DGAP-News: Deutsche Industrie REIT-AG continues sustained growth and achieves strong nine-month result 2018/2019.

Deutsche Industrie REIT-AG continues sustained growth
and achieves strong nine-month result 2018/2019.

- Rental income increased from EUR 6.9 million to EUR 17.8 million
- FFO more than doubled from EUR 4.1 million to EUR 8.8 million
- FFO per share increased by 38%
- Revaluation of property portfolio with valuation result of EUR 36.6 million
- Balanced investment properties at EUR 358.6 million as of 30.06.2019
- EPRA-NAV at EUR 7.24 per share 82% higher
- Net-LTV at 56.4%
- FFO forecast of EUR 12 to 14 million for 2018/2019 financial year confirmed
Rostock, August 14, 2019 - Deutsche Industrie REIT-AG (ISIN DE000A2G9LL1) continued its sustained growth in the first nine months of fiscal year 2018/2019 and achieved a strong nine-month result.

Real estate portfolio grows to EUR 358.6 million

The growth of the portfolio continued in the third quarter of the 2018/2019 financial year. As of 30 June 2019, a total of 42 properties with a total value of EUR 358.6 million were recognised in the balance sheet. In addition, further 14 properties with an investment volume of EUR 79.2 million were acquired (as of 14 August 2019) with transfer of ownership after the balance sheet date of 30 June 2019.

The regular annual valuation of the property portfolio as of 30 June 2019 led to a positive valuation result of EUR 36.6 million. The valuation was made by an external independent appraiser.

The reasons for the higher values are mainly higher market values, especially in the logistics segment, as well as higher market rents and operational improvements in the portfolio.

Taking into account all notarised acquisitions, a property sale and the revaluation, the total portfolio of Deutsche Industrie proforma as of today consists of 56 properties with a commercial area of around 1,032,000 sqm, an annualised total rent of around EUR 37.3 million and a portfolio value of EUR 436.4 million.

The company continues to evaluate specific acquisition properties and expects further acquisitions in the current financial year.

Successful finance transactions

In addition to the capital increase carried out in December 2018 with gross proceeds of approximately EUR 49.5 million, new loans of EUR 53.2 million were taken out with various savings banks and the secured bond was increased by EUR 28.1 million.

In addition, a convertible bond with a term until June 2026 and a total nominal amount of EUR 41.6 million was successfully placed, thus continuing the successful development of refinancing structures. The convertible bonds were placed at 97% of their nominal value and have a coupon of 2% per annum. The initial conversion price is EUR 18.50.

Sustainable growth also reflected in key financial figures

Rental income rose year-on-year from EUR 6.9 million to EUR 17.8 million, mainly due to growth from acquisitions as well as vacancy reduction and rent increases. The net rental income rose from EUR 5.4 million to EUR 14.6 million and NRI margin rose from 79% to 82%.

The revaluation result of EUR 36.6 million made a significant contribution to the net profit for the period of EUR 44.7 million (previous year: EUR 8.7 million).

After adjustment of the result for the period for the valuation result, depreciation and amortisation as well as non-cash and one-off effects, the FFO (Funds from operations) as a key figure for operating activities amounted to EUR 8.8 million (9 Month period 2017/2018: EUR 4.1 million). FFO per share increased from EUR 0.30 to EUR 0.41, an increase of 38%.

EPRA NAV (Net Asset Value) amounted to EUR 163.0 million as of 30 June 2019 (30/09/2018: EUR 71.8 million), an increase of 82% from EUR 3.99 to EUR 7.24 per share (plus 82%).

Net LTV (Loan-to-Value) fell slightly to 56.4 % (30.09.2018: 57.1%).

Positive outlook 2018/2019

Based on the course of the current financial year to date, we expect further dynamic portfolio growth. The opportunities for acquiring attractive properties in line with our purchase criteria remain very good. For this reason, the Company is always reviewing various financing options, including the possible short-term raising of equity via the capital market.

FFO forecast for 2018/2019 financial year confirmed

As expected, business development was good. We therefore confirm our forecast made in the first quarter with an FFO of between EUR 12 million and EUR 14 million for the 2018/2019 financial year.

The FFO run rate (annualised FFO without accrual effects) is still forecast at EUR 17 million to EUR 19 million at the end of the 2018/2019 financial year.

Publication of the quarterly statement for the third quarter of fiscal year 2018/2019

The quarterly statement, the presentation of results and further information on the company can be found at:

https://www.deutsche-industrie-reit.de/en/

About the Deutsche Industrie REIT-AG:

Deutsche Industrie REIT-AG invests sustainably in Light-Industrial real estate in Germany. In addition to the activities of warehousing and distribution of goods, Light Industrial also covers their administration and production. The asset class consists mainly of medium to large industrial and commercial park areas. The areas are usually more complex than pure logistics real estate and have a high local relevance. The share is listed on the regulated market of Berlin Stock Exchange and in the Prime Standard of the Frankfurt Stock Exchange. Since the beginning of 2018, the company has been granted the status of a real estate investment trust (REIT) and the related income tax exemption.