Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — H1 2021/2022 Earnings Presentation
46 slides from Deutsche Konsum Real Estate's earnings presentation, May 12, 2022
Slide 1: H1 2021/2022 Financial Results
1 H1 2021/2022 FINANCIAL RESULTS 1 OCTOBER 2021 – 31 March 2022 12 May 2022 H1 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 H1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 4: Highlights H1 2021/2022
HIGHLIGHTS H1 2021/2022 4 Intact growth story Strong and profitable operational business ➢ Rental income 36.2m EUR (up 10% y-o-y) ➢ Net income 18.4m EUR (up 13% y-o-y) ➢ FFO 21.1m EUR (up 4%) / FFO per share 0.60 EUR (up 4%) ➢ aFFO per share 0.42 EUR (up 37%) due to lower Capex in H1 ➢ L-f-l rental
Slide 5: Key Drivers of Value Creation
KEY DRIVERS OF VALUE CREATION 5 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 locat
Slide 6: Financial Key Figures
FINANCIAL KEY FIGURES 6 Strong and robust growth Rental income FFO FFO per share (k EUR) (k EUR) (EUR) 36,245 21,130 0.60 20,367 0.58 33,002 H1 2020/2021 H1 2021/2022 H1 2020/2021 H1 2021/2022 H1 2020/2021 H1 2021/2022 aFFO per share Investment properties EPRA NTA per share (fully diluted) (EUR) (k
Slide 7: Acquisitions
ACQUISITIONS 7 Property acquisitions in H1 2021/2022 >> Acquisition overview: Annualised Space WALT Initial Transfer of Location State Type rent Main tenants Vacancy (sqm) (years) yield ownership (kEUR) Altenburg-Nobitz Thuringia Retail park 20,259 685 Marktkauf (EDEKA), ALDI, Poco 5.2 12% > 11.1% F
Slide 8: Acquisitions
ACQUISITIONS 8 Property acquisitions in H1 2021/2022 >> Impressions of H1 property acquisitions: ➢ Annualised rent revenues of 4.2m EUR at an investment volume of 49.4m EUR (average yield of 8.4%) H1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 9: Property Portfolio
9 PROPERTY PORTFOLIO H1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 10: Property Portfolio
PROPERTY PORTFOLIO 10 Pro forma portfolio consists of 178 properties with approx. 1,040,000 sqm >> Portfolio development within the last 24 months: Schleswig- Mecklenburg Holstein - Pommerania 30.09.2020 30.09.2021 31.03.2022 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 71.8 63.1 12.0 48.7 10.7 9.6 9.9 9.9 35.5 30.09.2018 30.09.2019 30.09.2020 30.09.2021 31.03.2022 30.09.2018 30.09.2019 30.09.2020 30.09.2021 31.03.2022 Initial yield (%) WALT (years) 11.7
Slide 12: Tenant Structure
TENANT STRUCTURE 12 65% Rent contribution from non-cyclical tenants (79% 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 7.1 3.9 Schwarz
Slide 13: Tenant Structure: Resilient and inflation-linked rental income
TENANT STRUCTURE 13 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) ➢ M
Slide 14: Tenant Structure: DKR is a reliable partner
TENANT STRUCTURE 14 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 6 15 7 20 11 10 4 30 4 23 10 5 15 17 11 1
Slide 15: Valuation Potential of the Portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 15 Share price currently trades at >7.4 % 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 E
Slide 16: Financing
16 FINANCING H1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 17: Financing: Solid debt structure with low cost of capital
FINANCING 17 Solid debt structure with low cost of capital >> Financial KPIs: Debt allocation (m EUR outstanding debt) Corporate bond 31.03.2022 30.09.2021 % 2018/2024 13.3 40.0 Corporate bond Total financial debt (loans + bonds), m EUR 648.9 609.3 6.5 35.5 9.7 2019/2024 (unsecured) Ø Senior secured
Slide 18: Financials H1 2021/2022
18 FINANCIALS H1 2021/2022 H1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 19: Condensed IFRS balance sheet
FINANCIALS H1 2021/2022 19 Condensed IFRS balance sheet k EUR 31/03/2022 30/09/2021 k EUR 31/03/2022 30/09/2021 Assets Equity and liabilities Pro forma portfolio currently 1.003m Investment properties 953,486.8 944,019.6 Subscribed capital 35,155.9 35,155.9 EUR (including Other non-current assets 10
Slide 20: LTV and EPRA NAV/NTA
FINANCIALS H1 2021/2022 20 LTV and EPRA NAV/NTA >> LTV (loan-to-value): >> NAV/NTA per share: k EUR 31/03/2022 30/09/2021 EPRA NAV Conversion EPRA NTA (undiluted) effects of (diluted) Bank loans 429,468.5 401,289.4 k EUR convertible Convertible bonds 36,533.2 36,457.7 31/03/2022 bonds 31/03/2022 Tot
Slide 21: Condensed IFRS income statement
FINANCIALS H1 2021/2022 21 Condensed IFRS income statement 01/10/2021 – 01/10/2020 – k EUR % 31/03/2022 31/03/2021 Rental income increased due to the Rental income 36,245.3 33,001.8 9.8 property portfolio growth Income from recharched operating costs 7,147.9 5,886.9 21.4 Operating expenses -18,725.1
Slide 22: FFO reconciliation
FINANCIALS H1 2021/2022 22 FFO reconciliation >> FFO/aFFO: 01/10/2021 01/10/2020 % k EUR – – 31/03/2022 31/03/2021 Total period income 18,377.3 16,243.9 13.1 +/- Income taxes 0.0 0.0 0.0 Contains non-cash items due to IFRS valuation of debt instruments (0.5m) + Depreciation of other assets 9.5 5.8 6
Slide 23: Headline Earnings per share reconciliation
FINANCIALS H1 2021/2022 23 Headline Earnings per share (HEPS) reconciliation according to JSE rules >> HEPS: 01/10/2021 01/10/2020 % k EUR – – 31/03/2022 31/03/2021 Total period income (undiluted) 18,377.3 16,243.9 13.1 -/+ Revaluation gains / losses, IAS 40 0.0 0.0 0.0 -/+ Revaluation gains / losse
Slide 24: Outlook
24 OUTLOOK H1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 25: Guidance FY 2021/2022: FFO and dividends
GUIDANCE FY 2021/2022 25 FFO and dividends >> Guidance for FY 2021/2022: Date of guidance 16.12.2021 FFO (m EUR) 40.0 – 44.0 >> Dividend policy: ➢ Distribution of a stable base dividend ➢ Steady increase of the regular dividend in the course of DKRs further growth planned ➢ Additional dividend in ca
Slide 26: Share information
26 Share information H1 2021/2022 financial results | Deutsche Konsum REIT-AG
Slide 27: Share Information
SHARE INFORMATION 27 >> Basic Share Information MFS >> Shareholder Structure Investment As at 31.03.2022 Management Zerena GmbH 5.24% ISIN DE000A14KRD3 9.00% Share price (Xetra, 10 May 2022) EUR 12.25 Parson GmbH Symbol DKG Free Float 5.11% 40.58% Shares outstanding 35,155,938 Share class Bearer sha
Slide 28: Financial calendar and IR contact
28 Financial calendar and IR contact H1 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 half-yearly financial report of Quirin Champions Conference 2022 12.05.2022 01.06.2022 2021/2022 financial year (virtual event) Publication of the quarterly statement for
Slide 30: ESG
30 ESG H1 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 H1 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 • 178 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 H1 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 March 2022 H1 2021/2022 financial results | Deutsche Konsum REIT-AG
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