EQS-News: Deutsche Konsum REIT-AG / Key word(s): Half Year Results
Deutsche Konsum REIT-AG with solid business development in the first half of the financial year 2022/2023
Potsdam, 12 May 2023 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has recorded solid business development in the first half of the current financial year 2022/2023.
Rental income and net rental income increased
Funds from operations ("FFO"), on the other hand, declined by 5.8% and amounted to EUR 19.9 million or EUR 0.57 per share (H1 2021/2022: EUR 21.1 million or EUR 0.60 per share). This is primarily the result of increased interest expenses due to the rise in interest rates for some of the debt instruments that are subject to variable interest rates, as well as new financings at the current interest rate level. In addition, aFFO (FFO after deduction of capitalised modernisation measures) fell by 41.7% to EUR 8.6 million due to a higher investment volume for revitalisation measures at three properties. The revitalisation measures have now been largely completed and will subsequently lead to significantly higher rental income at the respective properties.
Further rent growth due to indexation clauses
Balance sheet value of the real estate portfolio at over EUR 1.1 billion with annual rents of EUR 78 million
The average acquisition yield of the total portfolio is currently around 10.0%.
At the beginning of the first half of the 2022/2023 financial year, DKR acquired a discounter in Suhl (Thuringia) with an initial yield of around 10%. Since then, no further acquisitions have been made, as DKR believes that the purchase price levels have not yet sufficiently priced in the current interest rate environment.
On the other hand, a DIY store in Chemnitz was sold for around 17.5 times the annual rent (or 5.7% initial yield), and two vacant properties in Bavaria (Scheyern and Salzweg) were sold for around EUR 2.3 million to streamline the portfolio. DKR is currently examining further specific purchase offers for some properties that would create value.
On the acquisition side, the Company expects an increasing alignment of the price balance with the current interest rate environment and a revival of transaction activity in the real estate market in the second half of the calendar year, which will result in interesting growth opportunities for DKR.
Refinancing of existing debt instruments carried out / Scope rating confirmed
In total, four loans with a total volume of approximately EUR 49 million were taken out in the first half of the financial year with durations between two and five years and an average interest rate of 4.57 %. The Company is also working on the prolongation and refinancing of the other loans expiring in the current calendar year as well as on the debt instruments expiring in the following year.
The rating agency Scope confirmed DKR's existing rating on 27 March 2023. Accordingly, the issuer rating remains "BB+/Stable" and for the financial instruments it remains at "BBB" (senior secured bond) as well as "BBB-" (senior unsecured debt). The rating report is published on the DKR website.
EPRA NTA per share rises to EUR 11.27 / Net LTV amounts to 51.6%
The net LTV amounts to 51.6 % as of the balance sheet date and is thus slightly above the target figure of around 50 %.
FFO forecast for the financial year reduced by around 10%
Webcast and Conference Call
About Deutsche Konsum
The shares of the Company are listed on the Prime Standard of Deutsche Börse (ISIN: DE000A14KRD3) and on the JSE (JSE Limited) (South Africa) by way of a secondary listing.
|Company:||Deutsche Konsum REIT-AG|
|Phone:||+49 (0)331 740076517|
|Fax:||+49 (0)331 740076520|
|Listed:||Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Munich, Stuttgart, Tradegate Exchange; JSE Securities Exchange|
|EQS News ID:||1630881|
|End of News||EQS News Service|