Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — 9M 2020/2021 Earnings Presentation
42 slides from Deutsche Konsum Real Estate's earnings presentation, Aug 12, 2021
Slide 1: 9M 2020/2021 Results
1 9M 2020/2021 RESULTS 1 OCTOBER 2020 – 30 June 2021 12 August 2021 9M 2020/2021 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
HIGHLIGHTS Deutsche Konsum REIT-AG
Slide 4: Highlights 9M 2020/2021
HIGHLIGHTS 9M 2020/2021 4 Significant valuation uplift of the property portfolio Property portfolio exceeded size of 1bn EUR ➢ Significant revaluation uplift (l-f-l) by c. 65m EUR or 8.0% (55m EUR valuation gain after capex invested) ➢ YTD acquisitions of 13 retail properties with a total investment
Slide 5: Financial Key Figures
FINANCIAL KEY FIGURES 5 Consistent and value-enhancing growth Rental income FFO FFO per share (k EUR) (k EUR) (EUR) 50.635 30.623 0.87 25.194 0.78 40.323 9M 2019/2020 9M 2020/2021 9M 2019/2020 9M 2020/2021 9M 2019/2020 9M 2020/2021 aFFO per share Investment properties EPRA NAV per share (EUR) (k EUR
Slide 6: Property Portfolio
PROPERTY PORTFOLIO Deutsche Konsum REIT-AG
Slide 7: Property Portfolio: Key portfolio figures
PROPERTY PORTFOLIO 7 Key portfolio figures as at 30 June 2021 >> Portfolio snapshot: Annualised rent (m EUR) Vacancy (%) ➢ Key portfolio figures based on 172 properties accounted as at 30.06.2021 68,5 11.2 63,1 ➢ Increase of vacancy due to the recent acquisition of properties with vacancy 9.9 levels
Slide 8: Acquisitions: Selection of recent acquisitions (1)
ACQUISITIONS 8 Selection of recent acquisitions (1) Zerbst (Saxony- Parchim (Mecklenburg- Neu-Anspach (Hesse) Mölln (Schleswig- Location Stendal Schöneck (Saxony) Anhalt) Pomerania) Holstein) Type Retail park Retail centre Discount store Retail park Retail centre Retail centre Space (sqm) 19,800 2,6
Slide 9: Acquisitions: Selection of recent acquisitions (2)
ACQUISITIONS 9 Selection of recent acquisitions (2) Wrestedt Blankenstein Northeim (Lower Frankfurt / Oder Saarbrücken-Dudweiler Location (Northrhine- Freital (Saxony) Zittau (Saxony) (Thuringia) Saxony) (Brandenburg) (Saarland) Westphalia) Type Discount store Discount store Retail centre Retail par
Slide 10: Property Portfolio: Proforma portfolio development
PROPERTY PORTFOLIO 10 Proforma portfolio consists of 174 properties with > 1,024,000 sqm >> Portfolio development within the last 24 months: Schleswig- Mecklenburg Holstein - Pommerania 30.09.2019 30.09.2020 30.06.2021 Pro Forma (including notarised properties) Lower Saxony Number of 123 161 172 174
Slide 11: Tenant Structure: Non-cyclical rent contribution
TENANT STRUCTURE 11 66% Rent contribution from non-cyclical tenants (80% including DIY) >> Rent contribution by tenant classification (m EUR)1: >> Rent contribution by major tenants1 : Rent WALT Tenant group Brands (m EUR) in years Edeka Group 8.4 5.0 Other cyclical uses Schwarz Group 10.9 6.0 14,3
Slide 12: Tenant Structure: Resilient and inflation-linked rental income
TENANT STRUCTURE 12 Resilient and inflation-linked rental income >> Strategy with focus to tenants with daily-needs supply pays off: >> Rent collection during the pandemic: 100% ➢ Despite COVID lockdowns DKR with high monthly rent collection rates1 95% ➢ Dip in January due to strict lockdowns and fa
Slide 13: Tenant Structure: Reliable partner for tenants
TENANT STRUCTURE 13 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 5 60 30 6 50 25 No. of lease contracts 22 Rent p.a. mEUR 40 20 30 3 15 6 6 20 10 11 4 32 3 10 21 5 15 12 11 11
Slide 14: Valuation Potential of the Portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 14 Share price currently trades at 6.9% 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 EUR
Slide 15: Financing
FINANCING Deutsche Konsum REIT-AG
Slide 16: Financing: Solid and cost-efficient debt structure
FINANCING 16 Solid and cost-efficient debt structure >> Financial KPIs: Debt allocation (m EUR outstanding debt) Corporate bond 30.06.2021 30.09.2020 % 2018/2024 Corporate bond Total financial debt (loans + bonds), m EUR 619.4 527.7 17.4 13,8 40,0 2019/2024 35,8 (unsecured) Avg. loan interest, % p.a
Slide 17: Financials 9M 2020/2021
FINANCIALS 9M 2020/2021 Deutsche Konsum REIT-AG
Slide 18: Condensed IFRS balance sheet
FINANCIALS 9M 2020/2021 18 Condensed IFRS balance sheet k EUR 30.06.2021 30.09.2020 k EUR 30.06.2021 30.09.2020 Pro forma Assets Equity and liabilities portfolio currently 1,000m EUR Investment properties 955,125.2 809,928.6 Subscribed capital 35,155.9 35,155.9 (including Other non-current notarised
Slide 19: LTV and EPRA NAV
FINANCIALS 9M 2020/2021 19 LTV and EPRA NAV >> LTV (loan-to-value): >> EPRA NAV: k EUR 30.06.2021 30.09.2020 k EUR 30.06.2021 30.09.2020 Bank loans 358,299.5 319,377.8 Total equity 455,880.0 390,664.5 Convertible bonds 36,420.2 36,308.6 Conversion of convertible bonds 0.0 0.0 Corporate bonds 170,420
Slide 20: Condensed IFRS income statement
FINANCIALS 9M 2020/2021 20 Condensed IFRS income statement 01.10.2020 – 01.10.2019 – k EUR % 30.06.2021 30.06.2020 Rental income 50,634.9 40,322.9 25.6 Rental income increased due to the property portfolio growth Income from recharched operating costs 8,264.2 8,739.2 -5.4 Operating expenses -25,188.
Slide 21: FFO reconciliation
FINANCIALS 9M 2020/2021 21 FFO reconciliation >> FFO/aFFO: 01.10.2020 01.10.2019 % k EUR – – 30.06.2021 30.06.2020 Contains non-cash items due to Total period income 79,277.9 27,243.6 >100.0 IFRS valuation of debt instruments and short-term +/- Income taxes 0.0 0.0 0.0 receivables (impairment of + D
Slide 22: Headline Earnings per share (HEPS) reconciliation
FINANCIALS 9M 2020/2021 22 Headline Earnings per share (HEPS) reconciliation according to JSE rules >> HEPS: 01.10.2020 01.10.2019 % k EUR – – 30.06.2021 30.06.2020 Total period income (undiluted) 79,277.9 27,243.6 >100.0 -/+ Revaluation gains / losses -54,804.9 -6,793.4 >100.0 Headline earnings (un
Slide 23: Outlook
OUTLOOK Deutsche Konsum REIT-AG
Slide 24: Outlook FY 2020/2021: Guidance amended
OUTLOOK FY 2020/2021 24 Guidance amended >> Current guidance for FY 2020/2021: Date of guidance 17.12.2020 12.08.2021 FFO (m EUR) 42.0 – 45.0 40.0 – 41.0 FFO Run Rate as of 30 September 2021 (m EUR) 47.0 – 51.0 47.0 – 51.0 9M 2020/2021 financial results | Deutsche Konsum REIT-AG
Slide 25: ESG aspects at DKR
ESG aspects at DKR Deutsche Konsum REIT-AG
Slide 26: ESG measures to enhance conformity
ESG aspects at DKR 26 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 27: Roll-out of electric charging points
ESG aspects at DKR 27 Example: Roll-out of electric charging points at DKR‘s locations >> Summary of the project ➢ 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 E
Slide 28: First Sustainability Report published
ESG aspects at DKR 28 DKRs first Sustainability Report published >> ESG reporting ➢ Sustainability Report for the calendar year 2019 available on DKR’s website in English and German 9M 2020/2021 financial results | Deutsche Konsum REIT-AG
Slide 29: Share Information
SHARE INFORMATION 29 >> Basic Share Information MFS >> Shareholder Structure Investment As at 30.06.2021 Management Zerena GmbH 5.24% ISIN DE000A14KRD3 9,00% Share price (Xetra, 10 August 2021) EUR 14.50 Parson GmbH Symbol DKG Free Float 5,11% 40.59% Shares outstanding 35,155,938 Share class Bearer
Slide 30: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT 30 >> Financial calendar >> Roadshows / Investor meetings Date Date Country Publication of the quarterly statement for the third 12.08.2021 02.09.2021 Commerzbank Corporate Conference, Frankfurt quarter of 2020/2021 financial year Publication of the final annual sta
Slide 31: Appendix
APPENDIX Deutsche Konsum REIT-AG
Slide 32: Historical KPI Development
HISTORICAL KPI DEVELOPMENT 32 Continuously high growth since inception Financial year 9M 2020/2021 2019/2020 2018/2019 2017/2018 2016/2017 2015/2016 Income statement Rental income (k EUR) 50,635 56,231 41,978 28,601 19,249 11,437 FFO (k EUR) 30,623 34,991 25,041 16,647 10,260 5,630 FFO per share (EU
Slide 33: DKR Business Model at a Glance
DKR BUSINESS MODEL AT A GLANCE 33 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 • 174 retail properties • F
Slide 34: Strategy: Investment approach
STRATEGY 34 Investment approach >> Growing BASIC RETAIL investor – biggest niche player in Germany: WALT 5 Yiel 10 d 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 35: Bundling single properties into an institutional asset class
STRATEGY 35 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 36: Basic retail sector remains stable with best outlook
STRATEGY 36 Basic retail sector remains stable with best outlook >> Market research according to 15. Retail Real Estate Report Germany 2020/2021 by bulwiengesa / Hahn / CBRE1: 38m 3.2 % sqm Growth of the Total grocery & stationery retail drugstore retail in 2019 lease area in Germany • Strong German
Slide 37: Basic retail resilient to E-Commerce (1)
STRATEGY 37 Basic retail resilient to E-Commerce (1) >> Market research according to 15. Retail Real Estate Report Germany 2020/2021 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 w
Slide 38: Basic retail resilient to E-Commerce (2)
STRATEGY 38 Basic retail resilient to E-Commerce (2) >> Market research according to 15. Retail Real Estate Report Germany 2020/20201 by bulwiengesa / Hahn / CBRE1: fig. 3 fig. 4 Results of the statistical data: • Yearly growth rate of total E-Commerce still moderate • E-Commerce growth mainly drive
Slide 39: Sourcing process for retail properties
ASSET SOURCING 39 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 40: Experienced and committed management
MANAGEMENT 40 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 41: Strong external property partners
PARTNERS 41 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 9M 2020/2021 financial results | Deutsche Konsum REIT-AG
Slide 42: DKR's detailed property portfolio
PORTFOLIO DETAILS 42 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 30 June 2021 plus latest acquisitions 9M 2020/2021 financial results | Deutsche Konsum REIT-AG
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