Deutsche Konsum REIT-AG

Deutsche Konsum REIT-AG
Q 1 FY 15/16
March 2016
Försterweg 2
14482 Potsdam
Tel: +49 (0)331 / 740 076 510
Fax: +49 (0)331 / 740 076 520
Strictly private and confidential. All rights reserved.
© 2015 Deutsche Konsum REIT-AG
Overview
1.
2.
3.
4.
5.
6.
7.
8.
Overview & Strategy
Results and FY 2016/17 guidance
Q 1 highlights and recent transactions
Portfolio
Financials
The Deutsche Konsum share
Appendix
Disclaimer
Strictly private and confidential. All rights reserved.
© 2015 Deutsche Konsum REIT-AG
2
1. The Company – Overview & strategy
Deutsche Konsum REIT-AG is a real estate investment company that focuses on the acquisition,
active asset and portfolio management, and sale of retail properties in Germany. The company is
in the process of building a retail property portfolio and focuses its investments on retail locations
in Germany.
Deutsche Konsum has acquired REIT status retroactively as of 1 January 2016.
The Company currently has a portfolio of 30 retail properties with contractual lettable space
totaling approximately 146,000 square meters and a market value of approximately € 125 m. The
vacancy rate was approximately 7 % of the total leasable area as of 31 December 2015.
Typical Investments:
1.
2.
3.
4.
5.
6.
Retail tenants of daily needs
Properties with at least 2,500 sqm sales area (more protection against alternative licenses)
Sustainable micro locations and catchment area
At least two non-cyclical, large tenants
Strong initial cash flow
Locations with proof of extension of rental agreements
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3
1. The Company - Quick facts
30 shopping centers in established locations
Lettable space
146,000 sqm
Number of retail properties
30
Market value
€ 125 million
Net rental income
(annualized)
€ 13.6 million
Occupancy rate
93 %
Portfolio net initial yield
10.5 %
all data as of 29 February 2016
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© 2015 Deutsche Konsum REIT-AG
4
2. Q1 Results and FY 2016/17 guidance
last quarter annualised and pro forma *
13,588
-3,570
10,018
74%
rents received
operating expenses
net operating income
noi margin
Q1 15-16
2,438
-641
1,798
74%
SG&A
net interest expenses
-67.2
-807
-268.8
-3,348
Forecast FY 16/17
aFFO
aFFO p/s
923
0.06
6,400
0.39
7,000
0.42
expensed capex
FFO
FFO p/s
120
1,044
0.06
670
7,071
0.43
7,800
0.47
•
pro forma includes properties that have bee notarized but where the company has not yet taken
possession
note: all data in Euros k except for per share data
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© 2015 Deutsche Konsum REIT-AG
5
3. Q 1 highlights
 REIT status was obtained
 Completition of the development at the BiTz, the company’s Bitterfeld center.
 Extension for Rewe (supermarket) and dm (drugstore) was completed in time
and within budget. Both retailers started trading at the site in December 2015.
Leases of Rewe and Dm run for 15 and 12 years respectively.
 At the same time the lease with Obi (DIY store) could be extended for a fresh
ten years.
 The company’s center in Ludwigslust is now fully let. Also the key anchor tenant, the
hypermarket of Sky, has extended its lease for a fresh 10 years.
 In Leipzig’s Lowenpark, Aldi moved to the premises with a new 10 years lease.
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© 2015 Deutsche Konsum REIT-AG
6
3. Recent transactions in Q4 2015 – DK REIT-AG (I)
Acquisitions data overview
Address:
Main use
Rental space
Vacancy
Rent p.a.
Purchase price
Multiple
Rosa-Luxemburg-Straße
06779 Gräfenhainichen
Retail
1,077 sqm
0.0 %
87,588 € p.a.
735,000 €
682 €/m²
8.4 x
Anhaltstraße 70b,72
06749 Bitterfeld-Wolfen
Retail
5,782 sqm
0.0 %
281,592 € p.a.
1,815,000 €
314 €/m²
6.4 x
Burgstraße /
Langestraße 12-14
19417 Warin
Retail
1,603 sqm
0.0 %
141,420 € p.a.
1,155,000 €
721 €/m²
8.2 x
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© 2015 Deutsche Konsum REIT-AG
Warin
Schwante
Bad
Oeynhausen
Gräfenhainichen
Bitterfeld
7
3. Recent transactions in Q4 2015 – DK REIT-AG (II)
Acquisitions data overview
Address:
Main use
Rental space
Vacancy
Rent p.a.
Purchase price
Multiple
Dorfstr. 25
16727 Schwante
Retail
1,046 sqm
0.0 %
112,344 € p.a.
1,430,000 €
1,367 €/m²
12.7 x
Alter Rehmer Weg 22 /
Mindener Str. 67 a,b
32547 Bad Oyenhausen
Retail
4,515 sqm
0.0 %
300,132 € p.a.
2,800,000 €
620 €/m²
9.3 x
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© 2015 Deutsche Konsum REIT-AG
Warin
Schwante
Bad
Oeynhausen
Gräfenhainichen
Bitterfeld
8
Top 6 Assets
(representing 83% of the portfolio)
City
Ludwigslust
lettable space
construction
parking
annual rent
market value
City
lettable space
construction
parking
annual rent
market value
lettable space
construction
parking
annual rent
market value
19,541 sqm
1995/1997/2015
250
953,813 €
9,490,000 €
lettable space
construction
parking
annual rent
market value
16,920 sqm
1994
688
2,833,016 €
21,600,000 €
lettable space
construction
parking
annual rent
market value
City
Bitterfeld
lettable space
construction
parking
annual rent
market value
City
City
14,386 sqm
2000
320
1,785,384 €
14,300,000 €
City
Erfurt
all data as of 29. February 2016
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© 2015 Deutsche Konsum REIT-AG
Schwedt
11,378 sqm
1972
76
647,150 €
4,480,000 €
Meissen
5,501 sqm
1995
115
296,808 €
2,650,000 €
Leipzig
22,400 sqm
1993/1995/1998/1999
ca. 50
1,529,568 €
16,300,000 €
9
4. Portfolio – Multiple Tenants
 Deutsche Konsum aims to be a long-standing and reliable partner of choice for its
tenants
 Having multiple lease relationships with the same tenants fosters this relationship
No. of lease contracts
Aldi
Dm
TEDI
KIK
Ernsting's Family
Netto
Penny
0
1
2
3
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© 2015 Deutsche Konsum REIT-AG
4
5
10
4. Portfolio – Retail segment mix
textile; 4%
electronics/books; 2%
service/catering; 5%
food ; 14%
drugstore; 6%
DIY store; 12%
hypermarket; 58%
 more than 70% of Deutsche Konsum‘s rental income stems
from tenants with non-cyclical businesses
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© 2015 Deutsche Konsum REIT-AG
11
4. Portfolio – distribution of lease maturities
€300.000,00
€250.000,00
rents p.m.
€200.000,00
€150.000,00
€100.000,00
€50.000,00
€2016
2017
<1 year
<2 years
<3 years
<4 years
<5 years
<10 years
> 10 years
2018
2019
2020
2025
9%
3%
35%
3%
18%
6%
8%
82%
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© 2015 Deutsche Konsum REIT-AG
> 2025
of total rental income
12
5. Financials - Balance Sheet (IFRS 31 December 2015)
Assets
Equity and liabilities
(Euros k)
(Euros k)
A. Fixed assets
A. Equity
I. Tangible fixed assets
I. Subscribed capital
15,091
90,832
II. Capital reserves
15,637
-
III. Other reserves
856
1. Land, land rights and buildings
including buildings on third-party land
2. others
II. Intangible fixed Assets
1. Derivatives
4
3,421
2. Deferred taxes
-
total fixed assets
94,258 €
III. Other comprehensive Income
IV. profit retained
total equity
(6,925)
24,659 €
B. Long-term liabilities
1. Liabilities to banks
20,726
2. Convertible bonds
34,641 *
3. Provisions
4. Other long-term liabilities
4
1,547
5. Deffered taxes
B. Currents Assets
6,410
total provisons
56,917
I. Inventories
1. Work in progress
-
II. Receivables and other asstes
C. Short-term liabilities
1. Liabilities to banks
11,773
1. Trade receivables
115
2. Liabilities to other creditors
2. other assets
174
3. Other provisions
954
469
III. Cash-in-hand, central bank balances, bank balances and cheques
1,269
4. Trade payables
other assets
4,851
5. Tax liabilities
6. Other short-term liabilities
C. Fixed Assets held for sale
total current assets
Total Assets
160
6,570
100,827 €
total liabilities
Total equity & liabilities
5,971
85
19,251 €
100,827 €
* The convertibles are currently in the money
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© 2015 Deutsche Konsum REIT-AG
13
5. Financials - Financing ; maturity profile
amount due
40.000.000
* convertible bonds
35.000.000
30.000.000
25.000.000
20.000.000
15.000.000
10.000.000
5.000.000
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
* The convertibles are currently in the money
Average cost of debt:
3.71%
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© 2015 Deutsche Konsum REIT-AG
14
6. The Deutsche Konsum share
Legal Structure
REIT-AG
ISIN
DE000A14KRD3
Listed
Berlin Stock Exchange
WKN
A14KRD
symbol
DKG
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© 2015 Deutsche Konsum REIT-AG
15
7. Appendix
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© 2015 Deutsche Konsum REIT-AG
16
7. Appendix – Management & Partners
CEO
Rolf Elgeti
Board
Hans Ulrich Sutter, Chairman
Achim Betz, Deputy Chairman
Dr. Christian Schlüter
Matthias Rathgen
External Management Partners
Elgeti Brothers
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© 2015 Deutsche Konsum REIT-AG
17
7. Appendix - Portfolio examples
Portfolio retail
#
Address
Use
Ground
area
Rental
space
Vacancy
Monthly
rent
Monthly
rent
Annual
rent
sqm
10,161
%
5.1%
€/sqm
5.31
€ p.m.
53,929
€ p.a.
647,150
19
Platz der Befreiung 1
16303 Schwedt
Retail
sqm
12,394
20
Brehnaer Straße 34
06749 Bitterfeld
Retail
39,058
16,492
25.1%
3.40
56,018
672,221
21
Anhaltstraße 70b/72
06749 Bitterfeld-Wolfen
Retail
0
5,782
0.0%
4.06
23,466
281,592
22
Gothaer Straße 22
99094 Erfurt
Retail
15,880
19,750
0.0%
11.95
236,085
2,833,016
23
Am Marstall 2
19288 Ludwigslust
Retail
24,005
14,386
6.0%
10.34
148,782
1,785,384
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© 2015 Deutsche Konsum REIT-AG
18
7. Appendix - Portfolio examples
Portfolio retail
#
Address
Use
Ground
area
Rental
space
Vacancy
Monthly
rent
Monthly
rent
Annual
rent
24
Rendsburger Straße 16
24534 Neumünster
Retail
sqm
7,394
sqm
4,630
%
0.0%
€/sqm
7.36
€ p.m.
34,076
€ p.a.
408,912
25
Carl-Cossow-Straße 64
18337 Marlow
Retail
5,543
1,046
0.0%
9.20
9,623
115,478
26
Fritz-Reuter-Straße 13
17087 Altentreptow
Retail
17,957
4,342
11.0%
7.97
34,597
415,160
27
Chausseestraße 41-43
17373 Ueckermünde
Retail
5,035
1,589
20.3%
6.00
9,528
114,331
28
Ostrauer Straße 5
06231 Bad Dürrenberg
Retail
8,158
3,384
61.7%
1.45
4,900
58,800
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© 2015 Deutsche Konsum REIT-AG
19
7. Appendix - Portfolio examples
Portfolio retail
#
Address
Use
Ground
area
Rental
space
Vacancy
Monthly
rent
Monthly
rent
Annual
rent
29
Berghausstraße 7
01662 Meißen
Retail
sqm
14,960
sqm
6,227
%
0.0%
€/sqm
3.97
€ p.m.
24,734
€ p.a.
296,808
30
B95
09427 Ehrenfriedersdorf
Retail
15,416
5,500
0.0%
3.27
18,000
216,000
31
Karlsgasse 28
08626 Adorf
Retail
13,018
5,435
0.0%
1.56
8,500
102,000
32
Bahnhofstraße 35-36
16348 Wandlitz
Retail
0
1,608
0.0%
9.17
14,752
177,024
33
Merseburger Straße/
Marktbreite
4178 Leipzig
Retail
0
22,656
0.0%
5.63
127,464
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© 2015 Deutsche Konsum REIT-AG
1,529,568
20
7. Appendix - Portfolio examples
Portfolio retail
#
Address
Use
Ground
area
Rental
space
Vacancy
Monthly
rent
Monthly
rent
Annual
rent
34
Hermann-Heidel-Straße
11
6132 Halle
Retail
sqm
0
sqm
1,192
%
0.0%
€/sqm
3.36
€ p.m.
4,003
€ p.a.
48,036
35
R.-Luxemburg-Straße 47
6779 Gräfenheinichen
Retail
0
1,077
0.0%
6.78
7,299
87,588
36
B192
19417 Warin
Retail
0
1,603
0.0%
7.35
11,785
141,420
37
Dorfstraße 25
16727 Schwante
Retail
0
1,046
0.0%
8.95
9,362
112,344
38
Minderer Straße 67/Alter
Rehmer Weg 22
Bad Oyenhausen
Retail
0
4,515
0.0%
5.54
25,011
300,132
178,818
132,421
1.8%
6.51
861,914
10,342,965
8.6%
4.59
2,057,817
24,693,809
21
Total retail
Portfolio in total
380,966All rights361,649
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reserved.
© 2015 Deutsche Konsum REIT-AG
Disclaimer
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 complete. Information in this
presentation, including forecast financial information, should not be considered as advice or a recommendation
to investors or potential investors in relation to holding, purchasing or selling securities or other financial
products or instruments and does not take into account your particular investment objectives, financial situation
or needs. Before acting on any information you should consider the appropriateness of the information having
regard to these matters, any relevant offer document and in particular, you should seek independent financial
advice. All securities and financial product or instrument transactions involve risks, which include (among
others) the risk of adverse or unanticipated market, financial or political developments and, in
internationaltransactions, currency risk.
This presentation may contain forward looking statements including statements regarding our intent, belief or
current expectations with respect to Deutsche Konsum’s businesses and operations, market conditions, results
of operation and financial condition, capital adequacy, specific provisions and risk management practices.
Readers are cautioned not to place undue reliance on these forward looking statements. Deutsche Konsum does
not undertake any obligation to publicly release the result of any revisions to these forward looking statements
to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While
due care has been used in the preparation of forecast information, actual results may vary in a materially
positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies
outside Deutsche Konsum’s control. Past performance is not a reliable indication of future performance.
Unless otherwise specified all information is for the quarter ended 31 Dec 15.
Strictly private and confidential. All rights reserved.
© 2015 Deutsche Konsum REIT-AG
22
Försterweg 2
14482 Potsdam
Tel: +49 (0)331 / 740 076 510
Fax: +49 (0)331 / 740 076 520
Strictly private and confidential. All rights reserved.
© 2015 Deutsche Konsum REIT-AG

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