Deutsche Konsum REIT-AG (DKR) Financial Year Results 2016/2017 and recent events

Transcription

1 Deutsche Konsum REIT-AG (DKR) Financial Year Results 2016/2017 and recent events

2 Contents Summary of the FY 2016/2017 Real Estate Portfolio Key figures, recent development, tenancy and valuation potential Financial structure Financials FY 2016/2017 DKR shares, analysts, guidance and dividend policy Finance calendar FY 2017/2018 Appendices Management External partners Case studies revitalisation / Value add Property overview as at 15 November 2017 Glossary 2

3 Summary of the FY 2016/2017 3

4 Results of FY 2016/2017 and guidance Annual net profit 2016/2017 amounts to EUR 37.4 million Rental income increased by 68% up to EUR 19.2 million FFO amounts to EUR 10.3 million / affo amounts to EUR 8.0 million Investment properties up to EUR million EPRA NAV increased by 59% to EUR 6.25 per share Net-LTV of 42.6% FFO-Forecast of EUR 16 million to EUR 20 million in FY 2017/2018 FFO run rate at EUR 23 million by the end of the FY 2017/2018 4

5 Financial key figures Strong growth of all financial figures in FY 2016/2017 Rental income (keur) FFO (keur) FFO per share (EUR) 25,000 20,000 15,000 10,000 5,000 0,000 19,249 11,437 FY 2015/2016 FY 2016/ ,000 10,000 8,000 6,000 4,000 2,000 0,000 10,260 5,630 FY 2015/2016 FY 2016/2017 0,5 0,45 0,4 0,35 0,3 0,25 0,2 0,46 0,37 FY 2015/2016 FY 2016/2017 0,5 0,4 0,3 0,2 0,1 affo per share (EUR) 0,31 0,35 FY 2015/2016 FY 2016/ GAV (keur) 275, , EPRA NAV per share (EUR) 6,25 3,

6 Highlights of FY 2016/2017 and recent developments Oct 2016 Acquisition of 4 properties about 15.4 meur Jan - Apr 2017 Acquisition of 9 properties about 25.9 meur May - July 2017 Acquisition of 3 properties about 20.8 meur July 2017 Full letting of Domcenter Greifswald after revitalisation Sep 2017 Acquisition of 6 grocery stores about 26.5 meur 1 Nov 2017 Acquisition of 4 grocery stores about 6 meur 6 Nov and 7 Dec 2017 Notarisation of 8 stores about 15 meur Dec 2016 Conversion of mandatory convertible bond 27 Feb 2017 Capital increase with a volume of 38 meur net 3 Mar 2017 Entry into Prime Standard of Deutsche Börse May - Aug 2017 Withdrawal of new loans totalling 30.6 meur 30 Oct 2017 EPRA membership 8 Dec % Capital increase with a volume of 24 meur net 6

7 Real Estate Portfolio 7

8 Portfolio Key portfolio figures as at ,0 22,0 19,0 16,0 13,0 10,0 Annualized (meur) 24,8 14, ,0 14,0 13,0 12,0 11,0 Vacancy (%) 14,6 12, >> Portfolio snapshot Key figures based on 62 properties booked as at GAV of the portfolio roughly 275 meur according to yearly valuation by external appraiser JKT Increase of vacancy mainly due to recently purchased assets in Plauen and Meißen which have vacant spaces of roughly 30% Initial yield (meur) 10 12,1 5 4,75 4,5 4,25 4,5 WALT (years) 4,6 WALT remained stable

9 Portfolio Recent acquisitions (1) Location Finsterwalde Location Langenwolschendorf Location Hettstedt Location Kelbra (Kyffhäuser) Location Schwerte Space (sqm) 11,081 Space (sqm) 3,072 Space (sqm) 2,780 Space (sqm) 930 Space (sqm) 1,200 Annualized (keur) 480 Annualized (keur) 280 Annualized (keur) 227 Annualized (keur) 72 Annualized (keur) 98 Major tenant OBI Major tenant REWE, TEDi Major tenant PENNY Major tenant PENNY Major tenant PENNY WALT ~ 6.5 years WALT ~ 5.8 years WALT ~ 2.2 years WALT ~ 3.2 years WALT ~ 3.3 years 9

10 Portfolio Recent acquisitions (2) Location Berlin Location Berlin Location Weilheim Location Dierdorf Location Jestetten Space (sqm) 987 Space (sqm) 931 Space (sqm) 1,824 Space (sqm) 1,392 Space (sqm) Annualized (keur) 151 Annualized (keur) 202 Annualized (keur) 106 Annualized (keur) 147 Annualized (keur) 162 Major tenant Netto (EDEKA) Major tenant Netto (EDEKA) Major tenant Netto (EDEKA) Major tenant KIK, Fressnapf Major tenant KIK, TEDi WALT ~ 6.4 years WALT ~ 6.4 years WALT ~ 4.0 years WALT ~ 10.7 / 2.0 years WALT ~ 10.7 / 4.3 years 10

11 Portfolio Recent acquisitions (3) After DKR acquired 12 further assets with a total investment volume of around 20 meur with annualized s of about 2.2 meur and 32,000 sqm al space Pro forma portfolio as at comprises 74 properties with annualised s of about 27.0 meur and GAV of approx. 295 meur Location Waldbröl Location Zeulenroda Space (sqm) 938 Annualized (keur) Major tenant 71 Rossmann Space (sqm) 5,632 Annualized (keur) Major tenant 240 Hagebaumarkt WALT ~ 3.4 years WALT ~ 7.5 years 11

12 Property map 74 properties with about 375,000 sqm lettable space and 295 meur GAV >> Top 8 assets as at : City Greifswald City Ludwigslust Lettable space (sqm) 9,410 Lettable space (sqm) 14,386 Construction 1997 Construction 2000 Annual (meur) 1.6 Market value (meur) 23.7 Schleswig- Holstein Mecklenburg- Pomerania Annual (meur) 1.1 Market value (meur) 9.9 City Pritzwalk City Verden Lettable space (sqm) 15,157 Lettable space (sqm) 7,128 Construction 1999 Annual (meur) 1.2 Lower- Saxony Saxony- Anhalt Brandenburg Construction 1993/2011 Annual (meur) 1.4 Market value (meur) 15.4 Market value (meur) 13.3 City Oer-Erk. Lettable space (sqm) 9,555 Northrine- Westphalia Hesse Thuringia Saxony City Bitterfeld Lettable space (sqm) 19,541 Construction 1995/2015 Construction 1996 Annual (meur) 1.0 Annual (meur) 1.3 Market value (meur) 13.1 Market value (meur) 16.2 City Leipzig City Erfurt Lettable space (sqm) 22,400 Lettable space (sqm) 16,920 Construction 1993/1999 Construction 1994 Annual (meur) 1.6 Annual (meur) 2.8 Market value (meur) 26.0 Market value (meur) 30.0 Portfolio as at (62 properties) Transfer of titles on Acquired notarised asset 12

13 Tenant mix High quality tenants and 75% non-cyclical s >> Rent contribution by sector (meur) 1 : >> Annualised contribution by major tenants 1 : Tenant group Brands Rents (meur) WALT in years Edeka Group Other cyclical uses Schwarz Group ,5 Metro Group Bartels-Langness Group DIY-stores 2,5 Rewe Group Norma ALDI Others Other non-cyclical uses 2 Health sector 2,1 0,7 2,1 Non-food discounters 14,6 Food retail Total food retail Rewe Group Tengelmann Group Others Total DIY stores Tengelmann Group Others Total non-food discounters Annualised contribution of the pro forma portfolio (66 properties) as at (without 1 notarised asset) 2 Involves e.g. drug stores, bakeries, banks and apartments 13

14 No. of lease contracts Rent p.a. Leases DKR as a reliable partner for long-lasting tenancies >> Multiple leases with the same tenants foster the relationship (No. of lease contracts as at ): >> Annualised s allocated to years of lease contract maturities of the portfolio as at : , , , , , , , , EDEKA Group Tengelmann Group Rewe Group Norma Schwarz Group ALDI DM Fressnapf ,00 0, unlimited > DKR considers a stable lease relationship as a fundament to get information, to improve the tenant mix of each property, for information about potential acquisitions and to prolong al contracts > Unlimited lease contracts (plenty of local tenants with local businesses and also apartments) 14

15 Revitalisation projects Value add by extensive property redevelopments >> Cur major revitalisation projects: Location Domcenter Greifswald Location Kirschbergcenter Hohenmölsen Location Kolumbuspassage Rostock Location Lindencenter Stralsund Space (sqm) 9,410 Space (sqm) 7,797 Space (sqm) 4,492 Space (sqm) 5,775 Vacancy ~ 37% Vacancy ~ 38% Vacancy ~ 12% Vacancy ~ 27% Project description Fresh appearance by new facade, new space utilisation, new tenants and expansion of existing tenants Project description Fresh appearance by new facade, new space utilisation, new tenants and expansion of existing tenants Project description New concept and new grocery anchor tenant which improves the tenant mix Project description New space utilisation and improvement of tenant mix Investment volume 5 meur Investment volume 3 meur Investment volume ~ 1 meur Investment volume ~ 1 meur Expected finalisation Spring 2018 Expected finalisation Spring/Summer 2018 Expected finalisation Summer 2018 Expected finalisation Autumn

16 Valuation potential Asset valuation leverages the NAV per share >> NAV impact derived from factor increases (c.p.) leads to upside potential: Annualised total portfolio (meur) Valuation multiple Yield Portfolio value (meur) Net LTV Net debt outstanding NAV (meur) Number of shares m Hypothetical NAV per share (EUR) Cur portfolio as at Assumptions (based on pro forma portfolio) % % , % % , % % , % % , % % , % % , % % , % % , Due to the dynamic market outlook and DKRs portfolio improvements (mainly via lease extensions) there is high potential for value increases in the future Compared to the sector DKRs external portfolio valuation is fairly conservative Due to stable tenant structure with non-cyclical major tenants and cur conservative portfolio valuation impairment risks are low 1 Assumptions are based on the cur pro forma portfolio of 67 assets and GAV of 285 meur with an annualised of 26.0 meur 16

17 Financial structure 17

18 Financial structure Conservative and stable financing >> Debt structure of DKR as at 30/09/2017 (meur nominal debt): 30/09/ /09/2016 Debt allocation (meur initial nominal debt) 18,4 Debt from loans and convertible bonds (IFRS), meur Convertible bonds I and II 37,0 Average nominal interest of loans, % p.a ,0 Average nominal interest of loans & convertible bonds, % p.a (Net-) LTV (%) Average loan maturity (years) ,1 32,5 Curly DKR is in the refinancing process of existing short term loans and is likely to finish the refinancing by the end of 2017 Loan allocation according to maturity of fixed interest rates (meur initial nominal debt) 25,00 22,4 Additionally DKR will increase its LTV up to 50% by taking new loans 20,00 15,00 13,0 18,4 As a result the average interest of loans will drop to roughly 2 % p.a. while the average loan maturity will expand to between 5 and 6 years 10,00 5,00 2,3 2,8 2,5 6,0 8,6 0, Comprises all financial liabilities as well as advanced payments for purchased investment properties 18

19 Financials FY 2016/

20 Financials FY 2016/2017 Condensed IFRS balance sheet keur 30/09/ /09/2016 keur 30/09/ /09/2016 Pro forma portfolio of meur 285 including the latest notarised acquisitions Comprises advanced payments for acquisitions Contains VAT receivables and tenant receivables No deferred tax positions due to REIT status Assets Equity and liabilities Investment properties 275, ,822.5 Subscribed capital 24, ,447.0 Other non-cur assets ,660.1 Capital reserves 77, ,786.9 Deferred tax assets Other reserves Total non-cur assets 275, ,482.6 Retained earnings 56, ,941.7 Other cur assets 3, ,642.0 Total equity 154, ,031.3 Cash position 1, ,334.6 Bank liabilities 40, ,645.1 Total cur assets 4, ,976.6 Convertible bonds 35, ,015.1 Non-cur assets held for sale Other liabilities 4, ,475.7 Deferred tax liabilities Total long-term liabilities 80, ,135.9 Bank liabilities 31, ,286.4 Other financial liabilities 10, ,450.8 Other short-term liabilities 3, ,554.8 Total short-term liabilities 45, ,292.0 Total assets 280, ,459.2 Total equity and liabilities 280, ,459.2 Capital increase due to mandatory bond conversion in Dec 2016 and capital increase in Feb 2017 Increase due to new loans; drop of two loans from long-term to short-term duration Short term credit line used for asset acquisitions 20

21 Financials FY 2016/2017 Condensed IFRS income statement Rent increases due to various acquisitions in the FY 2016/2017 Increase of interest expenses due to higher bank debt referring to property acquisitions keur 01/10/ /09/ /10/ /09/2016 Rental income 19, ,437.4 Operating expenses -4, ,464.4 Net al income 14, ,973.0 Income from property disposal Expenses from property disposal Net result from property disposal Gain/loss from fair value measurement of investment properties 28, ,368.1 Other operating income ,831.1 Personnel expenses Depreciation of assets Impairment of receivables Other operating expenses -1, ,286.9 EBIT 41, ,564.2 Interest income Interest expenses -4, ,603.8 EBT 37, ,127.0 Income taxes Other taxes Total period income 37, ,988.9 Valuation gain based on the property portfolio as at 30 September 2017 (62 properties) according to external appraiser Increase of personnel expenses due to new employees in course of the growth of the company Income tax gains due to reimbursement of deferred taxes after obtaining REIT status 21

22 Financials FY 2016/2017 FFO and EPRA NAV reconciliation >> FFO/aFFO: >> EPRA NAV: keur 01/10/ /09/ /10/ /09/2016 keur 30/09/ /09/2016 Total period income 37, , /- Income taxes Depreciation of assets /- Unrealised gain/loss from fair value measurement of investment properties -28, ,368.1 Net result from property disposal Other non-cur / non-cash expenses/income 1, ,127.5 FFO 10, , Capex -2, affo 7, ,658.7 FFO per share (EUR), undiluted affo per share (EUR), undiluted Total equity 154, ,031.3 Conversion of convertible bonds NAV 154, ,031.3 Fair value of derivative instruments Deferred taxes EPRA NAV 154, ,031.3 Number of shares 24,760,285 18,447,003 EPRA NAV per share (EUR), undiluted On the basis of average number of shares in the period; prior year figures adjusted : Equity contained a mandatory convertible bond in an amount of 14.4 meur. Therefore the NAV is divided by 20,107,003 total shares (additional 1,660,000 shares after conversion of mandatory bond). 22

23 DKR shares, analysts, guidance and dividend policy 23

24 DKR Shares Share price uplift reflects the potential of the business model >> DKR share: 18/12/2017 ISIN WKN Symbol DE000A14KRD3 A14KRD3 DKG Number of shares 27,236,313 Nominal capital (keur) 27,236 Share class Stock exchanges Segment Bearer shares XETRA, Frankfurt, Berlin Prime Standard Indizes CDAX, DIMAX, RX REIT (All share) 52w high/low (EUR) / 7.32 Market Cap (meur) ~

25 DKR Shares Analysts >> Analyst coverage: Publication date Bank Analyst Recommendation Price target 17 August 2017 Thomas Effler Buy EUR December 2017 Kai Klose Buy EUR

26 DKR Shares Stable and broad investor base after capital increase >> Recent DKR share developments: >> Cur shareholder structure (18/12/2017) : Carmignac Gestion Successful 10% share capital increase closed on 8 Dec 2017 Issuance of 2,476,028 new shares at a share price of 10 EUR (1.2x oversubscription) Obotritia Capital Group 30,12% 5,72 9,24 2,46 3,49 3,56 4,46 Aramis Holding GmbH Tiven GmbH 9. Ostdeutschland Invest GmbH Retail Real Estate Opportunity UG Increased free float 5,07 4,73 Zerena GmbH DKR aims to step into SDAX and EPRA indices soon 5,07 5,14 Goebel Home Accessories AG Lotus AG 5,03 6,59 Other free float Obotritia Alpha Invest GmbH 6,63 Försterweg Beteiligungs GmbH Hevella Capital GmbH & Co. KGaA Babelsberger Beteiligungs GmbH 32,82 Obotritia Capital KGaA Free float 26

27 DKR Shares FFO-Guidance and dividend policy for Fiscal Year 2017/2018 >> FFO-Guidance for FY 2017/2018: FFO guidance is mainly driven by successful futurous acquisitions DKR plans to invest between 75 and 100 meur in the FY 2017/2018 Based on cur projections DKR expects FFO between 16.0 meur and 20.0 meur FFO run rate at 23.0 meur by the end of FY 2017/2018 >> Dividend policy for FY 2017/2018: DKR pays dividend for FY 2017/2018 after conclusion of the AGM in spring 2019 Dividend distribution of 90% of German GAAP period result Based on cur number of shares we expect a dividend of at least 0.20 EUR per share 27

28 Finance calendar 28

29 Finance calendar We keep you informed >> Finance calendar: Date Publication of final annual statements FY 2016/ Analyst call regarding final annual statements and latest developments Publication of Q1 2017/2018 interim statement Annual General Meeting in Berlin Publication of H1 2017/2018 interim financial report Publication of Q3 2017/2018 interim statement Publication of final annual statements FY 2017/2018 >> Events: Date ODDO BHF Forum Lyon th ODDO BHF German Conference Frankfurt 29

30 Appendices 30

31 Appendix I Experienced and committed management Rolf Elgeti (CEO) Rolf has been the founder of Deutsche Konsum REIT-AG, which is a spin-off of his investment company Obotritia Capital. Before he was the CEO of TAG Immobilien AG, Hamburg, which experienced an enormous growth under his leadership and stepped into German Mid-Cap Index (MDAX). Before Rolf worked many years as an equity strategist at ABN Amro, Commerzbank and UBS in London. He has excellent banking and real estate knowledge. Rolf is personally and financially committed to DKR. Alexander Kroth (CIO) Alexander joined DKR in January 2017 and initially set up the company together with Rolf. He is in charge of DKRs investment strategy and the asset management. Before he worked at Obotritia Capital and KPMG. Alexander has real estate experience of more than 10 years. In July 2017 Alexander has been appointed to CIO. Christian Hellmuth (CFO) Christian joined DKR in January 2017 and is responsible for Finance, Accounting and IR. Before he worked many years in leading positions at WCM, Deutsche Wohnen, GSW, Porsche Consulting and PricewaterhouseCoopers. Christian has real estate experience of more than 15 years. In July 2017 Christian has been appointed to CFO. 31

32 Appendix II Strong external partners >> DKRs external management partners: Elgeti Brothers 32

33 Appendix III DKR s value add approach Risk/Chance analysis before purchase We try to get a vision of the asset, location and useful future uses on the basis of cur market demand Pro-active asset management DKRs asset management consists of 5 experienced and motivated full-time asset managers Establishing stable tenant relationships We want to be reliable and long term partner and are in steady discussions to understand tenants needs with the aim to generate win-wins Creativity and flexibility We try to think inconventionally and to find new concepts to recover a property Experience We have a motivated and experienced asset management which quickly estimates which way could be value adding Building networks With the growth of DKR also our network of potential tenants grows which can be advantegeous 33

34 progress Appendix III Case 1: Bitterfeld - Revitalisation of BiTZ retail store At purchase Now Revitalisation process: Results: 1 New utilisation concept by DKR s AM and activation of unused land by new construction of REWE and DM store New attractive tenants REWE (15 years contract) and DM (12 years contract) and increased al space. Investment of roughly 5.5m EUR. Total able space (sqm) Vacant space (sqm) Annualized (meur) Major tenants WALT Purchase price (meur) 16,466 4,815 (29%) 0.6 OBI, ALDI, DEICHMANN 4.5 years Prolongation of al contracts with remaining tenants after successful raising of the locations attractiveness Refurbishing old building and increase of usability by implementing state-of-the-art al areas adapted to tenants needs OBI signed new 10 years contract and 15% increase, ALDI remains at the location, TEDI exercised prolongation option. Major decrease of vacant space expected due to cur positive negotiations with potential tenants. Annualised increase of 0,2m EUR expected (conservative calculation). Total able space (sqm) Vacant Space (sqm) Annualized (meur) Major tenants WALT Fair value (meur) 30 Jun ,515 5,745 (29%), Increase due terminated lease contract with a night club 1.0 OBI, ALDI, REWE, DM, DEICHMANN 8.6 years

35 progress Appendix III Case 2: Ludwigslust - Extending the anchor of Lindencenter At purchase Now Value-add measures: 1 At purchase through DKR the anchor tenant was about to leave the asset. Started negotiations with anchor tenants quickly. Results: Prolongation of food retail anchor by 10 years with same conditions which increased the WALT significantly. Total able space (sqm) Vacant space (sqm) 14, (6.5%) 2 Vacancy almost completely reduced by using the experience and the network of our asset management. Almost 0% vacancy and increased income. Total able space (sqm) Vacant Space (sqm) 14, (0.1%) Annualized (meur) Major tenants 1.5 SKY, INJOY, DEICHMANN, KIK Annualized (meur) Major tenants 1.6 FAMILA, INJOY, DEICHMANN, KIK WALT 5.1 years WALT 8.3 years Purchase price (meur) 13.0 Fair value (meur) 30 Jun

36 progress Appendix III Case 3: Greifswald - Vacancy reduction through new attractive concept At purchase After rebuilding Revitalisation process: 1 At purchase the retail centre had an uncertain future stucking in a liquidation for years. Developed new space concept and started negotiations with anchor tenants quickly. Results: Space expansion of food retail anchor and fashion store accompanied with lease expiries. Total able space (sqm) Vacant space (sqm) Annualised (meur) Major tenants WALT Purchase price (meur) 17,136 5,998 (35%) 0.9 Fashion Store, Grocery, Cinema, Apartments, Others < 3 years Pro-active search and presentation of new attractive tenants. Initiation of refurbishments and modernization of appearance and technical issues like fire protection. 3 Start of refurbishment and modernisation and ongoing attraction of new tenants. New leases have reduced the vacancy < 10% and increased annualised to 1.4m EUR. Duration of all new leases over 10 years. New and attractive appearance of the centre. Vacancy almost completely reduced. Total able space (sqm) Vacant Space (sqm) Annualised (meur) 17,136 <10% 1.4 Major tenants JESSKE / MANGO, HOEPPNER (Shoes), NAH & FRISCH (Grocery), Cinema, Others WALT > 10 years Fair value (meur) 30 Jun

37 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 1 Platz der Befreiung Schwedt Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,1% 5, Brehnaer Straße Bitterfeld Retail ,6% 5, Anhaltstraße 70b/ Bitterfeld-Wolfen Retail ,0% 3, Gothaer Straße Erfurt Retail ,0% 11,

38 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 5 Am Marstall Ludwigslust Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,8% 9, Rendsburger Straße Neumünster Retail ,0% 4, Carl-Cossow-Straße Marlow Retail ,0% 9, Fritz-Reuter-Straße Altentreptow Retail ,3% 9,

39 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 9 Chausseestraße Ueckermünde I Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,0% 6, Ostrauer Straße Bad Dürrenberg Retail ,7% 3, Berghausstraße Meißen Retail ,0% 3, B Ehrenfriedersdorf Retail ,0% 3,

40 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 13 Karlsgasse Adorf Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,0% 1, Bahnhofstraße Wandlitz Retail ,0% 9, Merseburger Straße/ Marktbreite 4178 Leipzig Retail ,6% 6, Hermann-Heidel-Straße Halle Retail ,7% 4,

41 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 17 R.-Luxemburg-Straße Gräfenhainichen Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,0% 6, B Warin Retail ,0% 6, Dorfstraße Schwante Retail ,0% 8, Minderer Straße 67 / Alter Rehmer Weg 22, Bad Oeynhausen Retail ,1% 4,

42 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 21 Neuenbrooker Str. 37, Krempe Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,0% 7, Löbauer Str. 45, Herrnhut Retail ,0% 7, Am Bahnhof 8, Niesky Retail ,0% 5, Hoyerswerdaer Str. 136, Kleinwelka Retail ,0% 11,

43 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 25 Albert-Tanneur-Straße 25, Ludwigsfelde Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,0% 6, Manteuffelstraße 71, Berlin-Tempelhof Retail ,0% 5, Habichtstraße 16, Berlin-Konradshöhe Retail 580 0,0% 7, Gubener Str Eisenhüttenstadt Retail ,0% 4,

44 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 29 Brückenstraße 12a/b, Rüdersdorf Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,0% 8, Karl-Marx-Straße 95, Guben Retail ,0% 9, Pferdemarkt 58 / Markt 2-3 / Hageböcker Straße 108 Güstrow Retail ,5% 10, Kolumbusring 58, Rostock Retail ,9% 4,

45 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. 33 Dompassage Greifswald Retail ,5% 7, Ringstr Gustav-Petri- Str Wernigerode Retail ,9% 6, Am Stadtfeld 2, Laucha Retail ,0% 8, Lange Straße 3, Gröbers Retail 986 0,0% 9,

46 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 37 Edderitzer Straße 8, Köthen Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail 685 0,0% 10, Neustadt 1a, Ermsleben Retail 678 0,0% 9, Babener Straße 43, Goldbeck Retail 982 0,0% 8, Nordwall 12b, Stendal Retail ,0% 10,

47 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 41 Mühlstraße 52, Viernau Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,0% 4, Bergstraße 12, Kaltensundheim Retail 916 0,0% 4, Gartenstraße 4, Kaltennordheim Retail 927 0,0% 3, Gladenbacher Straße 43, Dautphe Retail ,0% 4,

48 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 45 Rostocker Straße 1, 2, 3, 7 und 8, Pritzwalk Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,0% 7, Holzmarkt 7, 9, 11, 13 und 15, Verden Retail ,7% 13, Bahnhofsplatz 3, Krakow am See Retail ,3% 8, Magdeburger Straße 32, Aschersleben Retail ,0% 10,

49 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 49 Abtshäger Straße 13, Franzburg Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,0% 6, Lindenallee 25, Stralsund Retail ,1% 4, Haffring 24, Ueckermünde Retail ,0% 5, Wilhelm-Külz-Straße 8, Hohenmölsen Retail ,3% 5,

50 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 53 Harburgerstraße 30, Bergen Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,0% 11, Drebkauer Hauptstr.5, Drebkau Retail 965 0,0% 5, Karl-Marx-Str. 96, Guben Retail ,9% 7, Berliner Platz 14, Oer-Erkenschwick Retail ,0% 10,

51 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 57 Schützenstraße 1, Meißen Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,9% 6, Morgenbergstraße 41, Plauen Retail ,7% 7, Neustädter Ring 78, Tangerhütte Retail ,0% 5, Beethovenstraße 9, Sondershausen Retail ,0% 6,

52 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 61 Karl-Marx-Straße 33, Eisenhüttenstadt Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail 965 0,0% 11, Frohnbachstr. 59, Limbach-Oberfrohna Retail ,0% 7, Portfolio in total as at ,6% 7,

53 Appendix IV DKRs cur portfolio DKR Portfolio # Address Use 63 Luisienstraße a-k / Am Plattenberg, Hettstedt Rental space Vacancy Rent level Monthly Annual sqm % /sqm p.m. p.a. Retail ,0% 6, Jochstraße 3, Kelbra Retail 930 0,0% 6, Heinrich-Wobst-Str. 1, Langenwolschendorf Retail ,0% 7, Hagener Str.1, Schwerte Retail ,0% 6, Portfolio in total as at ,3% 7, Please note that in some cases vacany and level numbers comprise all uses as retail, apartments and parking and are therefore just averaging indications. 53

54 Glossary >> Calculation of financial figures: Financial KPI Average debt interest rate EPRA NAV per share FFO GAV Initial yield Net-LTV Valuation multiple WALT Calculation Weighed average interest rates of financial instruments divided by nominal financial debt Total equity modified according to EPRA guidelines divided by number of shares Funds From Operations Recurring and oneoff adjusted fund from the operation of the property portfolio Gross Asset Value Value of investment properties in the balance sheet Annualised al income divided by purchase price Net Loan-to-value - debt (financial liabilities minus cash) divided by GAV Gross asset value divided by al income Weighed average lease terms of the portfolio remaining 54

55 IR contact Get in touch with us >> IR contact: Stefanie Frey August-Bebel-Str Potsdam + 49 (0331)

56 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 cur 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 international transactions, currency risk. This presentation may contain forward looking statements including statements regarding our intent, belief or cur 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 financial year ended30 Sep