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Deutsche Konsum REIT AG

08/07/2019 | Press release | Distributed by Public on 08/06/2019 23:43

Deutsche Konsum REIT: real estate portfolio revaluated for around EUR 33 million / increase in unsecured corporate bond by EUR 20 million / granting of 'central bank[...]

07.08.2019 / 07:00
The issuer is solely responsible for the content of this announcement.

Press release

Deutsche Konsum REIT: real estate portfolio revaluated for around EUR 33 million / increase in unsecured corporate bond by EUR 20 million / granting of 'central bankeligibility ' by Deutsche Bundesbank

Broderstorf, 7 August 2019 - Deutsche Konsum REIT-AG ('DKR') (ISIN DE000A14KRD3) has significantly strengthened its balance sheet, increased its unsecured bond and received a positive credit rating from Deutsche Bundesbank.

Real estate portfolio up around 6.9%
As part of the scheduled real estate valuation as of 30 June 2019, DKR achieved a preliminary valuation gain of around EUR 33 million or 6.9%. The revaluation is based on numerous lease renewals in the existing portfolio, a continuous reduction in vacancies and a significant increase in demand for local amenities in this asset class. For the real estate portfolio accounted for as of 30 June 2019, the valuation factor therefore amounts to around 12.8x of the annual rent (previous year: 11.7x). Further appreciation potentials will emerge in the near future following the completion of the various revitalisation measures currently under implementation and the resulting new leases and lease renewals.

This year's real estate valuation was carried out by the appraiser CBRE for the first time.

Increase in unsecured corporate bond by EUR 20 million
In order to increase the flexibility for further purchases, today, DKR has increased the outstanding unsecured corporate bond with a volume of EUR 50 million by a further EUR 20 million. The bond has a total term until 5 April 2024 and bears interest at a coupon of 2.35% per annum. The increase in the bond was subscribed through a private placement by a German pension fund.

Status of central bank eligibility has been reached
Following a credit analysis by Deutsche Bundesbank, DKR has achieved the status of central bank eligibility for the first time. This enables institutional loan and bond creditors of DKR to refinance with the Bundesbank. As a result, DKR expects borrowing costs to continue to decline on future borrowing and refinancing.

The detailed quarterly statement for the third quarter of financial year 2018/2019 ('9M') will be published on 14 August 2019.

About Deutsche Konsum
Deutsche Konsum REIT-AG based in Broderstorf is a listed real estate company focusing on retail properties in Germany for goods required for daily use in established micro-locations. The focus of the company's activities is on the management and development of real estate with the aim of achieving a steady increase in value and the realisation of hidden reserves. The steadily increasing current property portfolio of Deutsche Konsum comprises of 123 retail properties with an annualised rent of EUR 49 million.

Due to its REIT status ('Real Estate Investment Trust'), the company is exempt from corporation and trade tax. The shares of the company are listed on the Prime Standard of the Deutsche Boerse (ISIN: DE 000A14KRD3).

Contact:
Deutsche Konsum REIT-AG
Stefanie Frey
Investor Relations
E-Mail: [email protected]
Phone: +49 (0) 331 74 00 76 - 533

07.08.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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