Defama Deutsche Fachmarkt Ag · XETR:DEF

Defama Deutsche Fachmarkt — Investor Presentation (November 2023)

32 slides from Defama Deutsche Fachmarkt's investor presentation, November 2023

  1. Slide 1: DEFAMA Deutsche Fachmarkt AG Company Presentation

    Company Presentation DEFAMA Deutsche Fachmarkt AG November 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 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

  4. Slide 4: Investment Case: Value creation (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. 4‐5% p.a. Albstadt, Baden‐Wuerttemberg little equity needed, therefore high return on equity FFO per share in €  Strong growth due to additi

  5. Slide 5: Investment Case: Value creation (II)

    INVESTMENT CASE NAV per share Value creation on several levels (II) in € 22.80 24  Single purchases at favourable prices are laborious 18 16.86 19.61 13.46 11.02  Professionally managed portfolios trade 12 at much higher multiples on net rent 6 0 NAV per share +107% 2018 2019 2020 2021 2022 within

  6. Slide 6: Portfolio Key Figures

    PORTFOLIO incl. rental successes and Key Figures (as‐if 24 November 2023) indexations soon coming up: Locations 65 23.5m € Net Rent (annualised) €23.2m Lettable Space 277.047 sqm Occupancy Rate 95.0% Ø Lease Term (WALT) 4.6 years Portfolio Value €285m  80% of total net rent is generated from chain

  7. Slide 7: Portfolio: Biggest Tenants

    PORTFOLIO Biggest Tenants Sites Share Net Rent by Industry Kaufland/LIDL 6 9,1 % EDEKA/Netto/trinkgut 13 8,9 % REWE/Penny 10 8,6 % toom/B1 5 8,3 % JYSK 13 5,3 % Aldi Nord 6 3,4 % KiK 11 3,3 % H.H. Holding 13 3,0 % AWG 6 3,0 % NORMA 6 2,2 % Takko 7 2,0 % „Top 10“ leases account for Rossmann 4 1,8 % j

  8. Slide 8: Project Development: Investments within existing portfolio

    PROJECT DEVELOPMENT Investments within the existing portfolio  Refurbishment/expansion of rental spaces  Vacancy reduction  Optimisation of properties  Paketstations  Advertising boards  Parking‐space management ESG measures  Charging stations (currently 28 online)  PV systems, CityBreeze 

  9. Slide 9: Project Development: Hamm

    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 28 April 2022 The little bit outdated local supply center

  10. Slide 10: 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 2 June 2022 As we purchased it, the space was still a shell construction. November 2023 Company Presenta

  11. Slide 11: 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 27 December 2022  Remaining tasks and expansion of TEDi‘s area until May 2023 On a tota

  12. Slide 12: Investments within the existing portfolio (examples)

    PROJECT DEVELOPMENT Investments within the existing portfolio (examples) Gardelegen  Refurbishment for Futterhaus completed in total  Creation of area for tedox in process, completion est. Q1/2024 > €1m  Creation of area for a gym in planning, completion est. Q1/2024 Hof  Expansion of JYSK‘s are

  13. Slide 13: Key Figures 2022

    KEY FIGURES 2022 Portfolio Value in €m Sales CAGR +18% CAGR in €m +18% +24% 257 +22% 218 20.2 179 17.1 14.6 137 11.2 108 9.1 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Net Profit Funds from Operations (FFO) in €m in €m CAGR +7% CAGR +22% 8.6 +34% 1 5.4 +24% 5.0 7.1 5.9 4.6 2.5 3.6 1.7 2.1 201

  14. Slide 14: Key Figures 2022: Per-share data

    KEY FIGURES 2022 Earnings per share FFO per share CAGR in € +1% CAGR in € +14% +25% +16% 1.15 1.82 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  Company growth not for its

  15. Slide 15: Key Figures 9M/2023

    KEY FIGURES 9M/2023 Portfolio Value Sales in €m in €m 320 20 +9% 273 +16% 16.9 251 14.7 240 15 160 10 80 5 0 0 30/09/2022 30.09.2022 30.09.2023 30/09/2023 9M/2022 9M/2023 November 2023 Company Presentation DEFAMA Deutsche Fachmarkt AG 15

  16. Slide 16: Key Figures 9M/2023: Net Profit and FFO

    KEY FIGURES 9M/2023 Net Profit Funds from Operations (FFO) in €m in €m 1,80 9,0 3,20 4,5 +15% 7.1 +15% 6.2 2,40 2.8 1,20 6,0 3,0 2.5 1,60 1,5 0,60 3,0 1.33 1.48 0.52 0.58 0,80 0,0 0,00 0,0 0,00 9M/2022 9M/2023 9M/2022 9M/2023 Ergebnis Net Profit EPS EPSinin€€ FFO FFO FFO FFO//Aktie Shareinin€€ Novem

  17. Slide 17: Financing

    FINANCING Increase per 31.12.2023 to prosumably 6.6 years Key Figures (as of 30 Sept. 2023) 30 1.62% 4.14% 3.09% 2.37% Number of financing partners 36 20 1.98% 2.16% 5.59% 2.63% 1.74% Bank loans €157m 10 Ø Interest rate 2.58% 2.40% Ø Initial repayment 4.13% 0 Ø Fixed interest 5.4 years Loan‐to‐value

  18. Slide 18: Current Development: Sustainability

    CURRENT DEVELOPMENT Sustainability DEFAMA supports the UN Sustainable Development Goals. Here are five SDGs where DEFAMA can make a significant impact:  End poverty: ‐ Securing affordable shopping opportunities in rural areas ‐ Support local projects that help financially weaker people  Living hea

  19. Slide 19: Market conditions (I): energy renovation

    CURRENT DEVELOPMENT Market conditions (I): energy renovation is gaining ground  DEFAMA‘s retail parks on average „just“ ~ 20 years old, much younger and more modern than typical portfolios of real estate comp. with many old flats  Retail real estate properties have a relatively simple building str

  20. Slide 20: Market conditions (II): rising interest rates and inflation

    CURRENT DEVELOPMENT Market conditions (II): rising interest rates and accelerating inflation  91% 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 5.4

  21. Slide 21: Market conditions (III): acquisition pipeline

    CURRENT DEVELOPMENT Market conditions (III): increasing pipeline of attractive aquisition targets  Transactions market has almost dried up due to a lack of prespective buyers at former multiples  More and more potential sellers accept purchase prices of or under 10x net rent  DEFAMA is in negotia

  22. Slide 22: Transaction/Purchase: Retail park in Thuringia

    CURRENT DEVELOPMENT Transaction/Purchase Retail park in Thuringia  Year of construction: 1980 / 1993  Plot size: 15.689 sqm  Lettable space: 6.766 sqm  Occupancy rate: 97%  Annual net rent: app. €500k Nordhausen, Thüringen  Purchase price: €4.8m  Tenants are ACTION, Carglass, Hammer, JYSK, a

  23. Slide 23: Transaction/Purchase: Local supplier in Lower Saxony

    CURRENT DEVELOPMENT Transaction/Purchase Local supplier in Lower Saxonia  Year of construction: 2013  Plot size: 5.376 sqm  Lettable space: 1.130 sqm  Occupancy rate: 100%  Annual net rent: €130k Markoldendorf, Niedersachsen  Purchase price: €1.26m  Aquisition at 9.7x net rent  General tenan

  24. Slide 24: Transaction/Purchase: Heinsberg

    CURRENT DEVELOPMENT Transaction/Purchase Heinsberg, Northrhine‐Westfalia  Year of construction: 1992  Plot size: 12.679 sqm  Lettable space: 10.500 sqm  Occupancy rate: 95%  Annual net rent: app. €1m p.a. Heinsberg, Northrhine‐Westfalia  Aquisition at 9.8x net rent excluding non‐recoverable pr

  25. Slide 25: Transaction/Purchase: Reutter-Center

    CURRENT DEVELOPMENT Transaction/Purchase Reutter‐Center, Baden‐Wuerttemberg  Year of constr./modern.: 1980 / 2016  Plot size: 12.679 m2  Lettable space: 10.133 m2  Occupancy rate: 100%  Annual net rent (target): €1,2m p.a.  Main tenants of the property are Zell unter Aichelberg, Baden‐Württemb

  26. Slide 26: 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 November 2023 Company

  27. Slide 27: Mid-term guidance DEFAMA 2025

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

  28. Slide 28: DEFAMA on track for further growth

    STATUS AND OUTLOOK DEFAMA on track for further growth  Aquisition volume per 11/2023 at €25m already above typical yearly  Annualised FFO („run rate“) currently €11,1m resp. 2.32 € per share  Increased staff capacity for real estate transactions  Potentially higher annual aquisition volume in th

  29. Slide 29: Share

    SHARE Share price development since IPO Shareholder structure 2 28 € 26% 20 € 12 € 2% 72% 4€ Jul. 16 Jul. 17 Jul. 18 Jul. 19 Jul. 20 Jul. 21 Jul. 22 Jul. 23 WKN / ISIN A13SUL / DE000A13SUL5 Stock exchange Munich (m:access), Frankfurt, Xetra MSC Invest GmbH / M. Schrade Supervisory Board Number of sh

  30. Slide 30: 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

  31. Slide 31: 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 November 2023 Company Presentation DEFAMA Deutsche Fachmarkt AG 31

  32. Slide 32: 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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