1Année
Summary: 1) INTRODUCTION - In many countries of the western world it is common that the largest companies are also traded on the stock exchange - This practice is historically not as deeply rooted in Germany as for example in the U.S. - Large German companies such as Robert Bosch GmbH, the Schwarz Group (including Lidl & Kaufland), the Aldi Group, the EDEKA Group, the REWE Group or Adolf Würth GmbH generate billions in sales and profits, but there is no possibility to participate in these profits in the form of shares.
2) UNDERSTANDING THE BUSINESS MODEL AND RECOGNIZING THE CONCURRENCY - DEFAMA AG is a listed company that invests in supermarket properties - The company buys existing properties at attractive prices and rents them out - The focus is on "retail parks", which include supermarkets, DIY stores, drugstores and specialty stores - DEFAMA invests in small to medium-sized cities where the properties can be purchased at lower prices.
- The strategy is to acquire established retail parks with tenants with strong credit ratings and hold them for the long term - DEFAMA's top tenants are Kaufland/Lidl, Toom, EDEKA, Netto, Rewe/Penny, JSYK, Woolworth/KiK and Aldi Nord - The company finances property acquisitions through loans and works with regional banks.
- DEFAMA's CEO, Matthias Schrade, owns approximately 26% of the company's shares. 3) SELECTION AND TESTING OF KEY FIGURES - Key performance indicators used to assess DEFAMA's profitability and position relative to its competitors are reviewed.
- Selected metrics include revenue and FFO growth, dividend growth and history, total debt and debt to equity ratio, and dividend/FFO payout ratio - DEFAMA's revenue is slightly lower compared to its peers, but FFO/Share growth is closer - DEFAMA has paid a continuously increasing dividend since its inception in 2014 and has a low payout ratio.
- DEFAMA's total debt is lower compared to Deutsche Konsum REIT, while Realty Income has a solid debt ratio - Deutsche Konsum REIT is the riskiest investment due to its high debt and various financial instruments 4) BUSINESS MODEL RISKS - The business model of real estate companies becomes riskier in times of rising interest rates - DEFAMA is better positioned compared to highly leveraged companies like Vonovia.
- The majority of DEFAMA's rental income comes from tenants with strong credit ratings, which reduces the risk of rent arrears - However, there is a risk of vacancies, particularly if tenants do not renew their leases or file for insolvency - Concentrating on specific tenants can increase the risk if these tenants experience difficulties - The company is also exposed to the usual risks of the real estate market, such as losses in value due to market fluctuations.
- Changes in demand for retail properties or changes in consumer behavior could have a negative impact on rental occupancy - The competitive situation in the real estate market may also affect DEFAMA's profitability - It is important for DEFAMA to actively manage its properties and maintain their condition and attractiveness to tenants 5) CONCLUSION - DEFAMA AG is a listed company that invests in supermarket properties and benefits from tenants with strong credit ratings.
- The business model is based on acquiring retail parks in small to mid-sized cities at attractive prices - The selection of key figures shows that DEFAMA has solid profitability and financial ratios - However, there are risks associated with the real estate market, such as vacancies and competition - Investors should consider these risks and conduct a comprehensive analysis of the company as well as the real estate market before making an investment decision DEFAMA stands for "Deutsche Fachmarkt AG". It is a listed company that invests in and operates supermarket properties. DEFAMA acquires retail parks in small to medium-sized cities and benefits from rental income generated by tenants with strong credit ratings. The company focuses on achieving attractive prices for its properties and actively managing them to maximize profitability.
2) UNDERSTANDING THE BUSINESS MODEL AND RECOGNIZING THE CONCURRENCY - DEFAMA AG is a listed company that invests in supermarket properties - The company buys existing properties at attractive prices and rents them out - The focus is on "retail parks", which include supermarkets, DIY stores, drugstores and specialty stores - DEFAMA invests in small to medium-sized cities where the properties can be purchased at lower prices.
- The strategy is to acquire established retail parks with tenants with strong credit ratings and hold them for the long term - DEFAMA's top tenants are Kaufland/Lidl, Toom, EDEKA, Netto, Rewe/Penny, JSYK, Woolworth/KiK and Aldi Nord - The company finances property acquisitions through loans and works with regional banks.
- DEFAMA's CEO, Matthias Schrade, owns approximately 26% of the company's shares. 3) SELECTION AND TESTING OF KEY FIGURES - Key performance indicators used to assess DEFAMA's profitability and position relative to its competitors are reviewed.
- Selected metrics include revenue and FFO growth, dividend growth and history, total debt and debt to equity ratio, and dividend/FFO payout ratio - DEFAMA's revenue is slightly lower compared to its peers, but FFO/Share growth is closer - DEFAMA has paid a continuously increasing dividend since its inception in 2014 and has a low payout ratio.
- DEFAMA's total debt is lower compared to Deutsche Konsum REIT, while Realty Income has a solid debt ratio - Deutsche Konsum REIT is the riskiest investment due to its high debt and various financial instruments 4) BUSINESS MODEL RISKS - The business model of real estate companies becomes riskier in times of rising interest rates - DEFAMA is better positioned compared to highly leveraged companies like Vonovia.
- The majority of DEFAMA's rental income comes from tenants with strong credit ratings, which reduces the risk of rent arrears - However, there is a risk of vacancies, particularly if tenants do not renew their leases or file for insolvency - Concentrating on specific tenants can increase the risk if these tenants experience difficulties - The company is also exposed to the usual risks of the real estate market, such as losses in value due to market fluctuations.
- Changes in demand for retail properties or changes in consumer behavior could have a negative impact on rental occupancy - The competitive situation in the real estate market may also affect DEFAMA's profitability - It is important for DEFAMA to actively manage its properties and maintain their condition and attractiveness to tenants 5) CONCLUSION - DEFAMA AG is a listed company that invests in supermarket properties and benefits from tenants with strong credit ratings.
- The business model is based on acquiring retail parks in small to mid-sized cities at attractive prices - The selection of key figures shows that DEFAMA has solid profitability and financial ratios - However, there are risks associated with the real estate market, such as vacancies and competition - Investors should consider these risks and conduct a comprehensive analysis of the company as well as the real estate market before making an investment decision DEFAMA stands for "Deutsche Fachmarkt AG". It is a listed company that invests in and operates supermarket properties. DEFAMA acquires retail parks in small to medium-sized cities and benefits from rental income generated by tenants with strong credit ratings. The company focuses on achieving attractive prices for its properties and actively managing them to maximize profitability.
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@AlexSch hello ChatGPT 👋
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1Année
@RealMichaelScott Yes, I know, but still practical I find.
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