DGAP-News: Deutsche Industrie REIT-AG closes financial year 2018/2019 very successful and publishes annual report

Deutsche Industrie REIT-AG closes financial year 2018/2019
very successful and publishes annual report

- Net income increased from EUR 13.7 million to EUR 48.7 million
- Gross rental income increased from EUR 10.3 million to EUR 25.5 million
- Valuation result of EUR 37.6 million
- FFO increased from EUR 5.3 million to EUR 12.9 million
- FFO per share increased by 62% from 0.37 €/share to 0.60 €/share
- Like-for-like rental growth of 6.1%
- Balanced investment properties of EUR 392.8 million
- EPRA NAV increased by 94% from EUR 3.99 per share to EUR 7.74 per share
- Net-LTV at 57.8%
- Proposed dividend of EUR 0.16 per share
- FFO forecast of 23 m€ to 25 m€ for the current financial year and a forecast annual FFO run rate of 27 m€ to 29 m€ by the end of it.

Rostock, 19 December 2019 - Deutsche Industrie REIT-AG (ISIN DE000A2G9LL1) has completed its second financial year as a listed company with strong growth and very successful results.
 

Real estate portfolio continued to grow strongly and increase in value
In the 2018/2019 financial year, 28 Light Industrial properties with an investment volume of EUR 174.4 million were transferred. In addition, further properties were acquired in the financial year for which the transfer of ownership took place or will take place after 30 September 2019.

The annual property valuation resulted in a value enhancement of EUR 37.6 million. This is mainly due to higher market prices in the logistics sector, higher market rents and operational improvements (vacancy reduction, rent increases and contract extensions) in the portfolio.

The portfolio therefore more than doubled from 22 properties with EUR 168.2 million to 49 properties with EUR 392.8 million.

Considering all properties acquired to date and one sold property, the total portfolio of Deutsche Industrie today consists of 63 properties with an annualised total rent of around EUR 44.0 million and a portfolio value of around EUR 493.7 million.

Successful capital measures and financings
There were two capital increases with subscription rights in the financial year. In December 2018 for EUR 11.00 per share, in September 2019 for EUR 15.75 per share. In total, equity of almost EUR 65 million was raised. In November 2019, shares worth more than EUR 92 were again placed at a price of EUR 16.25 per share, with half of the shares being placed with new shareholders in addition to existing shareholders.

In June 2019, we issued a convertible bond with a seven-year maturity of EUR 41 million and a coupon of 2%.

In addition, bank loans with a volume of approximately EUR 66 million were contracted with various savings banks and cooperative banks at very attractive conditions.

Overall, the financing situation has improved, and interest rates have fallen from an average of 3.7% to 2.9%.

Increases in key financial figures
With gross rental income of EUR 25.5 million (previous year EUR 10.3 million), net rental income rose from EUR 8.1 million to EUR 21.0 million. This was helped by a 6.1% like-for-like rental growth from average in-place rent of 3.23 € per sqm to 3.43 € per sqm (Based on 21 properties on both balance sheet dates). The NRI-margin increased from 79% to 82%.

The administrative expense ratio fell from 11.8% to 7.7%, which clearly shows how efficient DIR is in structuring its growth.

Due to the positive development in all areas, net income for the year increased from EUR 13.7 million to EUR 48.7 million.

FFO (Funds from Operations) increased to EUR 12.9 million, within the forecast range of EUR 12 to 14 million. FFO per share increased by 62% from EUR 0.37 to EUR 0.60.

The net LTV rose slightly to 57.8%. However, this is only a snapshot, as the capital increase in November 2019 will be accompanied by a substantial reduction in LTV to well below 50%.

As a result of the balance sheet profit and the capital increases, equity rose from EUR 71.8 million to EUR 181.4 million and EPRA NAV (net asset value) rose simultaneously, amounting to EUR 7.74 per outstanding share as of 30 September 2019, an increase of 94% compared to the previous year.

Dividend payment
A dividend of EUR 0.09 per share from the 2017/2018 financial year was already paid in March 2019. For the past financial year, we also want shareholders to participate in the company's success and plan to propose a dividend of EUR 0.16 per share for the 2018/2019 financial year at the next Annual General Meeting.

Positive outlook 2019/2020
We intend to continue the extremely positive development of the past financial year, further expand our portfolio and improve earnings. The current acquisition pipeline offers many assets with very good acquisition parameters, which will enable us to pursue attractive acquisitions.

For the 2019/2020 financial year, we therefore assume an achievable FFO of EUR 23 million to EUR 25 million. The annual FFO run rate should be 27 m€ to 29 m€ by the end of the current fiscal year.

Publications for the financial year 2018/2019
The presentation of the results for the 2018/2019 financial year as well as further information on the company can be found at:

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

The complete Annual Report 2018/2019 (in German and English) is available for download as of today and as a printed copy in January 2020.

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 storage and distribution of trade goods, Light Industrial also includes their administration and production. The asset class consists mainly of medium-sized to large industrial and commercial parks. The sites are usually more complexly equipped than pure logistics properties and have a high local relevance.

The shares are listed in the regulated market of the Berlin Stock Exchange and in the Prime Standard of the Frankfurt Stock Exchange. Since the beginning of 2018, the company has had the status of a REIT ("real estate investment trust") and the associated income tax exemption.