Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — Q1 2018/2019 Earnings Presentation
43 slides from Deutsche Konsum Real Estate's earnings presentation, February 2019
Slide 1: Deutsche Konsum REIT-AG (DKR) Q1 Results 2018/2019
Deutsche Konsum REIT-AG (DKR) Q1 Results 2018/2019
Slide 2: Content
Content Summary of the Q1 2018/2019 Real Estate Portfolio – Key figures, recent developments, tenancy and valuation potential Financial structure Financials Q1 2018/2019 DKR shares, analysts, guidance and dividend policy Financial calendar FY 2018/2019 Appendices Strategy Management External partner
Slide 3: Summary of the Q1 2018/2019
Summary of the Q1 2018/2019 3
Slide 4: Financial key figures
Financial key figures Q1 financial figures strongly benefit from prior year growth Rental income (kEUR) FFO (kEUR) FFO per share (EUR) 10,000 9,515 8,000 0,3 6,279 0.22 9,000 6,000 0,2 8,000 0.13 4,000 3,408 7,000 6,577 66% 52% 0,1 2,000 of RI 6,000 of RI 5,000 0,000 0 Q1 2017/2018 Q1 2018/2019 Q1 2
Slide 5: Retail property portfolio
Retail property portfolio 5
Slide 6: Property portfolio: key portfolio figures as at 31 December 2018
Property portfolio Key portfolio figures as at 31 Dezember 2018 Annualised rent (mEUR) Vacancy (%) >> Portfolio snapshot 40 10 37.9 9.6 ➢ Key figures based on 98 properties accounted as at 31.12.2018 35.5 8.9 35 9 ➢ Portfolio GAV of about 444 mEUR ➢ Vacancy level mainly dropped due to the latest 30
Slide 7: Property map
Property map 109 properties with 620,000 sqm lettable space and 490 mEUR GAV >> DKR’s top assets > 10 mEUR asset fair value as at 30.09.2018: City Lettable Acquisi Annual Fair value Valuation space tion by rent (mEUR) gain since (sqm) DKR (mEUR) acquisition (%) 1 Erfurt 16,920 2015 2.2 31.0 +44 2 Le
Slide 8: Portfolio map as at 31.12.2018 (98 properties)
Oer-Erkenschwick Weißwasser „Südpassage“ Bitterfeld „BiTZ“ Meißen Erfurt Elsterwerda „Elster Center“ Portfolio as at 31.12.2018 (98 properties) Transfers of ownership occured after 31.12.2018 (7 properties) Acquired assets with outstanding transfer of Leipzig „Löwenpark“ ownership (4 properties) Pla
Slide 9: Overview of latest property acquisitions (1)
Property portfolio Overview of latest property acquisitions (1) >> Six retail assets with a total investment volume of 30 mEUR acquired: Location Grevenbroich Ritterhude Greifswald (Northrhine-Westphalia) (Lower Saxony) (Mecklenburg-Pommerania) Space (sqm) 11,960 7,000 6,100 Annualised rent (kEUR) 1
Slide 10: Overview of latest property acquisitions (2)
Property portfolio Overview of latest property acquisitions (2) >> Six retail assets with a total investment volume of 30 mEUR acquired: Location Lünen (Northrhine-Westphalia) Goslar (Lower Saxony) Stralsund (Mecklenburg-Pommerania) Space (sqm) 5,900 4,900 2,100 Annualised rent (kEUR) 357 250 106 Ma
Slide 11: Tenant mix
Tenant mix High quality tenants and 65% 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 6.4 3.7 Schwarz Group 5.7 5.5 Metro Group 2.8 9.0 Other cyclical uses 9.2 Bartels-Langness
Slide 12: Leases
Leases DKR as a reliable partner for long-lasting tenancies >> Multiple leases with the same tenants1: >> Annualised rents allocated to years of lease contract maturities of the portfolio1: 40 18.000.000,00 35 1 16.000.000,00 30 No. of lease contracts 7 14.000.000,00 Rent p.a. EUR 1 25 3 12.000.000,
Slide 13: Valuation potential
Valuation potential Share price currently trades at a 7.6% yield >> NAV impact derived from factor increases (c.p.) leads to upside potential: Hypothetic Annualised total Hypothetical Portfolio value Net debt NAV Number of al NAV per portfolio rent valuation Yield Net LTV (mEUR) outstanding (mEUR) s
Slide 14: Financial structure
Financial structure 14
Slide 15: Solid and efficient debt structure
Financial structure Solid and efficient debt structure >> Financial KPIs: 31.12.2018 30.09.2018 % Debt allocation (mEUR initial nominal debt) Corporate Bond 40.0 37.0 Total financial debt (loans / bonds / convertible bonds), mEUR 236.1 231.5 +20 Average nominal interest of loans, % p.a. 1.99 1.98 +1
Slide 16: Debt metrics have significantly improved
Financial structure Debt metrics have significantly improved >> Development of debt metrics over the last 24 months: Average duration LTV ICR Average interest rate 60 6 50 5 40 4 30 3 20 2 10 1 0 0 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 31.12.2018 LTV
Slide 17: Financials Q1 2018/2019
Financials Q1 2018/2019 17
Slide 18: Condensed IFRS balance sheet
Financials Q1 2018/2019 Condensed IFRS balance sheet kEUR 31.12.2018 30.09.2018 kEUR 31.12.2018 30.09.2018 Assets Equity and liabilities Pro forma portfolio Investment properties 444,370.9 418,707.3 Subscribed capital 29,959.9 27,236.3 Increased equity due currently mEUR 490 (including the latest to
Slide 19: LTV and EPRA NAV
Financials Q1 2018/2019 LTV and EPRA NAV >> LTV (loan-to-value): >> EPRA NAV: kEUR 31.12.2018 30.09.2018 31.12.2018 30.09.2018 kEUR Bank loans 159,934.2 155,223.0 Total equity 245,026.8 209,762.4 Convertible bonds 35,871.3 36,098.9 Conversion of convertible bonds 0.0 0.0 Corporate bond 40,339.3 40,1
Slide 20: Condensed IFRS income statement
Financials Q1 2018/2019 Condensed IFRS income statement kEUR 01.10.2018 01.10.2017 % – – 31.12.2018 31.12.2017 Rental income 9,515.2 6,576.9 44.7 Rental income has mainly increased in the course Income from recharched operating costs1 1,775.4 670.7 >100.0 of the property portfolio growth Operating e
Slide 21: FFO reconciliation
Financials Q1 2018/2019 FFO reconciliation >> FFO/aFFO: kEUR 01.10.2018 01.10.2017 % – – 31.12.2018 31.12.2017 Total period income 5,560.9 2,927.8 89.9 +/- Income taxes 0.0 0.0 0.0 + Depreciation of other assets 0.3 0.2 33.3 +/- Gain/loss from remeasurement of 0.0 0.0 0.0 investment properties Conta
Slide 22: DKR shares
DKR shares 22
Slide 23: DKR shares remained stable in turbulent market periods
DKR Shares DKR shares remained stable in turbulent market periods >> DKR shares: 13.02.2019 ISIN DE000A14KRD3 WKN A14KRD3 Symbol DKG Number of shares 29,959,944 Nominal capital (kEUR) 29,959 Share class Bearer shares Stock exchanges XETRA, Frankfurt, Berlin Segment Prime Standard Indizes Prime all s
Slide 24: Analysts
DKR Shares Analysts >> Analyst coverage: Publication date Bank Analyst Recommendation Price target 2 July 2018 Thomas Effler „Buy“ EUR 12.80 4 February 2019 Kai Klose „Buy“ EUR 13.70 8 February 2019 Dr. Georg Kanders „Buy“ EUR 12.50 24
Slide 25: Stable shareholder structure
DKR Shares Stable shareholder structure >> DKR share developments in Q1 2018/2019: >> Current shareholder structure (31 Dec 2018) : Carmignac Gestion Midgard Beteiligungsgesellschaft mbH/ 0.43 EFa Vermögensverwaltungs KG 0.75 ➢ Successful 10% share capital increase closed on 22 Nov 2018 Obotritia Ca
Slide 26: Guidance and dividend outlook
Guidance and dividend outlook 26
Slide 27: Outlook to Fiscal Year 2018/2019
Outlook and guidance Outlook to Fiscal Year 2018/2019 >> FFO-Guidance for FY 2018/2019: ➢ DKR expects FFO between 26.0 mEUR and 29.0 mEUR ➢ FFO run rate of 33.0 mEUR by the end of FY 2018/2019 >> Dividend outlook for FY 2018/2019: ➢ Based on current projections we expect a dividend of 0.40 EUR per s
Slide 28: Financial calendar
Financial calendar 28
Slide 29: Financial calendar: we keep you informed
Financial calendar We keep you informed >> Financial calendar: >> Upcoming events: Date Date Country 14.02.2019 Publication of the quarterly statement for the first quarter of 19.02.2019 13th ODDO BHF German Conference, Frankfurt 2018/2019 financial year am Main 21.03.2019 Annual General Meeting, Be
Slide 30: Appendices
Appendices 30
Slide 31: Transforming non-institutional properties into an institutional asset class
Strategy Transforming non-institutional properties into an institutional asset class Owner B Owner C Owner A Owner D Owner E Owner F One owner: Deutsche Konsum REIT-AG ➢ Ownership of German basic retail properties highly fragmented among many private owners ➢ Bundling numerous single properties to a
Slide 32: Investment approach
Strategy Investment approach Idealistic value cycle of a retail property Investment criteria: Possible sale 1. Retail properties in established and stable micro locations and catchment area in regional and mid-sized cities in Germany Property value / WALT 2. Retail tenants with goods of daily needs
Slide 33: Sourcing process for retail properties
Strategy Sourcing process for retail properties Typical set of sellers Analysing process at DKR DKR portfolio Private owners ➢ CIO investment team analyses a Funds in yearly property volume of up to liquidation Remaining 3bn EUR due to age properties of of investors portfolio ➢ Rigorous compliance w
Slide 34: Basic retail threatened less by E-Commerce (1)
Strategy Basic retail threatened less by E-Commerce (1) >> Market research according to 13. Retail Real Estate Report Germany 2018/2018 by bulwiengesa / Hahn1: 34 ill. 1 ill. 2 ill. 3 ill. 4 Results of the statistical data: ➢ E-Commerce grows steadily in the general retail sector but especially in t
Slide 35: Basic retail threatened less by E-Commerce (2)
Strategy Basic retail threatened less by E-Commerce (2) >> Biggest grocery delivery services compared to DKR property portfolio Focused on big cities with > 500k inhabitants: ➢ Biggest deliverers offer services mainly in metropolitan areas ➢ Pick up services as a comfortable combination of online or
Slide 36: Very lean admin structure of the REIT
Strategy Very lean admin structure of the REIT Typical RETT-Blocker structure REIT Holding Verwaltungs GmbH PropCos … … … … REIT-AG vs. … … … … … … … … … … ➢ Many legal entities with high admin efforts ➢ One single legal entity ➢ High attention to legal and tax topics what needs personnel capacities
Slide 37: Experienced and committed management
Management Experienced and committed management Alexander Kroth (CIO) Rolf Elgeti (CEO) Christian Hellmuth (CFO) Alexander joined DKR in January 2017 and initially Rolf has been the founder of Deutsche Konsum REIT-AG, which is Christian joined DKR in January 2017 and is set up the company together w
Slide 38: Strong external partners
Partners Strong external partners >> DKRs main external management partners: Asset Managers Elgeti Brothers Property Managers Technical Property Developer IT and Management Software Providers 38
Slide 39: Value add by extensive property redevelopments
Revitalisation 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 Space (sq
Slide 40: DKR's current property portfolio
Portfolio overview DKRs current property portfolio Please find DKR‘s current portfolio overview online under the following link: DKR property portfolio overview as at 31st December 2018 40
Slide 41: 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 42: 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 42
Slide 43: 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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