Deutsche Konsum REIT-AG closed third quarter 2016/2017 successfully

Press Release

Deutsche Konsum REIT-AG closed third quarter 2016/2017 successfully
 

- 9M period result of EUR 32.8 million

- EPRA NAV rises by EUR 2.54 to EUR 6.06 per share

- Rental income rises to EUR 13.8 million

- FFO amounts to EUR 7.1 million / aFFO of EUR 5.6 million

- GAV rises to EUR 222.7 million

- Net-LTV amounts to 37.5%

- FFO forecast confirmed

- First dividend of at least EUR 20 cents planned for next fiscal year
 

Broderstorf, 15 August 2017 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has successfully continued its growth path in the first nine months of the fiscal year 2016/2017 ("9M 2016/2017").
 

Increase in rental income and FFO / aFFO

Rental income has increased by roughly 73% from EUR 8.0 million to EUR 13.8 million compared to the respective previous year period which was mainly driven by the expansion of the property portfolio. Accordingly, the FFO increased respectively from EUR 4.1 million to EUR 7.1 million as well as the aFFO (FFO after deduction of capitalized modernisation measures) which amounted to EUR 5.6 million.
 

Strong real estate portfolio growth in 9M 2016/2017 / Property valuation gain of more than EUR 26 million

Driven by acquisitions with transfer of ownership within the first nine months 2016/2017 and a valuation gain of EUR 26.4 million referring to the annual real estate revaluation the real estate portfolio has increased to EUR 222.7 million as at 30 June 2017. The valuation gain reflects the value add which was created by revitalisations as well as an increased demand for regional retail properties.

Meanwhile as at 1 July 2017 the transfer of ownership of the acquisitions in Guben ("Neiße-Center") and Oer-Erkenschwick (Kaufland Hypermarket) occured and increased the retail property portfolio to EUR 243 million. Transfer of title regarding our recent acquisitions are expected to occur at the beginnung of September 2017.

The initial yield of the overall real estate portfolio remains at a conservative 10%.
 

Strong period result

After deduction of admin, interest and other expenses the 9M period result totals EUR 32.8 million (9M 2015/2016: EUR 1.4 million). The recurring admin costs ratio is 6.2% (9M 2015/2016: 9.0%).

EPRA NAV increased to EUR 6.06 per share / Net LTV amounts to 37.5%

Due to the positive 9M result of EUR 32.8 million and an capital increase on February 23, 2017 the EPRA NAV increased significantly by EUR 2.54 per share or approximately 72%.

Net LTV has slightly risen to 37.5% compared to the prior quarter as an effect of new long-term loans. Respectively DKR has enough headroom for further acquisitions based on the existing capital base.
 

Deutsche Konsum in negotiations for further acquisitions

The company remains in various promising negotiation processes and expects further acquisitions within the current fiscal year. Therefore the actual firepower amounts to EUR 50 million.
 

Forecast confirmed

Based on the expected positive 9M results and the expected impact of recent acquisitions, the management board confirms the forecast to achieve a FFO between EUR 10 million and EUR 11 million (aFFO between EUR 8 million and EUR 9 million) in the fiscal year 2016/2017.
 

First dividend of > EUR 20 cents planned for fiscal year 2017/2018

Moreover the management board plans the first dividend distribution for the next fiscal year 2017/2018 of at least EUR 20 cents per share. Depending on successful further acquisitions and growth of Deutsche Konsum the dividend might rise correspondingly.
 

Rolf Elgeti, CEO of Deutsche Konsum REIT-AG: "The very positive 9M result shows that we are able to drive our growth as planned. The higher valuation of our real estate portfolio by an external appraiser proves that our location and value add strategy works. Moreover we are likely to achieve an FFO of more than EUR 10 million in this fiscal year which is a distinctive milestone in the very short history of Deutsche Konsum. Consequently we will distribute an attractive dividend for the next fiscal year 2017/2018."
 

For more detailed information please refer to the earnings presentation and the detailed financial report of 9M 2016/2017 besides further information about the company under www.deutsche-konsum.de.

Contact:

Deutsche Konsum REIT-AG
Christian Hellmuth
info@deutsche-konsum.de
+49 (0) 331 74 00 76 - 517