Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — Q1 2023/2024 Earnings Presentation
42 slides from Deutsche Konsum Real Estate's earnings presentation, Feb 14, 2024
Slide 1: Q1 2023/2024 Financial Results
1 Q1 2023/2024 FINANCIAL RESULTS 1 October 2023 – 31 December 2023 14 February 2024 Q1 2023/2024 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
3 HIGHLIGHTS Q1 2023/2024 Financial results | Deutsche Konsum REIT-AG
Slide 4: Highlights Q1 2023/2024
HIGHLIGHTS Q1 2023/2024 4 Operative business robust and on track – refinancing of maturing corporate bonds in progress Strong and steady operational business / FFO reduction mainly due to higher debt costs ➢ Rental income 19.9m EUR (up 6.6% y-o-y) – due to larger portfolio size and rent increases ➢
Slide 5: Financial Key Figures
FINANCIAL KEY FIGURES 5 Solid business development Rental income FFO FFO per share (k EUR) (k EUR) (EUR) 19,913 0.29 18,681 10,166 8,020 0.23 Q1 2022/2023 Q1 2023/2024 Q1 2022/2023 Q1 2023/2024 Q1 2022/2023 Q1 2023/2024 aFFO per share Investment properties EPRA NTA per share (fully diluted) (EUR) (k
Slide 6: Property Portfolio
6 PROPERTY PORTFOLIO Q1 2023/2024 Financial results | Deutsche Konsum REIT-AG
Slide 7: Property Portfolio
PROPERTY PORTFOLIO 7 Pro forma portfolio consists of 183 properties with approx. 1,070,000 sqm >> Portfolio development within the last 15 months: Schleswig- Mecklenburg Holstein - Pommerania 30/09/2022 30/09/2023 31/12/2023 Pro Forma (incl. notarised disposals and acquisitions) Lower Saxony Number
Slide 8: Property Portfolio: Stable portfolio development
PROPERTY PORTFOLIO 8 Stable portfolio development Annualised rent (m EUR) Vacancy (%) 79.2 79.3 72.9 73.2 63.1 11.7 11.7 11.6 10.7 9.9 30.09.2020 30.09.2021 30.09.2022 30.09.2023 31.12.2023 30.09.2020 30.09.2021 30.09.2022 30.09.2023 31.12.2023 Initial yield (%) WALT (years) 10.5 10.3 10.0 10.0 10.0
Slide 9: Tenant Structure
TENANT STRUCTURE 9 68% Rent contribution from non-cyclical tenants (81% including DIY) >> Rent contribution by tenant classification (m EUR)1: >> Rent contribution by major tenants1 : Rent WALT Tenant group Brands (m EUR) in years Other cyclical Non- uses cyclical Edeka Group 8.9 4.5 15.3 rents Schw
Slide 10: Tenant Structure: Resilient and inflation-linked rental income
TENANT STRUCTURE 10 Resilient and inflation-linked rental income >> Strategy with focus to tenants with daily-needs supply pays off: ➢ Cyclical and lockdown-affected tenants amount to a low percentage of all rents (e.g. electronic retail, furnitures, textiles, restaurants, three cinema theatres) ➢ A
Slide 11: Tenant Structure: DKR is a reliable partner for tenants
TENANT STRUCTURE 11 DKR is a reliable partner for its tenants >> Number of leases with the same tenant group1: >> Annualised rents allocated to years of lease contract maturities1: 80 40 70 35 1 1 6 60 30 6 No. of lease contracts 50 25 Rent p.a. mEUR 23 40 20 2 11 15 30 6 20 11 10 4 31 26 4 10 5 15
Slide 12: Valuation Potential of the Portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 12 Share currently trades around 11% yield (fully diluted) >> EPRA NTA impact from factor increases (c.p.) shows further upside potential: Hypothetical Annualised Hypothetical Portfolio Net debt EPRA NTA Number of EPRA NTA total portfolio valuation Yield value Ne
Slide 13: Financing
13 FINANCING Q1 2023/2024 Financial results | Deutsche Konsum REIT-AG
Slide 14: Financing: Solid debt structure with low cost of capital
FINANCING 14 Solid debt structure with low cost of capital >> Financial KPIs: Debt allocation (m EUR outstanding debt) Corporate bond 31/12/2023 30/09/2023 % 2018/2024 Corporate bond 12.1 35.9 Total financial debt (loans + bonds), m EUR 628.0 633.6 -0.9 2019/2024 8.4 (unsecured) Ø Senior secured deb
Slide 15: Financials Q1 2023/2024
15 FINANCIALS Q1 2023/2024 Q1 2023/2024 Financial results | Deutsche Konsum REIT-AG
Slide 16: Condensed IFRS balance sheet
FINANCIALS Q1 2023/2024 16 Condensed IFRS balance sheet k EUR 31/12/2023 30/09/2023 k EUR 31/12/2023 30/09/2023 Assets Equity and liabilities Shift to assets hold Investment properties 987,173.6 989,013.9 Subscribed capital 35,155.9 35,155.9 for sale Other non-current assets 934.6 954.1 Capital rese
Slide 17: LTV and NAV / EPRA NTA
FINANCIALS Q1 2023/2024 17 LTV and NAV / EPRA NTA >> LTV (loan-to-value): >> NAV / EPRA NTA per share: k EUR 31/12/2023 30/09/2023 EPRA NAV Conversion EPRA NTA (undiluted) effects of (diluted) k EUR Bank loans 417,452.3 423,416.1 convertible 31/12/2023 bonds 31/12/2023 Convertible bonds 36,802.6 36,
Slide 18: Condensed IFRS income statement
FINANCIALS Q1 2023/2024 18 Condensed IFRS income statement Split of net operating costs: 01/10/2023 – 01/10/2022 – k EUR % 31/12/2023 31/12/2022 thereof Q1 Q1 (k EUR) 2023/2024 2022/2023 Rental income 19,912.8 18,681.4 6.6 Non-recs -2,587 -976 Income from recharched operating costs 5,074.6 4,855.9 4
Slide 19: FFO reconciliation
FINANCIALS Q1 2023/2024 19 FFO reconciliation >> FFO/aFFO: 01/10/2023 01/10/2022 % k EUR – – 31/12/2023 31/12/2022 Total period income 6,510.5 8,251.6 -21.1% +/- Income taxes 345.5 0.0 - Contains non-cash items due to IFRS + Depreciation of other assets 29.3 3.6 >100 valuation of debt instruments +/
Slide 20: Headline Earnings per share (HEPS) reconciliation
FINANCIALS Q1 2023/2024 20 Headline Earnings per share (HEPS) reconciliation according to JSE rules >> HEPS: 01/10/2023 01/10/2022 % k EUR – – 31/12/2023 31/12/2022 Total period income (undiluted) 6,510.5 8,251.6 -21.1 -/+ Revaluation gains / losses, IAS 40 0.0 0.0 0.0 -/+ Revaluation gains / losses
Slide 21: Share information
21 Share information Q1 2023/2024 Financial results | Deutsche Konsum REIT-AG
Slide 22: Share Information
SHARE INFORMATION 22 >> Basic Share Information >> Shareholder Structure As at 12/02/2023 Paladin Asset Management / ISIN DE000A14KRD3 Marcel Maschmeyer Share price (Xetra, 12 February 2024) EUR 3.33 5.09% MFS Investment Management Symbol DKG 5.24% Shares outstanding 35,155,938 Zerena GmbH Share cla
Slide 23: Financial calendar and IR contact
23 Financial calendar and IR contact Q1 2023/2024 Financial results | Deutsche Konsum REIT-AG
Slide 24: Financial calendar and IR contact
FINANCIAL CALENDAR AND IR CONTACT 24 >> Financial calendar Date 14/02/2024 Publication of the quarterly statement for the first quarter of 2023/2024 financial year 15/05/2024 Publication of the half-yearly financial report of 2023/2024 financial year 31/05/2024 Annual General Meeting, Berlin 14/08/2
Slide 25: ESG
25 ESG Q1 2023/2024 Financial results | Deutsche Konsum REIT-AG
Slide 26: ESG aspects at DKR
ESG aspects at DKR 26 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 27: ESG: Roll-out of electric charging points
ESG aspects at DKR 27 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 28: ESG: Current Sustainability Report published
ESG aspects at DKR 28 DKRs current Sustainability Report recently published >> ESG reporting ➢ Sustainability Report for the calendar year 2022 published and available on DKR’s website ➢ DKR‘s Sustainability Reports for the calendar years 2019, 2020, 2021 and 2022 have been awarded with the EPRA sBP
Slide 29: Appendix
29 APPENDIX Q1 2023/2024 Financial results | Deutsche Konsum REIT-AG
Slide 30: Key Drivers of Value Creation
KEY DRIVERS OF VALUE CREATION 30 Buy and hold - strategy with proactive asset management and opportunistic capital recycling 1 Acquisition of high-yielding basic retail properties ➢ Initial yield averaging of 8-10% expected (by accepting shorter WALTs) ➢ Focusing on stable and established micro loca
Slide 31: Historical KPI Development
HISTORICAL KPI DEVELOPMENT 31 Continuously high growth since inception Financial year 2022/2023 2021/2022 2020/2021 2019/2020 2018/2019 2017/2018 2016/2017 2015/2016 Income statement Rental income (k EUR) 79,722 74,390 69,667 56,231 41,978 28,601 19,249 11,437 FFO (k EUR) 33,131 41,115 34,991 25,041
Slide 32: DKR Business Model at a Glance
DKR BUSINESS MODEL AT A GLANCE 32 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 • 183 retail properties • F
Slide 33: Strategy: Investment approach
STRATEGY 33 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 34: Bundling single properties into an institutional asset class
STRATEGY 34 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 35: Capital recycling as sub-strategy
STRATEGY 35 Capital recycling as sub-strategy to grow on its own >> Investment criteria: General value cycle of a retail property • Retail properties in established and stable micro locations and Possible sale catchment areas in regional and mid-sized cities in Germany • Retail tenants that supply g
Slide 36: Basic retail sector remains stable with best outlook
STRATEGY 36 Basic retail sector remains stable with best outlook >> Market research according to 17. Retail Real Estate Report 2022/2023 by bulwiengesa / Hahn / CBRE1: 39m 2.1% sqm Growth of the Total grocery German retail & drugstore sector in 2021 retail lease area in Germany • Strong German econo
Slide 37: Basic retail resilient to E-Commerce (1)
STRATEGY 37 Basic retail resilient to E-Commerce (1) >> Market research according to 17. Retail Real Estate Report 2022/2023 by bulwiengesa / Hahn / CBRE1: Online share of total turnover Top 5 in food retail in 2021 Figures in % Turnover Change since Food Drugstore products in € billion previous yea
Slide 38: Basic retail resilient to E-Commerce (2)
STRATEGY 38 Basic retail resilient to E-Commerce (2) >> Market research according to 17. Retail Real Estate Report 2022/2023 by bulwiengesa / Hahn / CBRE1: fig. 3 fig. 4 Results of the statistical data: • The growth rate of E-Commerce reduces slightly in 2022. In absolute revenue figures, 2022 is th
Slide 39: Sourcing process for retail properties
ASSET SOURCING 39 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 40: Management
MANAGEMENT 40 Experienced and committed management Alexander Kroth (CIO) Christian Hellmuth (CFO) Alexander joined DKR in January 2017 and initially Christian joined DKR in January 2017 and is set up the Company together with Rolf Elgeti. He is responsible for Finance, Accounting and IR. Prior to in
Slide 41: Partners
PARTNERS 41 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 Q1 2023/2024 Financial results | Deutsche Konsum REIT-AG
Slide 42: Portfolio Details
PORTFOLIO DETAILS 42 DKRs detailed property portfolio Please find a detailed overview of DKR‘s property portfolio online under the following links: DKR property portfolio overview as at 31 December 2023 (Excel file) Interactive Map Q1 2023/2024 Financial results | Deutsche Konsum REIT-AG
Deutsche Konsum REIT-AG — Q1 2023/2024 Earnings Presentation on 6ix