Deutsche Konsum REIT: Profitable growth continued in the first half of the financial year 2018/2019
- Rental income rises by 56% to EUR 19.5 million
- FFO up 75% to EUR 12.7 million or EUR 0.43 per share
- Real estate portfolio increased to EUR 474.8 million as at 31 March 2019
- EPRA NAV increased by 6.2% to EUR 8.18 per share (after dividend distribution)
- Net debt LTV at 49.1%
Broderstorf, 15 May 2019 - Deutsche Konsum REIT-AG ("DKR"), ISIN DE000A14KRD3, continued to grow significantly and profitably in the first half of the current financial year 2018/2019 ("H1 2018/2019").
Rental income rises to almost EUR 20m / FFO up 75%
Due to the significantly increased real estate portfolio, DKR's net rents amounted to approximately EUR 19.5 million in the first half of the financial year 2018/2019 (H1 2017/2018: EUR 12.5 million) and thus increased by 55.9% compared to the same period of the previous year. Rental income increased by 56.3% to EUR 15.5 million in the first half of the year (H1 2017/2018: EUR 9.9 million).
Funds from operations ("FFO") increased to EUR 12.7 million or 75% (H1 2017/2018: EUR 7.3 million) even more than disproportionately to pure rental income growth, mainly due to reduced borrowing costs and the only disproportionately increased overheads.
This proves DKR's continuously growing profitability due to economies of scale, professional asset management and more favourable financing conditions.
Portfolio currently comprises 121 retail properties with an annual rent of EUR 46 million and an initial yield of 11.4%
As of 31 March 2019, the real estate portfolio comprises 106 retail properties with a book value of EUR 474.8 million, which have already been transferred to the DKR through the transfer of benefits and encumbrances (30/09/2018: EUR 418.7 million).
As of the balance sheet date, the transfer of benefits and encumbrances on another fifteen purchase properties with an investment volume of around EUR 70 million and an annual rent of around EUR 6.7 million were outstanding, of which three properties were transferred to DKR in April and May 2019.
Taking into account recent acquisitions, the real estate portfolio (pro forma) increased to 121 retail properties with a book value of around EUR 540 million and an annualised rent of EUR 46 million. The purchase yield of the overall portfolio is currently around 11.4%.
The Company is also involved in further concrete acquisition processes.
Successful capital increase in November 2018
On 22 November 2018, DKR successfully completed a cash capital increase without subscription rights for EUR 11.00 per share in a difficult stock market environment. As a result, the share capital of the Company increased by EUR 2,723,631.00 to EUR 29,959,944.00. Due to the cash capital increase, the Company received net proceeds of EUR 29.3 million, which will be used for further acquisitions.
EPRA NAV after dividend distribution at EUR 8.18 per share / Net LTV at 49.1%
Due to the positive result for the period and the capital increase, EPRA NAV initially increased by EUR 0.68 per share to EUR 8.38 per share in H1 2018/2019 (30/09/2018: EUR 7.70 per share). This was offset by withdrawals from the first-time dividend distribution of EUR 0.20 per share on 26 March 2019. This results in an EPRA NAV of EUR 8.18 per share on 31 March 2019.
Net LTV stood at 49.1% on the reporting date (30/09/2018: 51.2%), which is within the target of around 50%.
Based on the results of the H1 2018/2019 and the positive acquisition pipeline, the Management Board confirms the forecast for the financial year 2018/2019 of achieving an FFO of between EUR 26 million and EUR 29 million. The FFO run rate is estimated at about EUR 33 million p.a. expected at the end of the financial year.
Rolf Elgeti, CEO of Deutsche Konsum REIT-AG: "The results of the first half-year confirm the continuous profitable growth of DKR. It is already becoming apparent that we will acquire significantly more in the current financial year than in previous years. As a result, we expect further margin expansion over the next few quarters."
Conference call today at 11am (UTC+2) and releases on H1 2018/2019
Deutsche Konsum REIT-AG will hold a telephone conference for the half-year figures of the financial year 2018/2019 today at 11:00 am. The half-yearly financial report for H1 2018/2019, the presentation of results and further information on the Company can be found at www.deutsche-konsum.de/en/investor-relations/.
About Deutsche Konsum
Deutsche Konsum REIT-AG based in Broderstorf is a listed real estate company focusing on retail properties in Germany for goods required for daily use in established micro-locations. The focus of the company's activities is on the management and development of real estate with the aim of achieving a steady increase in value and the realisation of hidden reserves. The steadily increasing current property portfolio of Deutsche Konsum comprises of 121 retail properties with an annualised rent of EUR 46 million.
Due to its REIT status ('Real Estate Investment Trust'), the company is exempt from corporation and trade tax. The shares of the company are listed on the Prime Standard of the Deutsche Boerse (ISIN: DE 000A14KRD3).
Deutsche Konsum REIT-AG
Phone: +49 (0) 331 74 00 76 - 533
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