DGAP-News: Deutsche Industrie REIT-AG announces nine-month results (Q3/9M 2019/2020) Revaluation of the property portfolio with EUR 35.4 million

Deutsche Industrie REIT-AG announces nine-month results (Q3/9M 2019/2020)
Revaluation of the property portfolio by EUR 35.4 million

- Net rental income increased from EUR 14.5 million to EUR 23.8 million

- FFO grows from EUR 8.6 million to EUR 18.3 million

- FFO per share increases by 60% (from EUR 0.40 to EUR 0.64 per share)

- Revaluation of the property portfolio with valuation gains of EUR 35.4 million

- EPRA NAV at EUR 11.53 per share and 49% higher

- Net LTV at 38.7%

- FFO forecast of EUR 23 to 25 million for financial year 2019/2020 confirmed

Rostock, 13 August 2020 - Deutsche Industrie REIT-AG (ISIN DE000A2G9LL1) has successfully completed the last nine months of the 2019/2020 financial year and achieved a strong valuation result.

Property portfolio grows to EUR 581.8 million

Deutsche Industrie REIT-AG successfully completed the first nine months of the current fiscal year 2019/2020 (1 October 2019 - 30 June 2020). As of the balance sheet date 30/06/2020, a total of 64 properties were recognised at EUR 581.8 million. In addition, a total of nine further properties were acquired for which the change of ownership took place or will take place after the balance sheet date of 30 June 2020.

The regular annual valuation of the DIR property portfolio as of 30 June 2020 led to a valuation result of EUR 35.4 million. The valuation was carried out by an external independent surveyor.

In consideration of all properties already notarised, the total portfolio of Deutsche Industrie consists pro forma of 73 properties with a rentable commercial area of around 1.3 million sqm, an annualised total rent of around EUR 48.1 million and a portfolio value of around EUR 582.3 million (Not taking into account the recognition of leasehold rights in the amount of EUR 34.8 million).

Strong result for the period

With net rental income of EUR 23.8 million, DIR was able to achieve an FFO (Funds From Operations) of EUR 18.3 million, a significant increase over the same period of the previous year (9M 2018/1019 EUR 8.6 million).

The revaluation of the property portfolio of EUR 35.4 million made a major contribution to the positive result for the period of EUR 43.8 million (previous year period EUR 36.6 million).

The net income for the period adjusted for the valuation result, depreciation and amortisation as well as non-cash expenses and one-off expenses resulted in FFO (Funds From Operations), the key figure for operating activities, of EUR 18.3 million (9M 2018/2019: EUR 8.6 million). The FFO per share increased from EUR 0.40 to EUR 0.64, a growth of 60%.

EPRA NAV (Net Asset Value) amounted to EUR 369.9 million as of 30 June 2020, which corresponds to EUR 11.53 per share and has risen by 49% per share compared to 30 September 2019 (EUR 7.74 per share as of 30 September 2019).

Net LTV (Loan-to-Value) at 38.7%, was significantly below the figure of 57.8% as of 30 September 2019.
Positive outlook 2019/2020 and FFO forecast confirmed

The corona pandemic has had little impact on DIR results so far. Since the macroeconomic impact of Covid-19 can only be estimated to a limited extent in the further course of the year, future effects on earnings cannot be completely ruled out.

The business development of the past nine months 2019/2020 has been positive as planned, therefore DIR confirms the forecast made in the first quarter with an FFO between EUR 23 million and EUR 25 million for the financial year 2019/2020.

The FFO - run rate (annualised FFO without accrual effects) is still forecast at EUR 27 million to EUR 29 million at the end of the 2019/2020 financial year.

Publications on the nine-month results 2019/2020

The 9M Interim Statement for the 2019/2020 financial year, the presentation of results and further information on the company can be found at:

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

About Deutsche Industrie REIT-AG

Deutsche Industrie REIT-AG makes sustainable investments in light industrial real estate in Germany. Light Industrial comprises not only the activities of storage and distribution of trade goods, but also their administration and production. The asset class consists mainly of medium-sized to large industrial and commercial park sites. The sites are usually more complex than pure logistics properties 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 obtained the status of a REIT ("real estate investment trust") and the corporate tax exemption.