Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — FY2019/2020 Earnings Presentation
40 slides from Deutsche Konsum Real Estate's earnings presentation, Dec 17, 2020
Slide 1: FY 2019/2020 Financial Results
1 FY 2019/2020 FINANCIAL RESULTS 1 OCTOBER 2019 – 30 SEPTEMBER 2020 17 December 2020 FY 2019/2020 financial results | Deutsche Konsum REIT-AG
Slide 2: Table of Contents
TABLE OF CONTENTS 2 HIGHLIGHTS FY 2019/2020 PROPERTY PORTFOLIO FINANCIAL STRUCTURE FINANCIALS FY 2019/2020 APPENDIX FY 2019/2020 financial results | Deutsche Konsum REIT-AG
Slide 3: Highlights FY 2019/2020
HIGHLIGHTS FY 2019/2020 Deutsche Konsum REIT-AG
Slide 4: Highlights FY 2019/2020
HIGHLIGHTS FY 2019/2020 4 Record acquisition volume and robust operational development Record portfolio growth ➢ Acquisition of 39 retail properties with a total investment volume of 182m EUR at an average yield of 9.3% ➢ One property disposal with a profit of 2.0m EUR (purchase price 4.1m EUR / boo
Slide 5: Financial Key Figures
FINANCIAL KEY FIGURES 5 Steady and consistent growth Rental income FFO FFO per share (kEUR) (kEUR) (EUR) 56,231 34,991 1.06 41,978 25,041 0.84 62% of RI 60 % of RI FY 2018/2019 FY 2019/2020 FY 2018/2019 FY 2019/2020 FY 2018/2019 FY 2019/2020 aFFO per share Investment properties EPRA NAV per share (E
Slide 6: Property Portfolio
PROPERTY PORTFOLIO Deutsche Konsum REIT-AG
Slide 7: Key portfolio figures as at September 2020
PROPERTY PORTFOLIO 7 Key portfolio figures as at 30 September 2020 >> Portfolio snapshot: Annualised rent (mEUR) Vacancy (%) ➢ Key portfolio figures based on 161 63.1 properties accounted as at 30.09.2020 0% 9.9 9.9 48.7 30.09.2019 30.09.2020 30.09.2019 30.09.2020 Initial yield (%) WALT (years) 10.9
Slide 8: Portfolio development within the last 24 months
PROPERTY PORTFOLIO 8 Proforma portfolio consists of 170 properties with > 950,000 sqm >> Portfolio development within the last 24 months: Schleswig- Mecklenburg Holstein - Pommerania 30.09.2018 30.09.2019 30.09.2020 Pro Forma (including notarised properties) Lower Saxony Number of 90 123 161 170 pro
Slide 9: Selection of last property acquisitions (1)
ACQUISITIONS 9 Selection of last property acquisitions (1) >> Latest acquisitions: Location „Feldbergcenter “ Neu-Anspach (Hesse) Type Neighborhood centre Space (sqm) 5,733 Annualised rent (kEUR) 560 Main tenants REWE, Rossmann, fitness center, others WALT 3.5 years Vacancy 5% Initial yield > 8.7% T
Slide 10: Selection of last property acquisitions (2)
ACQUISITIONS 10 Selection of last property acquisitions (2) >> Latest acquisitions: Location Mölln (Schleswig-Holstein) Type Retail centre Space (sqm) 5,126 Annualised rent (kEUR) 334 Main tenants Norma, office, residential, others WALT c. 3 years Vacancy 12% Initial yield > 8.7% Transfer of ownersh
Slide 11: Selection of last property acquisitions (3)
ACQUISITIONS 11 Selection of last property acquisitions (3) >> Latest acquisitions: Location Blankenstein (Thuringia) Type Discounter Space (sqm) 1,285 Annualised rent (kEUR) 111 Main tenants Edeka „diska“ WALT c. 6 years Vacancy 0% Initial yield > 8.8% Transfer of ownership expected January 2021 FY
Slide 12: Selection of last property acquisitions (4)
ACQUISITIONS 12 Selection of last property acquisitions (4) >> Latest acquisitions: Location Wrestedt (Lower Saxony) Type Discounter Space (sqm) 1,087 Annualised rent (kEUR) 110 Main tenants Netto Marken-Discount WALT c. 5.6 years Vacancy 0% Initial yield > 8.6% Transfer of ownership expected Januar
Slide 13: Selection of last property acquisitions (5)
ACQUISITIONS 13 Selection of last property acquisitions (5) >> Latest acquisitions: Location Freital (Saxony) Type Retail centre Space (sqm) 1,700 Annualised rent (kEUR) 156 Main tenants Pfennigpfeiffer, Fressnapf, others WALT c. 3 years Vacancy 0% Initial yield 12% Transfer of ownership expected Ja
Slide 14: Tenant Structure
TENANT STRUCTURE 14 65% 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 (mEUR) in years Edeka Group 8.7 5.3 Other cyclical uses Schwarz Group 9.6 4.4 13.3 Me
Slide 15: DKR becomes a reliable partner for the tenants
TENANT STRUCTURE 15 DKR becomes 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 60 30 1 4 50 6 25 No. of lease contracts 20 Rent p.a. mEUR 40 20 30 4 15 2 6 11 20 10 10 27 10 3 5 17 12 3 9
Slide 16: Investments to the Portfolio
INVESTMENTS TO THE PORTFOLIO 16 CAPEX measures lift up property values >> Major capex measures in 12M 2019/2020 (examples): Location / Property Description of capex measures CAPEX (mEUR) Grevenbroich, Retail DKR had modernised, enlighted and improved the existing old parking garage which is essentia
Slide 17: Valuation Potential of the Portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 17 Share price currently trades at a 6.9% yield >> NAV impact from factor increases (c.p.) shows upside potential: Annualised Hypothetical Hypothetical Portfolio Net debt NAV Number of total portfolio valuation Yield Net LTV NAV per value (mEUR) outstanding (mEUR
Slide 18: Financial Structure
FINANCIAL STRUCTURE Deutsche Konsum REIT-AG
Slide 19: Solid and cost-efficient debt structure
FINANCIAL STRUCTURE 19 Solid and cost-efficient debt structure Debt allocation (m EUR outstanding debt) >> Financial KPIs: Corporate bond 30.09.2020 30.09.2019 % 2018/2024 Corporate Total financial debt (loans + bonds), m EUR 527.7 354.1 + 49.0 bond 14.319.6 40.0 2019/2024 Avg. loan interest, % p.a.
Slide 20: Financials FY 2019/2020
FINANCIALS FY 2019/2020 Deutsche Konsum REIT-AG
Slide 21: Condensed IFRS balance sheet
FINANCIALS FY 2019/2020 21 Condensed IFRS balance sheet kEUR 30.09.2020 30.09.2019 kEUR 30.09.2020 30.09.2019 Pro forma Assets Equity and liabilities portfolio currently Increased mEUR 850 Investment properties 809,928.6 619,881.3 Subscribed capital 35,155.9 31,959.9 equity due to (including the Oth
Slide 22: LTV and EPRA NAV
FINANCIALS FY 2019/2020 22 LTV and EPRA NAV >> LTV (loan-to-value): >> EPRA NAV: kEUR 30.09.2020 30.09.2019 kEUR 30.09.2020 30.09.2019 Bank loans 319,377.8 206,998.7 Total equity 390,664.5 317,362.2 Convertible bonds 36,308.6 36,162.1 Conversion of convertible bonds 0.0 0.0 Corporate bonds 151,092.9
Slide 23: Condensed IFRS income statement
FINANCIALS FY 2019/2020 23 Condensed IFRS income statement 01.10.2019 – 01.10.2018 – kEUR 30.09.2020 30.09.2019 Rental income increased due to the Rental income 56,230.7 41,978.4 property portfolio growth Income from recharged operating costs 10,264.1 6,827.3 Operating expenses -26,568.2 -17,203.8 t
Slide 24: FFO reconciliation
FINANCIALS FY 2019/2020 24 FFO reconciliation >> FFO/aFFO: 01.10.2019 01.10.2018 kEUR – – 30.09.2020 30.09.2019 Contains non-cash items due to Total period income 34.173.7 53,142.3 IFRS valuation of convertible bonds and short term receivables +/- Income taxes 0.0 0.1 (impairment of deferred rents +
Slide 25: Outlook
OUTLOOK Deutsche Konsum REIT-AG
Slide 26: Outlook FY 2020/2021: Guidance confirmed
OUTLOOK FY 2020/2021 26 Guidance confirmed >> Guidance for FY 2020/2021: Date of guidance 17.12.2020 FFO (m EUR) 42.0 – 45.0 FFO Run Rate as per 30- Sep-2021 (m EUR) 47.0 – 51.0 FY 2019/2020 financial results | Deutsche Konsum REIT-AG
Slide 27: Appendix
APPENDIX Deutsche Konsum REIT-AG
Slide 28: Share Information
SHARE INFORMATION 28 >> Basic Share Information >> Shareholder Structure Rocket Internet SE MFS As at 30.09.2020 Zerena GmbH 3,36% Investment 5,65% Management ISIN DE000A14KRD3 3,13% Share price (Xetra, 11-August-2020) EUR 15.80 Parson GmbH 5,93% Free Float Symbol DKG 41,90% Shares outstanding 35,15
Slide 29: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT 29 >> Financial calendar >> Roadshows / Investor meetings Date Date Country Publication of the final annual statements/annual Warburg Highlights Investment Conference, 17.12.2020 10.06.2021 financial report for the financial year 2019/2020 Hamburg Publication of the
Slide 30: DKR Business Model at a Glance
DKR BUSINESS MODEL AT A GLANCE 30 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 • 170 retail properties • F
Slide 31: Investment approach
STRATEGY 31 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 32: Bundling single properties into an institutional asset class
STRATEGY 32 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 33: Basic retail sector remains stable with best outlook
STRATEGY 33 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 34: Basic retail resilient to E-Commerce (1)
STRATEGY 34 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 35: Basic retail resilient to E-Commerce (2)
STRATEGY 35 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 36: Sourcing process for retail properties
ASSET SOURCING 36 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 37: Experienced and committed management
MANAGEMENT 37 Experienced and committed management Alexander Kroth (CIO) Rolf Elgeti (CEO) Christian Hellmuth (CFO) Alexander joined DKR in January Rolf has been the founder of Deutsche Konsum Christian joined DKR in January 2017 2017 and initially set up the company REIT-AG, which is a spin-off of
Slide 38: Strong external property partners
PARTNERS 38 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 FY 2019/2020 financial results | Deutsche Konsum REIT-AG
Slide 39: DKR's detailed property portfolio
PORTFOLIO DETAILS 39 DKRs detailed property portfolio Find DKR‘s current portfolio in a detailed overview online under the following links: DKR property portfolio overview as at 30 September 2020 DKR property portfolio Excel file FY 2019/2020 financial results | Deutsche Konsum REIT-AG
Slide 40: Disclaimer
Disclaimer 40 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
Deutsche Konsum REIT-AG — FY2019/2020 Earnings Presentation on 6ix