Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — FY2016/2017 Earnings Presentation
56 slides from Deutsche Konsum Real Estate's earnings presentation, December 2017
Slide 1: Deutsche Konsum REIT-AG (DKR) Financial Year Results 2016/2017
Deutsche Konsum REIT-AG (DKR) Financial Year Results 2016/2017 and recent events
Slide 2: Contents
Contents Summary of the FY 2016/2017 Real Estate Portfolio – Key figures, recent development, tenancy and valuation potential Financial structure Financials FY 2016/2017 DKR shares, analysts, guidance and dividend policy Finance calendar FY 2017/2018 Appendices Management External partners Case stud
Slide 3: Summary of the FY 2016/2017
Summary of the FY 2016/2017 3
Slide 4: Results of FY 2016/2017 and guidance
Results of FY 2016/2017 and guidance ➢ Annual net profit 2016/2017 amounts to EUR 37.4 million ➢ Rental income increased by 68% up to EUR 19.2 million ➢ FFO amounts to EUR 10.3 million / aFFO amounts to EUR 8.0 million ➢ Investment properties up to EUR 275.4 million ➢ EPRA NAV increased by 59% to EU
Slide 5: Financial key figures
Financial key figures Strong growth of all financial figures in FY 2016/2017 Rental income (kEUR) FFO (kEUR) FFO per share (EUR) 25,000 12,000 10,260 0,5 0,46 19,249 10,000 0,45 20,000 8,000 0,4 0,37 15,000 11,437 5,630 6,000 0,35 10,000 4,000 0,3 5,000 2,000 0,25 0,000 0,000 0,2 FY 2015/2016 FY 201
Slide 6: Highlights of FY 2016/2017 and recent developments
Highlights of FY 2016/2017 and recent developments 6 Nov and 7 Dec Oct 2016 May - July 2017 July 2017 Sep 2017 Jan - Apr 2017 2017 Acquisition of 4 Acquisition of 3 Full letting of Acquisition of 6 1 Nov 2017 Acquisition of 9 Notarisation of 8 properties about properties about Domcenter grocery stor
Slide 7: Real Estate Portfolio
Real Estate Portfolio 7
Slide 8: Key portfolio figures as at 30.09.2017
Portfolio Key portfolio figures as at 30.09.2017 Annualized rent (mEUR) Vacancy (%) >> Portfolio snapshot 24,8 15,0 14,6 25,0 ➢ Key figures based on 62 properties booked as at 22,0 14,0 30.09.2017 19,0 13,0 16,0 14,4 ➢ GAV of the portfolio roughly 275 mEUR 12,0 12,0 according to yearly valuation by
Slide 9: Recent acquisitions (1)
Portfolio Recent acquisitions (1) Location Finsterwalde Location Langen- Location Hettstedt Location Kelbra Location Schwerte wolschendorf (Kyffhäuser) Space (sqm) 11,081 Space (sqm) 3,072 Space (sqm) 2,780 Space (sqm) 930 Space (sqm) 1,200 Annualized rent 480 Annualized rent 280 Annualized rent 227
Slide 10: Recent acquisitions (2)
Portfolio Recent acquisitions (2) Location Berlin Location Berlin Location Weilheim Location Dierdorf Location Jestetten Space (sqm) 987 Space (sqm) 931 Space (sqm) 1,824 Space (sqm) 1,392 Space (sqm) 1.288 Annualized rent 151 Annualized rent 202 Annualized rent 106 Annualized rent 147 Annualized re
Slide 11: Recent acquisitions (3)
Portfolio Recent acquisitions (3) ➢ After 30.09.2017 DKR acquired 12 further assets with a total investment volume of around 20 mEUR with annualized rents of about 2.2 mEUR and 32,000 sqm rental space ➢ Pro forma portfolio as at 18.12.2017 comprises 74 properties with annualised rents of about 27.0
Slide 12: Property map: 74 properties, 295 mEUR GAV
Property map 74 properties with about 375,000 sqm lettable space and 295 mEUR GAV >> Top 8 assets as at 18.12.2017: City Greifswald City Ludwigslust Lettable space (sqm) 9,410 Lettable space (sqm) 14,386 Construction 1997 Construction 2000 Schleswig- Annual rent (mEUR) 1.1 Holstein Annual rent (mEUR
Slide 13: Tenant mix: high quality tenants and 75% non-cyclical rents
Tenant mix High quality tenants and 75% non-cyclical rents >> Rent contribution by sector (mEUR)1: >> Annualised rent contribution by major tenants1 : Rents WALT in Tenant group Brands (mEUR) years Edeka Group 4.2 4.0 Other cyclical uses Schwarz Group 3.5 7.4 Metro Group 2.6 3.2 3,5 Bartels-Langness
Slide 14: Leases: DKR as a reliable partner
Leases DKR as a reliable partner for long-lasting tenancies >> Multiple leases with the same tenants foster the relationship >> Annualised rents allocated to years of lease contract maturities of (No. of lease contracts as at 01.11.2017): the portfolio as at 01.11.2017: 30 9.000.000,00 25 1 8.000.00
Slide 15: Revitalisation projects
Revitalisation projects Value add by extensive property redevelopments >> Current major revitalisation projects: Location Domcenter Location Kirschbergcenter Location Kolumbuspassage Location Lindencenter Greifswald Hohenmölsen Rostock Stralsund Space (sqm) 9,410 Space (sqm) 7,797 Space (sqm) 4,492
Slide 16: Valuation potential
Valuation potential Asset valuation leverages the NAV per share >> NAV impact derived from factor increases (c.p.) leads to upside potential: Annualised total Hypothetical Valuation Portfolio value Net debt NAV Number of portfolio rent Yield Net LTV NAV per multiple (mEUR) outstanding (mEUR) shares
Slide 17: Financial structure
Financial structure 17
Slide 18: Conservative and stable financing
Financial structure Conservative and stable financing >> Debt structure of DKR as at 30/09/2017 (mEUR nominal debt): Debt allocation (mEUR initial nominal debt) 30/09/2017 30/09/2016 18,4 Debt from loans and convertible bonds (IFRS), mEUR 118.9 90.4 Convertible bonds I and II 37,0 Average nominal in
Slide 19: Financials FY 2016/2017
Financials FY 2016/2017 19
Slide 20: Condensed IFRS balance sheet
Financials FY 2016/2017 Condensed IFRS balance sheet kEUR 30/09/2017 30/09/2016 kEUR 30/09/2017 30/09/2016 Assets Equity and liabilities Pro forma portfolio of Investment properties 275,443.9 147,822.5 Subscribed capital 24,760.3 18,447.0 mEUR 285 including Capital increase due the latest notarised
Slide 21: Condensed IFRS income statement
Financials FY 2016/2017 Condensed IFRS income statement kEUR 01/10/2016 - 01/10/2015 - 30/09/2017 30/09/2016 Rental income 19,248.9 11,437.4 Operating expenses -4,743.2 -2,464.4 Rent increases due to various acquisitions Net rental income 14,505.8 8,973.0 in the FY 2016/2017 Income from property dis
Slide 22: FFO and EPRA NAV reconciliation
Financials FY 2016/2017 FFO and EPRA NAV reconciliation >> FFO/aFFO: >> EPRA NAV: kEUR 01/10/2016 - 01/10/2015 - 30/09/2017 30/09/2016 kEUR 30/09/2017 30/09/2016 Total period income 37,405.0 21,988.9 +/- Income taxes 0.0 -861.9 Total equity 154,736.0 79,031.3 + Depreciation of assets 0.9 0.8 Convers
Slide 23: DKR shares, analysts, guidance and dividend policy
DKR shares, analysts, guidance and dividend policy 23
Slide 24: DKR Shares
DKR Shares Share price uplift reflects the potential of the business model >> DKR share: 18/12/2017 ISIN DE000A14KRD3 WKN A14KRD3 Symbol DKG Number of shares 27,236,313 Nominal capital (kEUR) 27,236 Share class Bearer shares Stock exchanges XETRA, Frankfurt, Berlin Segment Prime Standard Indizes CDA
Slide 25: DKR Shares: Analysts
DKR Shares Analysts >> Analyst coverage: Publication date Bank Analyst Recommendation Price target 17 August 2017 Thomas Effler „Buy“ EUR 9.90 18 December 2017 Kai Klose „Buy“ EUR 11.50 25
Slide 26: Stable and broad investor base after capital increase
DKR Shares Stable and broad investor base after capital increase >> Recent DKR share developments: >> Current shareholder structure (18/12/2017) : Carmignac Gestion Aramis Holding GmbH ➢ Successful 10% share capital increase closed on 8 Dec 2017 Obotritia Capital Group 30,12% 2,46 3,49 Tiven GmbH 9,
Slide 27: FFO guidance and dividend policy for FY 2017/2018
DKR Shares FFO-Guidance and dividend policy for Fiscal Year 2017/2018 >> FFO-Guidance for FY 2017/2018: ➢ FFO guidance is mainly driven by successful futurous acquisitions ➢ DKR plans to invest between 75 and 100 mEUR in the FY 2017/2018 ➢ Based on current projections DKR expects FFO between 16.0 mE
Slide 28: Finance calendar
Finance calendar 28
Slide 29: Finance calendar
Finance calendar We keep you informed >> Finance calendar: Date 18.12.2017 Publication of final annual statements FY 2016/2017 19.12.2017 Analyst call regarding final annual statements and latest developments 14.02.2018 Publication of Q1 2017/2018 interim statement 08.03.2018 Annual General Meeting
Slide 30: Appendices
Appendices 30
Slide 31: Experienced and committed management
Appendix I Experienced and committed management Rolf Elgeti (CEO) Rolf has been the founder of Deutsche Konsum REIT-AG, which is a spin-off of his investment company Obotritia Capital. Before he was the CEO of TAG Immobilien AG, Hamburg, which experienced an enormous growth under his leadership and
Slide 32: Strong external partners
Appendix II Strong external partners >> DKRs external management partners: Elgeti Brothers 32
Slide 33: DKR's value add approach
Appendix III DKR‘s value add approach Risk/Chance Pro-active Establishing analysis before stable tenant asset relationships purchase management We try to get a vision We want to be reliable of the asset, location DKRs asset and long term partner and useful future uses management consists and are in
Slide 34: Case 1: Bitterfeld revitalisation of BiTZ retail store
Appendix III Case 1: Bitterfeld - Revitalisation of „BiTZ“ retail store At purchase Now progress Revitalisation process: Results: 1 New attractive tenants REWE (15 New utilisation concept by DKR‘s AM and years contract) and DM (12 years activation of unused land by new construction contract) and inc
Slide 35: Case 2: Ludwigslust extending the anchor of Lindencenter
Appendix III Case 2: Ludwigslust - Extending the anchor of „Lindencenter“ At purchase Now progress Value-add measures: Results: 1 Prolongation of food retail anchor by At purchase through DKR the anchor tenant 10 years with same conditions was about to leave the asset. Started which increased the WA
Slide 36: Case 3: Greifswald vacancy reduction
Appendix III Case 3: Greifswald - Vacancy reduction through new attractive concept At purchase After rebuilding progress Revitalisation process: Results: 1 At purchase the retail centre had an uncertain Space expansion of food retail future stucking in a liquidation for years. anchor and fashion sto
Slide 37: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 1 Platz der Befreiung 1 Retail 10.532 0,1% 5,49 57.756 693.072 16303 Schwedt 2 Brehnaer Straße 34 Retail 19.541 29,6% 5,96 81.959 983.508 06749 Bitterfeld
Slide 38: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 5 Am Marstall 2 Retail 14.386 0,8% 9,09 129.714 1.556.564 19288 Ludwigslust 6 Rendsburger Straße 16 Retail 4.630 0,0% 4,14 19.167 230.004 24534 Neumünster
Slide 39: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 9 Chausseestraße 41-43 Retail 1.589 0,0% 6,75 10.728 128.731 17373 Ueckermünde I 10 Ostrauer Straße 5 Retail 3.384 61,7% 3,78 4.900 58.800 06231 Bad Dürre
Slide 40: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 13 Karlsgasse 28 Retail 5.435 0,0% 1,56 8.500 102.000 08626 Adorf 14 Bahnhofstraße 35-36 Retail 1.608 0,0% 9,20 14.789 177.474 16348 Wandlitz 15 Merseburg
Slide 41: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 17 R.-Luxemburg-Straße 47 Retail 1.087 0,0% 6,72 7.299 87.589 6779 Gräfenhainichen 18 B192 Retail 1.598 0,0% 6,94 11.091 133.087 19417 Warin 19 Dorfstraße
Slide 42: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 21 Neuenbrooker Str. 37, Retail 1.758 0,0% 7,38 12.980 155.758 Krempe 22 Löbauer Str. 45, Retail 1.334 0,0% 7,57 10.100 121.200 Herrnhut 23 Am Bahnhof 8,
Slide 43: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 25 Albert-Tanneur-Straße 25, Retail 3.902 0,0% 6,93 27.047 324.561 Ludwigsfelde 26 Manteuffelstraße 71, Retail 1.133 0,0% 5,57 6.316 75.790 Berlin-Tempelh
Slide 44: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 29 Brückenstraße 12a/b, Retail 2.783 0,0% 8,31 23.118 277.417 15562 Rüdersdorf 30 Karl-Marx-Straße 95, Retail 1.181 0,0% 9,31 10.990 131.880 03172 Guben 3
Slide 45: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 33 Dompassage Greifswald Retail 17.136 36,5% 7,56 82.258 987.096 34 Ringstr. 31-37 Gustav-Petri- Retail 11.133 17,9% 6,28 57.432 689.180 Str. 38855 Wernig
Slide 46: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 37 Edderitzer Straße 8, Retail 685 0,0% 10,33 7.075 84.896 06366 Köthen 38 Neustadt 1a, 06463 Retail 678 0,0% 9,30 6.308 75.697 Ermsleben 39 Babener Straß
Slide 47: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 41 Mühlstraße 52, 98547 Retail 1.027 0,0% 4,30 4.420 53.040 Viernau 42 Bergstraße 12, 98634 Retail 916 0,0% 4,87 4.458 53.500 Kaltensundheim 43 Gartenstra
Slide 48: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 45 Rostocker Straße 1, 2, 3, Retail 15.157 0,0% 7,53 114.143 1.369.716 7 und 8, 16928 Pritzwalk 46 Holzmarkt 7, 9, 11, 13 und Retail 7.128 2,7% 13,96 96.8
Slide 49: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 49 Abtshäger Straße 13, Retail 1.320 0,0% 6,82 9.006 108.072 18461 Franzburg 50 Lindenallee 25, 18437 Retail 5.882 27,1% 4,46 19.148 229.774 Stralsund 51
Slide 50: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 53 Harburgerstraße 30, Retail 6.392 0,0% 11,16 71.307 855.684 29303 Bergen 54 Drebkauer Hauptstr.5, Retail 965 0,0% 5,18 5.000 60.000 03116 Drebkau 55 Kar
Slide 51: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 57 Schützenstraße 1, 01662 Retail 24.209 30,9% 6,28 105.001 1.260.015 Meißen 58 Morgenbergstraße 41, Retail 24.007 33,7% 7,63 121.435 1.457.218 08525 Plau
Slide 52: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 61 Karl-Marx-Straße 33, Retail 965 0,0% 11,09 10.700 128.400 15890 Eisenhüttenstadt 62 Frohnbachstr. 59, 09212 Retail 1.862 0,0% 7,89 14.702 176.424 Limba
Slide 53: DKRs current portfolio
Appendix IV DKRs current portfolio DKR Portfolio Rental Monthly Annual # Address Use Vacancy Rent level space rent rent sqm % €/sqm € p.m. € p.a. 63 Luisienstraße a-k / Am Retail 2.781 0,0% 6,81 18.938 227.262 Plattenberg, 06333 Hettstedt 64 Jochstraße 3, 06536 Retail 930 0,0% 6,45 6.000 72.000 Kelb
Slide 54: Glossary
Glossary >> Calculation of financial figures: Financial KPI Calculation Average debt interest rate Weighed average interest rates of financial instruments divided by nominal financial debt EPRA NAV per share Total equity modified according to EPRA guidelines divided by number of shares FFO Funds Fro
Slide 55: IR contact
IR contact Get in touch with us >> IR contact: Stefanie Frey August-Bebel-Str. 68 14482 Potsdam sf@deutsche-konsum.de + 49 (0331) 740 076 533 55
Slide 56: Disclaimer
Disclaimer The material in this presentation has been prepared by Deutsche Konsum REIT-AG (Deutsche Konsum) and is general background information about Deutsche Konsum’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be compl
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