DGAP-News: Deutsche Industrie REIT-AG ends first half of 2019/2020 successfully (H1 2019/2020) and confirms FFO forecast

Deutsche Industrie REIT-AG ends first half of 2019/2020 successfully (H1 2019/2020)
and confirms FFO forecast.

- Net rental income increased from EUR 8.7 million to EUR 14.6 million
- FFO grows from EUR 5.2 million to EUR 11.0 million
- FFO per share increases by 57% (from EUR 0.25 to EUR 0.40 per share)
- FFO forecast of EUR 23 to 25 million for financial year 2019/2020 confirmed

Rostock, 14 May 2020 - Deutsche Industrie REIT-AG (ISIN DE000A2G9LL1) has successfully completed its first half of 2019/2020.

Property portfolio grows to EUR 479 million

In the first half of the 2019/2020 financial year (01/10/2019 - 31/03/2020), the portfolio continued to grow through purchases. As of 31 March 2020, a total of 62 properties were balanced at EUR 479 million. In addition, seven further properties were acquired for which the transfer of ownership took place or will take place after the balance sheet date of 31 March 2020.

Taking into account all properties already notarised, the total portfolio of Deutsche Industrie consists pro forma of 69 properties with a rentable commercial area of around 1.1 million sqm, annualised total rents of around EUR 45.9 million and a portfolio value of approximately EUR 518 million.

Successful financing

In addition to the capital increase carried out in November 2019 with gross proceeds of approx. EUR 92.8 million, new loans of EUR 53.1 million were taken out with various banks and a promissory note loan of EUR 10.0 million was placed.

Positive result for the period

With a net rental income of EUR 14.6 million, an FFO (Funds From Operations) of EUR 11.0 million was achieved, more than double the figure of the previous first half-year (H1 2018/1019 EUR 5.2 million).

EPRA NAV (net asset value) amounted to EUR 272.0 million as of 31 March 2020, which corresponds to EUR 9.33 per share and has risen by 21% per share since 30 September 2019 (EUR 7.74 per share as of 30 September 2019). The net Loan-to-value (net LTV) was 46.1%, which is significantly lower than the figure of 57.8% as of September 30, 2019.

FFO forecast for the 2019/2020 financial year confirmed

To date the impact of the corona crisis on the results of the DIR has been minimal. In total, deferrals with a volume of EUR 1.6 million have been granted so far. This corresponds to approx. 3.2% of the annualised rental payments. Deferments were granted mainly for the months of April and May, in individual cases also until December 2020. The rent payment rate in April was 87%. No direct rent reductions or discounts have been granted up until now.

As expected, business development in the first half of 2019/2020 was positive, and the DIR therefore confirms the forecast which made in the first quarter with an FFO of EUR 23 million to EUR 25 million for the 2019/2020 financial year.

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

As the macroeconomic impact of the Covid19 pandemic is difficult to estimate in the further course of the year, future adjustments of the forecast cannot be completely ruled out.

Publications for the first half of 2019/2020

The half-yearly financial report 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.