Deutsche Konsum REIT-AG successfully completes bond refinancing and reports solid operational business performance in the first nine months of the 2023/2024 financial year

Press release

Deutsche Konsum REIT-AG successfully completes bond refinancing and reports solid operational business performance in the first nine months of the 2023/2024 financial year

• Rental income increased slightly by 0.9% to EUR 59.2 million
• Net rental income rose by 3.2% to EUR 37.8 million
• FFO down 11% to EUR 24.1 million / FFO per share at EUR 0.68
• Real estate portfolio comprises 183 properties, valued at around EUR 1.0 billion / annual rent at EUR 75.9 million
• Refinancing and partial repayment of maturing bonds successfully completed
• EPRA NTA per share at EUR 7.69
• Net LTV as of the reporting date at 61.4%

Potsdam, 14 August 2024 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) reflects on a solid nine-month period of the 2023/2024 fiscal year.

Increase in rental income and net rental income

The Company's rental income remained nearly constant in the first nine months of the 2023/2024 financial year compared to the same period last year, with a slight increase of 0.9% from EUR 58.7 million to EUR 59.2 million.

Net rental income rose by 3.2% from EUR 36.6 million to EUR 37.8 million, with non-recurring operating expenses being the primary variance driver vs. prior year.

Funds from Operations ("FFO") decreased by 11% compared to the same period last year, amounting to EUR 24.1 million or EUR 0.68 per share (9M 2023/2024: EUR 27.0 million or EUR 0.77 per share). This decline is primarily due to increased interest expenses, as well as lower interest income.

The aFFO (FFO after deducting Capex) increased by approximately 24% to EUR 15.8 million, as higher investments related to two major revitalisation projects in the previous year led to a lower aFFO.

Balance sheet value of the real estate portfolio as of the reporting date is approximately EUR 1.0 billion, annual rental income is around EUR 75.9 million.

No additional properties were acquired by the end of the third quarter of the current financial year. In contrast, the sale of the vacant property in Trier was closed.

As of 30 June 2024, DKR's real estate portfolio comprised 183 retail properties with a balance sheet value of around EUR 1.0 billion (30 September 2023: EUR 1.0 billion) and a rental area of approximately 1,070,000 sqm. The portfolio’s annualised rent during the reporting period is EUR 75.9 million (30 September 2023: EUR 79.2 million).

Bond refinancing completed – property sales enable debt reduction in the high double-digit million Euro range

At the end of June 2024, DKR successfully issued two registered bonds in exchange for three corporate bonds it had previously issued, with a total volume of EUR 145.9 million. This transaction extends the maturity of these financial liabilities until 30 September 2025.

Following the receipt of sale proceeds at the end of July 2024 from the disposal of a portfolio comprising 14 properties, DKR was able to repay several secured bank loans amounting to approximately EUR 27 million and make an early repayment of EUR 50.0 million on the newly issued registered bond with a total volume of EUR 105.9 million, leaving an outstanding volume of EUR 55.9 million for this bond.

In May 2024, another partial portfolio sale was notarized. This portfolio consisted of five properties located in Marlow, Wandlitz, Oberkrämer (Schwante district), Schönwalde-Glien and Zerbst. The sale price was approximately 1% below the IFRS valuation as of 30 September 2023. The Company expects the closing of the sale to take place in August 2024. DKR intends to use the sale proceeds to further reduce financial liabilities.

Considering the notarised and completed sales, the portfolio currently comprises 164 retail properties on a pro forma basis, with an annual rent of approximately EUR 69.5 million and a balance sheet value of around EUR 906 million.

EPRA NTA per Share is EUR 7.69 / Net-LTV is 61.4%

As of 30 June 2024, the EPRA NTA per share slightly increased to EUR 7.69 due to the positive half-year result (30 September 2023: EUR 7.64 per share).
Net-LTV stands at 61.4% as of the balance sheet date.

FFO Forecast for the 2023/2024 Financial Year Confirmed
Based on current planning, the Management Board confirms the forecast and expects FFO for the 2023/2024 financial year to be between EUR 27 million and EUR 30 million.

Conference Call

Deutsche Konsum REIT-AG will hold an analyst conference (webcast and conference call) on the results of the first nine month of the 2023/2024 financial year today, 14 August 2024, 10:00 a.m. CEST/10:00 SAST. The corresponding results presentation and 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 2023/2024 financial year is  available for download under https://www.deutsche-konsum.de/en/investor-relations/financial-reports.

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.