Defama Deutsche Fachmarkt Ag · XETR:DEF
Defama Deutsche Fachmarkt — Investor Presentation (November 2022)
28 slides from Defama Deutsche Fachmarkt's investor presentation, November 2022
Slide 1: Company Presentation DEFAMA Deutsche Fachmarkt AG
Company Presentation DEFAMA Deutsche Fachmarkt AG November 2022
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 locat
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
Slide 4: Investment Case: Value creation on several levels (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% p.a. Albstadt, Baden‐Wuerttemberg little equity needed, therefore high return on equity FFO per share in € • Strong growth due to addition
Slide 5: Investment Case: Value creation on several levels (II)
INVESTMENT CASE NAV per share Value creation on several levels (II) in € 19.61 20 • Single purchases at favourable prices are laborious 13.46 16.86 15 11.02 • Professionally managed portfolios trade 10 8.42 at much higher multiples on net rent 5 0 NAV per share +143% 2017 2016 2018 2017 2019 2018 20
Slide 6: Portfolio Key Figures
PORTFOLIO Key Figures (as of 30 Sept 2022) Locations 62 Net Rent (annualised) €19.9m Lettable Space 249,570 sqm Occupancy Rate 94.2% Ø Lease Term (WALT) 4.7 years Portfolio Value €251m • 80% of total net rent is generated from chain stores with strong credit ratings • Contracts with anchor tenants h
Slide 7: Portfolio: Biggest tenants and net rent by industry
PORTFOLIO Biggest tenants Sites Share Net Rent by Industry Kaufland/LIDL 6 10.3 % toom/B1 5 9.7 % EDEKA/Netto/trinkgut 11 8.5 % REWE/Penny 9 6.7 % JYSK (= Dän. Bettenlager) 12 5.7 % Aldi Nord 6 3.9 % KiK 11 3.8 % NORMA 7 3.5 % TEDi 11 2.5 % AWG 5 2.5 % Takko 7 2.3 % „Top 10“ leases account for Herku
Slide 8: Financing
FINANCING Maturity Profile incl. Repayments Key Figures (as of 30 September 2022) in €m Number of financing partners 36 24 Bank loans €138m 16 Ø Interest rate 2.07% 8 Ø Initial repayment 4.42% 0 Ø Fixed interest 6.3 years Loan‐to‐value‐ratio (LTV) 56.5% Auslauf Zinsbindung Tilgungen • Financing arra
Slide 9: Key Figures 2021
KEY FIGURES 2021 Portfolio Value Sales in €m in €m CAGR +22% CAGR +17% +32% 218 +32% 17.0 179 14.6 137 11.2 108 9.1 73 5.8 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Net Profit Funds from Operations (FFO) in €m in €m CAGR +101% CAGR +20% +42% 5.0 1 +29% 7.1 5.9 4.6 2.5 3.6 2.1 1.4 1.7 2.6 201
Slide 10: Key Figures 2021
KEY FIGURES 2021 Earnings per share FFO per share in € in € CAGR +101% 1.14 CAGR +20% +36% +22% 1.60 1.33 0.57 1.14 0.51 1.01 0.38 0.46 0.73 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Dividend per share in € Guiding principles for expansion CAGR +6% +11% 0.48 0.51 • Company growth not for its
Slide 11: Key Figures 9M/2022
KEY FIGURES 9M/2022 Portfolio Value Sales in €m in €m 280 +24% 251 16 +16% 14.7 202 12.6 210 12 140 8 70 4 0 0 30.09.2021 2021/09/30 30.09.2022 2022/09/30 9M/2021 9M/2022 Company Presentation DEFAMA Deutsche Fachmarkt AG 11
Slide 12: Key Figures 9M/2022
KEY FIGURES 9M/2022 Net Profit Funds from Operations (FFO) in €m in €m 4.3 1 1,80 2,40 4,5 7,5 +19% ‐43% 6.2 5.2 1,20 5,0 1,60 3,0 2.5 0.97 1.18 1.33 1,5 0,60 2,5 0,80 0.52 0,0 0,00 0,0 0,00 9M/2021 9M/2022 9M/2021 9M/2022 Ergebnis Earnings EPS in EPS in €€ FFO FFO // Aktie FFO shareinin€€ 1) Incl.
Slide 13: Current Development: Wolfsburg-Nordsteimke purchase
CURRENT DEVELOPMENT 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 Saxony of t
Slide 14: Current Development: Five retail parks in Rhineland-Palatinate
CURRENT DEVELOPMENT 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 II Lo
Slide 15: Current Development: Two local supply centers in Thuringia
CURRENT DEVELOPMENT 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 (Apfelstädt)
Slide 16: Current Development: Specialist store portfolio BaWue/Bavaria
CURRENT DEVELOPMENT 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 price
Slide 17: Investments within existing portfolio: Hamm
CURRENT DEVELOPMENT Investments within the existing portfolio (examples) 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 April 28th, 2022 The little bit outdated local s
Slide 18: Investments within existing portfolio: Gardelegen
CURRENT DEVELOPMENT Investments within the existing portfolio (examples) Gardelegen • Refurbishment for Futterhaus • Building costs of about €350k • Start of building measures in November 2021 • Opening on June 2nd, 2022 As we purchased it, the space was still a shell construction. Company Presentat
Slide 19: Investments within the existing portfolio (examples)
CURRENT DEVELOPMENT Investments within the existing portfolio (examples) Büdelsdorf • Adding an elevator at East wing completed • Expansion of TEDi‘s area, roof extension, in total creation of area for a fitness studio in process, completion est. 11/2022 app. €1.5m Sonnefeld • Expansion of NORMA‘s a
Slide 20: Market conditions: rising interest rates and inflation
CURRENT DEVELOPMENT Market conditions: rising interest rates and accelerating inflation • 89% 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 6.3 year
Slide 21: Preparing for accelerated growth: property management outsourcing
CURRENT DEVELOPMENT DEFAMA is preparing for accelerated growth • Outsourcing of property management to HEICO Property Partners GmbH, Wiesbaden • Partner with more than 20 years of experience, managing 430 properties (esp. retail) valued > €6b • HEICO covers i.a. maintenance, notifications of defects
Slide 22: Status and Outlook: Guidance for 2022
STATUS AND OUTLOOK Guidance for 2022 2021 • Net Profit (German GAAP): €4.2m €5.0m, thereof (incl. one disposal) ~ €2m from disposal • Funds From Operations (FFO): €8.5m €7.1m €1.81 per share €1.60 per share • Annualised FFO: €10m €8.3m • Dividend: > €0.51 per share €0.51 per share Company Presentati
Slide 23: Mid-term guidance DEFAMA 2025
STATUS AND OUTLOOK Portfolio Value Mid‐term guidance „DEFAMA 2025“ in €m published October 24th, 2022 350 360 218 • Portfolio value reaches €350 240 137 179 108 120 • Annualised net rents of €28m 0 • FFO of €13m resp. > €2.70 per share 2018 2019 2020 2021 2025e Net Rents (annualised) Funds from Oper
Slide 24: DEFAMA on track for further growth
STATUS AND OUTLOOK DEFAMA on track for further growth • 2022 aquisition volume YTD €29m above typical yearly level • Annualised FFO („run rate“) already €9.7m resp. 2.02 € per share • Released employees increase capacity for real estate transactions • Potentially higher annual aquisition volume in t
Slide 25: Share
SHARE Share price development since IPO at 13 July 2016 Shareholder structure 2 28 € 26% 20 € 12 € 2% 72% 4€ Jul. 16 Jul. 17 Jul. 18 Jul. 19 Jul. 20 Jul. 21 Jul. 22 WKN / ISIN A13SUL / DE000A13SUL5 Stock exchange Munich (m:access), Frankfurt, Xetra MSC Invest GmbH / M. Schrade Supervisory Board Numb
Slide 26: 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
Slide 27: 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 Company Presentation DEFAMA Deutsche Fachmarkt AG 27
Slide 28: 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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