Deutsche Konsum REIT : closes Financial Year 2016/2017 successfully and publishes preliminary results

Press Release

Deutsche Konsum REIT-AG closes Financial Year 2016/2017 successfully and publishes preliminary results

- Annual net profit 2016/2017 amounts to EUR 37.6 million

- Rental income increased by 68% up to EUR 19.2 million

- FFO amounts to EUR 10.3 million / aFFO amounts to EUR 7.9 million

- Investment properties increased to EUR 276.0 million

- EPRA NAV increased by 59% to EUR 6.26 per share

- Net-LTV of 42.6%

- FFO-Forecast of EUR 16 million to EUR 20 million in FY 2017/2018

- Forecast for FFO run rate at EUR 23 million by the end of the FY 2017/2018

Broderstorf, 16 November 2017 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has successfully maintained its growth in the FY 2016/2017. Based on the preliminary figures the following results have been achieved:

Strong profit

Preliminary net profit ends up in the amount of EUR 37.6 million (2015/2016: EUR 21.1 million) and has grown significantly by 78% compared to the prior year. This resulted from a grown stock of properties, a higher valuation gain, lower average costs of capital as well as stable admin costs which have increased only moderate.

FFO increases stronger than rental income to EUR 10.3 million

In the FY 2016/2017 rental income has increased by 68% coming from EUR 11.4 million in the prior year ending up in the amount of EUR 19.2 million. This is mainly due to the rapid expansion of the property portfolio.

Compared to the prior year Funds from Operations ("FFO") grew by 83% from EUR 5.6 million to EUR 10.3 million. The aFFO (FFO after Capex), too, grew significantly to EUR 7.9 million (2015/2016: EUR 4.7 million).

Property portfolio increased remarkably to EUR 276 million / Valuation gain more than EUR 28 million / Further acquisitions

Through the acquisition of 22 retail properties with an investment volume of about EUR 99 million and an additional valuation gain of EUR 28.8 million according to the yearly property valuation the total property portfolio has grown to EUR 276.0 million as at 30 September 2017 (30 September 2016: EUR 147.8 million).

The valuation gain reflects the value add which was created by revitalisations as well as a clear increase in demand for regional retail properties.

The initial yield of the whole property portfolio is about 12% as at 30 September 2017.

Meanwhile the transfer of titles of four additional retail properties with the anchor REWE occured on 1 November 2017. Later on DKR acquired an additional retail DIY store with the anchor OBI which lifted the total property portfolio up to 67 retail properties with an amount of EUR 285 million.

Moreover DKR works further on promising purchase processes and expects further acquisitions within the next months. Currently the available firepower amounts to ca. EUR 50 million.

EPRA NAV lifts up to EUR 6.26 per share / Net LTV is 42.6%

Due to the positive year-end result and the capital increase on 23 February 2017 the EPRA NAV increased. Thus the EPRA NAV per share as at 30 September 2017 amounts to EUR 6.26 which is a significant increase by EUR 2.33 or about 59% compared to the prior year.

At the end of the FY the Net LTV has risen to 42.6% as an effect of new long-term loans but is still below the target of 50%. As such DKR has enough headroom for further acquisitions based on the existing capital base.

FFO-Forecast for the FY 2017/2018 between EUR 16 million and EUR 20 million / dividend distribution of at least EUR 20 cents

In the new FY 2017/2018 the management board expects a FFO between EUR 16 million and EUR 20 million. The run rate of the real estate portfolio (annualised FFO without periodic matching effects) should be ca. EUR 23 million by the end of the FY 2017/2018.

Moreover the management board plans a first dividend distribution for the current FY 2017/2018 of at least EUR 20 cents per share. Depending on further acquisitions the dividend could boost up significantly.

Rolf Elgeti, chairman of the management board of Deutsche Konsum REIT-AG: "As expected DKR saw a strong and accretive growth within the last FY 2016/2017. This growth path will be continued in the current FY 2017/2018 and that is why we have set ambitious targets to achieve this. Our shareholders will participate from our growth with the first dividend distribution of Deutsche Konsum REIT."

Telephone conference

Today at 11 a.m. (UTC +1) Deutsche Konsum REIT-AG will hold its financial statement press conference regarding the preliminary FY 2016/2017 figures (telephone conference). The presentation and the dial-in information for the conference call can be found under http://www.deutsche-konsum.de/en/investor-relations/.

The finalised and audited year-end results of the FY 2016/2017 will be published on 18 December 2017 in the complete annual report. Afterwards the company plans a further analyst conference call on 19 November 2017 regarding the finalised year-end results and to give an update about recent developments of DKR.

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. The steadily increasing current property portfolio of Deutsche Konsum comprises 67 retail properties with an annualised rent of EUR 26 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
sf@deutsche-konsum.de
+49 (0) 331 74 00 76 - 533