Deutsche Konsum Real Estate Ag · XETR:DKG
Deutsche Konsum Real Estate — Deutsche Konsum REIT-AG — H1 2020/2021 Earnings Presentation
42 slides from Deutsche Konsum Real Estate's earnings presentation, May 12, 2021
Slide 1: H1 2020/2021 Results
1 H1 2020/2021 RESULTS 1 OCTOBER 2020 – 31 MARCH 2021 12 May 2021 H1 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 H1 2020/2021
HIGHLIGHTS H1 2020/2021 4 High acquisition volume and increased financial flexibility Strong portfolio growth ➢ Acquisition of 14 retail properties with a total investment volume of 120.2m EUR at an average yield of 9.1% ➢ (Proforma) Property portfolio amounts to c. 930m EUR with an annualised rent
Slide 5: Financial Key Figures
FINANCIAL KEY FIGURES 5 Consistent and value-enhancing growth Rental income FFO FFO per share (kEUR) (kEUR) (EUR) 20,367 33,002 0.58 15,306 25,044 62 % of RI 0.48 61 % of RI H1 2019/2020 H1 2020/2021 H1 2019/2020 H1 2020/2021 H1 2019/2020 H1 2020/2021 aFFO per share Investment properties EPRA NAV pe
Slide 6: Property Portfolio
PROPERTY PORTFOLIO Deutsche Konsum REIT-AG
Slide 7: Property Portfolio
PROPERTY PORTFOLIO 7 Key portfolio figures as at 31 March 2021 >> Portfolio snapshot: Annualised rent (mEUR) Vacancy (%) ➢ Key portfolio figures based on 171 properties accounted as at 31.03.2021 66.6 63.1 10.9 ➢ Increase of vacancy due to the recent acquisition of properties with vacancy 9.9 levels
Slide 8: Selection of recent acquisitions (1)
ACQUISITIONS 8 Selection of recent acquisitions (1) Neu- Zerbst Parchim Mölln Wrestedt Northeim Schöneck Anspach Blankenstein Freital Zittau Location (Saxony- (Mecklenburg- (Schleswig- (Northrhine- (Lower (Saxony) (Hesse) (Thuringia) (Saxony) (Saxony) Anhalt) Pomerania) Holstein) Westphalia) Saxony)
Slide 9: Selection of recent acquisitions (2)
ACQUISITIONS 9 Selection of recent acquisitions (2) >> Latest acquisitions: Location Frankfurt / Oder (Brandenburg) Type Retail center Space (sqm) 25,055 Annualised rent (kEUR) 3,555 Main tenants Kaufland, Rossman, DBL, Medimax, etc. WALT 6.3 years Vacancy 6.0% Initial yield High single-digit % Tran
Slide 10: Selection of recent acquisitions (3)
ACQUISITIONS 10 Selection of recent acquisitions (3) >> Latest acquisitions: Location Saarbrücken-Dudweiler (Saarland)1 Type Retail center Space (sqm) 12,424 Annualised rent (kEUR) 624 Main tenants Netto, Rossmann, Woolworth, City of Saarbrücken, doctors WALT 4.3 years Vacancy 33.0% Initial yield >
Slide 11: Proforma portfolio consists of properties with > 1,000,000 sqm
PROPERTY PORTFOLIO 11 Proforma portfolio consists of 173 properties with > 1,000,000 sqm >> Portfolio development within the last 24 months: Schleswig- Mecklenburg Holstein - Pommerania 30.09.2019 30.09.2020 31.03.2021 Pro Forma (including notarised properties) Lower Saxony Number of 123 161 171 173
Slide 12: Tenant Structure
TENANT STRUCTURE 12 64% Rent contribution from non-cyclical tenants (78% 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 8.6 5.4 Other cyclical Schwarz Group 10.9 6.2 uses 15.9 M
Slide 13: High rent collection despite COVID lockdowns
TENANT STRUCTURE 13 High rent collection despite COVID lockdowns >> Strategy with high exposure to daily-needs tenants pays off: Rent collection 100% ➢ Despite COVID lockdowns DKR with high monthly rent collection rates1 between 95% 94% and 99% 90% ➢ Dip in January due to strict lockdowns but recove
Slide 14: DKR is a reliable partner for the tenants
TENANT STRUCTURE 14 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: 35 70 1 5 30 60 6 25 50 No. of lease contracts Rent p.a. mEUR 25 20 40 4 15 30 2 16 6 10 20 11 31 3 5 10 21 13 11 3 11
Slide 15: Valuation Potential of the Portfolio
VALUATION POTENTIAL OF THE PORTFOLIO 15 Share price currently trades at 6.9% yield >> NAV impact from factor increases (c.p.) shows upside potential: Annualised Hypothetical Net debt Hypothetical Portfolio NAV Number of total portfolio valuation Yield Net LTV outstanding NAV per value (mEUR) (mEUR)
Slide 16: Financing
FINANCING Deutsche Konsum REIT-AG
Slide 17: Solid and cost-efficient debt structure
FINANCING 17 Solid and cost-efficient debt structure >> Financial KPIs: Debt allocation (m EUR outstanding debt) Corporate 31.03.2021 30.09.2020 % Convertible bond bonds I and II 2018/2024 Total financial debt (loans + bonds), mEUR 568.3 527.7 7.7 30.07.010.0 40.0 Corporate Avg. loan interest, % p.a
Slide 18: Financials H1 2020/2021
FINANCIALS H1 2020/2021 Deutsche Konsum REIT-AG
Slide 19: Condensed IFRS balance sheet
FINANCIALS H1 2020/2021 19 Condensed IFRS balance sheet kEUR 31.03.2021 30.09.2020 kEUR 31.03.2021 30.09.2020 Pro forma Assets Equity and liabilities portfolio currently mEUR 930 Investment properties 871,231.8 809,928.6 Subscribed capital 35,155.9 35,155.9 (including the Other non-current latest no
Slide 20: LTV and EPRA NAV
FINANCIALS H1 2020/2021 20 LTV and EPRA NAV >> LTV (loan-to-value): >> EPRA NAV: kEUR 31.03.2021 30.09.2020 kEUR 31.03.2021 30.09.2020 Bank loans 326,811.1 319,377.8 Total equity 392,846.0 390,664.5 Convertible bonds 36,382.8 36,308.6 Conversion of convertible bonds 0.0 0.0 Corporate bonds 151,938.4
Slide 21: Condensed IFRS income statement
FINANCIALS H1 2020/2021 21 Condensed IFRS income statement 01.10.2020 – 01.10.2019 – kEUR % 31.03.2021 31.03.2020 Rental income 33,001.8 25,043.8* 31.8 Rental income increased due to the property portfolio growth Income from recharched operating costs 5,886.9 5,818.7* 1.2 Operating expenses -16,338.
Slide 22: FFO reconciliation
FINANCIALS H1 2020/2021 22 FFO reconciliation >> FFO/aFFO: 01.10.2020 01.10.2019 % kEUR – – 31.03.2021 31.03.2020 Contains non-cash items due to Total period income 16,243.9 12,726.9 27.6 IFRS valuation of debt instruments and short-term +/- Income taxes 0.0 0.0 0.0 receivables (impairment of + Depr
Slide 23: Headline Earnings per share (HEPS) reconciliation according to JSE rules
FINANCIALS H1 2020/2021 23 Headline Earnings per share (HEPS) reconciliation according to JSE rules >> HEPS: 01.10.2020 01.10.2019 % kEUR – – 31.03.2021 31.03.2020 Total period income (undiluted) 16,243.9 12,726.9 27.6 -/+ Revaluation gains / losses 0.0 5.0 -100.0 Headline earnings (undiluted) 16,24
Slide 24: Outlook
OUTLOOK Deutsche Konsum REIT-AG
Slide 25: Outlook FY 2020/2021: Guidance confirmed
OUTLOOK FY 2020/2021 25 Guidance confirmed >> Current 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 H1 2020/2021 financial results | Deutsche Konsum REIT-AG
Slide 26: ESG aspects at DKR
ESG aspects at DKR Deutsche Konsum REIT-AG
Slide 27: Measures to enhance ESG conformity
ESG aspects at DKR 27 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 28: Roll-out of electric charging points at DKR's locations
ESG aspects at DKR 28 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 29: DKRs first Sustainability Report published
ESG aspects at DKR 29 DKRs first Sustainability Report published >> ESG reporting ➢ Sustainability Report for the calendar year 2019 available on DKR’s website in English and German H1 2020/2021 financial results | Deutsche Konsum REIT-AG
Slide 30: Appendix
APPENDIX Deutsche Konsum REIT-AG
Slide 31: Share Information
SHARE INFORMATION 31 >> Basic Share Information MFS >> Shareholder Structure Investment As at 31.03.2021 Management Zerena GmbH 5.24% ISIN DE000A14KRD3 9.00% Share price (Xetra, 10-May-2021) EUR 15.40 Parson GmbH Symbol DKG Free Float 5.11% 40.63% Shares outstanding 35,155,938 Share class Bearer sha
Slide 32: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT 32 >> Financial calendar >> Roadshows / Investor meetings Date Date Country Publication of the half-yearly financial report of Warburg Highlights Investment Conference, 12.05.2021 10.06.2021 2020/2021 financial year Hamburg Publication of the quarterly statement for
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: 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 H1 2020/2021 financial results | Deutsche Konsum REIT-AG
Slide 42: DKRs 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 31 March 2021 plus latest acquisitions H1 2020/2021 financial results | Deutsche Konsum REIT-AG
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