Wrap Text
Press Release
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 continues profitable growth in the first half of 2021/2022
financial year
- Rental income increased by 10% to EUR 36.2 million
- Net profit for the period rises by 13% to EUR 18.4 million
- FFO increase by 4% to EUR 21.1 million / FFO per share at EUR 0.60
- Inflation leads to rent increases
- Acquisition of 15 local retail properties for EUR 49.4 million in the first half of the
financial year
- EPRA NTA per share at EUR 10.14 (after dividend payment of EUR 0.40 per share
in March 2022)
- Net LTV amounts to 53.9%
- Forecast confirmed
Potsdam, 12 May 2022 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) achieved
strong revenue and earnings growth in the first half of the current 2021/2022 financial year.
Growth in rental income and FF
The Company's rental income increased by 10% from EUR 33.0 million to EUR 36.2 million in
the first half of the 2021/2022 financial year compared to the same period of the previous
financial year due to the continued expansion of the portfolio. The net rental income rose
proportionally from EUR 22.5 million to EUR 24.7 million.
Funds from operations ("FFO") increased by 4% to EUR 21.1 million or to EUR 0.60 per share.
In contrast, aFFO (FFO after deduction of capitalised modernisation measures) rose
considerably by 37% to EUR 14.7 million due to a lower investment rate in revitalisation
measures.
Inflationary environment leads to rent growth due to indexation clauses
Currently, more than 80% of the rental income of DKR's real estate portfolio is inflation-
hedged, as a large part of the leases contain corresponding indexation clauses. Due to the
current spikes in inflation, this has already led to rent increases of around 1% of the annualised
rent of the entire portfolio in the first half of the 2021/2022 financial year. DKR expects further
strong rental increases in the coming quarters if the high inflation level persists.
Balance sheet value of the real estate portfolio at above EUR 1 billion / Acquisition of
two further grocery stores in April 2022
DKR's real estate portfolio recognised on 31 March 2022 comprises 174 retail properties with
a balance sheet value of around EUR 1,027.5 million (31 September 2021: EUR 1,014.2
million) and a rental area of around 1,045,000 square metres. This includes the sold properties
whose transfers of benefits and encumbrances occurred in May 2022 or are expected in the
coming months.
The average acquisition yield of the overall portfolio is currently around 10.3%.
DKR is furthermore continuing its growth course and most recently acquired a grocery store
in Lohra/Marburg (Hesse) and a local retail centre in Lübtheen (Mecklenburg-Western
Pomerania) with the anchor tenants Lidl and EDEKA by notarial deeds in April 2022. With a
total purchase price of EUR 5.0 million and annualised rental income of TEUR 454.0, this
results in an acquisition yield of 9.2%.
Since the beginning of the new financial year, DKR has thus already acquired 15 local retail
properties for an investment volume of around EUR 49 million and an annual rent of EUR 4.2
million, which corresponds to a purchase factor of 11.8 times the annual rent.
The new acquisitions made in the first half of the 2021/2022 financial year have thus fully
compensated for the rent reductions of the properties sold in the last six months. The sales
proceeds of around EUR 75 million have thus been offset by new investments of EUR 49
million to date. The resulting free liquidity will be invested in further new acquisitions in
accordance with the DKR investment criteria in order to generate further portfolio growth.
In the first half of the current financial year, the Altenburg/Nobitz acquisition property was
already transferred to DKR, and the transfer of benefits and encumbrances of a total of eight
further properties took place after the balance sheet date in April and May 2022. For the
remaining six properties, the transfer will take place successively in the coming weeks and
months.
Taking into account all notarised acquisitions and sales, the pro forma portfolio comprises a
total of 178 properties with a total lettable area of approximately 1,040,000 square metres and
a balance sheet value of EUR 1,003 million. The portfolio currently generates an annual rent
of EUR 71.1 million.
Moreover, DKR is working on further interesting acquisition targets and expects additional
purchases in the near future.
EPRA NTA per share rises to EUR 10.14 / Net LTV amounts to 53.9%
EPRA NTA per share increased to EUR 10.14 as at 31 March 2022 (30 September 2021:
EUR 10.10 per share) due to the positive half-year result (and after dividend payment of
EUR 0.40 per share on 15 March 2022).
The net LTV amounts to 53.9% as of the balance sheet date and is thus temporarily above
the target figure of around 50%.
FFO forecast for the financial year confirmed
For the current financial year, the Management Board confirms an FFO of between EUR 40
million and EUR 44 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 half of 2021/2022 financial year today, 12 May 2022, at 11:00 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 half-yearly financial report of 2021/2022 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:
https://senspdf.jse.co.za/documents/2022/jse/isse/dkre/HY22.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.
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 Deutsche Börse (ISIN: DE 000A14KRD3) and on the JSE (JSE Limited) (South
Africa) by way of a secondary listing.
Contact:
Deutsche Konsum REIT-AG
Stefanie Frey
Investor Relations
E-Mail: sf@deutsche-konsum.de
Phone: +49 (0) 331 74 00 76 – 533
Potsdam, 12 May 2022
JSE Sponsor
PSG Capital
Date: 12-05-2022 07:10:00
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