Deutsche Konsum REIT-AG publishes strong Q3 2015/16 results and reaches aFFO and FFO run rate already almost at forecast level for next year.
Deutsche Konsum REIT-AG finished the third quarter of the FY 2015/16 with a profit of EUR 1.1 million. FFO amounted to EUR 1.56 million or 9 cents per share in the last quarter. This is up from 1.49 million in the previous quarter. aFFO has risen somewhat stronger and amounted to EUR 1.17 million or 7 cents per share in the last quarter. This is up from 1.07 million (or 6 cents per share) in the previous quarter.
Allowing for already notarized additions to the portfolio the current pro forma annualized run rate is approximately EUR 6.97 million of aFFO (or 42 cents per share) and EUR 8.96 million of FFO (or 54 cents per share). Both numbers are up compared to the last quarter. Importantly, the current aFFO and FFO run rate per share are already nearly at the level of the guidance for the FY 2016/17 of 57c FFO and 44c aFFO per share.
Q3 also saw the acquisition of the Dompassage in the Hanseatic City of Greifswald for a price of EUR 8.5 million.
The property, which has a rental space of more than 12,000 sqm and a large number of parking spots, was acquired as part of a foreclosure. The rental income amounts to EUR 915,000 p.a. while currently approx. 4,000 sqm of rental space are vacant. Deutsche Konsum is already in talks with potential tenants.
Rolf Elgeti, CEO of Deutsche Konsum REIT-AG comments: "Due to an improved margin and more acquisitions coming on-line we have almost reached the cash flow run rate required for our guidance for 2016-17. Given the current acquisition pipeline this guidance now looks increasingly conservative. "
As of 30 June 2016 the company had 33 properties with 175,000 sqm of lettable surface and annual rents of EUR 12.8 million on its books. Additionally, Deutsche Konsum has notarized the acquisition of a further property with an additional 12,000 sqm of lettable surface and EUR 1 million of annual rent. The acquisition pipeline currently looks strong and very attractive.
End of Media Release
Issuer: Deutsche Konsum REIT-AG
Key word(s): Real estate
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