Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — Q1 2021/2022 Earnings Presentation
46 slides from Deutsche Konsum Real Estate's earnings presentation, Feb 14, 2022
Slide 1: Q1 2021/2022 Financial Results
1 Q1 2021/2022 FINANCIAL RESULTS 1 OCTOBER 2021 – 31 DECEMBER 2021 14 February 2022 Q1 2021/2022 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 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 4: Highlights Q1 2021/2022
HIGHLIGHTS Q1 2021/2022 4 Profitable growth continues Strong and profitable operational business ➢ Rental income 18.3m EUR (up 13% y-o-y) ➢ Net rental income 13.0m EUR (up 20% y-o-y) ➢ FFO 10.7m EUR (up 6%) / FFO per share 0.30 EUR (up 6%) ➢ L-f-l rental growth 1.7% (FY 2020/2021) Attractive acquisi
Slide 5: Financial Key Figures
FINANCIAL KEY FIGURES 5 Strong and accretive growth Rental income FFO FFO per share (k EUR) (k EUR) (EUR) 18,286 0.30 10,719 16,172 10,156 0.29 Q1 2020/2021 Q1 2021/2022 Q1 2020/2021 Q1 2021/2022 Q1 2020/2021 Q1 2021/2022 aFFO per share Investment properties EPRA NTA per share (EUR) (k EUR) (EUR) 0.
Slide 6: Acquisitions
ACQUISITIONS 6 Property acquisitions in the new FY 2021/2022 >> Selection of latest property acquisitions: Frauenstein Altenburg/Nobitz Schiffweiler Castrop-Rauxel Bockau Castrop-Rauxel Altenburg-Nobitz Schiffweiler Bockau Frauenstein Location (Northrhine- (Thuringia) (Saarland) (Saxony) (Saxony) We
Slide 7: Acquisitions
ACQUISITIONS 7 Property acquisitions in the new FY 2021/2022 >> Selection of latest property acquisitions: Hattorf Freiberg Rennerod Birkenfeld Dessau-Roßlau Freiberg Rennerod Hattorf Birkenfeld Dessau-Roßlau Location (Saxony) (Rhineland-Palatinate) (Lower Saxony) (Rhineland-Palatinate) (Saxony-Anha
Slide 8: Property Portfolio
8 PROPERTY PORTFOLIO Q1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 9: Property Portfolio
PROPERTY PORTFOLIO 9 Pro forma portfolio consists of 173 properties with approx. 1,025,000 sqm >> Portfolio development within the last 24 months: Schleswig- Mecklenburg Holstein - Pommerania 30.09.2020 30.09.2021 31.12.2021 Pro Forma (incl. notarised disposals and acquisitions) Lower Saxony Number
Slide 10: Property Portfolio: Steady growth and stable KPIs
PROPERTY PORTFOLIO 10 Steady portfolio growth and stable property KPIs Annualised rent (m EUR) Vacancy (%) 72.9 72.9 63.1 48.7 10.7 10.8 9.6 9.9 9.9 35.5 30.09.2018 30.09.2019 30.09.2020 30.09.2021 31.12.2021 30.09.2018 30.09.2019 30.09.2020 30.09.2021 31.12.2021 Initial yield (%) WALT (years) 11.7
Slide 11: Tenant Structure
TENANT STRUCTURE 11 66% Rent contribution from non-cyclical tenants (80% including DIY) >> Rent contribution by tenant classification (m EUR)1: >> Rent contribution by major tenants1 : Non- Rent WALT Tenant group Brands cyclical (m EUR) in years Other cyclical rents uses Edeka Group 6.9 4.0 Schwarz
Slide 12: Tenant Structure: Resilient and inflation-linked rental income
TENANT STRUCTURE 12 Resilient and inflation-linked rental income >> Strategy with focus to tenants with daily-needs supply pays off: >> Rent collection during the pandemic: ➢ Rent collection rates back to normal levels and close to 100% 100% 95% ➢ Cyclical and lockdown-affected tenants amount to a l
Slide 13: Tenant Structure: DKR is a reliable partner for tenants
TENANT STRUCTURE 13 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 1 60 30 5 6 50 25 No. of lease contracts Rent p.a. mEUR 40 20 20 3 30 15 6 6 20 11 10 4 29 23 3 10 5 14 16 11 1
Slide 14: Valuation Potential of the Portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 14 Share price currently trades at 7.1 % 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 15: Financing
15 FINANCING Q1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 16: Financing
FINANCING 16 Solid debt structure with cost reduction potential >> Financial KPIs: Debt allocation (m EUR outstanding debt) Corporate bond 31.12.2021 30.09.2021 % 2018/2024 Corporate bond Total financial debt (loans + bonds), m EUR 615.5 609.3 1.0 13.5 40.0 2019/2024 35.6 (unsecured) 10.0 Ø Senior s
Slide 17: Financials Q1 2021/2022
17 FINANCIALS Q1 2021/2022 Q1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 18: Condensed IFRS balance sheet
FINANCIALS Q1 2021/2022 18 Condensed IFRS balance sheet k EUR 31.12.2021 30.09.2021 k EUR 31.12.2021 30.09.2021 Assets Equity and liabilities Pro forma portfolio currently 984m Investment properties 943,075.1 944,019.6 Subscribed capital 35,155.9 35,155.9 EUR (including Other non-current assets 3,72
Slide 19: LTV and EPRA NAV/NTA
FINANCIALS Q1 2021/2022 19 LTV and EPRA NAV/NTA >> LTV (loan-to-value): >> NAV/NTA per share: k EUR 31.12.2021 30.09.2021 EPRA NAV Conversion EPRA NTA (undiluted) effects of (diluted) Bank loans 396,242.6 401,289.4 k EUR convertible Convertible bonds 36,495.3 36,457.7 31.12.2021 bonds 31.12.2021 Tot
Slide 20: Condensed IFRS income statement
FINANCIALS Q1 2021/2022 20 Condensed IFRS income statement 01.10.2021 – 01.10.2020 – k EUR % 31.12.2021 31.12.2020 Rental income increased due to the Rental income 18,286.1 16,172.1 13.1 property portfolio growth Income from recharched operating costs 3,409.7 2,504.4 36.1 Operating expenses -8,737.9
Slide 21: FFO reconciliation
FINANCIALS Q1 2021/2022 21 FFO reconciliation >> FFO/aFFO: 01.10.2021 01.10.2020 % k EUR – – 31.12.2021 31.12.2020 Total period income 9,801.3 8,082.1 21.3 +/- Income taxes 0.0 0.0 0.0 Contains non-cash items due to IFRS valuation of debt instruments (0.3m) + Depreciation of other assets 4.6 3.0 54.
Slide 22: Headline Earnings per share reconciliation
FINANCIALS Q1 2021/2022 22 Headline Earnings per share (HEPS) reconciliation according to JSE rules >> HEPS: 01.10.2021 01.10.2020 % k EUR – – 31.12.2021 31.12.2020 Total period income (undiluted) 9,801.3 8,082.1 21.3 -/+ Revaluation gains / losses, IAS 40 0.0 0.0 0.0 -/+ Revaluation gains / losses,
Slide 23: Outlook
23 OUTLOOK Q1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 24: Guidance FY 2021/2022
GUIDANCE FY 2021/2022 24 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 Q1 2021/2022 financial resul
Slide 25: Guidance FY 2021/2022: Dividends
GUIDANCE FY 2021/2022 25 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: ➢ Distributio
Slide 26: Share information
26 Share information Q1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 27: Share Information
SHARE INFORMATION 27 >> Basic Share Information MFS >> Shareholder Structure Investment As at 31.12.2021 Management Zerena GmbH 5.24% ISIN DE000A14KRD3 9.00% Share price (Xetra, 10 February 2022) EUR 13.55 Parson GmbH Symbol DKG Free Float 5.11% 40.59% Shares outstanding 35,155,938 Share class Beare
Slide 28: Financial calendar and IR contact
28 Financial calendar and IR contact Q1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 29: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT 29 >> Financial calendar >> Roadshows / Investor meetings Date Date Country Publication of the quarterly statement for the first 14.02.2022 10.02.2022 7. Hamburger Investorentag, Hamburg quarter of 2021/2022 financial year Quirin Champions Conference 2022, Frankfurt
Slide 30: ESG
30 ESG Q1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 31: ESG aspects at DKR
ESG aspects at DKR 31 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 32: Roll-out of electric charging points
ESG aspects at DKR 32 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 33: Sustainability Report recently published
ESG aspects at DKR 33 DKRs current Sustainability Report recently published >> ESG reporting ➢ Sustainability Report for the calendar year 2020 published and available on DKR’s website in English and German ➢ DKR‘s Sustainability Report for the calendar year 2019 has been awarded with the EPRA sBPR
Slide 34: Appendix
34 APPENDIX Q1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 35: Historical KPI Development
HISTORICAL KPI DEVELOPMENT 35 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 36: DKR Business Model at a Glance
DKR BUSINESS MODEL AT A GLANCE 36 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 37: Strategy: Investment approach
STRATEGY 37 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 38: Bundling single properties into an institutional asset class
STRATEGY 38 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 39: Capital recycling as sub-strategy
STRATEGY 39 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 40: Basic retail sector remains stable with best outlook
STRATEGY 40 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 41: Basic retail resilient to E-Commerce (1)
STRATEGY 41 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 42: Basic retail resilient to E-Commerce (2)
STRATEGY 42 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 43: Sourcing process for retail properties
ASSET SOURCING 43 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 44: Management
MANAGEMENT 44 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 45: Partners
PARTNERS 45 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 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 46: Portfolio Details
PORTFOLIO DETAILS 46 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 31 December 2021 Q1 2021/2022 financial results | Deutsche Konsum REIT-AG
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