Deutsche Konsum REIT-AG
Deutsche Konsum REIT-AG with solid first quarter in the 2023/2024 financial year

Press Release

Deutsche Konsum REIT-AG with solid first quarter in the 2023/2024 financial year

• Rental income increased by 6.6% to EUR 19.9 million
• Net rental income decreases slightly by 2.0% to EUR 12.7 million
• Interest-related decline in FFO by 21.1% to EUR 8.0 million / FFO per share at EUR 0.23
• Property portfolio with balance sheet value of EUR 1.0 billion
• EPRA NTA per share increased to EUR 7.78 due to positive result for the period (30 September 2023: EUR 7.64 per share)
• Net LTV decreased to 60.7% due to ongoing debt amortisation (30 September 2023: 61.6%)
• Net profit of the period amounts EUR 6.5 million (previous year: EUR 8.3 million)

Potsdam, 14 February 2024 – Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) closed the first quarter of the new 2023/2024 financial year on a solid note, as expected.

Slight increase in rental income / FFO down due to higher interest charges

The Company’s rental income increased by 6.6% year-on-year from EUR 18.7 million to EUR 19.9 million. This was mainly due to index-based rent increases and the most recent acquisitions, which only generated rental income in the same quarter of the previous year partially. Net rental income declined slightly, mainly due to lower income from operating cost allocations compared to the previous year.

Funds from operations (“FFO”) decreased by 21.1% year-on-year to EUR 8.0 million (Q1 2022/2023: EUR 10.2 million) or EUR 0.23 per share (Q1 2022/2023: EUR 0.29 per share). This decline was primarily due to the increase in net interest expenses of around EUR 1.5 million.

The aFFO (FFO after deduction of capitalised modernisation measures), on the other hand, increased significantly and amounted to around EUR 6.0 million (Q1 2022/2023: EUR 2.2 million). In the same quarter of the previous year, above-average investments were made in the existing portfolio due to two major revitalisation projects.

Property portfolio comprises 184 properties with a balance sheet value of EUR 1.0 billion as at the reporting date

In the first quarter of the new financial year, no additional properties were acquired, and no existing properties were sold, meaning that the portfolio recognised as at 31 December 2023 still comprised 184 properties with a carrying amount of EUR 1.0 billion. As at the reporting date, the portfolio generated an annual rent of EUR 79.3 million.

After the balance sheet date, the sale of the vacant property in Trier/Kenn was completed in January 2024 with the transfer of benefits and encumbrances, meaning that the pro forma portfolio now comprises 183 properties.

The gross acquisition yield of the overall portfolio averaged more than 10% as at 31 December 2023.

EPRA NTA (fully diluted) at EUR 7.78 per share / Net LTV amounts to around 60.7%

The EPRA NTA (fully diluted) increased slightly as a result of the positive result for the period and amounted to EUR 7.78 per share as at 31 December 2023 (30 September 2023: EUR 7.64 per share). The intrinsic value of the share therefore remains significantly higher than the current share price.

Due to the ongoing repayments of property financing, the net LTV fell to 60.7% as at the reporting date (30 September 2023: 61.6%).

Refinancing of maturing bonds still under negotiation / Communication of an earnings forecast intended for the second half of the financial year

DKR is still in constructive talks with the bondholder of the corporate bonds maturing in April and May 2024. The Company assumes that a mutually acceptable solution will be reached soon.

In addition, the Company is working on selective property sales at book value in order to gradually reduce debt.

Due to the bond refinancing which is being in progress and the possible property sales, the Management Board is not yet able to make a reliable forecast of the key financial figures for the current financial year 2023/2024. However, the Management Board aims to provide a forecast with the half-yearly financial report.

Conference Call

Deutsche Konsum REIT-AG will hold an analyst conference (webcast and conference call) on the results of the first quarter of the 2023/2024 financial year today, 14 February 2024, 10:00 a.m. CET/11:00 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 for the first quarter 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.

Contact:

Deutsche Konsum REIT-AG

Mareike Kuliberda

Investor Relations

mk@deutsche-konsum.de

+49 (0) 331 74 00 76 – 533