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MarketScreener Homepage  >  Equities  >  Xetra  >  Deutsche Industrie REIT-AG    JB7   DE000A2G9LL1

DEUTSCHE INDUSTRIE REIT-AG

(JB7)
  Report
Real-time Estimate Quote. Real-time Estimate Tradegate - 01/25 11:59:40 am
15.6 EUR   +0.65%
01/19DEUTSCHE INDUSTRIE REIT : Company Presentation January 2021
PU
2020DEUTSCHE INDUSTRIE REIT : Results FY 2019/2020
PU
2020DEUTSCHE INDUSTRIE REIT : Annual Report 2019/2020
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SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

Deutsche Industrie REIT : Company Presentation September 2020

09/15/2020 | 12:05pm EST

Deutsche Industrie REIT-AG (DIR)

Company Presentation

September 2020

Content

  • 9M 2019/2020 Highlights
  • Strategy & Business Model
  • Market Overview
  • Real Estate Portfolio
  • Valuation
  • Acquisitions
  • Financing
  • Results 9M 2019/2020
  • DIR Shares & Investor Relations
    -------------------------------------------------
  • Appendix: Glossary, Disclaimer

2

9M 2019/2020 Highlights

Highlights 9M 2019/2020

Key figures

Pro forma

Properties

Occupancy

Commercial

Annualised

Portfolio

Land Bank

Space

In-Place Rent

Value

Portfolio YTD*

73

88.0%

3.1m sqm

1.30m sqm

48.1 m€

582.3 m€

Key Figures

Net rental

Revaluation

FFO

REIT equity

LTV

2019/2020

Income

gains

ratio

FFO-Guidance

9M 2019/2020

18.3 m€

38.7%

29.7 m€

35.4 m€

63.6%

23-25 m€

* Based on pro forma portfolio as of 13/08/2020 = including notarised properties YTD with transfer of ownership after 30/06/2020

4

Highlights 9M 2019/2020

Key figures

FFO per share (€)

0.64

0.40

9M 2018/2019

9M 2019/2020

Avg. # of

21,280,287

28,363,575

shares

EPRA NAV per share (€)

11.53

7.74

30/09/201930/06/2020

# of shares

23,451,945

32,079,505

9M 2018/2019

9M 2019/2020

NRI margin:

82%

80%

Earnings per share (EUR)

2.09

1.54

Interest Cover Ratio (adj. EBITDA/Net interests)

6.65

2.76

Costs of debt (non-current financial liabilities):

3.09%

2.71%

5

Strategy & Business Model

Strategy & Business Model

Combining cash flow properties with lean admin structure and REIT

  • Focused on Light Industrial properties
    (business parks, logistic centers, production facilities etc.)
  • Well established properties with good infrastructural connections and regional relevance
  • Occupying a niche which is situated below the investment criteria of institutional investors and above the requests of private investors
  • Lean company structure and low administrative expenses
  • Valuation potential due to low purchase prices, vacancy reduction, rent increases
  • Further growth of the portfolio mitigates single-asset risks and stabilises the whole portfolio leading to more diversity
  • REIT combines our asset strategy with lean admin structures, tax exemption on company level and provides attractive dividends for shareholders

Strong cash flow generating portfolio

+

Stable and efficient financial structure

+

Value creation by active asset management

++

Lean company structure

Advantages from REIT

structure

=

Attractive and stable dividends

7

Strategy & Business Model

Real estate investment company focussed on Light Industrial

Strong continuous growth with acquisition at high yields around 10%

Land development potential

  • DIR owns a huge land area of 2.6 million sqm.
  • Light Industrial is the lowest possible type of development for land
  • Usually low buildings
  • Land utilisation is only 50%
  • Construction of taller buildings and increased utilization would lead to higher density
  • New construction with upgrade in for instance office or residential use is possible

Rent development potential

No significant

Restrictive

Conversion

Strong

Need for more

into more

storage and

new

approval

valuable types

economic

logistics

construction

practice for

of uses

fundamentals

spaces due to

due to current

industrial areas

(residential,

in Germany

booming online

low rent level

office etc.)

shopping

Shrinking product supply

Growing demand

Increasing land value

Increasing market rents

Built up a Light Industrial real estate platform with multi-dimensional value enhancing potential where the whole is worth more than the individual parts

8

Strategy & Business Model

Investment approach & Deal sourcing

Investment criteria

  • Locations with good infrastructural connections and regional relevance
  • Pure Light Industrial and logistic uses
  • High initial vacancy is not necessarily a hurdle
  • Good over-allsubstance with possible need for renovation and development
  • Initial yield: Preferably over 10% p.a. (on the basis of the in place rent)
  • Volume from <1 m€ up to 50 m€ per transaction
  • Only asset deals, single assets and small portfolios

Typical Seller / Sales Reason

Splitting

Sale &

Opco/

lease

Propco

back

Enterprise

Leftovers

Non-

Succession

from big

institutional

portfolios

owners

CapitalInsolvency

recycling/stressed companies

Conversion

properties

Our competitive advantages:

Deal sources

• Quick decisions due to lean company structure

• Focused and flexible acquisition team

Broker

DIR

Public

Other

• Fast payment due to equity financing

network

auctions

• Well-defined investment strategy with pure focus on one asset class

• Comprehensive and transparent reporting

9

Strategy & Business Model

Value add approach

Risk/Chance

analysis before

purchase

We try to get a vision of the asset, location and useful future uses based on current market demand

Creativity and

flexibility

We try to think

unconventionally and to find new concepts to recover a property

Pro-active asset

management

Our team consists of

experienced and motivated full-time asset managers

Tenant relationship

We want to be a

reliable and long-term

partner and are in

continuous

discussions to

understand tenants needs with the aim to generate win-wins

Tenant network

With the expansion of the portfolio also our network of potential tenants grows which can be advantageous

10

Market Overview

German Light Industrial Market

Overview of the commercial real estate market in Germany

Total commercial floor space (million sqm)

Market values of commercial real estate (billion EUR)

Market values of company properties(billion EUR)

Retail properties

Converted

Business parks

Company properties 563.6

properties 43.0

360.0

14.5

Company properties

957.6

Industrial space

1,359.0

Light

Office properties

maufacturing

Warehouse/

properties 300.5

logistsics space

600.0

205.7

Retail properties

120.0

Space in smaller

Industrial space

Office properties

Space in smaller properties

475.7

properties

400.0

310.0

93.0

Key facts:

New constructions company properties

(sqm in thousand)

27 % of the total commercial market value are company properties

New Constructions of company properties H2 2019:

49.0 %

Light manufacturing properties

26.7 %

Logistics space

21.4 %

Business parks

2.8 %

Converted properties

1,175.5

918.6

714.4

988.8

871.0

772.6

538.5

H2 2016

H1 2017

H2 2017

H1 2018

H2 2018

H1 2019

H2 2019

Source: bulwiengesa, Market Report - Transparency on Germany's Industrial Real Estate Market (H2 2019)

12

German Light Industrial Market

Investment market - corporate properties

Investment volume (mEUR)

Average gross initial yields (%)

2,408

2,052

8.7%

1,803

7.8%

5.9%

6.4%

1,084

953

796

Converted properties

Warehouse-/ logistics

Business parks

Light manufacturing

H1 2017

H2 2017

H1 2018

H2 2018

H1 2019

H2 2019

properties

properties

Key facts:

  • Doubling of the investment volume in the second half of 2019, highest transaction volume so far, still short supply on the market
  • More transactions in less documented market regions / more off-market deals
  • H2 2019: 12.6 % portfolio transactions / 87.4 % single transactions
  • In 2019 > 58.0 % buyers from Germany, further 24.0 % from Europe

Source: bulwiengesa, Market Report - Transparency on Germany's Industrial Real Estate Market (H2 2019)

13

German Light Industrial Market

Letting market - corporate properties

Rents by floor space type (EUR/sqm)

Lease term weighted by take-ups (%)

*based on new contracts

Min. rent

Average rent

Prime rent

37.7

16.30

13.57

18.5

16.5

9.43

8.10

8.80

8.7

11.4

6.2

5.90

5.50

5.00

4.50

1.1

Office / Social space

Flex Space

Light manufacturing space

rolling

< 1 year

1 to 2 years

2 to 3 years

3 to 5 years

5 to 10 years

> 10 years

Take-ups (sqm in thousand)

593.0

499.5

466.5

357.0

281.5

246.0

H1 2017

H2 2017

H1 2018

H2 2018

H1 2019

H2 2019

Key facts:

  • Dynamic economic cycle keeps take-up on high level
  • Lack of available space characterises the rental market
  • Space take-up decreases significantly in 2nd half of 2019 (+14.5 %)
  • High demand for properties and space meets less supply
  • New leases for longer terms and efforts to conclude quick follow-up leases

Source: bulwiengesa, Market Report - Transparency on Germany's Industrial Real Estate Market (H2 2019)

14

Real Estate Portfolio

Portfolio

Sustainable external and internal growth

Absolute growth year on year and pro forma1

Like-for-like development2

No. of properties

73

64

42

06/2019 06/2020 Pro forma

Occupancy (%)

88.5 86.8 88.0

Annualised in-place rent

(m€)

44.3 48.1

30.1

06/2019 06/2020 Pro forma

IPR (€/sqm)

3.56

3.443.43

GAV (m€)

547.0 582.3

357.2

06/2019

06/2020 Pro forma

WALT (years)

4.9 5.0 5.1

Annualised in-place rent

IPR (€/sqm)

(m€)

30.1

30.5

3.44

3.54

06/2019

06/2020

06/2019

06/2020

Occupancy (%)

GAV (m€)

88.5

87.6

357.2

380.7

06/2019 06/2020 Pro forma

06/2019 06/2020 Pro forma

06/2019 06/2020 Pro forma

1 Based on pro forma portfolio as of 13/08/2020= including notarised properties YTD with transfer of ownership after 30/06/2020

06/2019 06/202006/2019 06/2020

2 Based on 28 properties on both balance sheet dates

16

Portfolio

Broad regional allocation

Portfolio as of 30/06/2020

Acquired properties

with transfer after 30/06/2020

Source | Google Maps

Federal State

Properties

Commercial space

Annualised rent

% of rent

North Rhine-Westphalia

25

371,460 sqm

13,815 k€

28.7%

Lower Saxony

8

265,436 sqm

7,987 k€

16.6%

Bavaria

6

125,109 sqm

7,731 k€

16.1%

Baden-Wurttemberg

8

172,929 sqm

7,042 k€

14.6%

Mecklenburg Western Pomerania

7

119,742 sqm

3,082 k€

6.4%

Brandenburg

5

46,399 sqm

2,204 k€

4.6%

Saxony-Anhalt

6

58,466 sqm

1,920 k€

4.0%

Thuringia

4

57,150 sqm

1,680 k€

3.5%

Rhineland Palatinate

1

20,905 sqm

1,043 k€

2.2%

Saarland

1

44,084 sqm

948 k€

2.0%

Bremen

1

9,496 sqm

420 k€

0.9%

Berlin

1

8,816 sqm

228 k€

0.5%

Total

73

1,299,991 sqm

48,100 k€

100.0%

Every location of our properties can be found here:

DIR Properties in Google maps

Pro forma portfolio as of 13/08/2020 = including notarised properties YTD with transfer of ownership after 30/06/2020

17

Portfolio

Diversified mix of uses

Type

Properties

Total rental space

Commercial rental space

IPR p.

Occupancy

WALT

Annualised rent

% of rent

GAV

yield

sqm

commercial

Industrial park

15

374,064 sqm

354,054 sqm

4.63 €

77.3%

3.6

15,778 k€

32.8%

161,040 k€

9.8%

Logistics

23

437,567 sqm

412,374 sqm

3.43 €

91.2%

4.5

15,546 k€

32.3%

208,150 k€

7.5%

Production & logistics

35

816,273 sqm

533,562 sqm

2.76 €

92.6%

6.8

16,775 k€

34.9%

213,089 k€

7.9%

Total

73

1,627,903 sqm

1,299,991 sqm

3.43 €

88.0%

5.1

48,100 k€

100.0%

582,279 k€

8.3%

Types of use by commercial space

How is the single unit used

Production

33%

Office

15%

Logistics

Storage

10%

41%

Other

commercial

space

1%

What's the type of the property

What's the

letting structure of the portfolio

Letting structure

Number of

Annualised

% of

IPR p.

Occupancy

WALT

properties

rent

rent

sqm

commercial

multi tenant

19

17,304 k€

36.0%

4.82 €

71.3%

3.8

dominating major tenant

24

14,679 k€

30.5%

2.92 €

92.4%

4.8

single tenant

30

16,117 k€

33.5%

3.00 €

98.5%

6.6

Total

73

48,100 k€

100.0%

3.43 €

88.0%

5.1

Pro forma portfolio as of 13/08/2020 = including notarised properties YTD with transfer of ownership after 30/06/2020

18

Portfolio

Well-balanced industrial sectors

Industrial sector

% of Rent

Transport/logistics services

18.7%

Metalworking

9.6%

Mechanical and plant engineering

6.2%

Mail order/online trade

6.0%

Pharmaceutical industry

6.0%

Automotive

5.0%

Paper Processing/Paperboard/Packaging

4.5%

Public sector

4.4%

Plastics processing

3.9%

Air carrier

3.7%

Defence industry

3.2%

Industry/specialist/wholesale trade

3.1%

Textile coating

2.4%

Compressed air technology

2.2%

Retail trade

1.9%

Top Fifteen

80.8%

Cyclicality by total rent

cyclical

55.3%

non-cyclical

39.5

privat/ non commercial

public sector

0.9%

4.3%

Pro forma portfolio as of 13/08/2020 = including notarised properties YTD with transfer of ownership after 30/06/2020

19

Portfolio

Solvent major tenants - adequate WALT

Tenant

Sector

% of rent

Aenova / Haupt Pharma

Pharmaceutical Industry

5.8%

Versandhaus Walz GmbH, Baby Walz

Online/Mail order seller

5.3%

Lufthansa Group

Aerospace company

3.4%

DST Defence Service Tracks GmbH

Defence industry

3.1%

Otto ( GmbH& Co KG )

Logistics

3.0%

Gabo Stahl GmbH

Metalworking

2.6%

Bundesanstalt für Immobilienaufgaben

German Armed Forces / Customs

2.5%

Sihl GmbH

Printable materials

2.5%

keeeper tableware GmbH

Paper processing, cardboard, packaging

2.5%

CompAir / Gardner Denver

Compressed air systems

2.2%

Top Ten Tenants

33.0%

Top Twenty Tenants

489 Tenants in total

48.8%

  • Annualised in-place rents split by remaining lease duration

WALT: 5.1 Years

13.402 k€

9.668 k€

5.008 k€

4.659 k€

4.085 k€

4.092 k€

4.036 k€

3.151 k€

up to 1 year up to 2 years up to 3 years up to 4 years up to 5 years 5 to 10 years >10 years

no fixed

expiration

Pro forma portfolio as of 13/08/2020 = including notarised properties YTD with transfer of ownership after 30/06/2020

20

Portfolio

Valuation potential - share price trades at attractive ~5.4 yield

Annualised total

Hypothetical

Portfolio value (m€)

EPRA

Number of

Hypothetical

(book value incl.

Net debt

premium/discount at

portfolio rent

valuation

Yield

Net LTV

NAV

shares

NAV per

38.8 m€ from

outstanding

share price of 17,8.0€

(m€)

multiple

(m€)

million

share (€)

leaseholds)

Portfolio as of 30/06/2020 (IFRS)

44,3

13,1

7,6%

581,8

39%

231,6

369,9

32,0

11,56

54%

48,1

14,0

6,8%

708,2

45%

318,7

389,5

32,0

12,17

46%

48,1

15,0

6,4%

756,3

42%

318,7

437,6

32,0

13,68

30%

48,1

16,0

6,0%

804,4

40%

318,7

485,7

32,0

15,18

17%

48,1

17,0

5,6%

852,5

37%

318,7

533,8

32,0

16,68

7%

Assumptions

48,1

17,5

5,5%

876,6

36%

318,7

557,9

32,0

17,43

2%

based on pro forma portfolio

48,1

18,0

5,3%

900,6

35%

318,7

581,9

32,0

18,18

-2%

48,1

19,0

5,1%

948,7

34%

318,7

630,0

32,0

19,69

-10%

48,1

20,0

4,8%

996,8

32%

318,7

678,1

32,0

21,19

-16%

48,1

21,0

4,6%

1044,9

30%

318,7

726,2

32,0

22,69

-22%

  • Premium reflects market expectation on strong rentand valueupside potential
  • Assumptions based on annualised in-place rent for the proforma portfolio

Current share price level

21

Portfolio

Individual properties

22

Valuation

Portfolio

Valuation as of 30 June 2020

Commercial

Annualised

GAV

Fair Value per sqm

Valuation

Type

rental space

Yield

in sqm

rent in k€

in k€ *

commercial space

change

Industrial park

354,054

15,778

161,040

455

9.8%

8.2%

Logistics

372,516

14,401

197,230

529

7.3%

12.6%

Production & logistics

443,770

14,137

188,707

425

7.5%

9.3%

Total

1,170,341

44,316

546,977

467

8.1%

10.1%

  • Highest valuation change in production & logistics and logistic market segment, shows the yield compression in this both asset classes
  • Positive portfolio valuation uplift reflects the market development in the light industrial sector
  • Valuation was done by CBRE
  • Booked valuation result for 9M 2019/2020 = 35.4 m€

9.8%

9.0%

8.5%

8.4%

8.0%

8.1%

7.5%

7.3%

Logistics

Production &

Industrial park

Total

logistics

Yield before revaluation

Yield as of 30/06/2020

  • Based on valuation results as of 30/06/2020, includes only properties with transfer of ownership until 30/06/2020,

in addition 34.8 m€ balanced leaseholds results in the investment property of 581.8 in the balance sheet

24

Acquisitions

Acquisitions

Track record

Financial Year

Properties

Commercial space

Purchase price

Current Fair Value

Rent at acquisition

current in-place rent

Yield on PP

Yield on FV

before 2017/2018

4

138,524 sqm

28.8 m€

43.6 m€

4.3 m€

4.4 m€

14.9%

10.1%

2017/2018

17

333,201 sqm

116.0 m€

158.5 m€

12.0 m€

12.5 m€

10.4%

7.9%

2018/2019

28

438,476 sqm

174.4 m€

218.6 m€

16.4 m€

16.5 m€

9.4%

7.5%

Transfered in 9M 2019/2020

15

260,141 sqm

104.9 m€

126.3 m€

11.2 m€

10.9 m€

10.7%

8.6%

Signed, transfer expected in

9

129,650 sqm

32.9 m€

35.3 m€

3.8 m€

3.8 m€

11.5%

10.7%

Q4 2019/2020

Total Portfolio End of

73

2019/2020

1,299,991 sqm

457.0 m€

582.3 m€

47.8 m€

48.1 m€

~10.5%

~8.3%

Track record of acquisitions

(purchase price in m€)

closed

signed

26

Acquisitions

Track record / Pipeline insight

  • Investment opportunities of DIR:

Period:

01/10/2019 - 30/06/2020

Offerings:

386

Asking price vol.:

2.63 billion EUR

Rental space:

4.9 million sqm

Adjusted by duplicates1 and validity2:

Type

Offerings

Rental space

Asking price

€/sqm

Average

(million sqm)

vol. (billion €)

Multiple

Industrial park

67

1.2

0.69

592

18.5

Logistics

64

0.7

0.46

649

15.3

Production &

165

2.1

1.17

571

14.5

logistics

Total

296

4.0

2.33

591

15.7

  1. Assets offered more than once
  2. Considering only offers with valid price, space & rent data

Comparing DIR to market (01/10/2019 - 30/06/2020):

Asking vs. purchase price EUR/sqm

591

307

Market

DIR

Asking vs. purchase price yield

10.7%

6.4%

Market

DIR

27

Acquisitions

Selected deals

Euskirchen

Adolf-Halstrick-Str. 6

Oschersleben

Anderslebener Straße 159

Bielefeld

Gustav-Winkler-Str. 17

Acquired

17/06/2020

Acquired

18/06/2020

Acquired

06/07/2020

Type

Production & logistics

Type

Logistics

Type

Logistics

Rental space

39,445 sqm

Rental space

15,000 sqm

Rental space

12,655 sqm

Annualised in-place rent

1,206 k€

Annualised in-place rent

378 k€

Annualised in-place rent

360 k€

WALT

10.0 years

WALT

1.5 years

WALT

2.7 years

Vacancy

100.0%

Vacancy

100.0%

Vacancy

89.1%

Purchase price

9,572 k€

Purchase price

3,000 k€

Purchase price

3,600 k€

Yield

12.6%

Yield

12.6%

Yield

10.0%

Sector(s)

Paper processing, cardboard

Sector(s)

Logistics

Sector(s)

Beverage wholesale

28

Financing

Financing

Debt structure

Loan

Loan

Fixed interest

#

Lender

Interest

Amortisation

Duration

nominal

(years)

(years)

1

Secured Corporate bond

4.00%

0.00%

118.0 m€

2.2

2.2

1

Convertible bond

2.00%

0.00%

41.6 m€

6.0

6.0

14

Savings Banks

1.88%

5.16%

115.5 m€

10.5

8.1

5

Cooperative Banks

1.30%

5.75%

16.8 m€

15.8

8.7

1

Private Bank

2.25%

0.00%

10.0 m€

4.7

4.7

21

Total

2.71%

2.30%

301.9 m€

6.7

5.4

Loan allocation (% initial nominal loan amount)

Private

Bank

3%

Savings banks

38%

Corporate Bond

39%

Convertible Bond

  • Further diversification of financial instruments
  • Long term maturity profile
  • Cost of debt down to 2.71% (3.09%, 30/06/19)
  • Average interest rate of bank loans at 1.8%
  • ICR of 6.65 times (EBITDA/Net interests)
  • Current loan pipeline 18.6 m€ at 0.96%

Maturity profile (m€ initial nominal loan amount)

120 m€

110 m€

100 m€

90 m€

80 m€

70 m€

60 m€

50 m€

Cooperative

banks

6%

14%

40 m€

30 m€

20 m€

10 m€

0 m€

2020 2021 2022 2024 2025 2026 2028 2029 2030 2035 2036 2037 2038

30

Results

9M 2019/2020

Financial Results 9M 2019/2020

Condensed IFRS balance sheet

Including balanced leaseholds of 34.8 m€. Nominal FV of the properties is 547.0 m€

Fair value of financial derivatives (interest SWAP)

Liquidity management by financial investments

k€

30/06/2020

30/09/2019

k€

30/06/2020

30/09/2019

Assets

Equity and liabilities

Investment properties

581,779.3

392,849.0

Issued share capital

32,079.5

23,451.9

Intangible assets

0.7

1.8

Capital reserve

230,015.8

89,530.2

Property, plant and equipment

1,061.2

1,051.9

Other reserves

50.0

50.0

Derivative financial instruments

208.6

0.0

Other Comprehensive Income

208.6

0.0

Other financial assets

25,308.5

0.0

Retained earnings

107,585.3

68,431.1

Other non-current assets

16,466.1

38,886.2

Total equity

369,939.2

181,463.2

Total non-current assets

624,824.6

432,788.9

Liabilities to banks

127,319.2

67,526.5

Trade and other receivables

2,954.4

815.9

Corporate bonds

121,564.9

117,904.0

Other current assets

88,665.7

2,883.7

Convertible bonds

49,091.0

41,184.0

Cash and cash equivalents

360.2

2,065.7

Other non-current liabilities

34,776.5

1,530.1

Total current assets

91,980.3

5,765.2

Total non-current liabilities

332,751.5

228,144.6

Financial liabilities

7,261.4

3,956.9

Non-current assets held for sale

435.0

Liabilities to other creditors

0.0

20,177.7

Other current liabilities

6,852.7

5,246.7

Total current liabilities

14,114.1

29,381.2

Total assets

716,804.9

438,989.1

Total equity and liabilities

716,804.9

438,989.1

Capital increases in 11/19 (at

16.25 €) and 6/20 (at 20.0 €) from 23.5m to 32.1m shares

Corporate bond

nominal 118.0 m€

Convertible bond nominal 41.6 m€

Mainly liabilities from

leaseholds

32

Financial Results 9M 2019/2020

NAV, LTV and REIT equity ratio

EPRA NAV:

k€

30/06/2020

30/09/2019

Total equity

369,939.2

181,463.2

NAV

369,939.2

181,463.2

Fair value of derivative instruments

-208.6

-

Deferred taxes

-

-

Interest SWAP

EPRA NAV

369,730.6

181,463.2

# of shares

32,079,505

23,451,945

NAV per share - undiluted (€)

11.53

7.74

REIT equity ratio

k€

30/06/2020

30/09/2019

Total equity

369,939.2

181,463.2

Investment properties

581,779.3

392,849.0

REIT-Equity ratio

63.6%

46.2%

REIT criteria fulfilled (45% by law)

LTV*:

k€ 30/06/2020

30/09/2019

Liabilities to banks

127,319.2

67,526.5

Liabilities from corporate bonds

121,564.9

117,904.0

Liabilities from convertible bonds

49,088.0

41,184.0

Other non-current liabilities

34,776.5

1,527.1

Non-current financial liabilities

332,748.5

228,141.6

Liabilities to banks

7,261.4

3,956.9

Liabilities to other creditors

0.0

20,177.7

Current financial liabilities

7,261.4

24,134.6

Other non-current financial assets

-25,308.5

0.0

Cash and cash equivalents

-360.2

-2,065.7

Trust accounts

-382.1

-459.0

Short-term loans

-82,378.5

0.0

Current financial assets

-83,120.8

-2,524.7

Net debt

231,580.6

249,751.5

Investment properties

581,779.3

392,849.0

Advance payments on investment properties

16,466.1

38,886.2

Non-current assets held for sale

0.0

435.0

Total Investment properties

598,245.5

432,170.2

Net LTV

38.7%

57.8%

33

Financial Results 9M 2019/2020

Condensed IFRS income statement

Operating expenses

9M-2019/2020

9M-2018/2019

Recoverable operating

and ancillary costs

-7.291,7

-2.776,5

Maintanance

-2.086,0

-1.464,0

Property management

-906,4

-567,0

Asset management

-1.832,8

-1.072,3

Other operating

expenses

-279,9

-165,1

Total

-12.396,8

-6.044,9

k€ 01/10/2019 - 30/06/2020 01/10/2018 - 30/06/2019*

Gross Rental income

29,680.8

17,764.4

Income from operating and ancillary costs

6,474.8

2,814.6

Operating expenses

-12,396.8

-6,044.9

Net rental income (NRI)

23,758.8

14,534.1

Other income

130.0

309.4

Result from the revaluation of investment properties

35,429.6

36,607.0

Personnel expenses

-630.3

-627.5

Depreciation of assets

-120.7

-84.5

Impairment loss of inventories and receivables

-1,905.6

-295.4

Other operating expenses

-1,695.5

-1,188.2

EBIT

54,966.3

49,254.9

Valuation result of financial liabilities

-7,904.0

0.0

Interest income

3,306.3

71.7

Interest expenses

-6,548.2

-4,796.1

EBT

-11,145.9

44,530.5

Income and other taxes

-0.1

22.3

Net income

43,820.3

44,552.8

Regular valuation in 06/2020

  • 50.2m€ higher market values vs. capex and transaction costs

Mainly a IFRS- Valuation effect from financial investments amounting to 1.6 m€

* Note: There were minor changes for 9M 2018/2019 in the context of the auditor's review for the preparation of the securities prospectus.

34

Financial Results 9M 2019/2020

FFO / aFFO reconciliation

FFO/aFFO:

k€ 01/10/2019 - 30/06/2020 01/10/2018 - 30/06/2019*

Net income

43,820.3

44,552.8

Adjustment amortisation and depreciation

120.7

84.5

Adjustment revaluation result

-35,429.6

-36,607.0

Adjustment revaluation result financial liabilities

7,904.0

0.0

Adjustment sales result

0.0

0.0

Adjustment for special effects / non-cash expenses + income

1,556.7

193.1

Adjustment for one-off expenses/income

321.5

373.7

FFO

18,293.6

8,597.1

FFO per share undiluted (€)

0.64

0.40

FFO per share diluted (€)

0.62

0.37

- Capex

-5,852.3

-2,789.3

aFFO

12,441.3

5,807.8

aFFO per share undiluted (€)

0.44

0.27

FFO per share diluted (€)

0.43

0.25

Avg. # of shares for the period

28,363,575

21,280,287

Adjustment

k€

Increase / decrease in individual value

1,116.9

adjustments for financial receivables

Increase / decrease in individual value

326.7

adjustments for rent receivables

Valuation adjustments for interest expenses

113.1

Increase of FFO per share +60%

* Note: There were minor changes for 9M 2018/2019 in the context of the auditor's review for the preparation of the securities prospectus.

35

Financial Results 9M 2019/2020

Outlook

  • Acquisition volume of ~ 140 m€
  • Based on current projections DIR expects still
    an FFO between 23 m€ and 25 m€for the Financial Year 2019/2020
  • FFO run rate between 27 m€ and 29 m€ by the end of FY 2019/2020

36

Shares & Investor Relations

DIR Shares

Basic data & shareholder structure

Shareholder structure:

Rolf Elgeti, 0.5%

Basic data

Obotritia Capital

Group 29.7%

Försterweg Beteiligungs GmbH, 3.6%

VBL, 9.8%

Parson

GmbH, 6.2%

Babelsberger Beteiligungs GmbH, 4.4%

Aurelius Growth

Investments S.a.r.l.; 5.2%

Obotritia Beta Invest GmbH, 4.7%

Massachusetts Financial

Services, 5.0%

Obotritia Alpha Invest GmbH, 7.0%

Obotritia Delta Invest

GmbH, 2.2%

Gert Purkert, 4.7%

Obotritia Capital KGaA, 7.8%

Rocket Internet SE, 3.7%

Remaining free float*, 34.0%

Olive Tree Invest

GmbH, 0.9%

ISIN

DE000A2G9LL1

WKN

A2G9LL

Ticker Symbol

JB7

Number of shares

32.079.505

Nominal capital

32,079,505.00 €

Share class

Bearer shares

Stock exchanges

Berlin (Regulated Market)

Frankfurt, XETRA (Prime Standard)

Designated Sponsor

Oddo Seydler Bank AG

Listing

7 December 2017

Attributable to Rolf Elgeti

Free Float*

(Obotritia Group shares + own) =

42.5%

30.2%

*Free float according to definition of Deutsche Börse: 42.5%

38

DIR Shares

Share performance & coverage

Event

Date

Price

H

L

52 weeks low

06/04/2020

14.80

1

Capital increase 1.5m shares

23/04/2018

7.75

6

2

Capital increase 1.5m shares

17/09/2018

10.00

3

Capital increase 4.5m shares

14/12/2018

11.00 €

5

4

Capital increase 0.9m shares

19/09/2019

15.75

4

5

Capital increase 5.7m shares

15/11/2019

16.25

L

6

Capital increase

19/06/2020

20.00

H

52 weeks high

05/05/2020

23.60

3

2

1

Coverage

Bank

Date

Target price

Baader

13/08/2020

24.00 €

Berenberg

13/08/2020

23.00 €

ODDO BHF

13/08/2020

24.50 €

Market Cap as of 14/09/2020: ~ 574 m€

39

Financial calendar & IR contact

We keep you informed

IR contact:

Financial calendar

René Bergmann (CFO)

21/09/2020

Berenberg-Goldman Sachs, German Corporate Conference, virtual

August-Bebel-Str. 68

23/09/2020

Baader Investment Conference, virtual

D-14482 Potsdam

E-Mail: rb@deutsche-industrie-reit.de

17/11/2020

Deutsches Eigenkapitalforum 2020, virtual

Tel:

+49 (0) 331 / 740 076 535

18/12/2020

Annual report for the financial year 2019/2020

Fax:

+49 (0) 331 / 740 076 520

Further Information about our share, analyst coverage or financial calendar

you'll find here:

https://www.deutsche-industrie-reit.de/en/investor-relations/

40

Management

Experienced and committed management team

Rolf Elgeti (CEO)

Rolf is the founder of Deutsche Industrie 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 was included into German Mid- Cap Index (MDAX).

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 Deutsche Industrie REIT-AG.

Sonja Petersen (neé Paffendorf) (CIO)

Sonja has been part of Obotritia Capital since 2015. She started as a Head of Project Development and became the Chief Investment Officer of Obotritia Capital in January 2017. In this position she has been responsible for the strategic growth of the commercial real estate portfolio. She was appointed CIO of Deutsche Industrie REIT-AG on 18th of October 2017.

Sonja has worked many years in the real estate industry, especially in project development in Germany and Australia. Sonja is personally and financially committed to Deutsche Industrie REIT-AG.

René Bergmann (CFO)

René has been working for the Deutsche Industrie REIT-AG since November 2017, as Director Finance he was responsible for the development of this area. He has been Chief Financial Officer (CFO) since September 1, 2018. His duties include equity and debt financing as well as accounting / controlling and IR.

René has worked many years in the real estate industry, especially in portfolio management and IR. René is personally committed to Deutsche Industrie REIT-AG.

41

Appendix

Appendix

Glossary

#

Glossary

1

Commercial units

e.g. logistics, production, warehouse, office or similar without parking and other units (for example antennas, open spaces, apartments)

2

Total rental space

Also contains ancillary areas such as open spaces, ancillary rooms (corridors, sanitary facilities, common areas), apartments, owner-

occupied space (concierge or similar)

3

Commercial rental space

e.g. logistics, production, warehouse, office or similar without parking and other units (for example antennas, open spaces, apartments)

4

Annualised in-place rent

Contractual net cold rent p.a. for all units (includes also antennas, parking lots, open spaces, apartments etc.)

5

Vacancy commercial

Vacant commercialspace divided by (total) commercialspace

6

WALT

Weighed average lease terms - only contracts with an agreed fixed term have been considered

7

IPR commercialper sqm

Rent of leased commercialunits divided by space of leased commercialunits

8

Current market value

Value determined by means of market value appraisal or, where this is not yet available, the purchase price

9

Date of transfer

Transfer of ownership (benefits and encumbrances)

10

EPRA NAV per share

Total equity modified according to EPRA guidelines divided by number of shares

11

FFO

Funds From Operation - Recurring and one-off adjusted result from the operation of the property portfolio

12

GAV

Gross Asset Value - Value of investment properties in the balance sheet

13

Net-LTV

Net loan-to-value - debt (financial liabilities minus cash) divided by GAV

43

Disclaimer

The material in this presentation has been prepared by Deutsche Industrie REIT-AG (Deutsche Industrie) and is general background information about Deutsche Industrie'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 international transactions, currency risk.

This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Deutsche Industrie REIT-AG 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 Industrie REIT-AG 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 Industrie REIT-AG control. Past performance is not a reliable indication of future performance.

The individual financial statements comprise the balance sheet, statement of comprehensive income, statement of changes in equity, cash flow statement and are prepared in Euros (EUR). All amounts are presented in thousands of Euros (kEUR) (exceptions are indicated), which may result in rounding differences.

Unless otherwise specified all information are for the financial quarter ended 30 June 2020.

44

Disclaimer

Deutsche Industrie REIT AG published this content on 15 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 September 2020 16:04:07 UTC


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Financials
Sales 2021 49,9 M 60,5 M 60,5 M
Net income 2021 80,6 M 97,8 M 97,8 M
Net Debt 2021 337 M 409 M 409 M
P/E ratio 2021 6,18x
Yield 2021 2,74%
Capitalization 497 M 605 M 603 M
EV / Sales 2021 16,7x
EV / Sales 2022 14,6x
Nbr of Employees 9
Free-Float 39,0%
Chart DEUTSCHE INDUSTRIE REIT-AG
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Technical analysis trends DEUTSCHE INDUSTRIE REIT-AG
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 3
Average target price 23,83 €
Last Close Price 15,50 €
Spread / Highest target 58,1%
Spread / Average Target 53,8%
Spread / Lowest Target 48,4%
EPS Revisions
Managers and Directors
NameTitle
Rolf Elgeti Chairman-Management Board
Hans-Ulrich Sutter Chairman-Supervisory Board
René Bergmann Chief Financial Officer
Dirk Markus Deputy Chairman-Supervisory Board
Achim Betz Deputy Chairman-Supervisory Board
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