Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — 9M 2016/2017 Earnings Presentation
44 slides from Deutsche Konsum Real Estate's earnings presentation, August 2017
Slide 1: Deutsche Konsum REIT-AG (DKR) Earnings presentation 9M 2016/2017
Deutsche Konsum REIT-AG (DKR) Earnings presentation 9M 2016/2017
Slide 2: Contents
Contents Highlights 9M 2016/2017 Portfolio – Key figures, recent acquisitions, tenant mix and valuation potential Financial structure Financials 9M 2016/2017 DKR shares, analyst coverage and dividends Events and finance calendar FY 2016/2017 Appendices Management External partners Case studies revit
Slide 3: Highlights 9M 2016/2017
Highlights 9M 2016/2017 3
Slide 4: All financial key figures up in 9M 2016/2017
Highlights All financial key figures up in 9M 2016/2017 Rental income (kEUR) FFO (kEUR) FFO per share (EUR) 15,000 13,754 8 7,076 0,34 0,33 6 0,32 10,000 7,960 4,104 4 0,3 0,29 5,000 2 0,28 0,000 0 0,26 9M 2015/2016 9M 2016/2017 9M 2015/2016 9M 2016/2017 9M 2015/2016 9M 2016/2017 aFFO per share (EUR
Slide 5: Portfolio
Portfolio 5
Slide 6: Key portfolio figures as at 01/07/2017
Portfolio Key portfolio figures as at 01/07/2017 Annualized rent (mEUR) Vacancy (%) >> Portfolio snapshot 13,0 25 ➢ Key figures based on 56 properties booked as at 23 21,5 01/07/2017 21 12,0 19 12,0 11,7 ➢ All acquired assets with transfer of title as of 17 1 July (Guben and Oer-Erkenschwick) includ
Slide 7: Property map: 62 properties, 330,000 sqm, 271 mEUR GAV
Property map 62 properties with about 330.000 sqm lettable space and 271 mEUR GAV >> Top 8 assets as at 01/07/2017: City Greifswald City Ludwigslust Lettable space (sqm) 9.410 Lettable space (sqm) 14.386 Construction 1997 Construction 2000 Schleswig- Holstein Annual rent (mEUR) 1.1 Annual rent (mEUR
Slide 8: Tenant mix: High quality tenants and 75% non-cyclical rents
Tenant mix High quality tenants and 75% non-cyclical rents >> Rent contribution by sector (mEUR)1: >> Annualized rent contribution by major tenants1 : Rents WALT in Tenant group Brands (m EUR) years Edeka group 4.4 4.1 Other cyclical uses 3,4 Schwarz Group 3.5 7.7 Metro group 2.6 3.4 Bünting group 1
Slide 9: Leases: DKR as a reliable partner for long-lasting tenancies
Leases DKR as a reliable partner for long-lasting tenancies >> Multiple leases with the same tenants foster the relationship (No. of >> Distribution of rent maturities of portfolio as at 01/07/2017 (years): lease contracts of portfolio as at 01/07/2017): 18 9.000.000 16 8.000.000 No. of lease contra
Slide 10: Valuation potential: Asset valuation leverages the NAV per share
Valuation potential Asset valuation leverages the NAV per share >> NAV impact derived from factor increases (c.p.) leads to upside potential: Hypothetical Hypothetical Annualized total Portfolio value Net debt NAV Number of valuation Yield Net LTV NAV per portfolio rent (mEUR) (mEUR) outstanding (mE
Slide 11: Financial structure
Financial structure 11
Slide 12: Conservative and stable finance structure
Financial structure Conservative and stable finance structure Financing KPIs 30/06/2017 >> Debt structure of DKR as at 30/06/2017 (mEUR nominal debt): Loan and convertible debt (IFRS), mEUR 104.0 Average nominal interest of loans, % 2.38 Average nominal interest of loans & convertibles, % 3.01 18,4
Slide 13: Financials 9M 2016/2017
Financials 9M 2016/2017 13
Slide 14: Condensed IFRS balance sheet
Financials 9M 2016/2017 Condensed IFRS balance sheet kEUR 30/06/2017 30/09/2016 kEUR 30/06/2017 30/09/2016 Assets Equity and liabilities Pro forma portfolio of Investment properties 222,673.2 147,822.5 Subscribed capital 24,760.3 18,447.0 around mEUR 271 Capital increase due including all notarized
Slide 15: Condensed IFRS income statement
Financials 9M 2016/2017 Condensed IFRS income statement kEUR 01/10/2016 - 01/10/2015 - 30/06/2017 30/06/2016 Rental income 13,753.7 7,960.0 Operating expenses -3,304.9 -1,940.1 Increases due to numerous acquisitions Net rental income 10,448.8 6,019.9 Income from property disposal 8.3 2.0 Expenses fr
Slide 16: FFO and EPRA NAV reconciliation
Financials 9M 2016/2017 FFO and EPRA NAV reconciliation >> FFO/aFFO: >> EPRA NAV: kEUR 01/10/2016 - kEUR 30/06/2017 30/06/2017 Total period income 32,754.9 +/- Income taxes 0.0 Total equity 150,085.8 + Depreciation of assets 0.7 Conversion of convertibles 0.0 +/- Unrealised gain/loss from fair value
Slide 17: DKR shares, analyst coverage and dividends
DKR shares, analyst coverage and dividends 17
Slide 18: Share price progress reflects potential of DKR's business model
DKR Shares Share price progress reflects potential of DKRs business model 15/08/2017 ISIN DE000A14KRD3 WKN A14KRD3 Symbol DKG Number of shares 24,760,003 Nominal capital (kEUR) 24,760 Share class Bearer shares Stock exchanges XETRA, Frankfurt, Berlin Segment Prime Standard 52w high/low (EUR) 9.27 /
Slide 19: DKR received analyst coverage of Berenberg Bank
DKR Shares DKR received analyst coverage of Berenberg Bank > Berenberg published an initial coverage for Deutsche Konsum shares: Publication date Bank Analyst Recommendation Price target Link 8 August 2017 Kai Klose „Buy“ EUR 10.00 Berenberg DKR initiation report 19
Slide 20: Increased freefloat after capital increase
DKR Shares Increased freefloat after capital increase >> Current shareholder structure (14/08/2017) : >> Step into SDAX and EPRA indices intended: Obotritia Capital Carmignac Gestion > DKR aims to step into SDAX and EPRA indices as soon as Group 2,71 Tiven GmbH possible 8,91 3,92 4,91 9. Ostdeutschl
Slide 21: Dividend of >0.20 EUR per share planned for FY 2017/2018
DKR Shares Dividend of >0.20 EUR per share planned for next Fiscal Year 2017/2018 >> Dividend policy 2017/2018: ➢ DKR intends to pay dividend for the next Fiscal Year 2017/2018 ➢ Dividend distribution of 90% of German GAAP period result ➢ Based on current number of shares we expect a dividend of at
Slide 22: Events and finance calendar
Events and finance calendar 22
Slide 23: Events and Finance calendar FY 2016/2017
Events and Finance calendar FY 2016/2017 We keep you informed >> Events: >> Finance calendar: Date Date 4/10/2017 Expo Real Munich 18/12/2017 FY 2016/2017 annual financial report 23
Slide 24: Appendices
Appendices 24
Slide 25: Experienced and committed management
Appendix I Experienced and committed management Rolf Elgeti (CEO) Rolf has been the founder of Deutsche Konsum REIT-AG, which is a spin-off of his investment company Obotritia Capital. Before he was the CEO of TAG Immobilien AG, Hamburg, which experienced an enormous growth under his leadership and
Slide 26: Strong external partners
Appendix II Strong external partners >> DKRs external management partners: Elgeti Brothers 26
Slide 27: DKR's value add approach
Appendix III DKR‘s value add approach Risk/Chance Pro-active Establishing analysis before stable tenant asset relationships purchase management We try to get a vision We want to be reliable of the asset, location DKRs asset and long term partner and useful future uses management consists and are in
Slide 28: Case 1: Bitterfeld - Revitalisation of BiTZ retail store
Appendix III Case 1: Bitterfeld - Revitalisation of „BiTZ“ retail store At purchase Now progress Revitalisation process: Results: 1 New attractive tenants REWE (15 New utilization concept by DKR‘s AM and years contract) and DM (12 years activation of unused land by new construction contract) and inc
Slide 29: Case 2: Ludwigslust - Extending the anchor of Lindencenter
Appendix III Case 2: Ludwigslust - Extending the anchor of „Lindencenter“ At purchase Now progress Value-add measures: Results: 1 Prolongation of food retail anchor by At purchase through DKR the anchor tenant 10 years with same conditions was about to leave the asset. Started which increased the WA
Slide 30: Case 3: Greifswald - Vacancy reduction through new concept
Appendix III Case 3: Greifswald - Vacancy reduction through new attractive concept At purchase After rebuilding progress Revitalisation process: Results: 1 At purchase the retail centre had an uncertain Space expansion of food retail future stucking in a liquidation for years. anchor and fashion sto
Slide 31: DKRs current portfolio as at 1/7/2017 (I)
Appendix IV DKRs current portfolio as at 1/7/2017 Portfolio Deutsche Konsum REIT-AG (I) Ground Rental Monthly Annual # Address Use area space Vacancy Rent level rent rent sqm sqm % €/sqm € p.m. € p.a. 1 Platz der Befreiung 1 Retail 12.394 10.532 0,0% 5,48 57.696 692.353 16303 Schwedt 2 Brehnaer Stra
Slide 32: DKRs current portfolio as at 1/7/2017 (II)
Appendix IV DKRs current portfolio as at 1/7/2017 Portfolio Deutsche Konsum REIT-AG (II) Ground Rental Monthly Annual # Address Use area space Vacancy Rent level rent rent sqm sqm % €/sqm € p.m. € p.a. 6 Rendsburger Straße 16 Retail 7.394 4.500 0,0% 4,14 19.167 230.004 24534 Neumünster 7 Carl-Cossow
Slide 33: DKRs current portfolio as at 1/7/2017 (III)
Appendix IV DKRs current portfolio as at 1/7/2017 Portfolio Deutsche Konsum REIT-AG (III) Ground Rental Monthly Annual # Address Use area space Vacancy Rent level rent rent sqm sqm % €/sqm € p.m. € p.a. 11 Berghausstraße 7 Retail 14.960 6.227 0,0% 3,97 24.734 296.808 01662 Meißen 12 B95 Retail 15.41
Slide 34: DKRs current portfolio as at 1/7/2017 (IV)
Appendix IV DKRs current portfolio as at 1/7/2017 Portfolio Deutsche Konsum REIT-AG (IV) Ground Rental Monthly Annual # Address Use area space Vacancy Rent level rent rent sqm sqm % €/sqm € p.m. € p.a. 16 Hermann-Heidel-Straße 11 Retail 3.222 1.072 18,7% 4,59 4.000 48.000 6132 Halle 17 R.-Luxemburg-
Slide 35: DKRs current portfolio as at 1/7/2017 (V)
Appendix IV DKRs current portfolio as at 1/7/2017 Portfolio Deutsche Konsum REIT-AG (V) Ground Rental Monthly Annual # Address Use area space Vacancy Rent level rent rent sqm sqm % €/sqm € p.m. € p.a. 21 Neuenbrooker Str. 37, Retail 7.406 1.758 0,0% 7,38 12.974 155.688 Krempe 22 Löbauer Str. 45, Ret
Slide 36: DKRs current portfolio as at 1/7/2017 (VI)
Appendix IV DKRs current portfolio as at 1/7/2017 Portfolio Deutsche Konsum REIT-AG (VI) Ground Rental Monthly Annual # Address Use area space Vacancy Rent level rent rent sqm sqm % €/sqm € p.m. € p.a. 26 Manteuffelstraße 71, Retail 2.782 1.133 0,0% 5,57 6.316 75.790 Berlin-Tempelhof 27 Habichtstraß
Slide 37: DKRs current portfolio as at 1/7/2017 (VII)
Appendix IV DKRs current portfolio as at 1/7/2017 Portfolio Deutsche Konsum REIT-AG (VII) Ground Rental Monthly Annual # Address Use area space Vacancy Rent level rent rent sqm sqm % €/sqm € p.m. € p.a. 31 Pferdemarkt 58 / Markt 2- Retail 2.307 6.252 83,9% 11,21 11.285 135.106 3 / Hageböcker Straße
Slide 38: DKRs current portfolio as at 1/7/2017 (VIII)
Appendix IV DKRs current portfolio as at 1/7/2017 Portfolio Deutsche Konsum REIT-AG (VIII) Ground Rental Monthly Annual # Address Use area space Vacancy Rent level rent rent sqm sqm % €/sqm € p.m. € p.a. 36 Lange Straße 3, 06184 Retail 5.022 959 0,0% 9,35 8.966 107.597 Gröbers 37 Edderitzer Straße 8
Slide 39: DKRs current portfolio as at 1/7/2017 (IX)
Appendix IV DKRs current portfolio as at 1/7/2017 Portfolio Deutsche Konsum REIT-AG (IV) Ground Rental Monthly Annual # Address Use area space Vacancy Rent level rent rent sqm sqm % €/sqm € p.m. € p.a. 41 Mühlstraße 52, 98547 Retail 3.776 1.027 0,0% 4,30 4.420 53.040 Viernau 42 Bergstraße 12, 98634
Slide 40: DKRs current portfolio as at 1/7/2017 (X)
Appendix IV DKRs current portfolio as at 1/7/2017 Portfolio Deutsche Konsum REIT-AG (X) Ground Rental Monthly Annual # Address Use area space Vacancy Rent level rent rent sqm sqm % €/sqm € p.m. € p.a. 46 Holzmarkt 7, 9, 11, 13 und Retail 16.162 7.128 2,7% 13,96 96.837 1.162.041 15, 27283 Verden 47 B
Slide 41: DKRs current portfolio as at 1/7/2017 (XI)
Appendix IV DKRs current portfolio as at 1/7/2017 Portfolio Deutsche Konsum REIT-AG (XI) Ground Rental Monthly Annual # Address Use area space Vacancy Rent level rent rent sqm sqm % €/sqm € p.m. € p.a. 51 Haffring 24, 17373 Retail 10.403 4.618 44,0% 5,56 14.380 172.568 Ueckermünde 52 Wilhelm-Külz-St
Slide 42: Glossary
Glossary >> Calculation of financial figures: Financial KPI Calculation Initial yield Rental income annualized at purchase divided by gross asset value Valuation multiple Gross asset value divided by rental income WALT Weighed average lease term of the portfolio remaining as at a certain date EPRA N
Slide 43: IR contact: Get in touch with us
IR contact Get in touch with us >> IR contact: Christian Hellmuth August-Bebel-Str. 68 14482 Potsdam ch@deutsche-konsum.de + 49 (0331) 740 076 517 43
Slide 44: Disclaimer
Disclaimer The material in this presentation has been prepared by Deutsche Konsum REIT-AG (Deutsche Konsum) and is general background information about Deutsche Konsum’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be compl
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