Deutsche Konsum REIT with successful first half of 2020/2021

Press release

Deutsche Konsum REIT with successful first half of 2020/2021

- Rental income increased by 32% to EUR 33.0 million

- FFO increased by 33% to EUR 20.4 million or EUR 0.58 per share

- FFO per share increased by 21% or EUR 0.10 to EUR 0.58 per share

- EPRA NAV at EUR 11.17 per share

- Net LTV at 55.7%

- No significant corona-related rental losses

Broderstorf, 12 May 2021 - Deutsche Konsum REIT-AG ("DKR") (ISIN DE000A14KRD3) closed the first half of the 2020/2021 financial year ("H1") with significant growth, as expected.

Significant increases in rental income and FFO

Due to the continued portfolio growth, rental income in the first half of the financial year increased significantly by 32% from EUR 25.0 million to EUR 33.0 million compared to the same period of the previous financial year.

Corresponding to this, funds from operations ("FFO") rose by 33% to EUR 20.4 million. In the same period of the previous financial year, FFO amounted to EUR 15.3 million.

aFFO (FFO after deduction of capitalised modernisation measures) was EUR 10.7 million (H1 2019/2020: EUR 7.2 million) due to current revitalisation projects at various properties.

Property portfolio continues to grow to around EUR 930 million

DKR's property portfolio recognised on 31 March 2021 comprises 171 retail properties with a balance sheet value of approximately EUR 871.2 million (30 September 2020: EUR 809.9 million) and a lettable area of approximately 968,000 m².

Since the beginning of the current financial year, DKR has acquired a total of 13 properties with an investment volume of around EUR 120 million and annual rent of EUR 10.9 million. The change of benefits and encumbrances of ten properties has already taken place during the first half of the financial year. Another property was transferred to DKR on 1 April 2021. The change of benefits and encumbrances of the remaining two properties is expected to occur by 1 July 2021, so that a further significant increase in rental income can be expected from the fourth financial quarter onwards.

This is contrasted by the sale of a property in Berlin-Pankow. The property was acquired around three years ago with an initial yield of around 9.7% and has now been sold at a yield of 4.5%, from which DKR will generate a capital gain of around EUR 1.7 million. The transfer of benefits and encumbrances will take place as agreed on 1 June 2021.

Thus, the total portfolio (pro forma) of DKR currently comprises 174 retail properties with an annual rent of around EUR 73 million and a balance sheet value of around EUR 930 million. The acquisition yield of the total portfolio is currently around 10.3%.

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

EPRA NAV rises to EUR 11.17 per share / Net LTV at 55.7%

EPRA NAV per share increased by 1% to EUR 11.17 due to the positive half-year result. Without the distribution of a dividend of EUR 0.40 per share on 11 March 2021, the EPRA NAV per share would have increased by approximately 4%. The net LTV gearing ratio is 55.7% as of 31 March 2021. The Company expects the net LTV to move back into the target range of around 50% by the end of the financial year.

Earnings forecast for the financial year confirmed

Despite the ongoing lockdown since November, DKR still records only marginal rent losses. DKR's "classic" tenants - suppliers of daily needs such as food retailers as well as hypermarkets, drugstores, pharmacies and also DIY stores - are not or only temporarily affected by the ongoing lockdown regulations. The Company is striving to agree on individual and fair solutions for the tenants affected by the lockdown, which 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.

Based on this and in view of the transfer of benefits and encumbrances of acquired properties still to take place, the Management Board confirms its forecast and expects FFO of between EUR 42 million and EUR 45 million in the 2020/2021 financial year and an FFO run rate of between EUR 47 million and EUR 51 million as at 30 September 2021.

Publications on the first half of 2020/2021

Deutsche Konsum REIT-AG will hold an analyst conference (conference call) on the results of the first half of 2020/2021 today, 12 May 2021, at 10:00 am CEST. The presentation on the results of the first half 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 half-yearly financial report of 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, headquartered in Broderstorf, is a listed real estate company focusing on retail properties in Germany for goods required for daily use in well-established micro-locations. The focus of the Company's activities is on the acquisition, management and development of convenience retail properties with the aim of achieving a steady increase in value and the realisation of hidden reserves.

Due to its German REIT status ('Real Estate Investment Trust'), the Company is exempt from German corporation and trade tax. The shares of the Company are listed on the Prime Standard of the Deutsche Boerse (ISIN: DE 000A14KRD3), the Berlin Stock Exchange and on the JSE (Johannesburg Stock Exchange) (South Africa) by way of a secondary listing. Further information on the Company can be found at https://www.deutsche-konsum.de/en/.

Contact:
Deutsche Konsum REIT-AG
Stefanie Frey
Investor Relations
E-Mail: sf@deutsche-konsum.de
Phone: +49 (0) 331 74 00 76 - 533