Deutsche Konsum REIT: Stable and profitable growth continued in the first nine months of the financial year 2018/2019/EPRA NAV has increased significantly

Press release

Deutsche Konsum REIT: Stable and profitable growth continued in the first nine months of the financial year 2018/2019/EPRA NAV has increased significantly

- Rental income rises by 44% to EUR 30.1 million

- FFO up 69% to EUR 19.2 million or EUR 0.65 per share

- Real estate portfolio increased to EUR 546.8 million as at 30 June 2019

- Valuation gain from the portfolio valuation at EUR 32.4 million

- EPRA NAV increased by 23% to EUR 9.47 per share

- Net debt LTV at 50.7%

Broderstorf, 14 August 2019 - Deutsche Konsum REIT-AG ("DKR"), ISIN DE000A14KRD3, has grown significantly and profitably in the first nine months of the current financial year 2018/2019 ("9M 2018/2019").

Rental income of more than EUR 30 million/FFO up 69%
Due to the significantly increased real estate portfolio, DKR's net rents amounted to approximately EUR 30.1 million in the first nine months of the financial year 2018/2019 (9M 2017/2018: EUR 20.9 million) and thus increased by 44.1% compared to the same period of the previous year. Rental income increased by 51.1% to EUR 23.3 million in the first nine months of the year (9M 2017/2018: EUR 15.4 million).

Funds from operations ("FFO") increased to EUR 19.2 million or by 69% (9M 2017/2018: EUR 11.4 million) more than disproportionately to pure rental income growth, mainly due to reduced borrowing costs and only disproportionately increased overheads.

This demonstrates DKR's growing profitability due to economies of scale, professional asset management and more favourable financing conditions.

Real estate portfolio grows to more than EUR 600 million
As of 30 June 2019, the real estate portfolio comprises 113 retail properties with a book value of EUR 546.8 million, which have already been transferred to the DKR through the transfer of benefits and encumbrances (30/09/2018: EUR 418.7 million).

As of the balance sheet date, the transfer of benefits and encumbrances of another ten acquired properties with an investment volume of around EUR 78 million and an annual rent of around EUR 6.7 million were outstanding, of which already nine properties were transferred to DKR as at 1 July 2019.

Taking into account recent acquisitions, the real estate portfolio (pro forma) increased to 123 retail properties with a book value of around EUR 625 million and an annualised rent of EUR 49 million. The purchase yield of the overall portfolio is currently around 11.2%.

As a result, DKR has already acquired retail properties for around EUR 160 million in the current financial year and has significantly exceeded the purchase volume of the previous year. In addition, DKR is in further concrete purchasing processes.

Real estate portfolio up around 6.9%
As part of the scheduled real estate valuation as of 30 June 2019, the real estate portfolio was upgraded by EUR 32.4 million or 6.9%. This is the result of numerous lease renewals, a continuous vacancy reduction and increased market demand for local supply real estate in this asset class.
Thus, the properties accounted at 30 June 2019 are valued at a valuation factor of around 12.8x of the annual rent (previous year: 11.7x). Additional valuation gains are expected after the completion of extensive revitalisation projects on various retail properties.

The real estate valuation was carried out by the appraiser CBRE for the first time.

Successful capital increase in November 2018
On 22 November 2018, DKR successfully completed a cash capital increase without subscription rights for EUR 11.00 per share. As a result, the share capital of the Company increased by EUR 2,723,631.00 to EUR 29,959,944.00. Due to the cash capital increase, the Company received net proceeds of EUR 29.3 million, which were used for further acquisitions.

EPRA NAV at EUR 9.47 per share/Net LTV at 50.7%
Due to the positive management result, the valuation gain and the capital increase, EPRA NAV increased significantly by EUR 1.77 per share or 23% to EUR 9.47 in the first nine months of 2018/2019 (30/09/2018: EUR 7.70 per share).

Net LTV stood at 50.7% on the reporting date (30/09/2018: 51.2%), which is within the target of around 50%.

Outlook
Based on the nine-month results and the transfer of properties at the beginning of the fourth quarter, the Management Board confirms its forecast of achieving an FFO of between EUR 26 million and EUR 29 million in the 2018/2019 financial year. The FFO run rate is estimated at about EUR 33 million p.a. expected at the end of the financial year.

Rolf Elgeti, CEO of Deutsche Konsum REIT-AG: "The nine-month results confirm once again that DKR continues to grow profitably as planned. This leads directly to increases in the creditworthiness of DKR, which also enable further potential on the financing side. At the same time, the appreciation of the real estate portfolio shows how the hidden reserves of our real estate are realised through systematic and professional asset management."

Conference call today at 9am (UTC+2) and releases on 9M 2018/2019
Deutsche Konsum REIT-AG will hold a telephone conference for the nine-month figures of the financial year 2018/2019 today at 9:00 am. The quarterly statement for the third quarter of 2018/2019, the presentation of results and further information on the Company can be found at www.deutsche-konsum.de/en/investor-relations/.

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 123 retail properties with an annualised rent of EUR 49 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).

Contact:
Deutsche Konsum REIT-AG
Stefanie Frey
Investor Relations
E-Mail: sf@deutsche-konsum.de
Phone: +49 (0) 331 74 00 76 - 533