Deutsche Konsum REIT-AG sells 14 retail properties / Proceeds from the sale will be used in full to repay financial liabilities

Deutsche Konsum REIT-AG sells 14 retail properties / Proceeds from the sale will be used in full to repay financial liabilities

Potsdam, 28 March 2024 - The Management Board of Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) today notarised the sale of a sub-portfolio of 14 properties. The sub-portfolio comprises a total rental area of around 72,000 sqm at the locations Ludwigslust, Guben (Karl-Marx-Straße), Stendal (Nordwall), Hohenmölsen, Aschersleben, Tangerhütte, Eisenhüttenstadt (Karl-Marx-Straße), Seebach, Elsterwerda, Eggesin, Lübz, Lübtheen, Staßfurt (Neundorfer Straße) and Osterfeld.

The sub-portfolio is made up of various property types - from free-standing food discounters to regionally dominant retail parks, the retail properties form a cross-section of DKR's portfolio. The properties currently generate an annual rent of EUR 5.5 million with a remaining lease term of 5.0 years and a vacancy rate of around 6%. The selling price is around 4% below the IFRS carrying amount at which the Company recognised the properties after the last portfolio valuation on 30 September 2023. The parties have agreed not to disclose the purchase price. The transfer of benefits and encumbrances for all properties is expected to take place by June 2024. The buyer is an institutional German real estate investor in the retail segment.

DKR acquired the properties for sale mainly in individual transactions between 2015 and 2022 at an average initial yield of 10% and with an average remaining lease term of 5.7 years. The vacancy rate at the time of acquisition was around 6%. During the holding period, the properties generated rental income totalling more than EUR 36 million. On average, DKR has succeeded in increasing the annual rent of the properties for sale by around 10% over the holding period since the properties were acquired.

The proceeds from the sale are to be used in full to repay bank liabilities and to partially repay maturing bonds. This will significantly reduce the LTV ratio by several percentage points.

The Company is currently working on further selected sales, which will be carried out to streamline the existing real estate portfolio. The resulting liquidity will also be used to optimise the debt structure.

About Deutsche Konsum

Deutsche Konsum REIT-AG, Broderstorf, is a listed real estate company with a focus on German retail properties for everyday goods at established micro-locations. The focus of the Company's activities is on the acquisition, management and development of local supply properties with the aim of continuous performance and the leveraging of hidden reserves.

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

Contact:

Deutsche Konsum REIT-AG

Mareike Kuliberda

Investor Relations

mk@deutsche-konsum.de

+49 (0) 331 74 00 76 - 533