DGAP-News: Deutsche Industrie REIT-AG closes financial year 2017/2018 with strong growth and releases preliminary figures

Deutsche Industrie REIT-AG closes financial year 2017/2018
with strong growth and releases preliminary figures

- Preliminary net income increased to EUR 13.7 million

- Rental revenues increased to EUR 10.3 million

- Valuation result of EUR 6.9 million

- FFO of EUR 5.3 million and aFFO of 4.3 million

- Balanced property assets of EUR 168.2 million

- EPRA NAV at 3.99 EUR/share

- Net LTV at 58.0%

- Dividend proposal of EUR 1.8 million

Rostock, 8 November 2018 - Deutsche Industrie REIT-AG (ISIN DE000A2G9LL1) has successfully completed its first financial year as a listed company with strong growth.
 

Growth strategy successfully implemented - Real estate portfolio grown strongly

In the financial year 2017/2018, the transfer of benefit and encumbrances of 17 commercial properties took place. In addition, seven additional properties with an investment volume of EUR 30.1 million were acquired in the financial year, while the transfer of benefits and encumbrances took place after 30 September 2018 or is expected to take place by January 2019.

Taking into account all properties acquired during the reporting period and one asset sold, on 30 September 2018 (proforma) the total portfolio of Deutsche Industrie consisted of 29 properties with an annualised total rent of around EUR 18.9 million and a portfolio value of approximately EUR 197.8 million. In the previous financial year, the company invested slightly more (EUR 102 million) than the targeted EUR 75-100 million for the purchase of Light Industrial real estate.

"Since the end of September, we have already been able to conclude several additional purchase agreements and conduct further promising negotiations, so that we can successfully continue our growth course", CIO Sonja Paffendorf explains the purchase pipeline.
 

Successful growth is also reflected in financial figures
and leads to a significant net income

Rental income reached EUR 10.3 million. Net rental income increased by EUR 6.4 million or 396% to EUR 8.1 million in the financial year due to the significantly increased real estate portfolio.

The regular valuation of the real estate portfolio as at 30/09/2018 led to a valuation result of EUR 6.9 million and already shows the value potential of the recently acquired real estate.

The sale of our property in Jena generated a profit of EUR 0.6 million or 73% compared to the fair value.

Due to the positive development in all areas, the provisional net profit amounts to EUR 13.7 million.

The funds from operations (FFO) increased to EUR 5.3 million and are therefore within the guidance range of EUR 5 to 6 million. After deducting value-adding investments (Capex), the aFFO (adjusted funds from operations) amount to EUR 4.3 million.

In addition to two successful capital increases, the Company has also financed the development and expansion of its portfolio by taking out further loans and increasing the existing real estate bond. As a result, the Net LTV has increased from 31.3% to 58.0%.

"From the point of view of the Management Board, taking into account the rapid growth and the short history of the Company, this is also a good result with respect to comparable companies," CFO René Bergmann commented on the LTV.

As a result of the retained profit and the capital increases, equity increased to EUR 71.8 million as well as at the same time the EPRA NAV (net asset value), which amounted to EUR 3.99 per outstanding share as at 30 September 2018.
Business model also convinces the capital market

The traceable and efficient business model and the further growth prospects are rewarded by the capital market as well. Since the first day of trading on 7 December 2017, the share price has risen from EUR 4.82 (opening) to EUR 10.45 at the end of the financial year and has meanwhile reached a high of EUR 11.50. Currently the stock continues to trade close to the 52-week high with the last closing price of EUR 10.95 (7 November 2018). The high demand for new shares in the context of the two equity raisings underlines this development additionally.

First dividend payment

The Executive Board plans to propose to the next Annual General Meeting the distribution of a dividend of 90% of the net profit for the year under commercial law for the financial year ending 30 September 2018. According to the provisional HGB annual financial statements, the dividend will therefore amount to approximately EUR 1.82 million based on all dividend entitled shares. This proposal requires the approval of the Supervisory Board and the Annual General Meeting.

Positive outlook 2018/2019

"Based on the positive development in the last fiscal year, we expect a further dynamic expansion of the portfolio in the current period as well. The growth pipeline offers attractive acquisition opportunities with promising risk return profiles, which enable a significant portfolio expansion compared to the current portfolio size," CEO Rolf Elgeti explains the further outlook. "Against this background, the Company is continuously evaluating financing opportunities, including equity funding through capital markets transactions. For this purpose, Baader Bank has been mandated to conduct a management roadshow."

Publications for the financial year 2017/2018

The presentation (in English) of the preliminary figures for the financial year 2017/2018, as well as further information on the Company can be found at:

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

The full and audited annual financial statements (in German) for the financial year 2017/2018 will also be published by Deutsche Industrie REIT-AG on 11 December 2018 on their website.
The complete Annual Report 2017/2018 (in German and English) will be available for download on
19 December 2018 and as a printed copy in January.

About 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 Börse Berlin and in the Open Market 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 associated income tax exemption.