Deutsche Konsum REIT-AG acquires three retail properties with non-cyclical tenants and sells two portfolio properties

Press release

Deutsche Konsum REIT-AG acquires three retail properties with non-cyclical tenants and sells two portfolio properties

Potsdam, 8 February 2022 - Deutsche Konsum REIT-AG ("DKR") (ISIN DE000A14KRD3) has acquired a grocery discounter in Hattorf am Harz (Lower Saxony), a retail store in Birkenfeld (Rhineland-Palatinate) and a local retail centre in Dessau-Roßlau (Saxony-Anhalt) by notarial deeds in individual transactions. Simultaneously, a vacant property in Beratzhausen (Bavaria) and a DIY store in Neumünster (Schleswig-Holstein) were sold at attractive conditions.

The main tenant of the properties in Hattorf and Dessau-Roßlau is the grocery store Penny (REWE group). The retail store in Birkenfeld is part of an attractive retail park for daily needs and is let - among others - to KiK, Deichmann, TEDi and Fressnapf. The total purchase price of the three properties is approximately EUR 6.1 million. Taking into account an annualised rent of currently TEUR 525, this results in an average purchase yield of 8.6 % with a WALT of 3.9 years and a vacancy rate of 3.0 %.

In the current financial year 2021/2022, DKR has thus already acquired ten non-cyclical and mainly food-anchored retail properties with a rental area of around 45,100 sqm and an annual rent of approximately EUR 3.2 million for around EUR 38.0 million, which corresponds to an initial yield of 8.4 % on average. The average WALT is 5.9 years with a vacancy rate of around 8.3 %.

Furthermore, DKR notarised the sale of the portfolio properties in Beratzhausen and Neumünster in the first quarter of the financial year for a total sales price of around EUR 4.6 million. The property in Beratzhausen was acquired vacant in spring 2020 as part of a portfolio transaction. The property has now been sold at a purchase price significantly above the current book value.
The DIY property in Neumünster which is let to the tenant Tedox has been acquired by DKR in 2015 with an acquisition yield of around 17 %. DKR operated the site continuously and managed a significant lease extension. Since then, the property has generated around EUR 2.1 million in rental income and has now been sold at a yield of around 6 %.

Taking into account all notarised acquisitions and sales, the pro forma portfolio now comprises a total of 173 properties with a total lettable area of approx. 1.03 million sqm and a balance sheet value of EUR 981 million. The portfolio currently generates an annual rent of EUR 72.0 million.

Overall, DKR currently has a well-filled acquisition pipeline and is in advanced acquisition processes. In addition, the Company is examining further selective property sales.

About Deutsche Konsum
Deutsche Konsum REIT-AG, Broderstorf, is a listed real estate company focusing on German retail properties for everyday goods in established micro-locations. The focus of the Company's activities is on the acquisition, management and development of local retail properties with the aim of achieving a steady increase in value and the lifting of hidden reserves.

Due to its German REIT status ('Real Estate Investment Trust'), the Company is exempt from German corporation and trade tax. The shares of the Company are listed on the Prime Standard of Deutsche Börse (ISIN: DE 000A14KRD3) and on the JSE (JSE Limited) (South Africa) by way of a secondary listing.

Contact:
Deutsche Konsum REIT-AG
Stefanie Frey
Investor Relations
E-Mail: sf@deutsche-konsum.de
Phone: +49 (0) 331 74 00 76 - 533