Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — Q1 2017/2018 Earnings Presentation
55 slides from Deutsche Konsum Real Estate's earnings presentation, February 2018
Slide 1: Deutsche Konsum REIT-AG (DKR) Q1 Results 2017/2018
Deutsche Konsum REIT-AG (DKR) Q1 Results 2017/2018
Slide 2: Contents
Contents Summary of the Q1 2017/2018 Real Estate Portfolio – Key figures, recent developments, tenancy and valuation potential Financial structure Financials Q1 2017/2018 DKR shares, analysts, guidance and dividend policy Finance calendar FY 2017/2018 Appendices Management External partners Case stu
Slide 3: Summary of the Q1 2017/2018
Summary of the Q1 2017/2018 3
Slide 4: Financial key figures
Financial key figures Strong growth of financial figures in Q1 2017/2018 Rental income (kEUR) FFO (kEUR) FFO per share (EUR) 8,000 4,000 3,408 0,2 6,577 6,000 3,000 0,15 0.12 0.13 4,295 2,194 4,000 2,000 0,1 2,000 1,000 0,05 0,000 0,000 0 Q1 2016/2017 Q1 2017/2018 Q1 2016/2017 Q1 2017/2018 Q1 2016/2
Slide 5: Real Estate Portfolio
Real Estate Portfolio 5
Slide 6: Key portfolio figures as at 31.12.2017
Portfolio Key portfolio figures as at 31.12.2017 Annualised rent (mEUR) Vacancy (%) >> Portfolio snapshot 26 15,0 25.2 14.6 14.5 ➢ Key figures based on 66 properties accounted as 24.8 25 at 31.12.2017 24 14,0 ➢ Portfolio GAV of about 284 mEUR 23 ➢ Vacancy level and WALT remained stable in Q1 22 13,0
Slide 7: Recent acquisitions (1)
Portfolio Recent acquisitions (1) – notarised / not yet accounted as at 31.12.2017 Location Finsterwalde Location Berlin Location Berlin Location Weilheim Space (sqm) 11,081 Space (sqm) 987 Space (sqm) 931 Space (sqm) 1,824 Annualised rent 480 Annualised rent (kEUR) 151 Annualised rent (kEUR) 202 An
Slide 8: Recent acquisitions (2)
Portfolio Recent acquisitions (2) – notarised / not yet accounted as at 31.12.2017 Location Dierdorf Location Jestetten Location Waldbröl Location Zeulenroda Space (sqm) 1,392 Space (sqm) 1.288 Space (sqm) 938 Space (sqm) 5,632 Annualised rent 147 Annualised rent (kEUR) 162 Annualised rent (kEUR) 71
Slide 9: Recent acquisitions (3)
Portfolio Recent acquisitions (3) – notarised / not yet accounted as at 31.12.2017 Location Seebach Location Halberstadt Location Freiberg Location Glauchau Space (sqm) 1,120 Space (sqm) 2,406 Space (sqm) 1,117 Space (sqm) 1,153 Annualised rent 84 Annualised rent (kEUR) 66 Annualised rent (kEUR) 141
Slide 10: Recent acquisitions (4)
Portfolio Recent acquisitions (4) – notarised / not yet accounted as at 31.12.2017 ➢ Acquisition of 5 further assets on 22 Dec 2017 with a total investment volume of around 4.5 mEUR with annualised rents of about 0.5 mEUR and 7,000 sqm rental space ➢ Pro forma portfolio as at 31.12.2017 comprises 79
Slide 11: Property map
Property map 79 properties with about 370,000 sqm lettable space and 305 mEUR GAV >> Top 8 assets as at 31.12.2017: City Greifswald City Ludwigslust Lettable space (sqm) 9,410 Lettable space (sqm) 14,386 Construction 1997 Construction 2000 Schleswig- Annual rent (mEUR) 1.1 Holstein Annual rent (mEUR
Slide 12: Tenant mix
Tenant mix High quality tenants and 75% non-cyclical rents >> Rent contribution by sector (mEUR)1: >> Annualised rent contribution by major tenants1 : Rents WALT in Tenant group Brands (mEUR) years Edeka Group 5.1 3.9 Other cyclical uses Schwarz Group 3.5 7.1 3.5 Metro Group 2.6 2.9 Bartels-Langness
Slide 13: Leases
Leases DKR as a reliable partner for long-lasting tenancies >> Multiple leases with the same tenants foster the relationship1: >> Annualised rents allocated to years of lease contract maturities of the portfolio1: 35 10.000.000,00 1 30 9.000.000,00 8.000.000,00 No. of lease contracts 25 12 Rent p.a.
Slide 14: Revitalisation projects
Revitalisation projects Value add by extensive property redevelopments >> Current major revitalisation projects: Location Domcenter Location Kirschbergcenter Location Kolumbuspassage Location Lindencenter Greifswald Hohenmölsen Rostock Stralsund Space (sqm) 9,410 Space (sqm) 7,797 Space (sqm) 4,492
Slide 15: Valuation potential
Valuation potential Asset valuation leverages the NAV per share >> NAV impact derived from factor increases (c.p.) leads to upside potential: Hypothetical Hypothetical Annualised total Portfolio value Net debt NAV Number of valuation Yield Net LTV NAV per portfolio rent (mEUR) (mEUR) outstanding (mE
Slide 16: Financial structure
Financial structure 16
Slide 17: Financial structure
Financial structure Conservative and stable financing >> Debt structure of DKR as at 31.12.2017: Debt allocation (mEUR initial nominal debt) 31.12.2017 30.09.2017 18.4 Debt from loans and convertible bonds (IFRS), mEUR 108.6 118.9 Convertible bonds I and II 37.0 Average nominal interest of loans, %
Slide 18: Financials Q1 2017/2018
Financials Q1 2017/2018 18
Slide 19: Condensed IFRS balance sheet
Financials Q1 2017/2018 Condensed IFRS balance sheet kEUR 31.12.2017 30.09.2017 kEUR 31.12.2017 30.09.2017 Assets Equity and liabilities Pro forma portfolio of Investment properties 284,253.9 275,443.9 Subscribed capital 27,236.3 24,760.3 Increased Equity due mEUR 305 including the latest notarised
Slide 20: Condensed IFRS income statement
Financials Q1 2017/2018 Condensed IFRS income statement kEUR 01.10.2017 – 01.10.2016 – 31.12.2017 31.12.2016 Rental income 6,576.9 4,295.2 Operating expenses -1,734.3 -793.7 Rent increases due to various acquisitions Net rental income 4,842.7 3,501.5 Income from property disposal 0.0 0.0 Expenses fr
Slide 21: FFO and EPRA NAV reconciliation
Financials FY 2016/2017 FFO and EPRA NAV reconciliation >> FFO/aFFO: >> EPRA NAV: kEUR 01.10.2017 – 01.10.2016 – 31.12.2017 30.09.2017 kEUR 31.12.2017 31.12.2016 Total period income 2,927.8 3,201.8 +/- Income taxes 0.0 0.0 Total equity 181,814.4 154,736.0 + Depreciation of assets 0.2 0.2 Conversion
Slide 22: DKR shares, analysts, guidance and dividend policy
DKR shares, analysts, guidance and dividend policy 22
Slide 23: DKR Shares
DKR Shares Share price uplift reflects the potential of the business model >> DKR share: 13.02.2018 ISIN DE000A14KRD3 WKN A14KRD3 Symbol DKG Number of shares 27,236,313 Nominal capital (kEUR) 27,236 Share class Bearer shares Stock exchanges XETRA, Frankfurt, Berlin Segment Prime Standard Indizes CDA
Slide 24: Analysts
DKR Shares Analysts >> Analyst coverage: Publication date Bank Analyst Recommendation Price target 21 December 2017 Thomas Effler „Buy“ EUR 11.90 18 December 2017 Kai Klose „Buy“ EUR 11.50 24
Slide 25: Stable and broad investor base after capital increase
DKR Shares Stable and broad investor base after capital increase >> Recent DKR share developments: >> Current shareholder structure (13.02.2018) : Carmignac Gestion Aramis Holding GmbH ➢ Successful 10% share capital increase closed on 8 Dec 2017 Obotritia Capital Group 30,12% 2.46 3.49 Tiven GmbH 9.
Slide 26: FFO-Guidance and dividend policy for FY 2017/2018
DKR Shares FFO-Guidance and dividend policy for Fiscal Year 2017/2018 >> FFO-Guidance for FY 2017/2018: ➢ FFO guidance is mainly driven by successful futurous acquisitions ➢ DKR plans to invest between 75 and 100 mEUR in the FY 2017/2018 ➢ Based on current projections DKR expects FFO between 16.0 mE
Slide 27: Finance calendar
Finance calendar 27
Slide 28: Finance calendar
Finance calendar We keep you informed >> Finance calendar: Date 14.02.2018 Publication of Q1 2017/2018 quarterly statement 08.03.2018 Annual General Meeting in Berlin 15.05.2018 Publication of H1 2017/2018 half-yearly financial report 14.08.2018 Publication of Q3 2017/2018 quarterly statement 18.12.
Slide 29: Appendices
Appendices 29
Slide 30: 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 31: Strong external partners
Appendix II Strong external partners >> DKRs external management partners: Elgeti Brothers 31
Slide 32: 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 33: 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 utilisation concept by DKR‘s AM and years contract) and DM (12 years activation of unused land by new construction contract) and inc
Slide 34: 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 35: 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 36: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 1 Platz der Befreiung 1 Retail 10.533 0,2% 5,49 57.696 692.354 16303 Schwedt 2 Brehnaer Straße 34 Retail 19.541 29,5% 6,02 82.909 994.912 06749 Bitterfeld
Slide 37: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 5 Am Marstall 2 Retail 14.289 0,8% 9,11 129.152 1.549.821 19288 Ludwigslust 6 Rendsburger Straße 16 Retail 4.630 0,0% 4,14 19.167 230.004 24534 Neumünster
Slide 38: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 9 Chausseestraße 41-43 Retail 1.589 0,0% 6,75 10.728 128.731 17373 Ueckermünde I 10 Ostrauer Straße 5 Retail 3.384 61,7% 3,78 4.900 58.800 06231 Bad Dürre
Slide 39: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 13 Karlsgasse 28 Retail 5.435 0,0% 1,56 8.500 102.000 08626 Adorf 14 Bahnhofstraße 35-36 Retail 1.462 0,0% 9,31 13.603 163.236 16348 Wandlitz 15 Merseburg
Slide 40: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 17 R.-Luxemburg-Straße 47 Retail 1.087 0,0% 6,72 7.299 87.589 6779 Gräfenhainichen 18 B192 Retail 1.598 0,0% 6,94 11.091 133.087 19417 Warin 19 Dorfstraße
Slide 41: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 21 Neuenbrooker Str. 37, Retail 1.758 0,0% 7,38 12.980 155.758 Krempe 22 Löbauer Str. 45, Retail 1.334 0,0% 7,57 10.100 121.200 Herrnhut 23 Am Bahnhof 8,
Slide 42: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 25 Albert-Tanneur-Straße 25, Retail 4.484 0,0% 6,62 29.677 356.118 Ludwigsfelde 26 Manteuffelstraße 71, Retail 1.133 0,0% 5,59 6.336 76.030 Berlin-Tempelh
Slide 43: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 29 Brückenstraße 12a/b, Retail 2.783 0,0% 8,65 24.080 288.963 15562 Rüdersdorf 30 Karl-Marx-Straße 95, Retail 1.181 5,1% 8,30 9.300 111.600 03172 Guben 31
Slide 44: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 33 Dompassage Greifswald Retail 13.178 45,7% 7,89 56.456 677.466 34 Ringstr. 31-37 Gustav- Retail 11.137 19,8% 7,09 63.356 760.266 Petri-Str. 38855 Wernig
Slide 45: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 37 Edderitzer Straße 8, Retail 685 0,0% 10,33 7.075 84.896 06366 Köthen 38 Neustadt 1a, 06463 Retail 678 0,0% 9,30 6.308 75.697 Ermsleben 39 Babener Straß
Slide 46: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 41 Mühlstraße 52, 98547 Retail 1.027 0,0% 4,30 4.420 53.040 Viernau 42 Bergstraße 12, 98634 Retail 916 0,0% 4,87 4.458 53.500 Kaltensundheim 43 Gartenstra
Slide 47: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 45 Rostocker Straße 1, 2, 3, Retail 15.157 0,0% 7,53 114.143 1.369.716 7 und 8, 16928 Pritzwalk 46 Holzmarkt 7, 9, 11, 13 und Retail 7.128 2,7% 13,96 96.8
Slide 48: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 49 Abtshäger Straße 13, Retail 1.320 0,0% 6,83 9.018 108.212 18461 Franzburg 50 Lindenallee 25, 18437 Retail 5.882 27,1% 4,46 19.148 229.774 Stralsund 51
Slide 49: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 53 Harburgerstraße 30, Retail 6.392 0,0% 11,16 71.307 855.684 29303 Bergen 54 Drebkauer Hauptstr.5, Retail 965 0,0% 5,18 5.000 60.000 03116 Drebkau 55 Kar
Slide 50: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 57 Schützenstraße 1, 01662 Retail 24.475 30,7% 6,15 104.330 1.251.959 Meißen 58 Morgenbergstraße 41, Retail 24.115 33,7% 7,39 118.257 1.419.079 08525 Plau
Slide 51: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 61 Karl-Marx-Straße 33, Retail 1.100 0,0% 8,64 9.500 114.000 15890 Eisenhüttenstadt 62 Frohnbachstr. 59, 09212 Retail 1.862 0,0% 7,89 14.702 176.424 Limba
Slide 52: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 65 Heinrich-Wobst-Str. 1, Retail 3.072 0,0% 7,57 23.267 279.204 07937 Langenwolschendorf 66 Hagener Str.1, 58239 Retail 1.200 0,0% 6,83 8.200 98.400 Schwe
Slide 53: Glossary
Glossary >> Calculation of financial figures: Financial KPI Calculation Average debt interest rate Weighed average interest rates of financial instruments divided by nominal financial debt EPRA NAV per share Total equity modified according to EPRA guidelines divided by number of shares FFO Funds Fro
Slide 54: IR contact
IR contact Get in touch with us >> IR contact: Stefanie Frey August-Bebel-Str. 68 14482 Potsdam sf@deutsche-konsum.de + 49 (0331) 740 076 533 54
Slide 55: 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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