Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — FY2020/2021 Earnings Presentation
51 slides from Deutsche Konsum Real Estate's earnings presentation, Dec 16, 2021
Slide 1: FY 2020/2021 Financial Results
1 FY 2020/2021 FINANCIAL RESULTS 1 OCTOBER 2020 – 30 SEPTEMBER 2021 16 December 2021 FY 2020/2021 financial results | Deutsche Konsum REIT-AG
Slide 2: Disclaimer
Disclaimer 2 The material in this presentation has been prepared by Deutsche Konsum REIT-AG (“DKR”) and is general background information about DKR’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in
Slide 3: Highlights
HIGHLIGHTS Deutsche Konsum REIT-AG
Slide 4: Highlights FY 2020/2021
HIGHLIGHTS FY 2020/2021 4 DKR with strong development despite pandemic – basic retail properties very sought after by investors Operational business development very robust during crisis ➢ Rental income 69.7m EUR (up 24% y-o-y) ➢ FFO 41.2m EUR up 18% (in line with guidance 40m EUR – 41m EUR) / FFO p
Slide 5: Financial Key Figures
FINANCIAL KEY FIGURES 5 Strong and accretive growth Rental income FFO FFO per share (k EUR) (k EUR) (EUR) 69,667 41,168 1.17 34,991 1.06 56,231 FY 2019/2020 FY 2020/2021 FY 2019/2020 FY 2020/2021 FY 2019/2020 FY 2020/2021 aFFO per share Investment properties NAV per share (EUR) (k EUR) (EUR) 1,014,1
Slide 6: Property Disposals
PROPERTY DISPOSALS 6 Properties sold at attractive multiples with the aim to reinvest gains into new properties >> Accretive selling of properties: ➢ Notarisation of disposal of eight properties for 69.8m EUR (5.6% yield): ➢ Properties in Verden, Bergen, Bad Harzburg, Niesky (Rothenburger Straße), A
Slide 7: Acquisitions Post Fiscal Year End
ACQUISITIONS POST FISCAL YEAR END 7 Property acquisitions in the new FY 2021/2022 >> Acquisitions in Q1 2021/2022: Schiffweiler Bockau Freiberg Altenburg/Nobitz Castrop-Rauxel Frauenstein Rennerod Altenburg- Castrop-Rauxel Rennerod Schiffweiler Bockau Frauenstein Freiberg Location Nobitz (Northrhine
Slide 8: Property Portfolio
PROPERTY PORTFOLIO Deutsche Konsum REIT-AG
Slide 9: Acquisitions
ACQUISITIONS 9 FY 2020/2021 acquisition results >> Acquisitions closed in FY 2020/2021: Stendal, Zerbst, Schöneck, Parchim, Neu-Anspach, Mölln, Wrestedt, Blankenstein, Freital, Locations Zittau, Northeim, Frankfurt (Oder), Saarbrücken Type Groceries, food-anchored retail parks and neighborhood centr
Slide 10: Property Portfolio
PROPERTY PORTFOLIO 10 Proforma portfolio consists of 172 properties with approx. 1,023,000 sqm >> Portfolio development within the last 24 months: Schleswig- Mecklenburg Holstein - Pommerania 30.09.2019 30.09.2020 30.09.2021 Pro Forma (incl. notarised disposals and acquisitions) Lower Saxony Number
Slide 11: Property Portfolio: Steady Growth and Stable KPIs
PROPERTY PORTFOLIO 11 Steady portfolio growth and stable property KPIs Annualised rent (m EUR) Vacancy (%) 72.9 14.6 63.1 48.7 10.7 9.6 9.9 9.9 35.5 24.8 30.09.2017 30.09.2018 30.09.2019 30.09.2020 30.09.2021 30.09.2017 30.09.2018 30.09.2019 30.09.2020 30.09.2021 Initial yield (%) WALT (years) 12.1
Slide 12: Letting Performance in FY 2020/2021
PROPERTY PORTFOLIO 12 Breakdown of letting performance in FY 2020/2021 >> Like-for-like (LFL)1 letting performance: >> Letting performance by DKRs Asset Management: 30-Sep-2021 30-Sep-2020 Change Number of new leases and lease prolongations 112 Net rent/sqm/month (EUR) 6.50 6.39 1.7% Vacancy reducti
Slide 13: Tenant Structure
TENANT STRUCTURE 13 66% Rent contribution from non-cyclical tenants (80% including DIY) >> Rent contribution by tenant classification (m EUR)1: >> Rent contribution by major tenants1 : Rent WALT Tenant group Brands (m EUR) in years Edeka Group 8.4 5.0 Other cyclical uses Schwarz Group 10.9 6.0 14.3
Slide 14: Resilient and Inflation-Linked Rental Income
TENANT STRUCTURE 14 Resilient and inflation-linked rental income >> Strategy with focus to tenants with daily-needs supply pays off: >> Rent collection during the pandemic: ➢ Despite COVID lockdowns DKR with high monthly rent collection rates1 100% 95% ➢ Dip in January due to strict lockdowns and fa
Slide 15: DKR Is a Reliable Partner for Tenants
TENANT STRUCTURE 15 DKR is a reliable partner for the tenants >> Number of leases with the same tenant group1: >> Annualised rents allocated to years of lease contract maturities1: 70 35 1 5 60 30 6 50 25 No. of lease contracts 22 Rent p.a. mEUR 40 20 30 3 15 6 6 20 10 11 4 32 3 10 21 5 15 12 11 11
Slide 16: Capex Investments
CAPEX INVESTMENTS 16 Value-enhancing property improvements in FY 2020/2021 >> CAPEX measures FY 2020/2021: Location / Property Description of capex measures CAPEX (m EUR) Hohenmölsen, local retail Revitalisation and space optimisation of the whole centre. Main anchor tenant REWE wih a new 12-year 5.
Slide 17: Value-Add: Discounter in Drebkau
CAPEX INVESTMENTS 17 Value-add by opportunistic property revitalisations >> EXAMPLE: Discounter in Drebkau >> Measures: ➢ Expansion of the existing building since previous tenant left the location ➢ Refurbishment of the facade ➢ Creation of a modern appearance ➢ New parking and outdoor spaces >> Out
Slide 18: Value-Add: Discounter in Spiegelau
CAPEX INVESTMENTS 18 Value-add by opportunistic property revitalisations >> EXAMPLE: Discounter in Spiegelau >> Measures: ➢ Expansion of the existing building ➢ Refurbishment and modern appearance ➢ New parking and outdoor spaces ➢ To be completed in early 2022 >> Outcome: ➢ New anchor tenant Edeka
Slide 19: Value-Add: Kolumbuspassage Rostock
CAPEX INVESTMENTS 19 Value-add by opportunistic property revitalisations >> EXAMPLE: Local retail centre “Kolumbuspassage Rostock” >> Measures: ➢ Merge of small vacant shop units to large units ➢ New parking space ➢ Improvement of tenant mix ➢ Started in autumn 2020 / finished in January 2021 >> Out
Slide 20: Valuation Potential of the Portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 20 Share price currently trades at 7.0 % yield >> NAV impact from factor increases (c.p.) shows further upside potential: Annualised Hypothetical Portfolio Net debt Hypothetical NAV Number of total portfolio valuation Yield value Net LTV outstanding NAV per (m EU
Slide 21: Financing
FINANCING Deutsche Konsum REIT-AG
Slide 22: Solid Debt Structure with Cost Reduction Potential
FINANCING 22 Solid debt structure with cost reduction potential >> Financial KPIs: Debt allocation (m EUR outstanding debt) Corporate bond 30.09.2021 30.09.2020 % 2018/2024 Corporate bond Total financial debt (loans + bonds), m EUR 609.3 527.7 15.5 13.6 40.0 2019/2024 35.7 (unsecured) 10.0 Avg. loan
Slide 23: Financials FY 2020/2021
FINANCIALS FY 2020/2021 Deutsche Konsum REIT-AG
Slide 24: Condensed IFRS Balance Sheet
FINANCIALS FY 2020/2021 24 Condensed IFRS balance sheet k EUR 30.09.2021 30.09.2020 k EUR 30.09.2021 30.09.2020 Assets Equity and liabilities Pro forma portfolio currently 977m Investment properties 944,019.6 809,928.6 Subscribed capital 35,155.9 35,155.9 EUR (including Other non-current assets 285.
Slide 25: LTV and EPRA NAV/NTA
FINANCIALS FY 2020/2021 25 LTV and EPRA NAV/NTA >> LTV (loan-to-value): >> NAV/NTA per share: k EUR 30.09.2021 30.09.2020 EPRA NAV Conversion EPRA NTA (undiluted) effects of (diluted) Bank loans 401,289.4 340,272.3 k EUR convertible Convertible bonds 36,457.7 36,308.6 30.09.2021 bonds 30.09.2021 Tot
Slide 26: Condensed IFRS Income Statement
FINANCIALS FY 2020/2021 26 Condensed IFRS income statement 01.10.2020 – 01.10.2019 – k EUR % 30.09.2021 30.09.2020 Rental income increased due to the Rental income 69,667.0 56,230.7 23.9 property portfolio growth Income from recharched operating costs 10,675.0 10,264.1 4.0 Operating expenses -34,506
Slide 27: FFO Reconciliation
FINANCIALS FY 2020/2021 27 FFO reconciliation >> FFO/aFFO: 01.10.2020 01.10.2019 % k EUR – – 30.09.2021 30.09.2020 Contains non-cash items due to IFRS Total period income 91,373.2 34,173.7 >100.0 valuation of debt instruments (1.0m) and impairments of rent receivables +/- Income taxes 0.0 0.0 0.0 du
Slide 28: Headline Earnings per Share (HEPS) Reconciliation
FINANCIALS FY 2020/2021 28 Headline Earnings per share (HEPS) reconciliation according to JSE rules >> HEPS: 01.10.2020 01.10.2019 % k EUR – – 30.09.2021 30.09.2020 Total period income (undiluted) 91,373.2 34,173.7 >100.0 -/+ Revaluation gains / losses, IAS 40 -57,760.9 -3,864.3 >100.0 -/+ Revaluati
Slide 29: Outlook
OUTLOOK Deutsche Konsum REIT-AG
Slide 30: Guidance FY 2021/2022
GUIDANCE FY 2021/2022 30 FFO bridge FY 20/21 – FY 21/22 >> FFO guidance for FY 2021/2022: Circa m EUR 40 - 44 ➢ Currently high uncertainty of FFO guidance due to further potential disposals >> Guidance for FY 2021/2022: Date of guidance 16.12.2021 FFO (m EUR) 40.0 – 44.0 FY 2020/2021 financial resul
Slide 31: Dividends
GUIDANCE FY 2021/2022 31 Dividends >> Dividend distribution for the FY 2020/2021: Dividend per share (EUR)* 0.40 Dividend payout (in relation to FFO) 34% Ex-dividend date 11.03.2022 Payment date 15.03.2022 * Subject to the approval of the 2022 Annual General Meeting >> Dividend policy: ➢ Distibution
Slide 32: Share Information
Share information Deutsche Konsum REIT-AG
Slide 33: Share Information
SHARE INFORMATION 33 >> Basic Share Information MFS >> Shareholder Structure Investment As at 30.09.2021 Management Zerena GmbH 5.24% ISIN DE000A14KRD3 9.00% Share price (Xetra, 14 December 2021) EUR 13.95 Parson GmbH Symbol DKG Free Float 5.11% 40.59% Shares outstanding 35,155,938 Share class Beare
Slide 34: Financial Calendar and IR Contact
Financial calendar and IR contact
Slide 35: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT 35 >> Financial calendar >> Roadshows / Investor meetings Date Date Country Publication of the final annual statements/annual 16.12.2021 10.02.2022 7. Hamburger Investorentag, Hamburg financial report for the financial year 2020/2021 Publication of the quarterly sta
Slide 36: ESG
ESG Deutsche Konsum REIT-AG
Slide 37: ESG Aspects at DKR
ESG aspects at DKR 37 DKR has set up the following measures to enhance ESG conformity Environmental Social Governance • 148 of DKRs locations are currently being • International and diverse staff • High conformity to rules of German equipped with state-of-the-art charging corporate governance codex
Slide 38: Roll-out of Electric Charging Points
ESG aspects at DKR 38 Example: Roll-out of electric charging points at DKR‘s locations >> Summary ➢ DKR is equipping 148 of its locations with state-of-the-art rapid charging infrastructure for electric vehicles ➢ The project is carried out in cooperation with German energy supplier EnBW ➢ Overall,
Slide 39: Sustainability Report Recently Published
ESG aspects at DKR 39 DKRs current Sustainability Report recently published >> ESG reporting ➢ Sustainability Report for the calendar year 2020 recently published and now available on DKR’s website in English and German ➢ DKR‘s Sustainability Report for the calendar year 2019 has been awarded with t
Slide 40: Appendix
APPENDIX Deutsche Konsum REIT-AG
Slide 41: Historical KPI Development
HISTORICAL KPI DEVELOPMENT 41 Continuously high growth since inception Financial year 2020/2021 2019/2020 2018/2019 2017/2018 2016/2017 2015/2016 Income statement Rental income (k EUR) 69,667 56,231 41,978 28,601 19,249 11,437 FFO (k EUR) 41,168 34,991 25,041 16,647 10,260 5,630 FFO per share (EUR)
Slide 42: DKR Business Model at a Glance
DKR BUSINESS MODEL AT A GLANCE 42 Investment Highlights >> Growing BASIC RETAIL investor – biggest niche player in Germany: Retail property portfolio in Defensive and solvent tenant Stock exchange listed Solid and efficient funding established micro locations mix investor • 173 retail properties • F
Slide 43: Investment Approach
STRATEGY 43 Investment approach >> Growing BASIC RETAIL investor – biggest niche player in Germany: WALT 5 Yield 10 Highly fragmented niche to be Accepting short WALTs High-speed acquisition Value enhancing asset consolidated process management • Niche of properties in a • DKR make use of the • DKR
Slide 44: Bundling Single Properties into an Institutional Asset Class
STRATEGY 44 Bundling single properties into an institutional asset class Owner B Owner C Owner A Owner E Owner F Owner D Owner: Deutsche Konsum REIT • Strong and effective risk diversification of single properties by bundling them into a portfolio • Synergies and stronger position towards tenants •
Slide 45: Basic Retail Sector Remains Stable with Best Outlook
STRATEGY 45 Basic retail sector remains stable with best outlook >> Market research according to 16. Retail Real Estate Report 2021/2022 by bulwiengesa / Hahn / CBRE1: 39m 4.1% sqm Growth of the Total grocery German retail & drugstore sector in 2020 retail lease area in Germany • Strong German econo
Slide 46: Basic Retail Resilient to E-Commerce (1)
STRATEGY 46 Basic retail resilient to E-Commerce (1) >> Market research according to 16. Retail Real Estate Report 2021/2022 by bulwiengesa / Hahn / CBRE1: fig. 1 fig. 2 Results of the statistical data: • Food sector and other goods of daily needs (basic retail) are resilient to E-Commerce which has
Slide 47: Basic Retail Resilient to E-Commerce (2)
STRATEGY 47 Basic retail resilient to E-Commerce (2) >> Market research according to 16. Retail Real Estate Report 2021/2022 by bulwiengesa / Hahn / CBRE1: fig. 3 fig. 4 Results of the statistical data: • Recently increased annual growth rate of total E-Commerce (fig. 3) • E-Commerce growth mainly d
Slide 48: Sourcing Process for Retail Properties
ASSET SOURCING 48 Sourcing process for retail properties Private owners Funds in Remaining liquidation properties of large portfolio transactions Deep asset Public analysis before auctions acquisition Tenants DKR network Brokers • Investment team analyses a yearly property volume of up to 3bn EUR •
Slide 49: Management
MANAGEMENT 49 Experienced and committed management Alexander Kroth (CIO) Rolf Elgeti (CEO) Christian Hellmuth (CFO) Alexander joined DKR in January Rolf is the founder of Deutsche Konsum REIT- Christian joined DKR in January 2017 2017 and initially set up the company AG, which is a spin-off of his i
Slide 50: Partners
PARTNERS 50 Strong external property partners >> DKRs main external management partners: Asset Manager Elgeti Brothers GmbH Property Manager Appraiser Technical Property Developer IT and Management Software Providers FY 2020/2021 financial results | Deutsche Konsum REIT-AG
Slide 51: Portfolio Details
PORTFOLIO DETAILS 51 DKRs detailed property portfolio Please find DKR‘s current portfolio in a detailed overview online under the following link: DKR property portfolio overview as at 30 September 2021 FY 2020/2021 financial results | Deutsche Konsum REIT-AG
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