Deutsche Konsum REIT-AG: Statement on the publication of an examination order by BaFin dated July 15, 2022

Statement on the publication of an examination order by BaFin dated July 15, 2022

Potsdam, July 19, 2022 - On July 15, 2022, BaFin published an examination order against Deutsche Konsum REIT-AG ("DKR") (ISIN DE000A14KRD3) for the disclosed separate financial statements according to international accounting standards as of September 30, 2021 and the related management report.

The reason for the BaFin order is the accounting treatment of loan agreements with a shareholder and the accounting treatment of loans acquired via a fintech in the Company's IFRS separate financial statements as of Sept. 30, 2021, which, in the opinion of BaFin, may not be fully and correctly recognized and reflected.

DKR comments on this as follows:

The matters to be examined by BaFin relate to short-term investments of liquid funds with the main shareholder Obotritia Capital KGaA, Potsdam, and via Creditshelf AG, Frankfurt, which DKR has used to date to invest surplus liquidity from property sales, refinancing and current cash flow on a temporary and interest-bearing basis if the current real estate acquisition pipeline does not contain any currently attractive acquisition targets.

In the opinion of DKR, the loan receivables were accounted for and presented in the relevant financial statements in accordance with the applicable accounting standards. Furthermore, comprehensive and transparent disclosures were made in the notes to the financial statements on an ongoing basis. In this connection, the Company also refers to the audited annual financial statements of the Company, which have been issued with unqualified audit opinions.

DKR is in communication with BaFin and cooperates fully in this regard.
 

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.

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