211
Slide 22: Net Tangible Assets (EPRA)
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Net Tangible Assets (EPRA) EPRA NTA EPRA NTA slightly increased through higher liquidity, partly in € million (per share in €) offset by lower market values: €38.43 (+2.8%) Share price discount to NTA: 59% (21 March 2022) 2,668.4 2,66
Slide 23: Interest Rate Structure
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Interest Rate Structure1,2 Due Principle amounts Share of Avg. 18 German and 4 Interest Lockin (years) (€ million) total Loan interest Rate foreign bank partners 2022 237.0 15.8% 3.21% Weighted maturity of 2023 – 2026 3.3 473.1 31.5%
Slide 24: Loan Maturities until 2027
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Loan Maturities until 20271,2 End of fixed interest periods Regular in € million respectively expiring loans Avg. interest rate redemption payments Total maturities 2022 225.9 3.26% 11.4 237.3 Already completely fixed 2023 209.0 2.99% 10.
Slide 25: Tenants – Contract Renewals and New Signings during the Pandemic
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Tenants – Contract Renewals and New Signings during the Pandemic1 Leasing Continued stabilization of situation and arrange- ments with tenants as well as releasing activities as key tasks for the coming quarters Successful prolongatio
Slide 26: New Tenants: IKEA – City-Galerie Wolfsburg
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 New Tenants: IKEA – City-Galerie Wolfsburg 26 Source: IKEA Deutschland SHOPPING CENTERS
Slide 27: New Tenants: Indoor Skydiving – Rhein-Neckar-Zentrum
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 New Tenants: Indoor Skydiving – Rhein-Neckar-Zentrum 27 Source: Indoor Skydiving Viernheim SHOPPING CENTERS
Slide 28: New Tenants: L'Osteria – Rhein-Neckar-Zentrum
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 New Tenants: L’Osteria – Rhein-Neckar-Zentrum 28 Source: L’Osteria, ECE SHOPPING CENTERS
Slide 29: New Tenants: LEGO – Altmarkt-Galerie Dresden
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 New Tenants: LEGO – Altmarkt-Galerie Dresden 29 Source: ECE SHOPPING CENTERS
Slide 30: New Tenants: RUSTA – Rathaus-Center Dessau
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 New Tenants: RUSTA – Rathaus-Center Dessau1 30 1 Opening planned for 2023 | Source: Rusta SHOPPING CENTERS
Slide 31: Main-Taunus-Zentrum: Attractive Succession for the former Karstadt Site
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Main-Taunus-Zentrum: Attractive Succession for the former Karstadt Site (Ideas) 31 Source: ECE SHOPPING CENTERS
Slide 32: Main-Taunus-Zentrum: Attractive Succession for the former Karstadt Site
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Main-Taunus-Zentrum: Attractive Succession for the former Karstadt Site (Ideas) 32 Source: ECE SHOPPING CENTERS
Slide 33: Update Digital Mall – Onboarding
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Update Digital Mall – Onboarding Digital Mall Onboarding of retailers continues with now more than 3.7 million products >100 Digital Mall retail Partners available for search 1,000 Connected Stores City-Arkaden Klagenfurt as first 65
Slide 34: Outlook: Financing, Liquidity and Transaction Market
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Outlook Financing and Liquidity Continued trustful negotiations with banking partners for 2022 refinancings and regular exchange about effects of pandemic financial covenants Until 31.12.2021 all financial covenants were met or – if n
Slide 35: Outlook: FFO Forecast 2022
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Outlook Goal Forecast 1.95–2.05 FFO between €1.95 and €2.05 per share, 2022 expected to be the transition year to new Result Result normality 2.00 1.98 Forecast conditional upon – expected continuing and enduring stabilization of the
Slide 36: State Aid Programs in Germany
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 State Aid Programs in Germany November - December 2020 January 2021 – June 2022 CLOSURE DROP IN SALES DROP IN SALES (+ CLOSURE) directly/indirectly affected min. 30% of at least 30% in one month since Nov. 2, 2020 in Nov. and/or Dec. comp
Slide 37: Financial Calendar
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Financial Calendar 2022 22.03. Preliminary Results FY 2021 19.-23.09. Baader Investment Conference, Munich 25.03. BofA EMEA Real Estate CEO Conference, London 20.10. SG The Pan-European RE Conference, Paris 26.04. Publication of the Annua
Slide 38: Contact
CONFERENCE CALL - PRELIMINARY RESULTS FY 2021 | 23 MARCH 2022 Contact Deutsche EuroShop AG Investor & Public Relations Heegbarg 36 22391 Hamburg Tel. +49 (40) 41 35 79 – 20/– 22 instagram.com/deutscheeuroshop Fax +49 (40) 41 35 79 – 29 youtube.com/DeutscheEuroShop E-Mail: ir@deutsche-euroshop.com fa
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