Deutsche Konsum REIT-AG with successful first half-year 2016/2017

Press release

Deutsche Konsum REIT-AG with successful first half-year 2016/2017

- Rental income rises to EUR 8.9 million

- FFO of EUR 4.5 million / aFFO of EUR 3.6 million

- Balanced property assets increased to EUR 188.4 million

- EPRA NAV increases by EUR 1.44 to EUR 4.96 per share

- Net LTV is 36.1%

- Additional attractive retail properties acquired in a volume of around EUR 49 million

- FFO forecast confirmed
 

Broderstorf, May 15, 2017 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has successfully continued its growth path in the first half-year of the fiscal year 2016/2017 ("H1 2016/2017").
 

Increase in rental income and FFO / aFFO

Rental income has increased by roughly 75% from EUR 5.1 million to EUR 8.9 million compared to the respective previous year period which was mainly driven by the expansion of the property portfolio. Accordingly, the FFO tripled from EUR 1.5 million to EUR 4.5 million. The aFFO (FFO after deduction of capitalized modernization measures) amounted to EUR 3.6 million.
 

Strong growth of the real estate portfolio in H1 2016/2017

After the closing of the transactions and transfer of titles in H1 2016/2017, the real estate portfolio as balanced as at March 31, 2017 increased to EUR 188.4 million. The included valuation gain currently applies to all properties acquired between 1 July and 31 December 2016 only. The next regular valuation will be done as at June 30, 2017.

The net initial yield of the overall portfolio based on the current book values remains at a conservative 10%.
 

EPRA NAV increased to EUR 4.96 per share / Net LTV reduced to 36.1%

Referring to the positive half-year result of EUR 5.6 million as well as to the capital increase on February 23, 2017 the EPRA NAV increased significantly by EUR 1.44 per share or approximately 41% in the first half year.

Due to the repayment of a short-term loan the Net LTV has been reduced to 36.1%. Respectively DKR has enough headroom for further acquisitions based on the existing capital base.

Real estate portfolio continues to grow to 62 retail properties with a total rental space of approx. 330,000 sqm and an annualized total rent of approx. EUR 24.5 million

In April and May, the company has acquired further 9 retail assets with a total investment of roughly EUR 49 million (see separate press releases / Adhoc). The annualized total rent of these properties amounts to approx. EUR 5.5 Mio. The transfer of ownership for one asset took place in May and is expected to occur in June and July 2017 for the other assets, too.

Moreover Deutsche Konsum is in promising purchase negotiations regarding further acquisitions.
 

Forecast confirmed

Based on the successful first half-year 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 in the fiscal year 2016/2017.

Rolf Elgeti, CEO of Deutsche Konsum REIT-AG: "We managed to invest the means of the successful capital increase from late February 2017 swiftly and with accretive effects. Our remaining firepower of approx. EUR 50 million will be invested in further interesting assets in line with our investment criteria. This would enable us to generate an annualized FFO of more than EUR 0.60 per share (based on current number of 24.76 million shares). At the same time, the increase of the NAV per share by 41% at the first half year even without significant reappraisal of the real estate portfolio illustrates the value accretion potential of the share."
 

For more detailed information please refer to the earnings presentation and the detailed financial report of H1 2016/2017 besides further information about the company under www.deutsche-konsum.de.