Deutsche Konsum REIT with a strong financial year 2018/2019 / Acquisitions of more than EUR 25 million in the new FY already

Press release

Deutsche Konsum REIT with a strong financial year 2018/2019 / Acquisitions of more than EUR 25 million in the new FY already

- Net income of EUR 53.3 million for the year 2018/2019

- Rental income up 47% to EUR 42.0 million

- FFO up 55% to EUR 25.8 million/aFFO of EUR 21.3 million

- FFO run rate of EUR 32.1 million as of 30 September 2019

- Dividend proposal of EUR 0.35 per share

- EPRA NAV increased by 29% to EUR 9.94 per share

- Net-LTV at 48.1%

- FFO forecast of EUR 34 million to EUR 36 million for financial year 2019/2020

- FFO run rate at EUR 38 million to EUR 40 million at the end of the financial year 2019/2020

- Dividend forecast of EUR 0.55 per share for financial year 2019/2020

- In Q1 2019/2020 acquisitions of more than EUR 25 million already signed

- Disposal of one grocery discounter store at yield of less than 5%

Broderstorf, 18 November 2019 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) grew strongly and profitably in the financial year 2018/2019.

Based on the preliminary figures, the results are as follows:

Period result increased significantly
The preliminary net profit amounts to EUR 53.3 million (2017/2018: EUR 30.9 million). This increase resulted from a significant increase in EBIT of EUR 23.2 million and a higher valuation result of EUR 27.8 million (2017/2018: EUR 16.3 million).

FFO are rising faster than rental income
The Company's rental income in the 2018/2019 financial year increased by 47% from EUR 28.6 million to EUR 42.0 million compared to the previous year, which mainly resulted from the expansion of the real estate portfolio.

Funds from operations ("FFO") increased even more strongly by 55% from EUR 16.6 million to EUR 25.8 million, which is slightly below the guidance and mainly due to the delay of the transfer of ownership of a few properties. This confirms the increasing profitability of DKR. The aFFO (FFO after deduction of the capitalised modernisation measures) increased to around EUR 21.3 million (2017/2018: EUR 8.3 million) due to extensive investments in revitalisation properties in the prior year.

Real estate portfolio grew to EUR 624 million - Investment volume at record level
As of 30 September 2019, the real estate portfolio comprises 123 retail properties with a balance sheet value of EUR 624.0 million, which have already been transferred to the DKR through transfer of benefits and encumbrances (30 September 2018: EUR 418.7 million). The annualised annual rent of the portfolio amounts to approximately EUR 48.7 million as of 30 September 2019 (30 September 2018: EUR 35.5 million).

Thus, the total portfolio increased by 34 retail properties in the past financial year with an investment volume of around EUR 160 million and an annual rent of EUR 14.4 million, which significantly exceeded the purchase volume of the previous year (2017/2018: EUR 127 million). This was offset by the sale of a property in Berlin-Tegel.

The current purchase yield of the entire portfolio is around 10.9%.

EPRA NAV increases to EUR 9.94 per share/Net LTV is 48.1%
The EPRA NAV has increased significantly due to the positive annual results and the cash capital increases in November 2018 and September 2019. As a result, the EPRA NAV per share was EUR 9.94 and thus increased significantly by EUR 2.24 per share or around 29% as at 30 September 2019.

The net LTV stood at 48.1% at the end of the financial year, slightly below the target corridor of around 50%, leaving room for further moderate leverage.

FFO forecast for the financial year 2019/2020 between EUR 34 million and EUR 36 million/dividend of EUR 0.55 per share expected
For the new financial year 2019/2020, the Management Board expects FFO of between EUR 34 million and EUR 36 million. The FFO run rate (annualised FFO without accrual effects) is expected to be between EUR 38 million and EUR 40 million at the end of the current financial year 2019/2020.

Furthermore, the Management Board is planning a dividend distribution of around EUR 0.55 per share for the current financial year 2019/2020.

Acquisitions of more than EUR 25 million in Q1 of the FY 2019/2020
As per today DKR has acquired five new retail assets worth more than EUR 25 million in the first weeks of the new financial year. Largest property is the Bieblach-Center in Gera (Thuringia) with a rental area of more than 23.000 sqm and the anchor tenant Kaufland with an annualised rent of around EUR 2.4 million. Moreover DKR has acquired four smaller retail centres in Saxony, Saxony-Anhalt and Bavaria which are mainly anchored by grocery tenants. Overall, the initial yield amounts to approximately 10.4%.

Furthermore, the company is in the last stages of the acquisition processes for other retail properties in a significant volume, which are expected to be signed shortly.

Disposal of one grocery discounter store
With notarisation in October 2019 one grocery discounter store in Berlin-Tegel has been sold for a purchase price of EUR 4.1 million. The property has been acquired by DKR for EUR 2.0 million two years before. Annual rent of this property is EUR 0.2 million and has a WALT of about four years. The transfer of ownership is expected to occur in February 2020.

Rolf Elgeti, CEO of Deutsche Konsum REIT-AG: "The preliminary figures for the past financial year 2018/2019 already show the strong growth momentum starting in the second half of the financial year, which will only fully unfold in the annual results from the new financial year 2019/2020. Here, we expect further increases in profitability and margin expansion through economies of scale and through efficiency gains due to our professional asset management. In addition, we currently see a heavily filled pipeline, for which we are very well positioned after the last capital increase."

Telephone conference
Today at 9 a.m. (CET) Deutsche Konsum REIT-AG will hold its financial statement press conference regarding the preliminary FY 2018/2019 figures (telephone conference). The presentation and the dial-in information for the conference call can be found under https://www.deutsche-konsum.de/en/investor-relations/.

The finalised and audited year-end results of the FY 2018/2019 will be published on 18 December 2019 in the complete annual report.

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. The steadily increasing current property portfolio of Deutsche Konsum comprises 127 retail properties with an annualised rent of EUR 51.1 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 Börse (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