Deutsche Konsum REIT issues bond and gets Investment Grade Rating for secured debt / short-term loans refinanced
Broderstorf, 31 May 2018 - Following the recent purchases, Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has efficiently structured its debt capital.
Issue of a secured corporate bond with 1.8% coupon
Today DKR has issued a six-year corporate bond with a volume of EUR 40 million. The bond is secured against a real estate pool and has a coupon of 1.8% per annum.
DKR receives rating
Before issuing the bond, the rating agency Scope issued a rating for Deutsche Konsum REIT-AG for the first time. Accordingly, DKR's Senior secured debt is rated with "BBB"(investment grade) and Senior unsecured debt with BB +. In addition, the corporate rating is "BB Stable".
Refinancing of a short-term loan completed
In addition, at the end of May, DKR refinanced the short-term refinancing loan from Münchener Hypothekenbank e.G. with a new loan from Helaba. The new loan has a volume of EUR 37 million, maturing on 31 December 2022 and will be less than 1.8% p.a. interest.
Additionally, the refinancing of another short-term loan is imminent.
Borrowing rate reduced to 2.0%
Refinancing on more favourable terms reduces average borrowing costs (excluding convertible bonds) to 2.0% p.a. (31 March 2018: 2.37%). The remaining term of the loans (and bond) increases to 5.8 years as of 31 May 2018 (31 March 2018: 4.7 years).
Headroom for further purchases
The issue of the bond also increases DKR's firepower for further acquisitions.
About Deutsche Konsum
Deutsche Konsum REIT-AG based in Broderstorf is a listed real estate company focusing on retail properties in Germany for goods required for daily use in established micro-locations. The focus of the company's activities is on the management and development of real estate with the aim of achieving a steady increase in value and the realisation of hidden reserves. The steadily increasing current property portfolio of Deutsche Konsum comprises of 89 retail properties with an annualised rent of EUR 34.8 million.
Due to its REIT status ('Real Estate Investment Trust'), the company is exempt from corporation and trade tax. The shares of the company are listed on the Prime Standard of the Deutsche Boerse (ISIN: DE000A14KRD3).
Deutsche Konsum REIT-AG
Phone: +49 (0) 331 74 00 76 - 533
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