Defama Deutsche Fachmarkt Ag · XETR:DEF

Defama Deutsche Fachmarkt — Investor Presentation (January 2022)

32 slides from Defama Deutsche Fachmarkt's investor presentation, January 2022

  1. Slide 1: Company Presentation DEFAMA Deutsche Fachmarkt AG

    Company Presentation DEFAMA Deutsche Fachmarkt AG January 2022

  2. Slide 2: Equity Story

    EQUITY STORY DEFAMA acquires: Pasewalk, Mecklenburg Western Pomerania • Well‐established retail parks and small shopping centres • Chain stores with strong solvency as (anchor) tenants • Little vacancies and/or investment needs • Purchase price per property usually between €1m and €5m • Mainly locat

  3. Slide 3: Equity Story: Three good reasons for our strategy

    EQUITY STORY Three good reasons why we pursue this strategy: Property size usually Too small for most Favourable prices due to between €1m and €5m institutional investors lack of competition Focus on typical local No issues with Sustainable rentability supply centres e‐commerce substitution of the o

  4. Slide 4: Investment Case: Value creation on several levels (I)

    INVESTMENT CASE Value creation on several levels (I) • Acquisition of properties with initial yield of 10% p.a. • Refinancing of > 80% of investment with app. 2% p.a. possible Albstadt, Baden‐Wuerttemberg little equity needed, therefore high return on equity FFO per share in € • Strong growth due to

  5. Slide 5: Investment Case: Value creation on several levels (II)

    INVESTMENT CASE NAV per share Value creation on several levels (II) in € 16.86 16 • Laborious single purchases at favourable prices 11.02 13.46 12 8.42 • Professionally managed portfolios trade 8 5.50 at much higher multiples on net rent 4 0 NAV per share +203% 2016 2016 2017 2018 2018 2019 2020 202

  6. Slide 6: Management

    MANAGEMENT Matthias Schrade (CEO) Matthias Stich (COO) • Many years of experience as a • More than 20 years working for financial analyst and entrepreneur the BBE/IPH Group • Excellent network in the areas of • Specialist in valuation and (re‐) retail, real estate and banking development of retail r

  7. Slide 7: Management: Supervisory Board

    MANAGEMENT Supervisory Board Peter Schropp (Chairman) • Managing Director of several real estate companies within Primepulse Group • Until 9/2014 Member of the Management Board of VIB Vermögen AG responsible for Real Estate • Significantly involved in the expansion of the portfolio to just under €1b

  8. Slide 8: Portfolio Key Figures

    PORTFOLIO Key Figures (as of 31 December 2021) Locations 50 Net Rent (annualised) €16.7m Lettable Space 215,778 sqm Occupancy Rate 95% Ø Lease Term (WALT) 4.7 years Portfolio Value €210m • 80% of total net rent is generated from chain stores with strong credit ratings • Contracts with anchor tenants

  9. Slide 9: Portfolio: Largest Tenants

    PORTFOLIO Largest Tenants Contracts Share Net Rent by Industry Kaufland/LIDL 6 11.6 % toom/B1 5 10.8 % EDEKA/Netto/trinkgut 11 10.1 % REWE/Penny 8 7.3 % JYSK (= Dän. Bettenlager) 11 5.3 % Aldi Nord 5 4.2 % NORMA 7 3.6 % Herkules (= Edeka Group) 1 2.4 % KiK 8 2.3 % TEDi 9 2.1 % Takko 6 2.1 % „Top 10“

  10. Slide 10: Key Financials 2017-2020

    KEY FINANCIALS 2017‐2020 Portfolio Value Sales in €m in €m CAGR 179 CAGR 14.6 +35% +36% 137 11.2 108 9.1 73 5.8 2017 2018 2019 2020 2017 2018 2019 2020 Net Profit Funds from Operations (FFO) in €m in €m CAGR CAGR +21% 2.5 +32% 5.9 2.1 1.7 4.6 1.4 3.6 2.6 2017 2018 2019 2020 2017 2018 2019 2020 Compa

  11. Slide 11: Key Financials 2017-2020

    KEY FINANCIALS 2017‐2020 Earnings per share FFO per share in € in € CAGR CAGR +14% 0.57 +23% 1.33 0.51 1.14 0.46 1.01 0.38 0.73 2017 2018 2019 2020 2017 2018 2019 2020 Dividend per share in € Guiding principles for expansion CAGR +12% 0.48 0.45 • Company growth not for its own sake, but always with

  12. Slide 12: Current Development: Impact of coronavirus crisis

    CURRENT DEVELOPMENT Impact of coronavirus crisis / current situation • Collection ratio in Q1/2021 overall about 92%, partly conditional payments • Collection ratio since April 2021 close to 100% • Open claims mainly from non‐food retail chain stores with strong solvency; only one tenant has declare

  13. Slide 13: Current Development: Investments within existing portfolio

    CURRENT DEVELOPMENT Investments within the existing portfolio (examples) Löwenberg • Acquisition of neighbour parcel completed in total • Expansion of ALDI‘s retail area completed app. €2m Büdelsdorf • Adding an elevator at East wing in process, completion est. 3/2022 • Expansion of TEDi‘s area, roo

  14. Slide 14: Refurbishment for ALDI in Löwenberg (I)

    CURRENT DEVELOPMENT Refurbishment for ALDI in Löwenberg (I) • Expansion and modernisation of the ALDI market • ALDI was almost continuously open during the renovation • Reopening has taken place at December 10th, 2021 Total plot before the refurbishment The driveway was relocated a little to the wes

  15. Slide 15: Refurbishment for ALDI in Löwenberg (II)

    CURRENT DEVELOPMENT Refurbishment for ALDI in Löwenberg (II) The aging ALDI in Löwenberg … The ALDI building was enlarged towards the front, the driveway was relocated and parking spots were added … looks like newly built after the refurbishment. Company Presentation DEFAMA Deutsche Fachmarkt AG 15

  16. Slide 16: Prolongation or new contracts with important tenants in 2021

    CURRENT DEVELOPMENT Prolongation or new contracts signed with important tenants in 2021 ALDI Brand‐Erbisdorf Edeka Pasewalk ABC Schuhe Staßfurt Fitness‐Studio Büdelsdorf Futterhaus Gardelegen Gemeinschaftspraxis Rendsburg KiK Dinslaken Norma Höhn + Puderbach + Sonnefeld Penny Wildau REWE Wittenburg

  17. Slide 17: Transaction/Sale: REWE City Center Bleicherode

    CURRENT DEVELOPMENT Transaction/Sale REWE City Center Bleicherode Year of construction: 1993 Lettable space: 4,044 sqm Occupancy rate: 88% Annual net rent: €350k Tenants i.a. REWE, Ernsting‘s family, pharmacy Bleicherode, Thuringia Ad hoc announcement dated February 24th, 2021 • First sale in compan

  18. Slide 18: Transaction/Purchase: HanseCenter Gardelegen

    CURRENT DEVELOPMENT Transaction/Purchase HanseCenter Gardelegen  Year of construction: 1996  Plot size: 41.355 sqm  Lettable space: 15.850 sqm  Occupancy rate: 67%  Purchase price: €8m  Annual net rent (target): > €1m Gardelegen, Saxony‐Anhalt  Aquisition via foreclosure sale  Key tenant is

  19. Slide 19: Transaction/Purchase: Local supply center Barsinghausen

    CURRENT DEVELOPMENT Transaction/Purchase Local supply center Barsinghausen  Year of construction: 1985 / 2005  Plot size: 6.907 sqm  Lettable space: 3.385 sqm  Occupancy rate: 100%  Purchase price: €3.6m  Annual net rent: €340k Barsinghausen, Lower Saxony  Acquisition at 10.6 times annual net

  20. Slide 20: Transaction/Purchase: Retail Park Hof

    CURRENT DEVELOPMENT Transaction/Purchase Retail Park Hof  Year of construction: 1991  Plot size: 24.824 sqm  Lettable space: 6.685 sqm  Occupancy rate: 89%  Purchase price: €6.7m  Annual net rent (target): > €570k Hof, Bavaria  Acquisition at 11.7 times annual net rent  Located in a heavily

  21. Slide 21: Transaction/Purchase: Retail Park Melsungen

    CURRENT DEVELOPMENT Transaction/Purchase Retail Park Melsungen  Year of construction: 1999  Plot size: 25.834 sqm  Lettable space: 8.366 sqm  Occupancy rate: 100%  Purchase price: €4.5m  Annual net rent: €450k Melsungen, Hesse  Acquisition at 10 times annual net rent  Site is located about 2

  22. Slide 22: Transaction/Purchase: Supermarket in Cologne-Rondorf

    AKTUELLE ENTWICKLUNG Transaction/Purchase Supermarket in Cologne‐Rondorf  Year of construction 1: 1999 / 2021  Plot size 2: 4.686 sqm  Lettable space: 1.271 sqm  Occupancy rate: 100%  Purchase price: €2.15m  Annual net rent: €162k Cologne‐Rondorf, North Rhine‐Westphalia  Acquisition at 13 tim

  23. Slide 23: Key Financials 9M/2021

    KEY FINANCIALS 9M/2021 Portfolio Value Sales in €m in €m 240 +18% 16 198 +23% 12.6 180 168 12 10.3 120 8 60 4 0 0 30.09.2020 30.09.2021 9M/2020 9M/2021 Company Presentation DEFAMA Deutsche Fachmarkt AG 23

  24. Slide 24: Key Financials 9M/2021

    KEY FINANCIALS 9M/2021 Net Profit Funds from Operations (FFO) in €m in €m . 4,8 4.3 1 . 1,80 . 6,0 +24% 5.2 . 2,40 +133% 4.2 . 3,2 . 1,20 . 4,0 . 1,60 1.8 . 1,6 0.97 1 . 0,60 . 2,0 1.18 . 0,80 0.96 0.42 0,0 0,00 0,0 0,00 9M/2020 9M/2021 9M/2020 9M/2021 Ergebnis Net Profit EPS in € FFO FFO FFO/per Ak

  25. Slide 25: Financing

    FINANCING Maturity Profile incl. Repayments Key Figures (as of 30 September 2021) in €m Number of financing partners 34 24 Bank loans €117m 16 Ø Interest rate 2.09% 8 Ø Initial repayment 4.55% 0 Ø Fixed interest 7.2 years Loan‐to‐value‐ratio (LTV) 58.0% Maturity of Fixed Interest Repayments • Financ

  26. Slide 26: Status and Outlook: Guidance for 2021

    STATUS AND OUTLOOK Guidance for 2021 Prior Year • Net Profit (German GAAP): €3.1m €2.5m €0.69 per share €0.57 per share • Funds From Operations (FFO): €7.1m €5.8m €1.61 per share €1.32 per share • Annualised FFO: at least €8m €7.1m • Dividend: > €0.48 per share €0.48 per share 1) • Increase of exist

  27. Slide 27: Status and Outlook: Long-term guidance DEFAMA 2025

    STATUS AND OUTLOOK Portfolio Value in €m Long‐term guidance „DEFAMA 2025“ 260‐300 • Portfolio value reaches €260m to €300m > 200 179 137 • Annualised net rents of €24m 108 • FFO of > €11m resp. > €2.50 per share 2018 2019 2020 2021e 2025e • Targets can be achieved without capital increase Net Rents

  28. Slide 28: Status and Outlook: DEFAMA on track for further growth

    STATUS AND OUTLOOK DEFAMA on track for further growth • 2021 aquisition volume close to €30m above typical yearly level • Annualised FFO („run rate“) already €8.4m resp. 1.90 € per share • Additional employee increased capacity for real estate transactions • Potentially higher annual aquisition volu

  29. Slide 29: Share

    SHARE Share price development since IPO at 13 July 2016 Shareholder structure 2 28 € 29% 20 € 12 € 65% 4% 4€ 2% Jul. 16 Jul. 17 Jul. 18 Jul. 19 Jul. 20 Jul. 21 WKN / ISIN A13SUL / DE000A13SUL5 MSC Invest GmbH / M. Schrade Stock exchange Munich (m:access), Frankfurt, Xetra Geminus GmbH / C. Müller Nu

  30. Slide 30: Why to Invest

    WHY TO INVEST Highly Profitable thanks to favourable purchase prices and lean structures Solid Financing via object subsidiaries with local and savings banks Down‐to‐Earth Team with great experience in the real estate and retail sector Shareholder‐friendly with high transparency and yearly dividend

  31. Slide 31: Contact

    CONTACT DEFAMA Deutsche Fachmarkt AG Nimrodstr. 23 D 13469 Berlin www.defama.de Matthias Schrade CEO Telephone +49 (0) 30 / 555 79 26 ‐ 0 Fax +49 (0) 30 / 555 79 26 ‐ 2 Email schrade@defama.de Apolda, Thuringia Company Presentation DEFAMA Deutsche Fachmarkt AG 31

  32. Slide 32: Disclaimer

    DISCLAIMER Important Notice: Forward Looking Statement The information or opinions contained in this document have not been independently verified and no express or implied warranty or representation is made as to their suitability, accuracy or completeness or the recipient may not rely on them. Thi

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