Defama Deutsche Fachmarkt Ag · XETR:DEF

Defama Deutsche Fachmarkt — Investor Presentation (August 2019)

24 slides from Defama Deutsche Fachmarkt's investor presentation, August 2019

  1. Slide 1: Company Presentation DEFAMA Deutsche Fachmarkt AG

    Company Presentation DEFAMA Deutsche Fachmarkt AG August 2019

  2. Slide 2: Equity Story

    EQUITY STORY In order to build up a long‐term portfolio, DEFAMA seeks and acquires: • Well‐established retail parks and small shopping centres • With at least two chain stores with strong solvency as (anchor) tenants • Without larger vacancies and/or investment needs • Purchase price per property us

  3. Slide 3: 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 lack of between €1m and €5m institutional investors competition on the buyer’s side Focus on typical local No issues with Sustainable rentability shopping centres e‐commerce

  4. Slide 4: Management

    MANAGEMENT Matthias Schrade (CEO / Member of the Management Board) • Many years of experience as a financial analyst and entrepreneur • Excellent network in the areas of retail, real estate and banking • Responsible for property selection, purchase negotiations, financing, main tenants and PR / IR S

  5. Slide 5: Management: Supervisory Board

    MANAGEMENT Supervisory Board Peter Schropp (Chairman) • Managing Director of several real estate companies within Primepulse Group • Until 9/2014 Member of the Management Board of VIB Vermögen AG responsible for Real Estate • Significantly involved in the expansion of the portfolio to just under €1b

  6. Slide 6: Group Structure

    GROUP STRUCTURE • Acquisition and financing always in object subsidiaries • DEFAMA AG as a holding company provides the equity required for the acquisitions • 32 real estate acquisitions so far DEFAMA Deutsche Fachmarkt AG 100% 100% 100% 100% 100% 100% 100% 100% 94% 100% DEFAMA Verwal‐ tungs GmbH DE

  7. Slide 7: Portfolio

    PORTFOLIO Key Figures (as of 30 July 2019) Schmallenberg, Nordrh.‐W. Year of construction: 1989 Plot size: 6,149 sqm Sternberg, Mecklenburg‐V. Locations 32 Lettable space: Renting quote: 6,745 sqm 86% Year of construction: Plot size: 1992 3.923 sqm Biggest tenants: Lettable space: 1.234 sqm LIDL, Ta

  8. Slide 8: Portfolio: Largest Tenants and Net Rent by Industry

    PORTFOLIO Largest Tenants Share Net Rent by Industry REWE/Penny/Sky 10.8 % Toom/B1 10.5 % EDEKA/Netto/trinkgut 8.2 % LIDL 6.3 % NORMA 5.7 % Tengelmann Group 4.9 % Aldi Nord 3.8 % Takko 2.7 % Dän. Bettenlager 2.5 % Deichmann 2.3 % Company Presentation DEFAMA Deutsche Fachmarkt AG 8

  9. Slide 9: Portfolio: Kolosseum Spreewald, Lübbenau

    PORTFOLIO KOLOSSEUM Spreewald, Lübbenau  Year of construction: 1994  Plot size: 10,431 sqm  Lettable space: 12,155 sqm  Occupancy rate: 90%  Purchase price: app. €8m  Annual net rent: €900k  Acquisition at 9 times annual net rent  Key tenants are Rossmann, NKD, MäcGeiz, Ernsting’s family, Ki

  10. Slide 10: Portfolio: Retail Park Templin

    PORTFOLIO Retail Park Templin  Year of construction: 1992 / 1998  Plot size: 14,579 sqm  Lettable space: 4,543 sqm  Occupancy rate: 100%  Investment: app. €2m  Annual net rent: > €250k  Acquisition at a very attractive yield  Key tenants are BayWa DIY store, NORMA and a beverage retailer  S

  11. Slide 11: Portfolio: Retail Park Schmallenberg

    PORTFOLIO Retail Park Schmallenberg  Year of construction: 1989  Plot size: 6,149 sqm  Lettable space: 6,745 sqm  Occupancy rate: 92%  Purchase price: €7.0m  Annual net rent (fully let): > €700k  Acquisition at 10 times annual net rent  Key tenants are LIDL, Takko, TEDi, Ernsting‘s family, I

  12. Slide 12: Portfolio: Fachmarktzentrum Dinslaken

    PORTFOLIO Fachmarktzentrum Dinslaken  Year of construction: app. 1975  Plot size: 19,849 sqm  Lettable space: 10,163 sqm  Occupancy rate: 100%  Purchase price: €7.6m  Annual net rent: > €750k  Acquisition at 10 times annual net rent  Key tenants are B1 Baumarkt, Trinkgut, KiK and Askania  V

  13. Slide 13: Financing

    FINANCING Key Figures (as of 30 June 2019) Maturity Profile incl. Repayments in €m Number of financing partners 21 12 Bank loans €66.9m 8 Ø Interest rate 2.40% Ø Initial repayment 4 4.91% Ø Fixed interest 7.6 years 0 Loan‐to‐value ratio (LTV) 61.3% Maturity of Fixed Interest Repayments • Financing a

  14. Slide 14: Key Financials 2016-2019

    KEY FINANCIALS 2016‐2019 Portfolio Value Sales in €m in €m 150 12 Ø +41% Ø +52% 9,09 . 108 100 73 8 5,83 . 48 3,44 . 50 4 0 0 2016 2017 2018 2019e 2016 2017 2018 2019e Net Profit Funds from Operations (FFO) in €k in €k Ø +36% 2.200 , 4.800 , Ø +42% 4.400 , 2.400 , 3.647 , 1.701 , 1.600 , 1.362 , 3.2

  15. Slide 15: Key Financials 2016-2019

    KEY FINANCIALS 2016‐2019 Earnings per share FFO per share in € in € 0,56 . 1,13 . 0,60 . Ø +22% 1,20 . Ø +28% 1,01 . 0,46 . 0,38 . 0,73 . 0,40 . 0,30 . 0,80 . . 0,54 0,20 . 0,40 . 0,00 0,00 2016 2017 2018 2019e 2016 2017 2018 2019e Dividend per share in € Guiding principles for expansion 0,60 . Ø >3

  16. Slide 16: Key Financials H1/2019

    KEY FINANCIALS H1/2019 Portfolio Value Sales in €k in €k 118,530 120,000 +44% 6,000 5,473 +29% 90,000 82,220 4,500 4,228 60,000 3,000 30,000 1,500 0,000 0,000 2018/06/30 2019/06/30 H1/2018 H1/2019 Company Presentation DEFAMA Deutsche Fachmarkt AG 16

  17. Slide 17: Key Financials H1/2019

    KEY FINANCIALS H1/2019 Net Profit Funds from Operations (FFO) in €k in €k 1,200 . 0,45 2,400 +27% 2,203 . 0,90 +20% 1,020 0,854 1,738 0,800 . 0,30 1,600 . 0,60 . 0,26 . 0,56 . 0,24 . 0,49 0,400 . 0,15 0,800 . 0,30 0,000 0,00 0,000 0,00 H1/2018 H1/2019 H1/2018 H1/2019 Earnings EPS in € FFO FFO / Shar

  18. Slide 18: Status and Outlook

    STATUS AND OUTLOOK Guidance for 2019 Prior Year • Net Profit (German GAAP): €2.2m €1.7m €0.56 per share €0.46 per share • Funds From Operations (FFO): €4.4m €3.65m €1.13 per share €1.01 per share • Again, significant dividend increase €0.40 per share Annualised portfolio key figures • Total Net Rent

  19. Slide 19: Status and Outlook: Radeberg refurbishment

    STATUS AND OUTLOOK Preparation of Radeberg refurbishment • New building structure developed • Applied for building permission • Conversion to be carried out in 2020 • Rental contracts with all small tenants • Forward sale of property planned for post‐conversion signed • Special income in the high si

  20. Slide 20: Share

    SHARE Share price development since IPO at 13 July 2016 Shareholder structure 2) 15 € 11 € 33% 7€ 60% 5% 3€ 2% Jul. 16 Jul. 17 Jul. 18 Jul. 19 WKN / ISIN A13SUL / DE000A13SUL5 MSC Invest GmbH / M. Schrade Stock exchange Munich (m:access), Frankfurt, Xetra Geminus GmbH / C. Müller Number of shares 3,

  21. Slide 21: Capital Raise

    CAPITAL RAISE Ad hoc announcement dated 17 June 2019 • Consideration of a capital increase with subscription rights • Exploiting opportunities through acquisitions and investments in existing properties • Subscription ratio expected to be 8:1 • Subscription price close to market price • Gross issuin

  22. Slide 22: 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 extensive experience in the real estate and retail sector Shareholder‐friendly with high transparency and attractive d

  23. Slide 23: Contact

    CONTACT DEFAMA Deutsche Fachmarkt AG Nimrodstr. 23 D 13469 Berlin www.defama.de Matthias Schrade Member of the Management Board Telephone +49 (0) 30 / 555 79 26 ‐ 0 Fax +49 (0) 30 / 555 79 26 ‐ 2 E‐mail schrade@defama.de Company Presentation DEFAMA Deutsche Fachmarkt AG 23

  24. Slide 24: 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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