Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — FY2018/2019 Earnings Presentation
48 slides from Deutsche Konsum Real Estate's earnings presentation, Dec 18, 2019
Slide 1: FY 2018/2019 financial results
1 FY 2018/2019 financial results 1 October 2018 to 30 September 2019 18 December 2019 FY 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 2: Table of contents
Table of contents 2 Highlights FY 2018/2019 Property Portfolio Financial structure Financials FY 2018/2019 Appendix Strategy Management External partners Revitalisation / Value add Property overview as at 30 September 2019 Glossary FY 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 3: Highlights FY 2018/2019
Highlights FY 2018/2019 3 Strongest growth since inception Strongest portfolio growth since inception ➢ Acquired 34 retail properties with a total investment volume of 160 mEUR at an average yield of 9.3% ➢ Property portfolio amounts to 624.0 mEUR ➢ (Proforma) portfolio now generates annualised rent
Slide 4: FY 2018/2019 results
4 FY 2018/2019 results FY 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 5: Financial key figures
Financial key figures 5 Strong and continuous growth Rental income (kEUR) FFO (kEUR) FFO per share (EUR) 41,978 25,041 0.84 28,601 0.62 60 % of 16,647 RI 58 % of RI FY 2017/2018 FY 2018/2019 FY 2017/2018 FY 2018/2019 FY 2017/2018 FY 2018/2019 aFFO per share (EUR) Investment properties EPRA NAV per s
Slide 6: Property portfolio
6 Property portfolio FY 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 7: Property portfolio: key portfolio figures
Property portfolio 7 Key portfolio figures as at 30 September 2019 >> Portfolio snapshot: Annualised rent (mEUR) Vacancy (%) 50 ➢ Key portfolio figures based on 123 48.7 properties accounted as at 30.09.2019 45 ➢ Vacancy level slightly increased due to 40 9.9 the latest addition of assets vacancy le
Slide 8: Property portfolio development
Property portfolio 8 Proforma portfolio consists of 136 properties with 820,000 sqm >> Portfolio development within the last 24 months: 30.09.2017 30.09.2018 30.09.2019 Pro Forma (including Schleswig- Holstein Mecklenburg - notarised Pommerania properties) Number of 62 90 123 136 properties Lower Re
Slide 9: Selection of the last property acquisitions (1)
Property portfolio 9 Selection of the last property acquisitions (1) >> Acquisitions at the beginning of the new FY 2019/2020: Gera – Bieblach Center Location (Thuringia) Type Retail centre Space (sqm) 23,400 Annualised rent (kEUR) 2,356 Main tenants Kaufland, Hammer Baumarkt, Reno, Others WALT c. 6
Slide 10: Selection of the last property acquisitions (2)
Property portfolio 10 Selection of the last property acquisitions (2) >> Acquisitions at the beginning of the new FY 2019/2020: Location Rosswein Genthin Möser Laufach (Saxony) (Saxony-Anhalt) (Saxony-Anhalt) (Bavaria) Type Retail Centre Neighborhood centre Neighborhood centre Grocery store Space (s
Slide 11: Selection of the last property acquisitions (3)
Property portfolio 11 Selection of the last property acquisitions (3) >> Acquisitions at the beginning of the new FY 2019/2020: Locations Gronau, Kreuztal (Northrhine-Westphalia), Wolfenbüttel (Lower Saxony), Staßfurt, Zeitz (Saxony-Anhalt), Chemnitz (Saxony) and Brandenburg an der Havel (Brandenbur
Slide 12: Selection of the last property acquisitions (4)
Property portfolio 12 Selection of the last property acquisitions (4) >> Acquisitions at the beginning of the new FY 2019/2020: Location Trier Herzebrock-Clarholz (Rhineland-Palatinate) (Northrhine-Westphalia) Type Retail Centre Food discounter Space (sqm) 11,600 1,000 Annualised rent (kEUR) 1,900 1
Slide 13: Capital recycling: property in Berlin-Tegel sold
Property portfolio 13 Capital recycling: One property in Berlin-Tegel sold at 4.9% yield >> Sale of one grocery discounter store in Berlin-Tegel: Location Buddestraße 36 (Berlin) Type Grocery discounter store Space (sqm) 931 Annualised rent (kEUR) 202 Main tenants Netto (Edeka Group) WALT c. 4 years
Slide 14: Tenant mix
Tenant mix 14 Rent contribution from non-cyclical tenants of c. 68% >> Rent contribution by tenant classification (mEUR)1: >> Rent contribution by major tenants1 : Rent WALT Tenant group Brands (mEUR) in years Schwarz Group 6.9 5.5 Other cyclical Edeka Group 6.8 6.7 uses Rewe Group 3.3 6.7 10.9 Metr
Slide 15: Leases
Leases 15 DKR as a reliable partner for stable long-term tenancies >> Multiple leases with the same tenants1: >> Annualised rents allocated to years of lease contract maturities1: 45 25.000.000,00 40 1 2 35 7 20.000.000,00 30 4 No. of lease contracts Rent p.a. EUR 3 25 12 15.000.000,00 6 10 20 10.00
Slide 16: Valuation potential
Valuation potential 16 Share price currently trades at a 7.2% 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) shares m rent (
Slide 17: Financial structure
17 Financial structure FY 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 18: Conservative and efficient debt structure
Financial structure 18 Conservative and efficient debt structure Debt allocation (mEUR initial nominal debt) >> Financial KPIs: Corporate bond 2019/2024 30.09.2019 30.09.2018 % (unsecured) 37.0 70.0 Total financial debt (loans + bonds), mEUR 354.1 231.6 +53 37.5 Avg. loan interest, % p.a. 1.94 1.98
Slide 19: Reduced interest costs while solvency has strongly increased
Financial structure 19 Reduced interest costs while solvency has strongly increased >> Development of debt metrics over the past 24 months: Average duration ICR LTV Average interest rate 60 6 50 5 40 4 30 3 20 2 10 1 0 0 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 31.12.2018 31.03.2019 30
Slide 20: Financials FY 2018/2019
20 Financials FY 2018/2019 FY 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 21: Condensed IFRS balance sheet
Financials FY 2018/2019 21 Condensed IFRS balance sheet kEUR 30.09.2019 30.09.2018 kEUR 30.09.2019 30.09.2018 Up due to two Pro forma Assets Equity and liabilities capital portfolio currently increases in mEUR 714 Investment properties 619,881.3 418,707.3 Subscribed capital 31,959.9 27,236.3 Nov 201
Slide 22: LTV and EPRA NAV
Financials FY 2018/2019 22 LTV and EPRA NAV >> LTV (loan-to-value): >> EPRA NAV: kEUR 30.09.2019 30.09.2018 kEUR 30.09.2019 30.09.2018 Bank loans 206,998.7 155,223.0 Total equity 317,362.2 209,762.4 Convertible bonds 36,162.1 36,098.9 Conversion of convertible bonds 0.0 0.0 Corporate bonds 110,878.3
Slide 23: Condensed IFRS income statement
Financials FY 2018/2019 23 Condensed IFRS income statement 01.10.2018 – 01.10.2017 – kEUR % 30.09.2019 30.09.2018 Rental income has mainly Rental income 41,978.4 28,601.3 46.8 increased in the course of the property portfolio growth Income from recharched operating costs1 6,827.3 4,303.1 30.4 Operat
Slide 24: FFO reconciliation
Financials FY 2018/2019 24 FFO reconciliation >> FFO/aFFO: 01.10.2018 01.10.2017 % kEUR – – 30.09.2019 30.09.2018 Total period income 53,142.3 30,918.5 71.9 Contains non-cash items due to IFRS +/- Income taxes 0.1 8.5 -99.3 revaluation of convertible bonds + Depreciation of other assets 1.2 1.3 -12.
Slide 25: DKR shares
25 DKR shares FY 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 26: DKR share performance
DKR shares 26 DKR share performance reflects the scalability of the business model >> DKR shares: 16.11.2019 ISIN DE000A14KRD3 WKN A14KRD3 Symbol DKG Number of shares 31,959,944 Nominal capital (kEUR) 31,959 Share class Bearer shares Stock exchanges XETRA, Frankfurt, Berlin Segment Prime Standard In
Slide 27: Analyst research
DKR shares 27 Analyst research >> Analyst coverage: Publication date Bank Analyst Recommendation Price target 18 November 2019 Kai Klose „Buy“ EUR 18.90 21 November 2019 Dr. Georg Kanders „Buy“ EUR 18.50 19 November 2019 Manuel Martin „Buy“ EUR 18.50 FY 2018/2019 financial results | Deutsche Konsum
Slide 28: Stable shareholder structure
DKR shares 28 Stable shareholder structure >> DKR share developments in FY 2018/2019: >> Shareholder structure (30 September 2019) : Parson GmbH Zerena GmbH ▪ Successful 10% share capital increase closed on 22 Obotritia Goebel Home Accessories AG Nov 2018, issuance of 2.7 million new shares at a Cap
Slide 29: Guidance
29 Guidance FY 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 30: FY 2018/2019 results slightly below guidance
Guidance 30 FY 2018/2019 financial results slightly below guidance >> FFO for FY 2018/2019: • FFO of 25.0 mEUR achieved (Guidance was 26.0 mEUR to 29.0 mEUR) • FFO run rate of 32.1 mEUR achieved (Guidance was 33.0 mEUR) >> Dividend for FY 2018/2019: • Based on current results the management board wi
Slide 31: Financial calendar
31 Financial calendar FY 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 32: DKR's next financial events
Financial calendar 32 DKRs next financial events >> Financial calendar: Date Publication of the final annual statements/annual 18.12.2019 financial report for the financial year 2018/2019 Publication of the quarterly statement for the first 13.02.2020 quarter of 2019/2020 financial year 05.03.2020 A
Slide 33: Appendix
33 Appendix FY 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 34: DKR at a glance
DKR at a glance 34 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 • 123 retail properties • Food-anchored an
Slide 35: Business Model & Strategy: investment approach
Business Model & Strategy 35 Investment approach >> Growing BASIC RETAIL investor – biggest niche player in Germany: WAL T 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 mak
Slide 36: Bundling single properties into an institutional asset class
Business Model & Strategy 36 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 t
Slide 37: Basic retail sector remains stable with best outlook
Business Model & Strategy 37 Basic retail sector remains stable with best outlook >> Market research according to 14. Retail Real Estate Report Germany 2019/2020 by bulwiengesa / Hahn / CBRE1: 125m 4.1 % sqm Growth of the stationery Total retail retail in 2018 lease area in Germany • Strong German e
Slide 38: Basic retail resilient to E-Commerce (1)
Business Model & Strategy 38 Basic retail resilient to E-Commerce (1) >> Market research according to 14. Retail Real Estate Report Germany 2019/2020 by bulwiengesa / Hahn / CBRE1: fig. 3 fig. 4 Results of the statistical data: • Food sector and other goods of daily needs (basic retail) are resilien
Slide 39: Basic retail resilient to E-Commerce (2)
Business Model & Strategy 39 Basic retail resilient to E-Commerce (2) >> Market research according to 14. Retail Real Estate Report Germany 2019/2020 by bulwiengesa / Hahn / CBRE1: fig. 1 fig. 2 Results of the statistical data: • Yearly growth rate of total E-Commerce swings declined below 9% • E-Co
Slide 40: Basic retail resilient to E-Commerce (3)
Business Model & Strategy 40 Basic retail resilient to E-Commerce (3) >> Biggest grocery delivery services compared to DKR property portfolio: • DKR portfolio with low overlapping with regions serviced by fresh food deliverers • In 2018 E-Commerce in the food retail sector remained at a very slight
Slide 41: Sourcing process for retail properties
Acquisition process 41 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 E
Slide 42: Experienced and committed management
Management 42 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 43: Strong external property partners
Partners 43 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 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 44: Value add by property redevelopments
Revitalisiation 44 Value add by property redevelopments >> Current major revitalisation projects: Location Domcenter Kirschbergcenter Kolumbuspassage Lindencenter Greifswald Hohenmölsen Rostock Stralsund Space (sqm) 9,410 7,797 4,492 5,775 Vacancy at ~ 37% ~ 38% ~ 12% ~ 27% start Project Fresh appea
Slide 45: DKR's detailed property portfolio
Portfolio overview 45 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 September 2019 FY 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 46: Glossary
Glossary 46 >> 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
Slide 47: IR contact
IR contact 47 Please get in touch >> IR contact: Stefanie Frey August-Bebel-Str. 68 14482 Potsdam sf@deutsche-konsum.de + 49 (0331) 740 076 533 FY 2018/2019 financial results | Deutsche Konsum REIT-AG
Slide 48: Disclaimer
Disclaimer 48 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 co
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