Deutsche Konsum REIT with revenue jump in the first quarter of 2019/2020 - Purchase volume of the entire previous year already exceeded

Press release

Deutsche Konsum REIT with revenue jump in the first quarter of 2019/2020 - Purchase volume of the entire previous year already exceeded

- Rental income increased by 29% to EUR 12.2 million

- FFO at EUR 7.3 million or EUR 0.25 per share

- EPRA NAV at EUR 10.13 per share

- Net LTV at 48.5%

- FFO run rate forecast (as of 30/09/2020) raised to EUR 40 million - EUR 42 million

Broderstorf, 13 February 2020 - Deutsche Konsum REIT-AG ("DKR") (ISIN DE000A14KRD3) grew strongly and profitably in the first quarter of FY 2019/2020 ("Q1"), as expected.

Rental income and FFO increase significantly
As a result of the acquisitions made in the previous year, rental income in the first quarter increased significantly by 29% from EUR 9.5 million to EUR 12.2 million compared to the same quarter of the previous year.

As a result, current funds from operations ("FFO") increased by 33% to EUR 7.3 million, which is primarily due to economies of scale and more favourable refinancing costs. The aFFO (FFO after deduction of capitalised modernisation measures) amounted to EUR 3.5 million (2018/2019: EUR 5.1 million) due to current revitalisation projects for various properties.

Entire property portfolio grows to EUR 0.8 billion - strong increase in rental income expected from the third quarter
DKR's real estate portfolio as at 31 December 2019 comprises of 125 properties with a balance sheet value of around EUR 625.8 million (31 December 2019: EUR 619.9 million) and a rental area of around 726,000 m².

In addition, the financial year to date has been characterised by a high acquisition volume. In total, DKR has already acquired 44 retail properties in the current financial year, with an investment volume of around EUR 170 million and an annual rent of EUR 15.6 million, thus already exceeding the purchase volume of the previous financial year. The transfer of benefits and encumbrances is expected to take place successively until 1 June, so that a significant increase in rental income can be expected from the third quarter onwards. This is offset by the sale of a property in Berlin-Tegel in October 2019.

DKR's total portfolio (pro forma) thus currently comprises 166 retail properties with an annual rent of around EUR 64 million and a book value of around EUR 795 million.

The acquisition yield of the entire portfolio is currently around 10.5%.

EPRA NAV increases to EUR 10.13 per share / Net LTV stable at 48.5%
EPRA NAV rose by 2% to EUR 10.13 due to the positive quarterly result. The net LTV gearing ratio is 48.5% as of 31 December 2019, which provides scope for further borrowings.

FFO earnings forecast confirmed / FFO run rate forecast raised to EUR 40 million to EUR 42 million
Based on the positive business development and the subsequent transfer of benefits and encumbrances of the acquired properties in the coming quarters, the Management Board confirms its forecast and expects FFO of between EUR 34 million and EUR 36 million in the 2019/2020 financial year.

On the basis of the high purchase volume already made in the current financial year and the still well-filled acquisition pipeline, the Management Board is raising its expectation of an FFO run rate (annualised FFO without accrual effects) of between EUR 38 million and EUR 40 million as of 30 September 2020 to a new corridor of between EUR 40 million and EUR 42 million.

Rolf Elgeti, CEO of Deutsche Konsum REIT-AG: "The results of the first quarter of the financial year clearly demonstrate DKR's planned strong and profitable growth. Even more exciting, however, are the prospects which, due to the record purchase volume of currently EUR 170 million, will lead to a significant expansion of the balance sheet and rental cash flows in the further course of the financial year. Here, we also expect further increases in profitability and margin improvements through economies of scale, more favourable financing and efficiency gains due to professional asset management".

Publications for the first quarter of 2019/2020
The quarterly statement for the first quarter of 2019/2020 financial year, the earnings presentation as well as further information about the Company can be found under https://www.deutsche-konsum.de/en/.

About the company
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 166 retail properties with annualised rents of EUR 64.4 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