Deutsche Industrie Grundbesitz AG Company Presentation 18 th December 2017

Transcription

1 Deutsche Industrie Grundbesitz AG Company Presentation 18 th December 2017

2 Agenda Investment Highlights Strategy & Business Model Real Estate Portfolio Share Management Appendix

3 Investment Highlights

4 Deutsche Industrie Grundbesitz AG at a glance Real estate investment company focussed on light industrial Pure play light industrial strategy set up as a REIT unique in Germany Listed since 7 th December 2017 Establishing a REIT as of January 2018 Tax-exemption at company level (Corporate tax and trade tax) Company shares as flexible instrument to invest in German light industrial properties Generating attractive and robust yields which will be distributed as dividends Portfolio 1 30/11/2017 Properties 10 Rental space 338,420 sqm. GAV 87.9 m Net rental income m Net initial yield % Valuation multiple 9.2x Vacancy 22.3% 1 including one notarized property with transfer of ownership approx. in Jan annualised 3 based on purchase price

5 Strategy & Business Model

6 Strategy & Business Model Combining cash flow properties with lean admin structure and REIT Focus on light industrial properties (business parks, logistic centers, production facilities etc.) Well established properties with good infrastructural connections and regional relevancy Occupying a niche which is situated below the investment criteria of institutional investors and above the requests of private investors. Simple company structures and low admin expenses Valuation potential due to low purchase prices, vacancy reduction, extension of rental contracts Further growth of the portfolio mitigates single asset risks and stabilizes the whole portfolio REIT combines our asset strategy with flat 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 + + = Attractive and stable dividends + Advantages from REIT structure

7 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 on the basis of current market demand Creativity and flexibility We try to think inconventionally and to find new concepts to recover a property Pro-active asset management Our asset management consists of experienced and motivated full-time asset managers Tenant network With the growth of the portfolio also our network of potential tenants grows which can be advantegeous Tenant relationship We want to be a reliable and long term partner and are in steady discussions to understand tenants needs with the aim to generate win-wins

8 Real Estate Portfolio

9 Portfolio Overview Regional diversified locations # Location Type Lettable space Annualized rent Occupancy rate Market value Multiple (MV/rent) 5 1 Neubrandenburg Production & Logistics 55, ,137 98% 5,050, Stralsund Production & Logistics 3,235 48,958 42% 552, Güstrow Production & Logistics 6,130 90, % 620, Jena Production & Logistics 8,839 45,134 13% 800, Bad Salzdetfurth Industrial Park 45,516 1,509,165 76% 10,900, Löhne Logistics 47,518 1,949, % 17,000, Schortens-Roffhausen Industrial Park 98,784 3,340,253 56% 36,200, Rostock Logistics 39, ,003 77% 9,500, Bornheim Logistics 9, ,083 95% 3,700, Drei Gleichen Logistics 24, , % 3,600, Total 338,420 9,440,229 78% 87,922,

10 Real Estate Portfolio #1 - Neubrandenburg Adress Augustastraße 20, Neubrandenburg Type Production & Logistics Branches Wood-working, car services, parcel service, y.o.c Property area 82,315 sqm. In-Place Rent 727,137 IPR/sqm /sqm. Rented space 54,789 sqm. Vacancy 2% Neubrandenburg is a conurbation in northeastern Germany Regional well established light industrial area Main tenant is a wood-working company with a lease duration of over 10 years The other tenants are equally reputable companies of the region with a long-term interest in this location

11 Real Estate Portfolio #2 - Stralsund Adress Platz des Friedens 17-23; 31-47, Stralsund Type Production & Logistics Branches car services, handcrafter, building companies y.o.c Property area 41,569 sqm. In-Place Rent 48,958 IPR/sqm /sqm. Rented space 1,359 sqm. Vacancy 58% Stralsund is a mid size town and port at the Baltic sea Commercial property in a industrial site near city centre Mostly smaller rental areas Large property with development potential

12 Real Estate Portfolio #3 - Güstrow Adress Glasewitzer Chausee 31, Güstrow Type Production & Logistics Branches Metalworking y.o.c Property area 15,274 sqm. In-Place Rent 90,000 IPR/sqm /sqm. Rented space 6,130 sqm. Vacancy 0% Güstrow is a district town near Rostock The property is let to the former owner of the property (sale & lease back deal) Therefore the current tenant is strongly tied to the location The location is part of a commercial development area

13 Real Estate Portfolio #4 - Jena Adress Ernst-Ruska-Ring 1-9; Göschwitzer Str. 20, Jena Type Production & Logistics Branches Entertainment, storage y.o.c Property area 9,958 sqm. In-Place Rent 45,134 IPR/sqm /sqm. Rented space 1,149 sqm. Vacancy 87% Jena is one of the important industrial centres in east Germany Object was acquired in a compulsory auction Buildings are situated in an excellent industry location in Jena Very close to the company areas of Carl Zeiss an Jenoptik High development potential due to low occupancy rate Production- and logistics buildings are seperatly lettable

14 Real Estate Portfolio #5 - Bad Salzdetfurth Adress Teccenter 1 Type Business Park Branches Automotive, IT- Services, Logistics y.o.c Property area sqm. In-Place Rent 1,509,165 IPR/sqm /sqm. Rented space 34,592 sqm. Vacancy 24% Bad Salzdetfurth is very close to important automotive cities Hanover, Brunswick and Wolfsburg Internationally operating companies like DELPHI, ETIMEX and COMSYS are major tenants Locally important business park with very less compitition Well balanced user mix from production, office, logistics and storage There is a leasehold of approx. 20 % (22,745 m²) of the total property

15 Real Estate Portfolio #6 - Löhne Adress Löhne, Dieselstraße 7, 9 Type Logistics Branches Mail order, Furniture hardware y.o.c. 1971/1974 Property area sqm. In-Place Rent IPR/sqm /sqm. Rented space sqm. Vacancy 0% Löhne is located at one of the major European east-west transit routes Logistics building with development potential Main user is Hermes (OTTO group) which uses the location in Löhne as a strategic distribution center The lease contract of the other tenant Hettich GmbH & Co. KG expires in 2026 There is a leasehold of approx. 45 % (44,159 sqm) of the total property

16 Real Estate Portfolio #7 - Schortens Adress Schortens-Roffhausen, Olympiastraße 1 Type Logistics Branches Federal authority, multi-service providers, several trading companies y.o.c / 1993 Property area sqm. In-Place Rent IPR/sqm /sqm. Rented space sqm. Vacancy 44% The business park is situated very close to the A29 (Wilhelmshavener Kreuz) and in 11 km distance to Germany s only deepwater port JadeWeserPort TCN is an established trademark in this region and one of the largest of the few residing business parks The office- and logistics buildings have divisible rental areas and therefore it is possible to rent out smaller units

17 Real Estate Portfolio #8 - Rostock Adress Rostock, Handelsstraße 3 Type Logistics Branches Wind power plant producer, logistics y.o.c Property area sqm. In-Place Rent 828,003 IPR/sqm /sqm. Rented space sqm. Vacancy 23% Rostock is the biggest city in the German northeast and has also an important harbor Property is very close to the motorway and well connected to the port Main tenant (72% of rented space) is Nordex a wind power plants company Curently Nordex has continually expanded its rental areas The other tenants are smaller companies with a long-term commitment to this location

18 Real Estate Portfolio #9 - Bornheim Adress Bornheim, Ottostraße 91 Type Logistics Branches Logistics, health care y.o.c Property area sqm. In-Place Rent 302,083 IPR/sqm /sqm. Rented space 8,604 sqm. Vacancy 5% Situated in the growing metropolitan area of Köln/Bonn Excellent transport link to major roads Part of the local well established business park Bornheim-Sechtem Two tenants, the logistics area is fully let. Main tenant is Dachser SE, a world leading logistics company

19 Real Estate Portfolio #10 - Drei Gleichen Adress Dr.-Bube-Straße 6, Drei Gleichen Type Logistics Branches Supermarket chain y.o.c Property area sqm. In-Place Rent 600,000 IPR/sqm /sqm. Rented space 24,021 sqm. Vacancy 0% Perfect connection to important motorway A4 in the heart of Germany Very close to the major cities in Thuringia (Erfurt, Jena, Weimar, Gotha, Eisenach) on the axis Frankfurt am Main-Dresden Only one tenant asset One of two distribution centres for the supermarket chain Tegut

20 Share

21 Share Basic data & shareholder structure Shareholder structure (5 Dec. 2017) : Obotritia Capital KGaA 9,99% Obotritia Capital 34.65% Basic data ISIN A2G9LL WKN DE000A2G9LL1 Free Float 25,98% Obotritia Alpha Invest GmbH 9,99% Ticker Symbol JB7 Number of shares 15,000,048 Elisabeth Anna Auersperg- Breunner 3,17% Astrid Purkert 4,21% Obotritia Beta Invest GmbH 9,99% Nominal capital 15,000, Share class Bearer shares Stock exchange Berlin (regulated market) Gert Purkert 9,99% Lotus AG 9,99% ALPHA 4 S.A., SICAV-SIF 10,00% Babelsberger Beteiligungs GmbH 4,67% other assigned shares 2,02% Designated Sponsor Oddo Seydler Bank AG

22 Management

23 Management Experienced and committed management team Rolf Elgeti (CEO) Rolf has been the founder of Deutsche Industrie Grundbesitz 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). 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 Grundbesitz AG. Sonja Paffendorf (CIO) Sonja has been part of Obotritia Capital since She started as a Head of project development and became the Chief Investment Officer of Obotritia Capital in January In this position she has been responsible for the strategic growth of the commercial real estate portfolio. She was appointed CIO of Deutsche Industrie Grundbesitz AG on 18 th of October Sonja has worked many years in the real estate industry, especially in project development in Germany and Australia. She is personally and financially committed to Deutsche Industrie Grundbesitz AG.

24 IR contact Get in touch with us IR contact: René Bergmann August-Bebel-Str Potsdam Tel: +49 (0) 331 / Fax: +49 (0) 331 /

25 Disclaimer The material in this presentation has been prepared by Deutsche Industrie Grundbesitz 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 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 Industrie 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 s control. Past performance is not a reliable indication of future performance. Unless otherwise specified all information are for the financial year ended30 Sep 2017.

26 Appendix

27 The G-REIT Requirements for the REIT status The acronym REIT stands for Real Estate Investment Trust. In Germany REITs are listed corporations that invest in all types of real estate and generate income primarily from the rents of the respective properties. In order to obtain a REIT status and to maintain this over the long term the following conditions have to be met: Headquartered in Germany Stock exchange listing - at least within the regulated market segment. > 25 % freefloat ratio at IPO; after IPO > 15 % freefloat > 45 % equity ratio > 75 % of gross income must originate from rental, leasing or disposal gains of portfolio assets > 75 % of assets must be invested in real estate properties > 90 % payout ratio of the profit for the financial year under the German Commercial Code (HGB) < 10 % directly held shares per shareholder

28 Industry Development Current market situation Germany ranks #1 in the World Bank s 2016 Logistics Performance Index report of 160 countries. Europe s No.1 economy & 4th largest worldwide, annually generating EUR 3.0 trillion worth of goods and service Germany is Europe s logistics leader, with annual revenues of over EUR 235 billion, more than France & UK, Europe s 2nd & 3rd largest logistics revenues, combined. Germany is the world s largest intralogistics exporter with EUR 13 billion, China & USA with EUR 10.1 billion and EUR 7.4 billion respectively rank 2nd & 3rd. Home to global logistics leaders, such as Deutsche Post World Net ( No. 1), DHL, DB Schenker and Dachser.