Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — Eigenkapitalforum Frankfurt 2018
33 slides from Deutsche Konsum Real Estate's conference presentation, November 2018
Slide 1: Deutsche Konsum REIT-AG (DKR)
Deutsche Konsum REIT-AG (DKR) Leading listed basic retail investor in Germany Eigenkapitalforum Frankfurt
Slide 2: Content
Content Who is Deutsche Konsum REIT? Strategy Property portfolio Financial structure Preliminary figures FY 2017/2018 Shares Outlook 2
Slide 3: Who is Deutsche Konsum REIT?
Who is Deutsche Konsum REIT? 3
Slide 4: Listed basic retail investor in Germany
Who is Deutsche Konsum REIT? Listed basic retail investor in Germany ➢ Operational start in 2014 – since then strong growth ➢ Focus on basic retail properties with goods of daily needs supply ➢ Holds 103 retail properties with a balance value of > 450 mEUR ➢ 40m EUR annualised rents ➢ Initial yields
Slide 5: Strategy
Strategy 5
Slide 6: High real estate cashflows combined with tax exemption
Strategy High real estate cashflows combined with tax exemption High non-cyclical cashflows generated by retail properties with initial yields of > 10% + Stable and efficient financial structure + Value creation by active asset management + + Tax exemption due to Lean company structure REIT status =
Slide 7: 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 8: 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 9: 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 10: 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 11: Property portfolio
Property portfolio 11
Slide 12: Property map: 103 properties, 580,000 sqm, 460 mEUR GAV
Property map 103 properties with 580,000 sqm lettable space and 460 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 Greifswald „Domcenter“ (%) Ludwigslust „Li
Slide 13: Tenant mix: high quality tenants and 68% non-cyclical rents
Tenant mix High quality tenants and 68% 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 6.2 4.0 Other cyclical uses Schwarz Group 5.6 5.8 7.7 Metro Group 2.5 9.6 Bartels-Langness
Slide 14: DKR as a reliable partner for long-lasting tenancies
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: 35 30 1 16.000.000,00 7 14.000.000,00 25 No. of lease contracts Rent p.a. EUR 1 12.000.000,00 20 3 4 10.000.00
Slide 15: Key portfolio figures as at 30 September 2018
Property portfolio Key portfolio figures as at 30 September 2018 Annualised rent (mEUR) Vacancy (%) >> Portfolio snapshot 40 15,0 14.6 35.5 14,0 ➢ Key figures based on 90 properties accounted as 35 13,0 at 30.09.2018 12,0 30 11,0 ➢ Portfolio GAV of about 418 mEUR 24.8 9.6 25 10,0 9,0 ➢ Vacancy level
Slide 16: Basic retail threatened less by E-Commerce (1)
Portfolio Basic retail threatened less by E-Commerce (1) >> Market research according to 13. Retail Real Estate Report Germany 2018/2019 by bulwiengesa / Hahn1: 16 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
Slide 17: Basic retail threatened less by E-Commerce (2)
Portfolio 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 o
Slide 18: 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 19: Financial structure
Financial structure 19
Slide 20: Solid and efficient debt structure
Financial structure Solid and efficient debt structure >> Financial KPIs: 30.09.2018 30.09.2017 % Debt allocation (mEUR initial nominal debt) Corporate Bond Total financial debt (loans / bonds / convertible bonds), 231.5 118.9 +95 40.0 37.0 mEUR Convertible bond II 7.0 Average nominal interest of lo
Slide 21: 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 30.09.2016 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 LTV
Slide 22: Preliminary results FY 2017/2018
Preliminary results FY 2017/2018 22
Slide 23: Continuous and solid growth of financial figures in 12M 2017/2018
Financial key figures Continuous and solid growth of financial figures in 12M 2017/2018 Rental income (kEUR) FFO (kEUR) FFO per share (EUR) 40,000 20,000 0,7 16,502 0.62 29,336 30,000 15,000 0,6 19,249 10,260 20,000 10,000 0,5 0.46 56% 53% of RI 10,000 5,000 0,4 of RI 0,000 0,000 0,3 2016/2017 2017/
Slide 24: Shares
Shares 24
Slide 25: Share price reflects the steady and accretive growth of DKR
DKR Shares Share price reflects the steady and accretive growth of DKR >> DKR share: 30.09.2018 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 Prime a
Slide 26: Analysts
DKR Shares Analysts >> Analyst coverage: Publication date Bank Analyst Recommendation Price target 2 July 2018 Thomas Effler „Buy“ EUR 12.80 15 November 2018 Kai Klose „Buy“ EUR 13.00 15 November 2018 Dr. Georg Kanders „Buy“ EUR 12.50 26
Slide 27: Stable shareholder structure
DKR Shares Stable shareholder structure >> DKR share developments in FY 2017/2018: >> Current shareholder structure (30.09.2018) : Carmignac Gestion ➢ Successful 10% share capital increase closed on 8 Dec 2017 Obotritia Capital Group 30.87% Parson GmbH 0,71 9,99 3,84 ➢ Issuance of 2,476,028 new shar
Slide 28: Outlook
Outlook 28
Slide 29: 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 FFO yield ~ 10% >> Dividend outlook for FY 2018/2019: ➢ Based on current projections we expect a dividend o
Slide 30: Other
Other 30
Slide 31: 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 32: 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 32
Slide 33: 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
Deutsche Konsum REIT-AG — Eigenkapitalforum Frankfurt 2018 on 6ix