Deutsche Konsum REIT grows significantly and closes the first quarter of 2017/2018 successfully as planned
- Rental income increased by 53% up to EUR 6.6 million
- FFO amounts to EUR 3.4 million / aFFO amounts to EUR 0.9 million
- Investment properties increased to EUR 284.3 million
- EPRA NAV increased to EUR 6.68 per share
- Net-LTV of 36.5%
Broderstorf, 14 February 2018 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has successfully continued its growth path in the first quarter of the financial year 2017/2018 ("Q1 2017/2018").
Rental income and FFO increased significantly
In the first quarter of 2017/2018 financial year rental income has increased by 53% coming from EUR 4.3 million in the first quarter of the previous year ending up in the amount of EUR 6.6 million which resulted mainly from the rapid expansion of the property portfolio.
Consequently the Funds from Operations ("FFO") grew by 55% from EUR 2.2 million to EUR 3.4 million slightly stronger than the rental income.
The aFFO (FFO after Capex) was mainly affected by rebuilding measures regarding to DKRs revitalisation properties which overall amounted to EUR 2.5 million (Capex). Therefore the aFFO amounted to EUR 0.9 million in the first quarter 2017/2018 (Q1 2016/2017: EUR 2.2 million).
Investment property portfolio grew to EUR 284 million
Due to the transfer of titles of four acquired retail properties on 1 November 2017 the real estate portfolio has increased to EUR 284.3 million as at 31 December 2017 (30 September 2017: EUR 275.4 million).
The initial yield of the whole property portfolio is more than 12.1% as at 31 December 2017.
Moreover DKR acquired five additional properties in December 2017. Among these assets is a local retail centre in Seebach (Thuringia) as well as three grocery stores in Freiberg, Glauchau and Niesky (Saxony) which are mainly driven by the food anchor tenants Nahkauf, Penny (REWE Group) and Netto (EDEKA Group). Besides DKR also acquired a retailer in the city centre of Halberstadt (Saxony-Anhalt) which main tenant is Black.de (Tengelmann). The overall investment into these assets was EUR 4.5 million and generates an annualised rent of kEUR 540.
By adding the latest acquisitions the property portfolio has grown to 79 retail properties with a gross asset value of approximately EUR 305 million generating an annualised rent of EUR 27.3 million.
DKR is continously in concrete acquisition processes and expects further acquisitions within the next months.
Successful capital increase
On 8 December 2017 DKR did a cash capital increase with exclusion of subscription rights at a share price of EUR 10.00 successfully. As a result, the share capital of the company increased from EUR 2,476,028.00 to EUR 27,236,313.00. Consequently DKR received net proceeds of EUR 24.2 million from this transaction.
EPRA NAV up to EUR 6.68 per share / Net LTV drops to 36.5%
Due to the positive period result and also the capital measures the EPRA NAV increased by EUR 0.43 per share or 7% to EUR 6.68 on 31 Dezember 2017.
Net LTV dropped to 36.5% and still lays significantly below the targeted 50%. This gives DKR comfortable headroom to acquire further assets on the basis of the existing capital.
FFO guidance for the financial year 2017/2018 confirmed
Based on the positive Q1 2017/2018 period result and the acquisition pipeline the management confirms its guidance to achieve a FFO between EUR 16 million and EUR 20 million in the financial year 2017/2018.
Rolf Elgeti, CEO of Deutsche Konsum REIT-AG: "The results of the first quarter of the new financial year were positive as expected. Moreover we could accretively invest the funds from the last capital increase already into new retail properties. Due to the broadly filled acquisition pipeline we expect a further strong growth of the company within the next couple of months."
Publications for the first quarter of 2017/2018
The quarterly statement for the first quarter of 2017/2018 financial year, the earnings presentation as well as further information about the Company can be found under www.deutsche-konsum.de.
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 79 retail properties with an annualised rent of EUR 27.3 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).
Deutsche Konsum REIT-AG
E-Mail: [email protected]
Phone: +49 (0) 331 74 00 76 - 533
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