Deutsche Konsum Real Estate Ag · XETR:DKG

Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — Investor Presentation (February 2017)

54 slides from Deutsche Konsum Real Estate's investor presentation, February 2017

  1. Slide 1: Deutsche Konsum REIT-AG (DKR) Company presentation

    Deutsche Konsum REIT-AG (DKR) Company presentation

  2. Slide 2: Contents

    Contents 1. Deutsche Konsum REIT-AG at a glance 2. Strategy & business model 3. Portfolio 4. Financial structure 5. Lean company structure 6. Financials FY 2015/2016 and guidance 7. DKR shares 8. Management team 9. Outlook FY 2016/2017 10. Events and finance calendar FY 2016/2017 2

  3. Slide 3: Deutsche Konsum at a glance

    Deutsche Konsum at a glance 3

  4. Slide 4: Deutsche Konsum REIT-AG at a glance

    Deutsche Konsum REIT-AG at a glance Real estate investment company focussed on basic retail >> DKR story: Pro forma portfolio1, 3 31/12/2016 > Business start in November 2014 Assets (#) 53 > Quick and constant portfolio build-up of around mEUR 190 until end of 2016 Lettable area (sqm) 245,457 GAV (m

  5. Slide 5: Strategy & business model

    Strategy & business model 5

  6. Slide 6: Strategy: Retail assets under-represented as a listed asset class

    Strategy Retail assets under-represented as a listed asset class >> Current market situation and DKRs strategy: >> Snapshot retail market and DKRs current market share: > The investment market of retail assets remains intransparent for non-professional investors and Space Retail space DKR DKR Market

  7. Slide 7: Business model: Combining cash flow properties with lean admin structure and REIT

    Business model Combining cash flow properties with lean admin structure and REIT >> DKRs business approach: > Pure play retail strategy1 set up as a REIT unique in Germany Strong cash flow generating portfolio > Assets located in B- and C- cities with a moderate risk of valuation drops due to + low

  8. Slide 8: Investment strategy: Focus on high cash yield assets

    Business model Investment strategy: Focus on high cash yield assets >> Typical investments1: > Pure play retail assets > Core and non-core cities, but sustainable micro locations and catchment areas > Retail tenants of daily needs > Properties with at least 2,500 sqm sales area > At least two non-cy

  9. Slide 9: Fast purchase process & active asset management

    Business model Fast purchase process & active asset management >> DKRs value add: 1. Property search according to DKR 1. DKR has a wide network of potential property sellers but also uses brokers to investment criteria 2. Fast purchase source new assets. If an asset meets DKRs purchase criteria a LO

  10. Slide 10: REIT status as an attractive investment vehicle

    Business model REIT status as an attractive investment vehicle >> Deutsche Konsum is managed as a REIT (Real Estate Investment Trust) since beginning of 2016 >> Advantages: >> Requirements to become a REIT in Germany: > Tax-exemption at company level (Corporate tax and trade tax) > Company and manag

  11. Slide 11: Risk and return profile

    Business model Risk and return profile >> DKR is a very well-balanced investment: DKR-appraisal of risk and return profile of German listed real estate: > DKR has one of the highest net initial yields in the whole sector > Moderate risk of property value drops for DKRs portfolio because of keen valu

  12. Slide 12: 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 potential1: Annualized total Hypothetical Hypothetical Portfolio value Net debt NAV Number of portfolio rent valuation multiple Yield Net LTV NAV per share (mEUR) outsta

  13. Slide 13: Portfolio

    Portfolio 13

  14. Slide 14: Locations: Expansion throughout Germany

    Locations Expansion throughout Germany City Greifswald >> Top 7 Assets as at 31/12/2016: Lettable space 13,658 sqm Construction 1997 City Ludwigslust Schleswig- Holstein Annual rent (mEUR) 1.0 Lettable space 14,386 sqm Mecklenburg- Market value (mEUR) 8.6 Pomerania Construction 2000 Annual rent (mEU

  15. Slide 15: Tenant mix: Focus on quality tenants with non-cyclical business

    Tenant mix Focus on quality tenants with non-cyclical business >> Rent contribution by sector (mEUR)1: >> Major rent contribution by tenants1: Tenant Corporate affiliation Rents (m EUR) Real Metro group 2.6 Other 3,9 Edeka group Edeka group 2.4 Famila Bünting group 1.0 Netto Edeka group 0.6 8,9 Food

  16. Slide 16: Leases: DKR as reliable partner for long-lasting tenancies

    Leases DKR as reliable partner for long-lasting tenancies >> Multiple leases with the same tenants foster the relationship (No. of >> Distribution of rent maturities as at 30/09/2016): lease contracts as at 01/01/2017): 14 350.000 12 300.000 10 250.000 Lease contracts Rent p.m. 8 200.000 6 150.000 4

  17. Slide 17: Financial structure

    Financial structure 17

  18. Slide 18: Conservative and stable finance structure

    Financial structure Conservative and stable finance structure Financing KPIs 30/09/2016 >> Debt structure of DKR as at 30/09/2016 (mEUR nominal debt): Loan and convertible debt (IFRS), mEUR 76.9 Average nominal interest of loans, % 2.58 Average nominal interest of loans & convertibles, % 3.34 18,4 N

  19. Slide 19: Major refinancing ahead in Q4 2017

    Financial structure Major refinancing ahead in Q4 2017 >> Debt maturities as at 30/09/2016: > Refinancing of two loans with Münchener Hyp and Sachsenbank (mEUR Debt amortization (excl. regular amortization) 30.4) to be done in Q4 2017 35,0 > DKR expects to decrease average interest of loans by the s

  20. Slide 20: Lean company structure

    Lean company structure 20

  21. Slide 21: Company structure: Lean structure keeps admin costs low

    Company structure Lean structure keeps admin costs low >> DKR company structure: > One legal entity which directly owns all properties kEUR FY 2015/2016 > Non-strategic activities (property management, accounting/tax/ Rental income 11,492.4 reporting and IT platform and support) are currently outsou

  22. Slide 22: Financials FY 2015/2016 and guidance

    Financials FY 2015/2016 and guidance 22

  23. Slide 23: Condensed IFRS balance sheet

    Financials FY 2015/2016 Condensed IFRS balance sheet kEUR 30/09/2016 30/09/2015 kEUR 30/09/2016 30/09/2015 Capital increases of Assets Equity and liabilities mEUR 18.4 in Nov As at 31/12/2016 pro 2015, Feb 2016 and forma portfolio has Investment properties 147,822.5 83,150.6 Subscribed capital 18,44

  24. Slide 24: Condensed IFRS income statement

    Financials FY 2015/2016 Condensed IFRS income statement kEUR 01/10/2015 - 01/01/2015 - 30/09/2016 30/09/2015 Rental income 11,492.4 4,080.2 Operating expenses -2.464,4 -537.8 Increases due to a higher stock of properties Net rental income 9,028.0 3,542.4 Income from property disposal 55.0 0.0 Expens

  25. Slide 25: FFO and EPRA NAV reconciliation

    Financials FY 2015/2016 FFO and EPRA NAV reconciliation >> FFO/aFFO: >> EPRA NAV: kEUR 01/10/2015 - kEUR 30/09/2016 30/09/2016 Total period income 21,988.9 undiluted +/- Income taxes -861.9 Total equity 79,031.3 + Depreciation of assets 0.8 Exert of convertibles 0.0 +/- Unrealised gain/loss from fai

  26. Slide 26: Guidance FY 2016/2017: Increase of FFO/aFFO

    Guidance FY 2016/2017 Increase of FFO/aFFO >> Based on current portfolio size and probable acquisitions as well as current number of shares: FFO € 0.57 per share aFFO € 0.46 per share 26

  27. Slide 27: DKR shares

    DKR shares 27

  28. Slide 28: Constant share price progress since IPO

    DKR Shares Constant share price progress since IPO 31/12/2016 ISIN DE000A14KRD3 WKN A14KRD3 Symbol DKG Number of shares1 20,107,003 Nominal capital (kEUR)1 20,107 Share class Bearer shares Freefloat2 28,29% Stock exchanges3 Berlin Segment4 Regulated market Designated Sponsor Oddo Seydler Bank AG, Fr

  29. Slide 29: Shareholder structure currently determined by REIT criteria

    DKR Shares Shareholder structure currently determined by REIT criteria >> Shareholder structure before capital increase (31/12/2016)1: >> Step into SDAX and EPRA indices intended: > DKR aims to step into SDAX and EPRA indices as soon as Babelsberger Beteiligungs GmbH possible 7,75 Försterweg Beteili

  30. Slide 30: Management team

    Management team 30

  31. Slide 31: Committed and experienced management team

    Management Committed and experienced management team 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. Under his leadership TAG experienced an enormous growth a

  32. Slide 32: Outlook FY 2016/2017

    Outlook FY 2016/2017 32

  33. Slide 33: Outlook FY 2016/2017: Focused on further growth

    Outlook FY 2016/2017 Focused on further growth >> DKRs major topics ahead in FY 2016/2017 : > Capital increase closing until end February 2017 > Entry into Prime Standard and fulfilling of stricter transparency requirements intended > Strong portfolio growth by further acquisitions > Refinancing of

  34. Slide 34: Rights offering

    Rights offering 34

  35. Slide 35: Rights offering: Key facts

    Rights offering Key facts Issuance Volume (total number of new shares) 4,653,282 corresponding to approx. 23.14% of the existing share capital Dividend entitlement As from October 1, 2015 Issue price (in EUR) EUR 8.50 Gross Proceeds (in EUR) - in total Up to 39.55 mn Entitlement to subscription righ

  36. Slide 36: Events and finance calendar

    Events and finance calendar 36

  37. Slide 37: Events and Finance calendar FY 2016/2017

    Events and Finance calendar FY 2016/2017 We keep you informed >> Events: >> Finance calendar: Date Date 07/02/2017 Road show 08/03/2017 Q1 2016/2017 condensed interim financial statement 09/03/2017 General annual meeting in Berlin 15/05/2017 H1 2016/2017 interim financial report 15/08/2017 9M 2016/2

  38. Slide 38: Appendix

    Appendix 38

  39. Slide 39: Supervisory board

    Appendix Supervisory board >> Experienced and committed supervisory board members: >> Mr. Sutter is an outstanding expert in the German real estate and finance sector. For Hans-Ulrich Sutter (Chairman of the board) decades he had a very successful career and took chairs in several big and listed rea

  40. Slide 40: Strong external partners

    Appendix Strong external partners >> DKRs external management partners: Elgeti Brothers 40

  41. Slide 41: DKRs current portfolio (I)

    Appendix DKRs current portfolio 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 10.010 15,0% 5,38 57.036 684.434 16303 Schwedt 2 Brehnaer Straße 34 Retail 39.0

  42. Slide 42: DKRs current portfolio (II)

    Appendix DKRs current portfolio 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-Straße 64 Retail

  43. Slide 43: DKRs current portfolio (III)

    Appendix DKRs current portfolio 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 15.416 6.132 0,0% 2,94

  44. Slide 44: DKRs current portfolio (IV)

    Appendix DKRs current portfolio 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 27,0% 5,11 4.003 48.030 6132 Halle 17 R.-Luxemburg-Straße 47 Retail 3

  45. Slide 45: DKRs current portfolio (V)

    Appendix DKRs current portfolio 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, Retail 3.858 1.453 0,

  46. Slide 46: DKRs current portfolio (VI)

    Appendix DKRs current portfolio 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 Habichtstraße 16, Retail 1.321

  47. Slide 47: DKRs current portfolio (VII)

    Appendix DKRs current portfolio 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 95,0% 43,64 13.641 163.691 3 / Hageböcker Straße 108 Güstrow 32 Kol

  48. Slide 48: DKRs current portfolio (VIII)

    Appendix DKRs current portfolio 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, Retail 2.169 685

  49. Slide 49: DKRs current portfolio (IX)

    Appendix DKRs current portfolio 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 Retail 3.135 916 0

  50. Slide 50: DKRs current portfolio (X)

    Appendix DKRs current portfolio 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 Retail 16.162 7.128 3,0% 14,01 96.837 1.162.041 und 15, 27283 Verden 47 Bahnhofsplatz 3, 18

  51. Slide 51: DKRs current portfolio (XI)

    Appendix DKRs current portfolio 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% 4,75 12.297 147.561 Ueckermünde 52 Wilhelm-Külz-Straße 8, Retail 26.

  52. Slide 52: Glossary

    Glossary >> Calculation of financial figures: Financial KPI Calculation Net initial yield Net rental income annualized divided by gross asset value Valuation multiple Gross asset value divided by net rental income WALT Weighed average lease term of the portfolio remaining as at a certain date EPRA N

  53. Slide 53: IR contact: Get in touch with us

    IR contact Get in touch with us >> IR contact: Christian Hellmuth ch@deutsche-konsum.de + 49 (0331) 740 076 512 Försterweg 2 14482 Potsdam 53

  54. Slide 54: 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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