Defama Deutsche Fachmarkt Ag · XETR:DEF

Defama Deutsche Fachmarkt — Investor Presentation (September 2023)

35 slides from Defama Deutsche Fachmarkt's investor presentation, September 2023

  1. Slide 1: Company Presentation

    Company Presentation DEFAMA Deutsche Fachmarkt AG September 2023

  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 locate

  3. Slide 3: Equity Story: Three reasons for the 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 (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. 4‐5% p.a. Albstadt, Baden‐Wuerttemberg little equity needed, therefore high return on equity FFO per share in €  Strong growth due to additi

  5. Slide 5: Investment Case: Value creation (II)

    INVESTMENT CASE NAV per share Value creation on several levels (II) in € 22.80 24  Single purchases at favourable prices are laborious 18 16.86 19.61 13.46 11.02  Professionally managed portfolios trade 12 at much higher multiples on net rent 6 0 NAV per share +107% 2018 2019 2020 2021 2022 within

  6. Slide 6: Portfolio Key Figures

    PORTFOLIO incl. rental successes and Key Figures (as of 30 June 2023) indexations soon coming up: Locations 63 21.4m € Net Rent (annualised) €21.0m Lettable Space 256,396 sqm Occupancy Rate 94.0% Ø Lease Term (WALT) 4.7 years as of 31/8: 94.7% Portfolio Value €264m  80% of total net rent is generat

  7. Slide 7: Portfolio: Biggest Tenants

    PORTFOLIO Biggest Tenants Sites Share Net Rent by Industry Kaufland/LIDL 6 10.0 % toom/B1 5 9.1 % EDEKA/Netto/trinkgut 12 8.7 % REWE/Penny 9 6.5 % JYSK 13 5.8 % Aldi Nord 6 3.8 % KiK 11 3.6 % H.H. Holding 12 2.8 % NORMA 6 2.5 % AWG 5 2.4 % Takko 7 2.2 % „Top 10“ leases account for Herkules DIY store

  8. Slide 8: Project Development: Investments within existing portfolio

    PROJECT DEVELOPMENT Investments within the existing portfolio  Refurbishment/expansion of rental spaces  Vacancy reduction  Optimisation of properties  Paketstations  Advertising boards  Parking‐space management ESG measures  Charging stations (currently 27 online)  PV systems, CityBreeze 

  9. Slide 9: Project Development: Hamm

    PROJECT DEVELOPMENT Investments within the existing portfolio: Hamm (Westphalia)  Refurbishment for Penny, bakery and travel agency  Building costs of about €500k  Start of building measures in October 2021  Re‐opening of Penny market on 28 April 2022 The little bit outdated local supply center

  10. Slide 10: Project Development: Gardelegen

    PROJECT DEVELOPMENT Investments within the existing portfolio: Gardelegen  Refurbishment for Futterhaus  Building costs of about €350k  Start of building measures in November 2021  Opening on 2 June 2022 As we purchased it, the space was still a shell construction. September 2023 Company Present

  11. Slide 11: Project Development: Büdelsdorf

    PROJECT DEVELOPMENT Investments within the existing portfolio: Büdelsdorf  Roof extension and creation of area for a gym  Building costs of about €1.7m  Start of building measures in October 2021  Opening on 27 December 2022  Remaining tasks and expansion of TEDi‘s area until May 2023 On a tota

  12. Slide 12: Project Development: Examples within portfolio

    PROJECT DEVELOPMENT Investments within the existing portfolio (examples) Gardelegen  Refurbishment for Futterhaus completed in total  Creation of area for tedox in process, completion est. Q4/2023 > €1m  Creation of area for a gym in planning, completion est. Q4/2023 Hof  Expansion of JYSK‘s are

  13. Slide 13: Key Figures 2022

    KEY FIGURES 2022 Portfolio Value in €m Sales CAGR +18% CAGR in €m +18% +24% 257 +22% 218 20.2 179 17.1 14.6 137 11.2 108 9.1 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Net Profit Funds from Operations (FFO) in €m in €m CAGR +7% CAGR +22% 8.6 +34% 1 5.4 +24% 5.0 7.1 5.9 4.6 2.5 3.6 1.7 2.1 201

  14. Slide 14: Key Figures 2022: Per-share data

    KEY FIGURES 2022 Earnings per share FFO per share CAGR in € +1% CAGR in € +14% +25% +16% 1.15 1.82 1.14 1.60 1.33 1.14 0.62 1.01 0.48 0.56 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Dividend per share in € Leitgedanken für die Expansion CAGR +6% +8% 0.48 0.51 0.54  Company growth not for its

  15. Slide 15: Key Figures H1/2023

    KEY FIGURES H1/2023 Portfolio Value Sales in €m in €m 300 +8% 264 12 +16% 11.0 245 9.5 225 9 150 6 75 3 0 0 30/06/2022 30.06.2022 30.06.2023 30/06/2023 H1/2022 H1/2023 September 2023 Company Presentation DEFAMA Deutsche Fachmarkt AG 15

  16. Slide 16: Key Figures H1/2023: Net profit and FFO

    KEY FIGURES H1/2023 Net Profit Funds from Operations (FFO) in €m in €m 3 1,00 6 2,00 +16% 4.6 +18% 0,75 5 4.0 1,50 2 1.8 1.5 0,50 3 1,00 1 0.87 0.97 0.34 0.38 0,25 2 0,50 0 0,00 0 0,00 H1/2022 H1/2023 H1/2022 H1/2023 Ergebnis Net Profit EPS EPSinin€€ FFO FFO FFO FFO//Aktie Shareinin€€ September 2023

  17. Slide 17: Financing

    FINANCING Key Figures (as of 30 June 2023) 30 1.62% 4.14% 3.09% 2.37% Number of financing partners 36 20 1.98% 2.16% 4.84% 2.63% 1.74% Bank loans €149m 10 Ø Interest rate 2.45% 2.40% Ø Initial repayment 4.16% 0 Ø Fixed interest 5.4 years Loan‐to‐value‐ratio (LTV) 58%  Financing in principle by annu

  18. Slide 18: Current Development: Sustainability

    CURRENT DEVELOPMENT Sustainability DEFAMA supports the UN Sustainable Development Goals. Here are five SDGs where DEFAMA can make a significant impact:  End poverty: ‐ Securing affordable shopping opportunities in rural areas ‐ Support local projects that help financially weaker people  Living hea

  19. Slide 19: Market conditions (I): energy renovation

    CURRENT DEVELOPMENT Market conditions (I): energy renovation is gaining ground  DEFAMA‘s retail parks on average „just“ ~ 20 years old, much younger and more modern than typical portfolios of real estate comp. with many old flats  Retail real estate properties have a relatively simple building str

  20. Slide 20: Market conditions (II): rising interest rates and inflation

    CURRENT DEVELOPMENT Market conditions (II): rising interest rates and accelerating inflation  91% of our net rents are inflation‐protected by indexation clauses  Inflation leads to positive effects for the FFO by increase of rents  No refinancing risk thanks to average interest rate fixing of 5.4

  21. Slide 21: Market conditions (III): acquisition pipeline

    CURRENT DEVELOPMENT Market conditions (III): increasing pipeline of attractive aquisition targets  Transactions market has almost dried up due to a lack of prespective buyers at former multiples  More and more potential sellers accept purchase prices of or under 10x net rent  DEFAMA is in exclusi

  22. Slide 22: Transaction/Purchase: Retail park in Thuringia

    CURRENT DEVELOPMENT Transaction/Purchase Retail park in Thuringia  Year of construction: 1980 / 1993  Plot size: 15.689 sqm  Lettable space: 6.766 sqm  Occupancy rate: 97%  Annual net rent: app. €500k Nordhausen, Thüringen  Purchase price: €4.8m  Tenants are ACTION, Carglass, Hammer, JYSK, a

  23. Slide 23: Transaction/Purchase: Local supplier in Lower Saxony

    CURRENT DEVELOPMENT Transaction/Purchase Local supplier in Lower Saxonia  Year of construction: 2013  Plot size: 5.376 sqm  Lettable space: 1.130 sqm  Occupancy rate: 100%  Annual net rent: €130k Markoldendorf, Niedersachsen  Purchase price: €1.26m  Aquisition at 9.7x net rent  General tenan

  24. Slide 24: Status and Outlook: Guidance for 2023

    STATUS AND OUTLOOK Guidance for 2023 2022  Net Profit (German GAAP): €4.0m €5.5m, thereof (plus disposals) ~ €2m from disposals  Funds From Operations (FFO): €9.8m €8.6m €2.04 per share €1.83 per share  Annualised FFO: €11m €10m  Dividend: > €0.54 per share €0.54 per share September 2023 Company

  25. Slide 25: Mid-term guidance DEFAMA 2025

    STATUS AND OUTLOOK Portfolio Value Mid‐term guidance „DEFAMA 2025“ in €m published 24 October 2022 350 360 257 218  Portfolio value reaches €350 240 137 179 120  Annualised net rents of €28m 0  FFO of €13m resp. > €2.70 per share 2019 2020 2021 2022 2025e Net Rents (annualisised) Funds from Opera

  26. Slide 26: DEFAMA on track for further growth

    STATUS AND OUTLOOK DEFAMA on track for further growth  2022 aquisition volume in €29m above typical yearly  Annualised FFO („run rate“) currently €10.5m resp. 2.18 € per share  Increased staff capacity for real estate transactions  Potentially higher annual aquisition volume in the future  Revi

  27. Slide 27: Share

    SHARE Share price development since IPO Shareholder structure 2 28 € 26% 20 € 12 € 2% 72% 4€ Jul. 16 Jul. 17 Jul. 18 Jul. 19 Jul. 20 Jul. 21 Jul. 22 Jul. 23 WKN / ISIN A13SUL / DE000A13SUL5 Stock exchange Munich (m:access), Frankfurt, Xetra MSC Invest GmbH / M. Schrade Supervisory Board Number of sh

  28. Slide 28: 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

  29. Slide 29: Contact

    CONTACT DEFAMA Deutsche Fachmarkt AG Nimrodstr. 23 D 13469 Berlin www.defama.de Matthias Schrade CEO Phone +49 (0) 30 / 555 79 26 ‐ 0 Fax +49 (0) 30 / 555 79 26 ‐ 2 Email schrade@defama.de Zeitz, Saxony‐Anhalt September 2023 Company Presentation DEFAMA Deutsche Fachmarkt AG 29

  30. Slide 30: Appendix: Highlights 2022 – Wolfsburg-Nordsteimke

    APPENDIX: HIGHLIGHTS 2022 Transaction/Purchase Local supply center Wolfsb.‐Nordsteimke  Year of construction: 2009  Plot size: 13.775 sqm  Lettable space: 6.993 sqm  Occupancy rate: 67%  Annual net rent (target): €600k  Purchase price not disclosed on request Wolfsburg‐Nordsteimke, Lower Saxon

  31. Slide 31: Appendix: Highlights 2022 – Five retail parks

    APPENDIX: HIGHLIGHTS 2022 Transaction/Purchase Five retail parks in Rhineland‐Palatinate  Years of construction: 1994 to 2004 Hachenburg Heiligenroth I  Plot size: 40.050 sqm  Lettable space: 16.661 sqm  Occupancy rate: 97%  Annual net rent: €1.3m  Purchase price: €15m Lahnstein Heiligenroth I

  32. Slide 32: Appendix: Highlights 2022 – Two supply centers in Thuringia

    APPENDIX: HIGHLIGHTS 2022 Transaction/Purchase Two local supply centers in Thuringia  Years of construction: 1991 / 2010  Plot size: 13.363 sqm  Lettable space: 3.955 sqm  Occupancy rate: 100%  Annual net rent: €300k Apfelstädt, Thuringia  Purchase price: €2.95m  Main tenants are Netto (Apfel

  33. Slide 33: Appendix: Highlights 2022 – Specialist store portfolio

    APPENDIX: HIGHLIGHTS 2022 Transaction/Purchase Specialist store portfolio BaWue/Bavaria  Years of construction: 1982 to 2001 Albstadt, Baden‐Wuerttemberg Bad Ditzenbach, Baden‐Wuerttemberg  Plot size: 19.795 sqm  Lettable space: 6.559 sqm  Occupancy rate: 100%  Annual net rent: €430k  Purchase

  34. Slide 34: Appendix: Highlights 2022 – Sales Löwenberg and Sonnefeld

    APPENDIX: HIGHLIGHTS 2022 Transaction/Sales Löwenberg and Sonnefeld  Main tenants: ALDI (Löwenberg) NORMA (Sonnefeld)  Plot Size: 19.209 m2  Lettable Space: 4.411 m2  Occupancy Rate: 100% Sonnefeld, Bavaria  Annual Net Rent: €400k  Sum of selling prices: €6.8m  Recent market value: €5.9m  Sa

  35. Slide 35: 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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