DGAP-News: Deutsche Konsum REIT-AG successfully closes 2019/2020 financial year

Press release

Deutsche Konsum REIT-AG successfully closes 2019/2020 financial year

- Rental income up 34% to EUR 56.2 million
- FFO rises by 40% to EUR 35.0 million and thus in line with the forecast
- FFO run rate of EUR 40.0 million as of 30 September 2020 also as forecast
- Real estate portfolio grew to EUR 810 million
- EPRA NAV increased by 12% to EUR 11.11 per share
- Net LTV at 51.7%
- Dividend proposal rises to EUR 0.40 per share after EUR 0.35 per share in the previous year
- FFO forecast of EUR 42 million to EUR 45 million for financial year 2020/2021
- FFO run rate of EUR 47 million to EUR 51 million expected at the end of the 2020/2021 financial year
- Sustainability report published for the first time

Broderstorf, 17 December 2020 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has grown strongly and profitably in the 2019/2020 financial year - despite the impact of the COVID 19 pandemic.

FFO increase stronger than rental income
The Company's rental income increased by 34% from EUR 42.0 million to EUR 56.2 million in the financial year 2019/2020 compared to the previous year, mainly as a result of the expansion of the property portfolio.

Funds from operations ("FFO") also rose by a much stronger 40% from EUR 25.0 million to EUR 35.0 million, fully achieving the guidance given in the previous year (EUR 34.0 million to EUR 36.0 million) and confirming DKR's continued profitable growth. aFFO (FFO after deduction of capitalised modernisation measures) was slightly below the previous year's level at around EUR 19.9 million (2018/2019: EUR 20.5 million) due to extensive and value-creating investments in the revitalisation of properties from current cash flow.

The property portfolio existing as of 30 September 2020, including the notarised properties, also results in a run rate of FFO of EUR 40.0 million, which is also within the guidance range (EUR 40.0 million to EUR 42.0 million).

Real estate portfolio increased to EUR 810 million as of the balance sheet date
As at 30 September 2020, the real estate portfolio comprises 161 retail properties with a balance sheet value of EUR 809.9 million, which have already been transferred to DKR (30 September 2019: EUR 619.9 million). The annualised annual rent of the portfolio amounts to approximately EUR 63.1 million as at 30 September 2020 (30 September 2019: EUR 48.6 million).

Thus, the total portfolio increased by 39 retail properties with an investment volume of around EUR 158 million and an annualised rent of EUR 14.8 million in the past financial year. This was offset by the disposal of a food discounter in Berlin-Tegel, which was sold at a significant capital gain.

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

EPRA NAV increases to EUR 11.11 per share / Net LTV is 51.7%
The EPRA NAV increased to EUR 11.11 per share as of 30 September 2020 (30 September 2019: EUR 9.93 per share) due to the positive annual result and the cash capital increase carried out in May 2020, and thus rose significantly by EUR 1.18 per share or around 12% year-on-year despite a lower valuation result from the property valuation.

The net LTV at the end of the financial year was 51.7%, which is within the target corridor of around 50%.

Dividend proposal of EUR 0.40 per share
In view of the current lockdown measures to combat the ongoing COVID 19 pandemic, which have been sharply tightened by the German government, and the unforeseeable timeframe of this situation, the Management Board, after consultation with the Supervisory Board, has decided at short notice for reasons of prudence to proceed in a liquidity-preserving manner despite the full achievement of the FFO guidance. As a result, the dividend proposal was increased to EUR 0.40 per share compared to the previous year (previous year: EUR 0.35 per share), but is lower than the original dividend forecast of EUR 0.55 per share.

FFO forecast for the 2020/2021 financial year between EUR 42 million and EUR 45 million.
For the current financial year underway, the Management Board expects FFO of between EUR 42 million and EUR 45 million, assuming a gradually normalising overall situation. The FFO run rate (annualised FFO excluding accrual effects) is expected to be between EUR 47 million and EUR 51 million at the end of the current financial year 2020/2021.

Acquisitions so far at over EUR 14 million in the current financial year / Sale of another food market in Berlin
In the course of the new financial year so far since October 2020, DKR has already acquired five new food-anchored retail properties for around EUR 14.3 million with individual transactions, generating a total annual rent of EUR 1.3 million.

In addition, the Company is in the process of acquiring further retail properties, which is expected to take place by the end of the year.

Furthermore, DKR sold another food market from its portfolio in Berlin-Pankow by notarised contract this week for approximately 22 times the annual rent and thus twice the book value. The transfer of benefits and encumbrances is expected to take place in February 2021.

Including the transfers of benefits and encumbrances of three further properties purchased after the balance sheet date and the notarised purchases and sales mentioned above, the pro forma real estate portfolio currently comprises 169 properties with an annual rent of around EUR 66.5 million and a balance sheet value of around EUR 850 million.

DKR publishes sustainability report
As of today, DKR is publishing a sustainability report for the first time. DKR is thus expressly committed to sustainable corporate management, which is becoming an increasingly relevant component of responsible management in view of the Company's strong growth and thus corresponds to the sustainable and long-term business model. The sustainability report takes a firm stand on environmental, social and governance issues within a meaningful framework and provides an outlook on which sustainable projects will be pursued in the future. The report is available for download at https://www.deutsche-konsum.de/en/sustainability/.

Rolf Elgeti, CEO of Deutsche Konsum REIT-AG: "The results of the past financial year impressively underline the stability and cash flow strength of our business model, even in the current difficult overall environment, which is due to the high proportion of non-cyclical and system-relevant tenants in our portfolio and the high investment discipline of our team. Therefore, we will continue our expansion as usual and also further develop the existing portfolio, which will lead to further sustainable cash flow and value increases."

Conference call
Deutsche Konsum REIT-AG will hold an annual press conference (conference call) on the annual results of the 2019/2020 financial year tomorrow, 18 December 2020, at 9:00 am. The presentation on the annual results of the 2019/2020 financial year and further information on the conference call can be found at https://www.deutsche-konsum.de/en/investor-relations/. The 2019/2020 annual report is available for download at https://www.deutsche-konsum.de/en/investor-relations/financial-reports/.

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 169 retail properties with an annualised rent of EUR 66 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: [email protected]
Phone: +49 (0) 331 74 00 76 - 533