DEUTSCHE KONSUM REIT-AG - DEUTSCHE KONSUM REIT-AG WITH ROBUST BUSINESS DEVELOPMENT IN THE FIRST NINE MONTHS OF THE 2022/2023 FINANCIAL YEAR

DEUTSCHE KONSUM REIT-AG WITH ROBUST BUSINESS DEVELOPMENT IN THE FIRST NINE MONTHS OF THE 2022/2023 FINANCIAL YEAR

DEUTSCHE KONSUM REIT-AG
(Incorporated in the Federal Republic of Germany)
(Registration number HRB 13072)
FSE Share Code: A14KRD
JSE Share Code: DKR
ISIN: DE000A14KRD3
LEI: 529900QXC6TDASMCSU89
(“DKR” or “the Company”)

PRESS RELEASE - DEUTSCHE KONSUM REIT-AG WITH ROBUST BUSINESS
DEVELOPMENT IN THE FIRST NINE MONTHS OF THE 2022/2023 FINANCIAL YEAR

DKR has recorded a robust business performance in the first nine months of the
financial year 2022/2023 ("9M")

   •   Rental income increased by 6.0 % to EUR 58.7 million
   •   CPI-linked rent increases of EUR 2.1 million (annualised around 3.7% of annual rent)
       due to ongoing high inflation
   •   Annualised rent of the property portfolio increases to EUR 78.9 million
   •   FFO down by 15% to EUR 27.0 million due to increased interest / FFO per share at
       EUR 0.77
   •   Unlike in previous years, property valuation will occur as of 30 September 2023
   •   EPRA NTA (fully diluted) rises by 3.6 % to EUR 11.37 per share
   •   Refinancing of expiring loans with a total volume of around EUR 62 million completed
   •   Net LTV amounts to 51.2%
   •   FFO forecast of EUR 36 million to EUR 39 million confirmed

Growth in rental income / cost-related decline of FFO

Due to the further growth in the property portfolio compared to the previous year and in
particular due to rent increases, rental income increased by 6.0% from EUR 55.4 million to
EUR 58.7 million compared to the same period of the previous year. In the first nine months
of the current financial year, DKR was thus able to achieve annualised rent increases of
around 3.7% (l-f-l) or EUR 2.1 million from rent indexations. The annualised rent of the real
estate portfolio thus rose to EUR 78.9 million.

Rental income rose from EUR 36.5 million to EUR 38.2 million (adjusted for one-off effects).
At 4.6%, this increase was slightly lower than the rise in rental income, which is primarily due
to price increases in operating and maintenance costs.

Funds from operations ("FFO"), on the other hand, fell by around 15% or EUR 4.6 million to
EUR 27.0 million (EUR 0.77 per share). This decline is mainly due to the increase in
borrowing costs of around EUR 3.4 million and the higher operating costs of the portfolio.

In addition, aFFO (FFO after deduction of capitalised modernisation measures) fell by 38.5%
to EUR 12.7m due to a higher investment volume for modernisation measures.

Real estate valuation cycle changed to 30 September

Due to the volatile interest rate and inflation environment, the Company has now changed
the regular valuation of the real estate portfolio by an external and independent real estate
appraiser from 30 June to 30 September of each year, in contrast to previous years, and will
continue to do so in the future. In this respect, no current property valuation is available as of
the reporting date.

Balance sheet value of the real estate portfolio at EUR 1.1 billion with annual rents of
EUR 78.9 million

DKR's real estate portfolio recognised on 30 June 2023 comprises of 184 retail properties
with a balance sheet value of around EUR 1,112.5 million (30 September 2022: EUR
1,050.7 million) and a rental area of around 1,085,000 sqm. As of the balance sheet date,
the annualised rent amounts to EUR 78.9 million (30 September 2022: EUR 73.2 million).

The average acquisition yield of the total portfolio is currently around 10.0%.

Apart from the acquisition of a food discounter in Suhl (Thuringia) with an initial yield of
around 10%, no further acquisitions have been made so far. In the coming months, DKR
expects an improving price equilibrium on the transaction market, which will result in
attractive acquisition opportunities.

In contrast, a DIY store in Chemnitz was sold in 9M 2022/2023 for a sales price of around
17.5 times the annual rent (or 5.7% initial yield), and two vacant properties in Bavaria
(Scheyern and Salzweg) were sold for around EUR 2.3 million. In addition, DKR notarised
the sale of the former Real hypermarket in Trier-Kenn in June. The transfer of benefits and
encumbrances is expected to take place in the course of 2024 after the conditions for
maturity have been met.

EPRA NTA rises to EUR 11.37 per share / Net LTV at 51.2%

EPRA NTA per share increased to EUR 11.37 as at the balance sheet date of 30 June 2023
(30 September 2022: EUR 10.98 per share) due to the positive result for the period.

Net LTV as of the balance sheet date is 51.2%, which is slightly above the target level of
around 50%.

Brandenburg Fiscal Court denied appeals against tax payments

By notification dated 17 July 2023, DKR reported that the Brandenburg Fiscal Court has for
the time being denied DKRs appeals against tax payments in the legal dispute over the
recognition of DKR's REIT status with the Potsdam tax office. Accordingly, DKR now has to
pay corporation and trade taxes in the amount of EUR 16.2 million, which are to be paid from
existing funds. In the main case, the Company is still in internal discussions about the further
procedural possibilities and prospects of success.

FFO forecast confirmed

For the current financial year, the Management Board confirms an FFO of between EUR 36
million and EUR 39 million on the basis of current conditions.

Webcast and Conference Call
Deutsche Konsum REIT-AG will hold an analyst conference (webcast and conference call)
on the results of the first nine months of 2022/2023 financial year today, 14 August 2023, at
10:00 a.m. CEST/SAST. The corresponding results presentation as well as further
information on the webcast and the conference call can be found at https://www.deutsche-
konsum.de/en/investor-relations. The quarterly statement on the first nine months of the
2022/2023 financial year is available for download at https://www.deutsche-
konsum.de/en/investor-relations/financial-reports. and is also available on the JSE’s website
at: http://senspdf.jse.co.za/documents /2023/jse/isse/dkre/Q32023.pdf

About Deutsche Konsum
Deutsche Konsum REIT-AG, Broderstorf, is a listed real estate company focusing on
German retail properties for everyday goods in established micro-locations. The focus of the
Company's activities is on the acquisition, management and development of local retail
properties with the aim of achieving a steady increase in value and the lifting of hidden
reserves.

The shares of the Company are listed on the Prime Standard of Deutsche Börse (ISIN:
DE000A14KRD3) and on the JSE (JSE Limited) (South Africa) by way of a secondary listing.

Contact:
Deutsche Konsum REIT-AG
Christian Hellmuth
CFO
E-Mail: ch@deutsche-konsum.de
Phone: +49 (0) 331 74 00 76 – 517


Potsdam
14 August 2023

JSE Sponsor
PSG Capital

Date: 14-08-2023 07:10:00
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