Deutsche Konsum REIT-AG with successful business in the first quarter of 2021/2022 financial year

Press release

Deutsche Konsum REIT-AG with successful business in the first quarter of 2021/2022 financial year

- Rental income up 13% to EUR 18.3 million

- Net rental income up 20% to EUR 13.0 million

- FFO increase by 6% to EUR 10.7 million / FFO per share at EUR 0.30

- Acquisition of ten retail properties in the volume of EUR 38.0 million in the first quarter of the financial year

- Sale of three properties notarised for EUR 27.3 million

- EPRA NTA per share at EUR 10.29

- Net LTV amounts to 52.5%

Potsdam, 14 February 2022 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) recorded strong growth in the first quarter of the new financial year 2021/2022.

Improved letting margin / Solid FFO growth
In the first quarter of the 2021/2022 financial year, the Company's rental income increased by 13% from EUR 16.2 million to EUR 18.3 million compared to the same quarter of the previous year due to the purchase of additional properties. The net rental income rose by as much as 20%, which led to a noticeable increase in the letting margin.

Funds from operations ("FFO"), however, rose slightly less by 6% from EUR 10.1 million to EUR 10.7 million, resulting from approximately EUR 1.0 million higher net financial expenses. Accordingly, FFO per share was EUR 0.30 and thus also increased by 6%.

aFFO (FFO after deduction of capitalised modernisation measures) were EUR 7.6 million, 53% above the previous year's level, due to less cost-intensive investments in various revitalisation properties.

Balance sheet value of the real estate portfolio at EUR 1 billion / Rental reductions of the disposal properties already largely replaced by purchases of new high yielding properties
DKR's real estate portfolio recognised as at 31 December 2021 comprises 173 retail properties with a balance sheet value of around EUR 1.02 billion (31 December 2020: EUR 831.6 million) and a rental area of around 1,023,000 square metres. This includes the sold properties whose transfer of benefits and encumbrances is not expected until March and April 2022.

The average acquisition yield of the overall portfolio is currently around 10.3%.

In addition, since the beginning of the new financial year DKR has acquired a further ten retail properties with an investment value of around EUR 38 million and an annual rent of EUR 3.2 million, which corresponds to a purchase factor of 11.9 times the annual rent. One of these properties has already been transferred to DKR. The transfer of benefits and encumbrances of the remaining properties is expected to take place successively until April 2022.

Besides the sale of a sub-portfolio with seven properties already notarised at the end of the last financial year, the sales of the portfolio properties in Oer-Erkenschwick, Neumünster and Beratzhausen with a total annual rent of EUR 1.5 million were additionally notarised for EUR 27.3 million in the first quarter of the current financial year. Overall, DKR expects gross inflows of around EUR 75 million in the current financial year from the disposals to date, with a simultaneous decline of around EUR 4.1 million in annual rent, which corresponds to 18.2 times the annual rent.

Taking into account all notarised acquisitions and sales, the pro forma portfolio thus comprises a total of 173 properties with a total lettable area of approximately 1,025,000 square metres and a balance sheet value of EUR 984 million, generating an annualised rent of EUR 72.0 million.

This means that DKR has already replaced around three quarters of the rents lost through the disposals with the purchases made so far in the first quarter of the financial year. In addition, DKR is in the process of further concrete purchases and expects additional acquisitions in the near future.

EPRA NTA per share rises to EUR 10.29 / Net LTV amounts to 52.5%
EPRA NTA per share increased by 2% to EUR 10.29 as at 31 December 2021 (30 September 2021: EUR 10.10 per share) due to the positive quarterly result.

The net LTV amounts to 52.5% as of the balance sheet date and is thus only slightly above the target figure of around 50%.

FFO forecast for the financial year confirmed
For the current financial year, the Management Board still expects an FFO of between EUR 40 million and EUR 44 million, assuming a largely constant pandemic development and taking into account the rent reductions of the properties sold, which will be compensated by new properties with a certain time lag.

Webcast and Conference Call
Deutsche Konsum REIT-AG will hold an analyst conference (webcast and conference call) on the results of the first quarter of 2021/2022 financial year today, 14 February 2022, at 10:00 a.m. CET (11:00 a.m. SAST). The corresponding results presentation as well as further information on the webcast and the conference call can be found at https://www.deutsche-konsum.de/en/investor-relations. The quarterly statement for the first quarter of the 2021/2022 financial year is available for download at https://www.deutsche-konsum.de/en/investor-relations/financial-reports.

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