Deutsche Konsum REIT with very successful financial year 2017/2018 - dividend of EUR 0,20 per share
- Net income of EUR 30.6 million for the year 2017/2018
- Rental income up 52% to EUR 29.3 million
- Vacancy drops by 34% to 9.6% / WALT amounts 5.2 years
- FFO up 61% to EUR 16.5 million / aFFO of EUR 8.3 million
- Dividend proposal of EUR 0,20 per share
- Balance sheet value of investment property increased to EUR 418.7 million
- EPRA NAV increased by 23% to EUR 7.69 per share
- Net LTV at 51.2%
- FFO forecast of EUR 26 million to EUR 29 million for financial year 2018/2019 and FFO run rate at EUR 33 million until the end of the financial year 2018/2019
- Dividend forecast of EUR 0,40 per share for financial year 2018/2019
Broderstorf, 15 November 2018 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) successfully continued its growth course in the 2017/2018 financial year. Based on the preliminary figures, the results are as follows:
Strong period result
The preliminary net profit amounts to EUR 30.6 million (2016/2017: EUR 37.4 million). Overall, the decline resulted from a lower valuation result of EUR 16.3 million (2016/2017: EUR 28.4 million). However, adjusted for this, earnings rose significantly by EUR 5.3 million, mainly due to the increase in rental income.
Vacancy drops while WALT increases
Due to the finished revitalisation and re-letting of the property Domcenter Greifswald and the letting of other vacant spaces as well as the acquisition of properties with above average occupancies the vacancy rate of the whole real estate portfolio dropped significantly to 9.6% as at 30 September 2018 (30 September 2017: 14.6%). At the same time the WALT could have been increased to 5.2 years (30 September 2017: 4.6 years).
FFO are rising faster than rental income - profitability is increasing
The Company's rental income in the 2017/2018 financial year increased by 52% from EUR 19.2 million to EUR 29.3 million compared to the previous year, which mainly resulted from the expansion of the real estate portfolio.
By contrast, Funds from Operations ("FFO") rose significantly more strongly by 61% from EUR 10.3 million to EUR 16.5 million, reflecting the increasing profitability of Deutsche Konsum. The aFFO (FFO after deduction of the capitalised modernisation measures) increased slightly to around EUR 8.3 million (2016/2017: EUR 8.0 million) due to extensive investments in revitalisation properties.
Real estate portfolio grew to EUR 460 million
Due to the acquisition and transfer of ownership of 28 retail properties with an investment volume of around EUR 127 million and a valuation gain of EUR 16.3 million from the annual revaluation of the real estate portfolio, the reported real estate portfolio increased to EUR 418.7 million as of 30 September 2018 (30 September 2017: EUR 275.4 million).
The valuation gain reflects, on the one hand, the value added from revitalisation measures, vacancy reduction and prolongation of rental agreements, and, on the other hand, the significant increase in demand for local supply real estate.
The purchase yield of the entire portfolio as at the reporting date of 30 September 2018 is 11.7%.
After the balance sheet date, DKR acquired a further 14 retail properties with an investment volume of around EUR 40 million and sold a property profitably, as a result of which the real estate portfolio has since risen to 103 retail properties with a book value of around EUR 460 million.
The Company is in further concrete acquisition processes and expects acquisitions quickly.
EPRA NAV increases to EUR 7.69 per share / Net LTV is 51.2%
The EPRA NAV increased due to the positive annual result and the cash capital increase on 7 December 2017. As a result, the EPRA NAV per share as at 30 September 2018 was EUR 7.69 and thus increased significantly by EUR 1.44 per share or around 23%.
As a result of loan disbursements, the net LTV increased to 51.2% at the end of the financial year, which is within the target corridor of around 50%.
FFO forecast for financial year 2018/2019 expected between EUR 26 million and EUR 29 million / dividend of around EUR 0,40 per share
For the new financial year 2018/2019, the Management Board expects an FFO of between EUR 26 million and EUR 29 million. The FFO run rate (annualised FFO without accrual effects) should amount to around EUR 33 million at the end of the current financial year 2018/2019.
Furthermore, the Management Board is planning a dividend distribution of around EUR 0,40 per share for the current financial year 2018/2019.
Rolf Elgeti, Chairman of Deutsche Konsum REIT-AG: "The preliminary figures for the past financial year 2017/2018 show that the Company is growing as planned and that profitability will continue to increase due to increasing economies of scale. This is already clear for the new financial year, which is why we expect dividends to double in the current financial year."
Today at 11 a.m. (CET) Deutsche Konsum REIT-AG will hold its financial statement press conference regarding the preliminary FY 2017/2018 figures (telephone conference). The presentation and the dial-in information for the conference call can be found under www.deutsche-konsum.de/en/investor-relations/.
The finalised and audited year-end results of the FY 2017/2018 will be published on 18 December 2018 in the complete annual report.
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 103 retail properties with an annualised rent of EUR 39.5 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 Börse (ISIN: DE 000A14KRD3).
Deutsche Konsum REIT-AG
Phone: +49 (0) 331 74 00 76 - 533
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