DGAP-News: Deutsche Konsum REIT-AG / Key word(s): Annual Results
Deutsche Konsum REIT-AG with successful completion of the 2020/2021 financial year
- Profit almost tripled to EUR 91.4 million (previous year EUR 34.2 million)
- Rental income increased by 24 % to EUR 69.7 million
- FFO increase by 18 % to EUR 41.2 million / FFO per share up by 11 % to EUR 1.17
- FFO Run Rate (due to sales) of approximately EUR 42 million as of 30 September 2021 - increase of 5 % compared to previous year
- Real estate portfolio with a balance sheet value of over EUR 1 billion
- NAV per share grows by 20 % to EUR 13.31 / EPRA NTA per share at EUR 10.10
- Net LTV amounts to 53.2 %
- Dividend proposal of EUR 0.40 per share
- Capital recycling leads to significant one-time returns and increases firepower for acquisitions
Potsdam, 16 December 2021 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has closed the 2020/2021 financial year with significant growth despite the ongoing COVID-19 pandemic.
Solid increase in rental income and FFO
Funds from operations ("FFO") increased by 18 % from EUR 35.0 million to EUR 41.2 million, slightly exceeding the guidance (EUR 40.0 million to EUR 41.0 million). FFO per share rose accordingly by 11 % to EUR 1.17. Despite extensive investments in various revitalisation properties, aFFO (FFO after deduction of capitalised modernisation measures) came to EUR 22.6 million, 14 % above the previous year's level.
The FFO run rate as at 30 September 2021 was EUR 42 million and thus below the forecast of EUR 47 million to EUR 51 million, which is essentially due to the sale of properties.
Balance sheet value of the real estate portfolio exceeds EUR 1 billion
Furthermore, the annual property valuation by an external and independent appraiser resulted in a valuation gain of approximately EUR 58 million, meaning that the property portfolio is currently valued at around 13.9 times the annual rent.
As a result, the real estate portfolio recognised as at 30 September 2021 comprises 173 retail properties with a balance sheet value of EUR 1.014 billion (30 September 2020: EUR 809.9 million) and generates an annual rent of around EUR 72.9 million (30 September 2020: EUR 63.1 million).
The average acquisition yield of the overall portfolio is currently around 10.3 %.
NAV increases to EUR 13.31 per share / Net LTV amounts to 53.2 %
The net LTV was 53.2 % at the end of the financial year and is thus temporarily slightly above the target value of around 50 %.
First-time sale of a real estate portfolio leads to high capital gains
Half of the expected sales profits are to be proposed to the 2023 Annual General Meeting - in accordance with German REIT law - as an additional dividend for the 2021/2022 financial year in the amount of EUR 0.30 to EUR 0.40 per share (based on the current number of shares). The remaining capital gains are to be reinvested in new food-anchored retail properties.
In addition, DKR is continuously reviewing further attractive disposal opportunities.
Dividend proposal for the 2020/2021 financial year of EUR 0.40 per share
FFO forecast for the 2021/2022 financial year between EUR 40 million and EUR 44 million
Acquisitions of EUR 31.9 million in Q1 of the current financial year
Two retail parks in Castrop-Rauxel (North Rhine-Westphalia) and Altenburg/Nobitz (Thuringia) deserve special mention. The anchor tenant of the property in Castrop-Rauxel is Kaufland in combination with attractive other tenants such as TEDi, Deichmann, C&A, a pharmacy and comparable tenants from the healthcare sector. The property in Nobitz is an established retail park with anchor tenants Marktkauf (Edeka), POCO and ALDI. The other properties include two Edeka stores in Frauenstein and Bockau (both in Saxony), a REWE store in Schiffweiler (Saarland) and two smaller properties in Rennerod (Rhineland-Palatinate) and Freiberg (Saxony) with the tenants JYSK and Carglass.
This means that DKR has already reinvested around half of the sales proceeds by the end of the first quarter and through this capital recycling has replaced two thirds of the annualised rental income of the sold properties by means of acquisitions.
In addition, DKR continues to have a broadly filled acquisition pipeline and is in advanced and concrete acquisition processes.
Rolf Elgeti, CEO of Deutsche Konsum REIT-AG:
About Deutsche Konsum
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 the Deutsche Boerse (ISIN: DE 000A14KRD3) and on the JSE (JSE Limited) (South Africa) by way of a secondary listing.
16.12.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
Deutsche Konsum REIT-AG
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Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Munich, Stuttgart, Tradegate Exchange; JSE Securities Exchange
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