Deutsche Konsum REIT successfully closes first financial quarter 2020/2021

Press release

Deutsche Konsum REIT successfully closes first financial quarter 2020/2021

- Rental income increased by 32% to EUR 16.2 million

- FFO increase by 38% to EUR 10.2 million or EUR 0.29 per share

- EPRA NAV at EUR 11.34 per share

- Net LTV at 51.6%

- Rental income not significantly affected by lockdown so far

Broderstorf, 11 February 2021 - Deutsche Konsum REIT-AG ("DKR") (ISIN DE000A14KRD3) has completed the first financial quarter of the new 2020/2021 financial year ("Q1") as expected.

Rental income and FFO increase strongly as expected

Due to the portfolio growth in the course of the previous financial year, rental income in the first quarter increased strongly by 32% from EUR 12.2 million to EUR 16.2 million compared to the same quarter of the previous year.

The increase in funds from operations ("FFO") was even more significant, rising by around 38% year-on-year to EUR 10.2 million (Q1 2019/2020: EUR 7.3 million), mainly as a result of further economies of scale.

aFFO (FFO after deduction of capitalised modernisation measures) was EUR 5.0 million (Q1 2019/2020: EUR 3.5 million) due to current revitalisation projects at various properties.

Property portfolio continues to grow to around EUR 890 million

DKR's property portfolio recognised on 31 December 2020 comprises 164 retail properties with a balance sheet value of approximately EUR 831.6 million (31 December 2019: EUR 625.8 million) and a lettable area of approximately 917,000 m².

Since the beginning of the new financial year, DKR has also acquired eleven additional properties with an investment volume of around EUR 73 million and an annual rent of EUR 6.9 million. The change of benefits and encumbrances has already taken place in some cases. The change of benefits and encumbrances of the other properties is expected by 1 April, so that a further significant increase in rental income can be expected from the third business quarter onwards.

This contrasts with the sale of a property in Berlin-Pankow, which was notarised in December 2020. The property was acquired around two and a half years ago with an initial yield of around 9.7% and could now be sold at 4.5%, from which DKR will generate a profit of around EUR 1.7 million. The transfer of benefits and encumbrances is expected in the third quarter of the financial year.

Thus, the total portfolio (pro forma) of DKR currently comprises 172 retail properties with an annual rent of around EUR 69 million and a balance sheet value of around EUR 890 million. The acquisition yield of the total portfolio is currently around 10.4%.

DKR is currently in the process of acquiring further retail properties.

EPRA NAV rises to EUR 11.34 per share / Net LTV at 51.6%

EPRA NAV per share increased by 2% to EUR 11.34 due to the positive quarterly result. The net LTV gearing ratio is 51.6% as of 31 December 2020.

FFO earnings forecast confirmed

Despite the current lockdown for parts of the German retail sector due to the Corona pandemic, there have so far been no significant rent deferrals or rent losses on the part of the tenants affected. DKR is currently in talks with the tenants affected by the lockdown in order to agree on individual and fair solutions that are in the interest of both parties. DKR does not currently expect this to have any significant negative impact on rental income in the current financial year.

On this basis and in view of the transfer of benefits and encumbrances of the acquired properties that is still to take place, the Management Board currently confirms its forecast and expects FFO of between EUR 42 million and EUR 45 million in the 2020/2021 financial year.

Publications on the first quarter of 2020/2021

Deutsche Konsum REIT-AG will hold an analyst conference (conference call) on the results of the first quarter 2020/2021 today, 11 February 2021, at 9:00 am. The presentation on the results of the first quarter of 2020/2021 as well as further information on the conference call can be found at https://www.deutsche-konsum.de/en/investor-relations/. The quarterly statement on the first quarter of the 2020/2021 financial year is available for download at https://www.deutsche-konsum.de/en/investor-relations/financial-reports/. Image material for download can be found at 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 172 retail properties with an annualised rent of EUR 69.2 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