Deutsche Konsum REIT with extremely robust business development in the first nine months 2019/2020

Created by Deutsche Konsum REIT-AG |

DGAP-News: Deutsche Konsum REIT-AG / Key word(s): 9 Month figures13.08.2020 / 07:10 The issuer is solely

Deutsche Konsum REIT with extremely robust business development in the first nine months 2019/2020

DGAP-News: Deutsche Konsum REIT-AG / Key word(s): 9 Month figures
13.08.2020 / 07:10
The issuer is solely responsible for the content of this announcement.

Press release

Deutsche Konsum REIT with extremely robust business development in the first nine months 2019/2020

- Rental income increased by 34% to EUR 40,3 million

- FFO grows by 37% to EUR 25.2 million or EUR 0.78 per share

- Property portfolio increased by 27% to EUR 785.9 million as of 30 June 2020

- Moderate valuation gain of 0.9% from the portfolio valuation as of 30 June 2020

- EPRA NAV at EUR 10.92 per share (after dividend payment of EUR 0.35 per share)

- Net debt LTV at 51.6%

- Effects of the COVID-19 pandemic insignificant / Forecasts confirmed

Broderstorf, 13 August 2020 - As expected, Deutsche Konsum REIT-AG ("DKR") (ISIN DE000A14KRD3) continued to grow profitably in the first nine months of the 2019/2020 financial year ("9M").

Rental income and FFO grow in line with portfolio size
The significant growth of the real estate portfolio over the course of the financial year led to a strong increase in rental income and funds from operations ("FFO") in the first nine months. Rental income rose by 33.8% to EUR 40.3 million (9M 2018/2019: EUR 30.1 million). As a result, funds from operations ("FFO") even increased by 37% to EUR 25.2 million (9M 2018/2019: EUR 18.4 million adjusted). The aFFO (FFO after deduction of capitalised modernisation measures) amounted to EUR 12.9 million (9M 2018/2019: EUR 16.3 million) due to current revitalisation and expansion measures for some properties.

Property portfolio grows to around EUR 830 million / Further acquisitions made
DKR's portfolio as at 30 June 2020 comprises 139 properties with a balance sheet value of around EUR 785.9 million (30.09.2019: EUR 619.9 million) and a rental space of around 870,000 m².

The purchase of two further properties in Parchim (Mecklenburg-West Pomerania) and Schöneck (Saxony) has since been notarised in July and August 2020. The "Parchim Center" is an important local retail park and has a rental area of around 13,000 m² with the tenants Norma, KiK, TEDi, Deichmann, Dänisches Bettenlager and others with an annual rent of around EUR 0.8 million. The property in Schöneck has a rental area of around 1,400 m² and is let to the discount supermarket chain Diska (EDEKA) for an annual rent of around EUR 0.1 million. Both properties have a remaining lease term of approximately 4 years. The total purchase yield is approximately 8.7%.

This means that DKR has already acquired 43 retail properties with an investment volume of around EUR 182 million and annual rents of EUR 17.0 million in the 2019/2020 financial year to date and sold one property in Berlin-Tegel in March 2020. The yield of the purchased properties is 9.3%, that of the sold properties 5.0%.

Thus the total portfolio (pro forma) of DKR currently comprises 165 retail properties with an annual rent of around EUR 65 million and a balance sheet value of around EUR 830 million as well as a lettable area of over 900,000 m². The purchase yield of the entire portfolio is currently around 10.5%.

DKR is also in the process of further purchases and expects to make further acquisitions in the near future.

Value of the real estate portfolio increases moderately by 0.9%
In the course of the regular property valuation as of 30 June 2020, the property portfolio was moderately revalued by EUR 6.8 million or 0.9%. This was primarily due to the value-creating asset management of the portfolio properties and the resulting lease contract extensions, vacancy reduction and the general increase in market demand for local supply properties, which have proven to be very stable in the current market environment.

Consequently, the properties reported in the balance sheet as of 30 June 2020 are valued at a valuation factor of around 12.9x the annual rent (previous year: 12.8x). The moderate year-on-year increase in valuation takes into account investments made to revitalise individual portfolio properties of EUR 12.3 million (capex), which have been confirmed by the property valuation. In addition, a significant portion of the properties acquired in this financial year were only recently transferred to management, which is why no significant value increases have yet been achieved for these properties.

Successful capital increase in May 2020
On 15 May 2020, DKR carried out a cash capital increase without subscription rights for EUR 16.00 per share. This increased the Company's share capital by EUR 3,195,944.00 to EUR 35,155,938.00. The entry in the commercial register was made on 18 May 2020. The cash capital increase generated net proceeds of EUR 50.3 million for the Company, which will be used to acquire further retail properties.

EPRA NAV increases to EUR 10.92 per share / Net LTV at 51.6%
As a result of the capital increase and the result for the period and despite the dividend payment of EUR 0.35 per share, EPRA NAV increased to EUR 10.92 as of 30 June 2020 (30.09.2019: EUR 9.93 per share). Net LTV equalled 51.6% as of the balance sheet date (30.09.2019: 48.1%), which is within the target range of approximately 50%.

COVID-19 with low impact on DKR / earnings forecasts confirmed
Due to the defensive business model and a high proportion of non-cyclical and system-relevant tenants, no significant effects of the COVID 19 pandemic on DKR are apparent. So far, only shortly after the outbreak of the pandemic in Germany and the subsequent lockdowns in March and April 2020, rent deferrals totalling almost 30% of the April rents have been granted, which have been retained by the tenants affected by closures. Since May 2020, the rent collection has increasingly been between 96% and 98%.

Due to the positive business development in 9M 2019/2020 and the recent transfer of benefits and encumbrances of larger properties and the very limited impact of the Corona crisis, further revenue growth is expected in the fourth quarter. Therefore, the Management Board confirms its forecast and expects an FFO between EUR 34 million and EUR 36 million in the 2019/2020 financial year. Furthermore, the Management Board confirms its expectation to achieve an FFO run rate (annualised FFO without accrual effects) between EUR 40 million and EUR 42 million as of 30 September 2020.

Releases on 9M 2019/2020
The quarterly statement for the third quarter of 2019/2020, the presentation of results and further information on the Company can be found at https://www.deutsche-konsum.de/en/. Picture material for download is available under https://www.deutsche-konsum.de/en/press-downloads/downloads/.

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. DKR's total portfolio currently comprises 165 retail properties with an annualised rent of EUR 65 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



13.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language:English
Company:Deutsche Konsum REIT-AG
August-Bebel-Str. 68
14482 Potsdam
Germany
Phone:+49 (0)331 740076517
Fax:+49 (0)331 740076520
E-mail:ch@deutsche-konsum.de
Internet:www.deutsche-konsum.de
ISIN:DE000A14KRD3
WKN:A14KRD
Listed:Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID:1116519


 
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