Deutsche Konsum REIT issues unsecured corporate bond in the amount of EUR 50 million
Broderstorf, 2 April 2019 - Today, Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has issued an unsecured corporate bond with a volume of EUR 50 million. The bond matures on 5 April 2024 (five years) and carries a coupon of 2.35% per annum. The bond was subscribed through a private placement by a German pension fund.
As a result, DKR currently has more than EUR 100 million available to use for the swift acquisition of further high-yield retail properties this year.
DKR, thus, takes advantage of the latest rating increase for unsecured debt from the end of February 2019 ("BBB-") and extends its financing instruments. The average interest rate on debt capital rises slightly to around 1.9% per annum and, thus, remains at a very low level.
Despite the increase in financial liabilities due to the corporate bond, the LTV remains in the order of 50%, which is in line with the Company's objective. This results, on the one hand, from the currently low initial LTV of around 45%. On the other hand, due to the added value in the real estate portfolio because of lease renewals and vacancy reduction in recent months and a significant increase in demand for local supply real estate on the German real estate investment market, the Management Board believes in a real estate appreciation to the next scheduled portfolio valuation on 30/06/2019.
Rolf Elgeti, CEO of DKR: "The purchase pipeline is currently very well filled. The new bond increases our flexibility and speed in the transaction process and ensures that we can quickly secure very attractive properties. It is important for our shareholders that we can finance the current growth without issuing new shares, which, of course, sustainably increases the profitability per share."
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 109 retail properties with an annualised rent of EUR 42 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: DE 000A14KRD3).
Deutsche Konsum REIT-AG
Phone: +49 (0) 331 74 00 76 - 533
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