Defama Deutsche Fachmarkt Ag · XETR:DEF

Defama Deutsche Fachmarkt — Investor Presentation (March 2023)

29 slides from Defama Deutsche Fachmarkt's investor presentation, March 2023

  1. Slide 1: Company Presentation DEFAMA Deutsche Fachmarkt AG

    Company Presentation DEFAMA Deutsche Fachmarkt AG March 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 good reasons for our 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 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

  5. 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 2017 2018 2018 2019 2020 20

  6. Slide 6: Key Figures 2022

    KEY FIGURES 2022 Portfolio Value in €m Sales CAGR +18% CAGR in €m +19% +24% 257 +22% 218 20.4 179 17.1 14.6 137 11.2 108 9.1 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Netto Profit Funds from Operations (FFO) in €m in €m CAGR +9% CAGR +22% 1 8.6 +34% 1 5.5 +24% 5.0 7.1 5.9 4.6 2.5 3.6 1.7 2.1

  7. Slide 7: Key Figures 2022

    KEY FIGURES 2022 Earnings per share FFO per share CAGR in € +3% CAGR in € +14% +25% +16% 1.17 1.83 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 1  Company growth not for i

  8. Slide 8: Financing

    FINANCING Key Figures (as of 31 Dec 2022) Number of financing partners 36 Bank loans €153m Ø Interest rate 2.32% Ø Initial repayment 4.20% Ø Fixed interest 5.8 years Loan‐to‐value‐ratio (LTV) 59.3%  Financing in principle by annuity loans with interest rates secured for the long‐term  Partner usua

  9. Slide 9: Portfolio

    PORTFOLIO Key Figures (as of 31 Dec 2022) Locations 61 Net Rent (annualised) €20.1m Lettable Space 249,569 sqm Occupancy Rate 93.8% Ø Lease Term (WALT) 4.8 years Portfolio Value €257m  80% of total net rent is generated from chain stores with strong credit ratings  Contracts with anchor tenants ha

  10. Slide 10: Portfolio: Biggest Tenants

    PORTFOLIO Biggest Tenants Sites Share Net Rent by Industry Kaufland/LIDL 6 10,5 % toom/B1 5 9,6 % EDEKA/Netto/trinkgut 11 8,4 % REWE/Penny 9 6,8 % JYSK 12 5,6 % H.H. Holding 12 4,2 % Aldi Nord 6 4,0 % NORMA 6 2,5 % TEDi 11 2,5 % AWG 5 2,4 % Takko 7 2,3 % „Top 10“ leases account for Herkules DIY stor

  11. Slide 11: Highlights 2022: Wolfsburg-Nordsteimke purchase

    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 Saxony of the v

  12. Slide 12: Highlights 2022: Five retail parks in Rhineland-Palatinate

    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 II  Locati

  13. Slide 13: Highlights 2022: Two local supply centers in Thuringia

    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 (Apfelstädt) and

  14. Slide 14: Highlights 2022: Specialist store portfolio BaWue/Bavaria

    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 price: €5

  15. Slide 15: Highlights 2022: Sales Löwenberg and Sonnefeld

    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  Sale to abou

  16. Slide 16: Project Development: Investments within existing portfolio

    PROJECT DEVELOPMENT Investments within the existing portfolio  Refurbishment/expansion of rental spaces  Vacancy reduction  Optimization of properties  Paketstations  Advertising boards  Parking‐space management ESG measures  Charging stations (currently 22 online)  PV systems, CityBreeze 

  17. Slide 17: Project Development: Hamm (Westphalia)

    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 April 28th, 2022 The little bit outdated local supply cent

  18. Slide 18: 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 June 2nd, 2022 As we purchased it, the space was still a shell construction. Company Presentation DEFAMA

  19. Slide 19: 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 December 27th, 2022  Remaining tasks and expansion of TEDi‘s area until May 2023 On a t

  20. Slide 20: Project Development: Investments within existing portfolio (examples)

    PROJECT DEVELOPMENT Investments within the existing portfolio (examples) Büdelsdorf  Adding an elevator at East wing completed in total  Roof extension, creation of area for a gym completed app. €2m  Expansion of TEDi‘s area in process, completion est. 6/2023 Gardelegen  Refurbishment for Futter

  21. Slide 21: Current Development: Rising interest rates and inflation

    CURRENT DEVELOPMENT Market conditions: rising interest rates and accelerating inflation  90% 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 5.8 year

  22. Slide 22: Current Development: Preparing for accelerated growth

    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 > 450 properties (esp. retail) valued > €6b  HEICO covers i.a. maintenance, notifications of defec

  23. Slide 23: 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 1 1) Proposal to the A

  24. Slide 24: Status and Outlook: Mid-term guidance DEFAMA 2025

    STATUS AND OUTLOOK Portfolio Value Mid‐term guidance „DEFAMA 2025“ in €m published October 24th, 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 Op

  25. Slide 25: Status and Outlook: 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 €10m resp. 2.08 € per share  Increased staff capacity for real estate transactions  Potentially higher annual aquisition volume in the future  Review

  26. Slide 26: 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

  27. Slide 27: 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

  28. Slide 28: 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 28

  29. Slide 29: 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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