Deutsche Konsum REIT-AG with a solid start in the new financial year 2022/2023

PRESS RELEASE

Deutsche Konsum REIT-AG with a solid start in the new financial year 2022/2023

• Net profit for the period at EUR 8.3 million
• Rental income increased by 2% to EUR 18.7 million
• Monthly rent per sqm grows by 1.1% ("like-for-like") in Q1 2022/2023 alone
• FFO slightly down at EUR 10.2 million / FFO per share at EUR 0.29
• Portfolio with balance sheet value of EUR 1.1 billion
• EPRA NTA per share grows by 1.5% to EUR 11.14
• Net-LTV at 51.3%

Potsdam, 14 February 2023 – Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has closed the first quarter of the new financial year 2022/2023 with solid results.

Increase in rental income / FFO slightly lower
The Company's rental income increased by a good 2% from EUR 18.3 million to EUR 18.7 million compared to the same period of the previous year. This is due on the one hand to further acquisitions, but also to CPI-linked rent increases in the past financial year due to value protection clauses. The monthly rent per sqm rose on a like-for-like basis by 1.1% in the first quarter of 2022/2023 alone, of which 0.7% resulted from CPI-linked rent increases. The absolute increase in rental income was counteracted in the first quarter by the loss of rents from the properties sold at the end of the last financial year, which were only compensated for from the middle of the first financial quarter by the addition of the properties acquired.

Funds from operations ("FFO"), on the other hand, declined slightly and amounted to EUR 10.2 million (Q1 2021/2022: EUR 10.7 million), which was due to rent reductions as a result of property sales, slightly higher maintenance expenses and, above all, higher net interest expenses of around EUR 0.5 million. Accordingly, FFO per share are slightly below the previous year's value at EUR 0.29 (Q1 2021/2022: EUR 0.30).

aFFO (FFO after deduction of capitalised modernisation measures) was EUR 2.2 million (Q1 2021/2022: EUR 7.6 million) or EUR 0.06 per share (Q1 2021/2022: EUR 0.22 per share) due to extensive investments in the revitalisation of the properties in Stralsund and Ueckermünde from current cash flow. The revitalisation measures are nearing completion, so that rising aFFO can be expected again in the following quarters.

Portfolio comprises 185 properties with a balance sheet value of EUR 1.1 billion
In the middle of the first quarter of the new financial year, the transfer of benefits and encumbrances of eleven properties with annual rents of EUR 3.8 million took place. Currently, the transfer of another grocery store in Suhl is pending, which is expected to take place in March 2023.

As a result, the property portfolio recognised as at 31 December 2022 comprises 185 retail properties with a balance sheet value of EUR 1.106 billion (30 September 2022: EUR 1.051 billion) and generates an annualised rent of around EUR 77.8 million (30 September 2022: EUR 73.2 million).

Furthermore, the sale of a DIY store in Chemnitz was notarised in Q1 2022/2023 at an attractive sales price of approximately 17.5 times the annual rent (or 5.7% initial yield). The transfer of benefits and encumbrances of the property took place in the meantime in January 2023.

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

EPRA NTA per share increases to EUR 11.14 / Net-LTV amounts to 51.3%
The EPRA NTA per share (fully diluted) increased to EUR 11.14 as at 31 December 2022 (30 September 2022: EUR 10.98 per share). This is mainly the result of the profit for the period.

Net LTV at the end of the quarter is 51.3% (30 September 2022: 49.7%), increased slightly due to the raising of new property loans and is thus slightly above the target value of around 50%.

FFO forecast confirmed
Based on current planning and findings, the Management Board confirms that the FFO forecast of between EUR 40 million and EUR 44 million will be met in the current financial year.

Telefon conference
Deutsche Konsum REIT-AG will hold an analyst conference (webcast and conference call) on the results of the first quarter of the financial year 2022/2023 today, 14 February 2023, at 10:00 a.m. CET/11:00 a.m. 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 financial report for the first quarter of 2022/2023 is available for download at https://www.deutsche-konsum.de/en/investor-relations/financial-reports.

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: 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