Defama Deutsche Fachmarkt Ag · XETR:DEF

Defama Deutsche Fachmarkt — Investor Presentation (November 2024)

34 slides from Defama Deutsche Fachmarkt's investor presentation, November 2024

1. Slide 1: Company Presentation DEFAMA Deutsche Fachmarkt AG

   Company Presentation DEFAMA Deutsche Fachmarkt AG November 2024

2. Slide 2: At a Glance: Highlights YTD 2024

   AT A GLANCE Highlights YTD 2024  Funds From Operations (FFO) as of 30 September 2024 reached €7.6m (+7%)  Annualised FFO („run rate“) now at €12.1m resp. 2.52 € per share  Sale of retail park Büdelsdorf for €6.7m resulted in positive one‐off of €1.5m pre‐tax and more than €3m cash‐in after tax 

3. Slide 3: Equity Story

   EQUITY STORY DEFAMA acquires Pasewalk, Mecklenburg Western Pomerania  Well‐established retail parks in Germany  Chain stores with strong solvency as (anchor) tenants  Little vacancies and/or investment needs  Purchase price per property usually between €1m and €5m  Mainly located in small to me

4. Slide 4: Equity Story: Three good reasons for our 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 shopping centres e‐commerce substitution of the

5. Slide 5: Portfolio Key Figures

   PORTFOLIO Key Figures (as of 15 November 2024) Locations 77 Net Rent (annualised) €26.5m Lettable Space 308,171 sqm Occupancy Rate 96% Ø Lease Term (WALT) 4.5 years Portfolio Value > €300m  80% of total net rent is generated from chain stores with strong credit ratings  Contracts with anchor tenan

6. Slide 6: Portfolio: Biggest Tenants

   PORTFOLIO Biggest Tenants (as of 15 November 2024) Sites Share Net Rent by Industry EDEKA/Netto/trinkgut 16 10.6 % Kaufland/LIDL 7 9.0 % toom/B1 5 8.1 % REWE/Penny 9 7.3 % JYSK 14 4.4 % H.H. Holding 14 3.4 % KiK 13 2.9 % Aldi Nord 6 2.7 % AWG 6 2.7 % Rossmann 5 2.1 % Takko 8 2.1 % „Top 10“ leases ac

7. Slide 7: 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 30 online)  PV systems, CityBreeze 

8. Slide 8: Project Development: Investment examples

   PROJECT DEVELOPMENT Investments within the existing portfolio (examples) Gardelegen  Dismantling of former disco for new letting completed in total  Creation of area for tedox completed > €1m  Creation of area for a gym in progress, completion est. 9/2024 Nordsteimke  Refurbishment for a gym in

9. Slide 9: Key Figures 2023

   KEY FIGURES 2023 Portfolio Value Sales in €m in €m CAGR +10% CAGR +16% +20% +20% 283 23.3 257 20.2 218 17.1 179 14.6 137 11.2 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Net Profit Funds from Operations (FFO) in €m in €m CAGR ‐22% CAGR +13% +19% 1 +20% 9.7 5.0 1 5.4 8.6 4.2 1 7.1 5.9 2.5 4.6 2

10. Slide 10: Key Figures 2023

    KEY FIGURES 2023 Earnings per share FFO per share CAGR in € ‐24% CAGR in € +10% +11% +15% 2.02 1.14 1.15 1.82 0.87 1.33 1.60 1.14 0.51 0.57 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Dividend per share CAGR in € Guiding principles for our expansion +6% +6% 0.51 0.54 0.57  Company growth not

11. Slide 11: Key Figures 9M/2024

    KEY FIGURES 9M/2024 Portfolio Value Sales in €m in €m 360 24 +6% +18% 19.9 273 288 270 18 16.9 180 12 90 6 0 0 30.09.2023 30.09.2024 9M/2023 9M/2024 November 2024 Company Presentation DEFAMA Deutsche Fachmarkt AG 11

12. Slide 12: Key Figures 9M/2024

    KEY FIGURES 9M/2024 Net Profit Funds from Operations (FFO) in €m in €m 5,4 1,80 10,8 3,60 +7% +38% 3.9 7.6 8,1 7.1 2,70 3,6 2.8 1,20 5,4 1,80 1,8 0.81 0,60 1.49 1.59 0.59 2,7 0,90 0,0 0,00 0,0 0,00 9M/2023 9M/2024 9M/2023 9M/2024 Ergebnis EPS in € FFO FFO / Aktie in € November 2024 Company Presentat

13. Slide 13: Financing

    FINANCING Due to new loan contracts as of now Maturity Profile incl. Repayments 7.2 years in €m Key Figures (as of 30 September 2024) 30 1.62% 4.23% 3.08% 2.37% Number of financing partners 36 20 5.66% 2.62% 2.16% Bank loans €166m 1.74% 10 2.40% 3.95% Ø Interest rate 2.89% Ø Initial repayment 4.02%

14. Slide 14: 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

15. Slide 15: Current Development: Market conditions

    CURRENT DEVELOPMENT Market conditions: increasing pipeline of attractive aquisition targets  More and more potential sellers accept purchase prices of or under 10x net rent  Record number of potential aquisition targets, more and more in big towns and even top 7 cities  DEFAMA is in negotiations

16. Slide 16: Transaction/Disposal: Retail park in Büdelsdorf

    CURRENT DEVELOPMENT Transaction/disposal Retail park in Büdelsdorf  Sold for €6.7m  Net rent of app. €550k  Purchased for €3.1m in late 2016  Refurbished for app. €2m within the last few years by DEFAMA  Main tenant now is a gym  Further tenants are TEDi, Jeans Fritz, tanning salon, creative m

17. Slide 17: Transaction/Purchase: Supermarket in Magdeburg

    CURRENT DEVELOPMENT Transaction/Purchase Supermarket in Magdeburg  Year of construction: 1992  Plot size: 5,047 m2  Lettable space: 1,732 m2  Occupancy rate: 100%  Annual net rent: > €250k p.a. Magdeburg, Saxony‐Anhalt  Purchase price: €2.55m  Long‐standing main tenant is Edeka  Aquisition a

18. Slide 18: Transaction/Purchase: Two local suppliers in Brandenburg

    CURRENT DEVELOPMENT Transaction/Purchase Two local suppliers in Brandenburg  Year of construction: 2015 / 2016  Plot size: 5,550 m2  Lettable space: 2,286 m2  Occupancy rate: 100%  Annual net rent: n.n. 1 Teltow, Brandenburg Storkow/Mark, Brandenburg  Purchase price: n.n. 1  Tenants are DM, R

19. Slide 19: Transaction/Purchase: Retail park in Osnabrück

    CURRENT DEVELOPMENT Transaction/Purchase Retail park in Osnabrück  Year of construction: 1989  Plot size: 7,502 m2  Lettable space: 4,207 m2  Occupancy rate: 100%  Annual net rent: app. €400k p.a. Osnabrück, Lower Saxony  Purchase price: n.n. 1  Long‐standing tenants are Hammer and McFit  Pr

20. Slide 20: Transaction/Purchase: Local supply center in Bremen

    CURRENT DEVELOPMENT Transaction/Purchase Local supply center in Bremen  Year of construction: 1993  Plot size: 5,327 m2  Lettable space: 2,856 m2  Occupancy rate: 100%  Annual net rent: app. €250k p.a. Bremen  Purchase price: 2.5 Mio. €  Located in Bremen‘s Northwest, next to modern residenti

21. Slide 21: Transaction/Purchase: Six properties in Northern Germany

    CURRENT DEVELOPMENT Transaction/Purchase Six properties in Northern Germany Strasburg (Uckermark) Essen, Ruhrau 39  Years of construction: 1983 bis 2014  Plot size: 39,783 m2  Lettable space: 9,515 m2  Occupancy rate: 97%  Annual net rent: n.n. 1  Purchase price: n.n. 1 Schwarmstedt Schmalkald

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

    CURRENT DEVELOPMENT Transaction/Purchase Retail park in Freudenstadt  Year of construction: 1991 / 1998  Plot size: 10,800 m2  Lettable space: 13,300 m2  Occupancy rate: 100%  Annual net rent: app. €400k p.a. Freudenstadt, Baden‐Wuerttemberg  Purchase price: €3,5m €  Long‐standing tenants res

23. Slide 23: Transaction/Purchase: Retail park in Westerburg

    CURRENT DEVELOPMENT Transaction/Purchase Retail park in Westerburg  Year of construction: 2008  Plot size: 7,417 m2  Lettable space: 2,133 m2  Occupancy rate: 98%  Annual net rent: app. €300k p.a. Westerburg, Rhineland‐Palatine  Purchase price: 3.0 Mio. €  Conveniently located at the main roa

24. Slide 24: Investment Case: Value creation on several levels (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

25. Slide 25: Investment Case: Value creation on several levels (II)

    INVESTMENT CASE NAV per share Value creation on several levels (II) in € 22.80 23.79 25  Single purchases at favourable prices are laborious 20 16.86 19.61 15 13.46  Professionally managed portfolios trade 10 at much higher multiples on net rent 5 0 NAV per share +77% 2019 2020 2021 2022 2023 with

26. Slide 26: Strong growth possible without capital increase (I)

    INVESTMENT CASE Strong growth possible without capital increase (I)  DEFAMA needs little equity for additional purchases  Financing of aquisitions by cash flow, revaluation of loans and occasional sales  Neither capital increase nor bonds, promissory notes or something similar in planning  Re‐al

27. Slide 27: Strong growth possible without capital increase (II)

    INVESTMENT CASE Strong growth possible without capital increase (II) Disposals 2022 Purchases 2023 2 Number 5 €6.8m Selling prices 28 Mio. € €0.4m Net rents p.a. 3,2 Mio. € €0.2m FFO p.a. > 0,9 Mio. € Released Invested liquidity equity €2.5m November 2024 Company Presentation DEFAMA Deutsche Fachmar

28. Slide 28: Status and Outlook: Guidance for 2024

    STATUS AND OUTLOOK Guidance f0r 2024 2023  Net Profit (German GAAP): €4.8m, thereof €4.2m, thereof ~€1.1m from disposals ~ €0.5m from disposals  Funds From Operations (FFO): €10.3m €9.7m  Annualised FFO: €12.3m €11.3m  Dividend: > €0.57 per share €0.57 per share Takeover of ten properties leads

29. Slide 29: Mid-term guidance DEFAMA 2025

    STATUS AND OUTLOOK Will be reached prior Portfolio Value Mid‐term guidance „DEFAMA 2025“ to end of 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

30. Slide 30: Status and Outlook: On track for further growth

    STATUS AND OUTLOOK Announcement of new long‐term guidance DEFAMA on track for further growth in December  YTD 13 aquisitions with app. €2.7m additional net rents  Annualised FFO („run rate“) currently €12,1m resp. 2.52 € per share  Increased staff capacity for real estate transactions  Record nu

31. Slide 31: Share

    SHARE Share price development since IPO Shareholder structure 2 28 € 26% 20 € 12 € 2% 72% 4€ Jul. 16 Jul. 18 Jul. 20 Jul. 22 Jul. 24 WKN / ISIN A13SUL / DE000A13SUL5 Stock exchange Munich (m:access), Frankfurt, Xetra MSC Invest GmbH / M. Schrade Supervisory Board Number of shares 4,800,000 ordinary

32. Slide 32: 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

33. Slide 33: 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 Email schrade@defama.de Zeitz, Saxony‐Anhalt November 2024 Company Presentation DEFAMA Deutsche Fachmarkt AG 33

34. Slide 34: 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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