Deutsche Konsum REIT-AG successfully finishes first quarter of 2016/2017

Press release

Deutsche Konsum REIT-AG successfully finishes first quarter of 2016/2017

- Rents up to EUR 4.3 m

- FFO/aFFO amounts to EUR 2.2 m EUR or EUR 0,12 per share

- EPRA NAV increases to EUR 82.2 m or EUR 4.09 per share

- Successful capital increase and step into the Prime Standard segment of the Frankfurt stock exchange

Broderstorf, 28. February 2017 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has successfully continued its growth during the first quarter of the financial year 2016/2017 ("Q1 2016/2017)

Increase of rents as well as FFO/aFFO

Compared to the equivalent period of the previous year the company's rental income has risen by 76% to EUR 4.3 m. Reason for this development can be found in the continuing expansion of the real estate portfolio. Aligned with this development the FFO/aFFO increased by almost 140% from EUR 0.9 m to 2.2 m. There was no capitalisation of capex in the first quarter, therefore FFO and aFFO are identical.

In the first quarter the operating rental margin of rents amounted to 81%. The company's administrative expense ratio was at 5.2%.

Portfolio continues to grow

Due to closing of previously notarised properties the portfolio value increased by EUR 18.3 m to EUR 166.2 m. This increase also contained unrealized valuation gains of EUR 1.5 m as at 31^st December2016. The next valuation of properties will occur as at 30^th of June 2017. At the current valuation the portfolio's net initial yield amounts to 10%.

Within the first quarter of 2016/2016 nine new properties with a total value of EUR 24.0 m have been notarized. The closing for eight of these properties have already occurred in January and February 2017.

The company is in promising negotiations on the acquisition of further assets.

Increased EPRA NAV / Conversion of the mandatory convertible

Thanks to the period's positive result of EUR 3.2 m the company's equity increased from EUR 79.0 m to EUR 82.2 m. Along with this the EPRA NAV increased from EUR 3.52 to EUR 4.09 per share.

On the 27^th of December 2016 the holder of the convertible bond has fully exercised his conversion rights. As a result the company's capital stock increased by EUR 1.66 m to EUR 20,107,003 and the number of shares increased accordingly.

Due to the short-term utilization of a credit line in order to finance acquisitions the LTV increased from 49.3% to 53.8%.

Capital increase successfully implemented

On 23^rd of February 2017 the company successfully executed a capital increase with subscription rights by issuing 4.6 m new shares at an exercise price of EUR 8.50 per share. The gross proceeds of
EUR 39.6 m will be used for the further expansion of the real estate portfolio. The company's current funds for further acquisitions therefore amount to more than EUR 100 m.

Furthermore, the company has been included in the Prime Standard segment of the market.

Rolf Elgeti, CEO of Deutsche Konsum REIT-AG: "We are pleased by the sustainable development of our company within the first quarter of the financial year 2016/2017. We view the successful capital increase as a confirmation of our business approach and will continue our growth path. At the same time, entering the prime standard segment of the market is an important commitment to transparent reporting to our shareholders. The acquisition pipeline is currently looking very strong, we therefore expect to be utilizing the newly acquired funds soon and very profitably. The first quarter's aFFO annualized already lies above the guidance for the ongoing financial year, which makes us very confident."

Please find more detailed financial information on the first quarter of 2016/2017 and the company on our homepage www.deutsche-konsum.de

Investor Relations Contact:

Christian Hellmuth
info@deutsche-konsum.de
+49 (0) 331 74 00 76 512