Quarterly Report • May 15, 2018
Quarterly Report
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| Contents | 2 | |
|---|---|---|
| Letter to our shareholders | 3 | |
| Highlights | 5 | |
| Interim management report for the first half of the 2017/2018 financial year | 7 | |
| 1. | Deutsche Konsum REIT-AG | 7 |
| 2. | Economic development and share | 7 |
| 3. | Development of net assets, financial position and results of operations | 11 |
| 4. | Supplementary Report | 15 |
| 5. | Risk position | 16 |
| 6. | Outlook and forecast | 16 |
| Condensed interim financial statements of the 2017/2018 financial year 1 October 2017 to 31 March 2018 |
17 | |
| Appendix | 23 | |
| Testimony of legal representatives | 33 | |
| Financial calendar, Contact, Publisher and Disclaimer | 35 | |
Dear Shareholders,
Dear Sir or Madam,
the first half of the current fiscal year 2017/2018 was again very positive for Deutsche Konsum REIT-AG. The real estate portfolio recognised as of 31 March 2018 comprises 70 retail properties with an annualised total rent of around EUR 25.6 million. Rental income increased from EUR 8.9 million to EUR 13.6 million. This results in an FFO of EUR 7.3 million. Also on the balance sheet side the LTV amounts to a very solid 39.3% and the EPRA NAV increased to EUR 6.80 per share.
In addition to the strong operating performance, our successful capital increase boosted equity at the beginning of December 2017. The market capitalisation is now almost EUR 300 million and the DKR share is, as it is typical for REIT, very stable in a volatile market environment worldwide. Numerous international road shows contributed to this, in which we introduced DKR to institutional investors and received very positive feed-back on our equity story throughout.
In the first half of the year, we were also able to invest around EUR 107 million in very high-yield real estate and have already met our investment target. At the end of the reporting period, we have a secured portfolio of 89 retail properties, around EUR 400 million in property book value (ahead of current real estate valuation) and an annualised annual rent of circa EUR 35 million. We intend to continue using this momentum and are still in the process of purchasing other objects.
We also operated successfully in the first half of the year. For example, we recently extended our largest ever realestate rental agreement in Erfurt by 15 years, and have also made significant progress in our renovation properties by concluding new leases with attractive anchor tenants.
Regarding the debt side we have taken new loans at various savings and loans banks in the amount of total EUR 33.8 million. Moreover we stand just before the final closing of the refinancing of the short term loan with Münchener Hypothekenbank e.g. by a new EUR 37.0 million loan with Helaba for much more favourable conditions. This will result in a significant reduction of average loan costs to below 2.1% p.a. while the duration will increase to circa six years at the same time. Effectively, DKR will be financed very stable and advantageous by then.
On the basis of very positive developments, we confirm our forecast and expect an FFO of between EUR 16 million and EUR 20 million in the 2017/2018 financial year, and a FFO run rate of EUR 23 million as of 30 September 2018.
We would like to thank you for your continued confidence in our sustainable growth and wish you lots of fun with the DKR share and further developments.
Best regards,
Chairman of the CIO CFO Management Board – CEO
Rolf Elgeti Alexander Kroth Christian Hellmuth
| 1 October 2017 – 31 March 2018 |
1. Oktober 2016 – 31 March 2017 |
Difference | % | |
|---|---|---|---|---|
| Income statement | ||||
| (kEUR) | ||||
| Rental income | 13,550 | 8,861 | 4,690 | 52.9 |
| Net operating income | 9,884 | 6,857 | 3,027 | 44,2 |
| Financial result | -2,398 | -2,245 | -153 | 6,8 |
| Net income | 6,364 | 5,576 | 788 | 14,1 |
| FFO | 7,263 | 4,474 | 2,789 | 62,3 |
| FFO per share (in EUR) | 0.28 | 0.22 | 0.06 | 25,2 |
| aFFO | 1,731 | 3,600 | -1,869 | -51,9 |
| aFFO per share (in EUR) | 0.07 | 0.18 | -0.11 | -62,9 |
| Earnings per share, undiluted (in EUR) | 0.24 | 0.28 | -0.03 | -11,9 |
| Earnings per share diluted (in EUR) | 0.18 | 0.19 | -0.01 | -4,4 |
| Recurring costs ratio, % | 6.1 | 6.3 | -0.2 | -3,5 |
| 31 March 2018 | 30 September 2017 | Difference | % | |
| Balance sheet key figures (kEUR) |
||||
| Investment properties | 297,645 | 275,434 | 22,211 | 8,1 |
| Total assets | 315,609 | 280,675 | 34,934 | 12,4 |
| Equity | 185,241 | 154,736 | 30,505 | 19,7 |
| Total debt | 122,939 | 118,723 | 4,216 | 3,6 |
| (net) Loan-to-Value (LTV), % | 39.3 | 42.6 | -3.3 | -7,9 |
| Average interest rate of loans, % | 2.37 | 2.38 | -0.01 | -0,4 |
| Average interest rate of loans and convertible bonds, % |
2.94 | 2.99 | -0.05 | -1,7 |
| Average remaining duration of loans, years |
4.7 | 4.9 | -0.2 | -4,1 |
| EPRA NAV | 185,240 | 154,736 | 30,505 | 19,7 |
| EPRA NAV per share (in EUR) | 6.80 | 6.25 | 0.55 | 8,8 |
| REIT metrics | ||||
|---|---|---|---|---|
| REIT equity ratio | 62.2 | 56.2 | 6.1 | 10.8 |
| Share information | ||||
| Shares issued | 27,236,313 | 24,760,285 | 2,476,028 | 10.0 |
| Market cap, EUR | 277,810,393 | 249,088,467 | 28,721,925 | 11.5 |
| Share price, EUR | 10.20 | 10.06 | 0.14 | 1.4 |
| Portfolio key figures | ||||
| Number of assets | 70 | 62 | 8 | 12.9 |
| Rental space (sqm) | 368,715 | 330,123 | 38,592 | 11.7 |
| Annualised rent, kEUR | 25,603 | 24,832 | 771 | 3.1 |
| Initial yield, % | 12.1 | 12.1 | 0.0 | -0.4 |
| Vacancy rate, % | 13.7 | 14.6 | -0.9 | -5.9 |
| WALT, years | 5.2 | 4.6 | 0.6 | 12.6 |
Deutsche Konsum REIT-AG based in Broderstorf and hereinafter referred to as "Deutsche Konsum" or "DKR" is a listed real estate company focusing on retail properties in Germany for goods required for daily use in established micro-locations. The focus of the company's activities is on the management and development of real estate with the aim of achieving a steady increase in value and the realisation of hidden reserves. The steadily increasing current property portfolio of Deutsche Konsum comprises of 89 retail properties with an annualised rent of EUR 34.8 million (as of 14 May 2018).
Due to its REIT status ('Real Estate Investment Trust'), the company is exempt from corporation and trade tax. The shares of the company are listed on the Prime Standard of the Deutsche Boerse (ISIN: DE 000A14KRD3).
At the beginning of 2018, the global economy was in a strong upswing. According to an economic forecast published by the Institute for World Economy (IfW) in Kiel in March 2018, global output is expected to increase by 4.0% respectively 3.8% in 2018 and 2019.1
The economic situation in Germany in 2017 was characterised by strong economic growth. According to calculations by the Federal Statistical Office (Destatis), in 2017, the price-adjusted gross domestic product (GDP) was 2.2% higher than in the previous year. In 2017, growth stimuli came with increased private (+ 1.9%) and government (+ 1.6%) consumer spending primarily from the domestic market. German exports increased by 4.7%.2
In March 2018, the economic researchers of the IfW assumed that the gross domestic product would grow by 2.5% in 2018 and by 2.3% in 2019. The driving forces would be domestic and foreign trade. In view of the further improvement in the labour market situation and the tax reductions and expansion of benefits agreed in the coalition agreement, private consumption is expected to pick up again strongly (2018: +1.7%, 2019: + 2.2%). The IfW researchers also expect exports to increase by 6.2% (2018) and 4.8% (2019). The investments would also gain in growth. Construction investment would rise by 1.6% in 2018 and by 3.5% in 2019. 3
The interest rate level in the eurozone is currently at a historic low. On 16 March 2016, the European Central Bank (ECB) lowered the key interest rate by 5 basis points, so that the main refinancing rate was 0.00%. 4 As a result, real estate companies such as Deutsche Konsum REIT-AG, which largely finance their holdings by borrowing, continue to find favourable conditions for financing their investments.
1 Source: Kiel Economic Report No. 39 (2018 / Q1) of 20 March 2018: World economy in spring 2018, p. 2.
2 Sources: Press release Destatis of 23 February 2017: Detailed results on economic performance in the 4th quarter of 2017.
3 Source: Media Information IfW of 21 March 2018: German economy closer to the limit.
4 Source: Handelsblatt, 16 March 2016: ECB decision: Today interest rates are falling to zero.
Germany remains attractive as a real estate location and investment market, both for residential and commercial real estate. In 2017, the total transaction volume of EUR 73 billion was still well above the average of the last ten years (EUR 44 billion). At EUR 57 billion in the commercial sector alone, the strong upward trend is unbroken.5
Also in the first quarter of 2018, high investments were made in German commercial real estate. The transaction volume was around EUR 12.3 billion in the first three months. Retail real estate took second place in this asset class with 14% of the transaction volume behind office real estate (53%) but ahead logistics real estate (12%). It is still the case that more capital could be invested if there was an adequate supply in sufficient numbers.6
Despite the very positive economic conditions, the final spurt on the retail letting market did not materialise in the last quarter of 2017. With a total result of 448,200 sqm for 1,055 lease agreements, JLL reported a 7% decline in volume of space compared to 2016.7
All brokerage houses (JLL, CBRE, BNPPRE and Colliers International) expect the strong demand for commercial real estate to continue throughout 2018. JLL expects Germany-wide transaction volume in the commercial real estate market in the amount of around EUR 55 billion for the total year of 2018. 8 The share of international players in the transaction volume was approximately 47% on the purchasing side in 2017.9
The positive price development in a volatile overall environment as well as the increased market capitalisation and the increased trading volumes confirmed the acceptance of the DKR share on the capital market and the potential of the business model.
In a continuing turbulent global political and economic environment, DKR shares continued to perform well. It was 1.4% higher at a price of EUR 10.20 at the end of the reporting period on 29 March 2018 (29 September 2017: EUR 10.06)10. Since the beginning of the listing on 15 December 2015, it has improved significantly by EUR 6.70 or 191.4%.
Market capitalisation increased to around EUR 280 million because of the higher market price as well as the successful capital increase. As a result of the higher stock market value, the company showed an increasing interest among institutional investors as well as retail investors, which also significantly increased trading volumes (average Xetra daily volume in share: Q1 2017/2018: 10,771; Q1 2016/2017: 7,298). During the reporting period, the highest price of the share was EUR 11.1211 and the lowest price was EUR 9.66.12
5 Source: EY: Trend Barometer Real Estate Investment Market 2018, January 2018, p. 6.
6 Source: Study Jones Lang Lasalle SE (JLL): Investment Market Review. Germany. 1st Quarter 2018. Published in April 2018, p. 3, 5.
7 Source: Jones Lang Lasalle SE (JLL) study: Retail market overview. Germany. 4th quarter of 2017. Published in January 2018, p. 3.
8 Source: Study Jones Lang Lasalle SE (JLL): Investment Market Review. Germany. 1st Quarter 2018. Published in April 2018, p. 3.
9 Source: EY: Trend Barometer Real Estate Investment Market 2018, January 2018, p. 8.
10 Closing prices Xetra
11 Variable Course Xetra on 2 October 2017.
12 Variable Course Xetra on 11 October 2017.
At the beginning of December 2017, DKR carried out a 10% capital increase with the exclusion of subscription rights. This was clearly oversubscribed. As a result of the capital increase, the free float (as defined by Deutsche Börse AG) increased significantly from 43% on 30 September 2017 to 53% on 31 March 2018, and the market capitalisation has risen to almost EUR 300 million. The investor base, which is characterised by institutional national and international investors with a predominantly long-term investment strategy, also expanded as a result.
Since 20 November 2017, Deutsche Konsum has been included in the REIT segment of Deutsche Börse. Since then, the DKR share has been included in the RX REIT-indices.
In February 2018, Bankhaus Lampe started the commentary of the German consumer REIT-AG with analyst Dr Georg Kanders. Thus, the research studies currently contain – together with the studies of Berenberg Bank and ODDO BHF – three analyst covers of the DKR share.
| Bank | Price target in EUR |
Rating | Analyst | Date |
|---|---|---|---|---|
| Bankhaus Lampe | 12.00 | Buy | Dr. Georg Kanders | 2 May 2018 |
| Berenberg Bank | 11.50 | Buy | Kai Klose | 26 April 2018 |
| ODDO BHF | 11.90 | Buy | Thomas Effler | 24 April 2018 |
The board members of DKR were on road shows in the first half of the current fiscal year, e.g. in London, Helsinki, Zurich, Brussels, Lyon and Baden-Baden, and met many investors there. The strategy and the growth story attracted great interest.
On 8 March 2018, the Annual General Meeting of DKR took place in Berlin. All proposed resolutions were adopted with the required majority. Information on the decisions on the Authorised and Conditional Capital is provided in the section "Capital resolutions at the Annual General Meeting on 8 March 2018". Information on the Supervisory Board elections can be found in section "4.4. Supervisory Board" in the abbreviated Appendix.
In the first half year of 2017/2018, the transfer of benefits and encumbrances of eight acquired retail properties took place. As a result, the real estate portfolio will be accounted for at TEUR 297,645 on 31 March 2018.
Furthermore, DKR recorded the purchase of another 19 retail properties, which transfer of benefits and encumbrances are expected in the following quarters. As a result, the total portfolio of DKR currently comprises (as a matter of form) 89 retail properties with book values of around EUR 400 million and an annualised rent of EUR 34.8 million (as of 14 May 2018).
On 7 December 2017, Deutsche Konsum announced the execution of a cash capital increase without subscription for EUR 10.00 per share and successfully completed it with entry in the commercial register on 8 December 2017. As a result, the share capital of the company has increased by EUR 2,476,028.00 to EUR 27,236,313.00. The outstanding number of no-par value shares, thus, amounts to 27,236,313 shares. As a result of the cash capital increase, the company received net proceeds of EUR 24.2 million, which serve to finance additional purchases.
In the first half of the 2017/2018 financial year, DKR has taken up the following new loans:
As of 30 November 2017, an open loan tranche was drawn up at Berliner Sparkasse of TEUR 1,300, which will be used to modernise the Domcenter Greifswald.
With payment on 8 February 2018, the company took up a loan at Sparkasse Spree-Neiße in the amount of TEUR 6,000. The loan is subject to interest at a rate of 2.25% p.a. and has a maturity of 6 years.
After the reporting date, DKR took up four additional loans with savings banks in the total volume of TEUR 33,800. The interest rates are between 1.85% p.a. and 2.07% p.a. and have running times between five and eight years. In addition, DKR is about to close the refinancing of short-term loans.
The Annual General Meeting resolved increases in the Authorized and Contingent Capital. Accordingly, the Management Board is authorised to increase new shares by cash or in-kind contributions by up to EUR 13,618,156.00, once or several times with the approval of the Supervisory Board, by 7 March 2018 (Authorised Capital 2018). The Authorised Capital 2017 has been canceled.
Contingent capital was conditionally increased by up to EUR 11,238,014.00 by issuing up to 11,238,014 new no-par-value bearer shares and serves to issue bonds with a total nominal value of up to EUR 150,000,000 (Contingent Capital I). At the Annual General Meeting on 9 March 2017, the remaining Contingent Capital for the granting of shares from existing convertible bonds had already been increased to EUR 2,380,142.00 (Condingent Capital II).
The balance sheet total increased by TEUR 34,934 to TEUR 315,609 (30/09/2017: TEUR 280,675). This essentially resulted from the construction of the real estate portfolio through further acquisitions. The carrying amounts of the investment properties rose by TEUR 22,211 to TEUR 297,645 as of 31 March 2018 (30/09/2017: TEUR 275,434).
The Company's equity increased by TEUR 30,505 to TEUR 185,241 in H1 (30/09/2017: TEUR 154,736). This was largely attributable to the cash capital increase of TEUR 24,140 on 7 December 2017. In addition, the positive half-year result of TEUR 6,364 increased equity.
The increase in equity is also followed by an increase in EPRA NAV (undiluted):
| TEUR | 31/03/2018 | 30/09/2017 |
|---|---|---|
| Equity (TEUR) | 185,241 | 154,736 |
| Number of shares on the balance sheet date | 27,236,313 | 24,760,285 |
| EPRA (NAV) per share, EUR | 6.80 | 6.25 |
Non-current and current financial liabilities to banks have increased to TEUR 78,524 (30/09/2017: TEUR 72,363) due to taking up loans. For acquisition financing, a short-term credit line was utilised as of the balance sheet date. Overall, this resulted in an increase in net debt as at the balance sheet date, but this was offset by the higher level of access to unencumbered real estate on the reporting date.
Accordingly, the net LTV as of 31 March 2018 is as follows:
| TEUR | 31/03/2018 | 30/09/2017 |
|---|---|---|
| Financial liabilities to banks | 78,524 | 72,363 |
| Convertible bonds | 35,816 | 35,541 |
| Financial liabilities to other lenders | 8,600 | 10,819 |
| Total liabilities | 122,939 | 118,723 |
| minus cash and cash equivalents | -1,151 | -1,161 |
| Net debt | 121,788 | 117,562 |
| Investment property | 297,645 | 275,434 |
| Advance payments for the acquisition of investment property | 12,477 | 413 |
| Total investment properties | 310,122 | 275,847 |
| Net-LTV | 39.3% | 42.6% |
The cash flow statement is as follows:
| TEUR | H1 2017/2018 | H1 2016/2017 |
|---|---|---|
| Cash flow from operating activities | 8,016 | 4,734 |
| Cash flow from investing activities | -34,269 | -31,037 |
| Cash flow from financing activities | 26,244 | 31,318 |
| Cash changes in cash and cash equivalents | -10 | 5,015 |
| Cash and cash equivalents at the beginning of the period | 1,161 | 10,335 |
| Cash and cash equivalents at the end of the period | 1,151 | 15,350 |
The increase in cash flow from operating activities corresponds to the increase in operating income due to the growth in the real estate portfolio.
Cash flow from investing activities reflects the cash outflows for the purchase of properties in the first half of the year.
The cash flow from financing activities mainly includes the net cash inflow from the cash capital increase in the amount of TEUR 24,140 in December 2017, and from borrowings in the amount of TEUR 7,300. This is offset by repayments and interest of TEUR 5,197.
The company was always able to meet its payment obligations.
The results of operation of Deutsche Konsum developed as follows in the first half of 2017/2018:
| TEUR | H1 2017/2018 | H1 2016/2017 |
|---|---|---|
| Rental income | 9,884 | 6,857 |
| Net proceeds | 0 | 0 |
| Other operating income | 18 | 47 |
| Valuation result | 0 | 1,475 |
| Operating expenses | -1,130 | -558 |
| EBIT | 8,773 | 7,821 |
| Financial result | -2,398 | -2,245 |
| EBT | 6,375 | 5,576 |
| Income taxes | -11 | 0 |
| Profit for the period | 6,364 | 5,576 |
The rental income increased significantly due to the acquisition-related significantly increased real estate portfolio. As a result, rental income increased to around TEUR 13,550 (H1 2016/2017: TEUR 8,861). Correspondingly, the management expenses increased concurrently.
The valuation in the same period of the previous year only related to a sub-portfolio, as this was required for a securities prospectus. As a result, no valuation was made as of 31 March 2018. The next regular valuation of DKR's total portfolio will take place on 30 June 2018.
Overall, operating expenses increased significantly, but were burdened by one-time effects of TEUR 186 in the reporting period. Adjusted for special effects, operating expenses increased by approx. TEUR 265. This is mainly because of higher personnel expenses due to a higher number of employees and higher charges for business transactions.
The administrative expense ratio is as follows:
| TEUR | H1 2017/2018 | H1 2016/2017 |
|---|---|---|
| Personnel expenses | -233 | -66 |
| Other operating expenses | -775 | -491 |
| Adjustment of one-time and special effects | 186 | 0 |
| Adjusted operating expenses | -822 | -557 |
| Rental income | 13,550 | 8,861 |
| Administrative expense ratio | 6.1% | 6.3% |
In summary, EBIT increased by TEUR 952 to TEUR 8,773.
The decline in the financial result is mainly attributable to the increase in interest expenses due to the addition of new loans used for purchase financing.
Income taxes do not accrue due to the tax exemption of REIT companies. In the reporting period, however, a small portion of the recognised income tax refund claims from 2013/2014 had to be derecognised with the issue of the tax assessment in the amount of TEUR 11.
Overall, this results in a profit of TEUR 6,364 for the period (H1 2016/2017: TEUR 5,576), from which FFO and aFFO derive as follows:
| TEUR | H1 2017/2018 | H1 2016/2017 |
|---|---|---|
| Profit for the period | 6,364 | 5,576 |
| Adjustment of income taxes | 11 | 0 |
| Adjustment of depreciation | 1 | 0 |
| Adjustment of valuation result | 0 | -1,475 |
| Adjustment of the sale result | 0 | 0 |
| Adjustment for non-cash expenses/income | 275 | 373 |
| Adjustment for one-time effects | 613 | 0 |
| FFO | 7,263 | 4,474 |
| - Capex | -5,532 | -874 |
| aFFO | 1,731 | 3,600 |
The non-cash income and expenses include the compounding of the convertible bonds and the loans using the effective interest method. The one-time effects include non-recurring expenses and income. In H1 2017/2018, this primarily included off-period expenses and refinancing costs.
The capitalised repair costs mainly include value-adding construction and improvement measures at the Greifswald, Güstrow and Hohenmölsen refurbishment properties as well as the third conversion phase for the BiTZ Bitterfeld property.
This results in an FFO per share of EUR 0.28 (H1 2016/2017: EUR 0.22) and an aFFO of EUR 0.07 per share (H1 2016/2017: EUR 0.18).
Further details on the composition and amount of expenses and income are included in the appendix.
Business development in the first half of the 2017/2018 financial year was again very successful. This was due to the acquisitions and the resulting increase in rental income as well as the economies of scale resulting from the portfolio expansions.
Due to the high purchase performance and the acquired real estate that is still in the transfer of possession, there will once again be significant earnings growth in the second half of the year. Furthermore, DKR concludes refinancing at much better terms, which will also have a positive effect on the result.
As of the balance sheet date, the transfer of benefits and encumbrances of the properties acquired in Halberstadt, Dierdorf, Weilheim, Freiberg, Niesky, Seeberg, Berlin (Buddestrasse), Berlin (Blankenburger Strasse) and Waldbröl took place on 1 April 2018.
By notarised contracts in March and April 2018, the Company acquired the following properties which will be transferred to DKR after 31 March 2018:
The total investment volume of these properties is around EUR 81 million with an annualised rent of around EUR 8.2 million. The company is in further concrete sale agreements negotiations.
On the financing side, DKR took up the following fixed-interest loans after the balance sheet date:
DKR is currently engaged in additional borrowings.
•
Through its business activities, DKR is exposed to operational and economic opportunities and risks. Please refer to the detailed presentation in the Management Report of the Annual Report 2016/2017 in the section "Opportunity and risk report".
In the opinion of the Management Board, the risk position has not materially changed or worsened since 1 October 2017.
In the first half of the financial year, DKR already exceeded the purchase volume of the entire previous financial year and continues to find attractive properties that meet the investment criteria. In this respect, the pace of growth should remain high and the portfolio should be increased in value.
In addition, the Company is working intensively on the revitalisation of individual properties acquired in order to realise hidden reserves. At the forefront is the achievement of sustainable, attractive returns.
For further development of the real estate portfolio, DKR will make moderate use of the capital decided on at the ordinary general meeting.
Furthermore, the Company will borrow up to the target LTV of around 50% to finance the growth. This will result in improved interest rates that will relieve the FFO.
Based on the good half-year result as expected and the subsequent transfer of benefits and encumbrances following the second half of the year, we confirm our forecast and expect an FFO between EUR 16 million and EUR 20 million in the 2017/2018 financial year. Furthermore, we confirm our expectation to achieve a FFO run rate of EUR 23 million as of 30 September 2018.
Broderstorf, 14 May 2018
Chairman of the CIO CFO Management Board – CEO
Rolf Elgeti Alexander Kroth Christian Hellmuth
Halbjahresfinanzbericht des Geschäftsjahres 2017/2018 Condensed interim financial statements of the 2017/2018 financial year
1 October 2017 to 31 March 2018
| kEUR | Notes | 31/03/2018 | 30/09/2017 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Investment properties | (2.1) | 297,644.7 | 275,433.9 |
| Intangible assets | 2.4 | 2.9 | |
| Other non-current assets | (2.4) | 12,476.8 | 413.1 |
| 310,124.0 | 275,849.9 | ||
| Current assets | |||
| Trade and other receivables | (2.3) | 378.1 | 222.6 |
| Tax assets | (2.2) | 0.1 | 113.4 |
| Other current assets | (2.4) | 3,955.7 | 3,328.1 |
| Cash and cash equivalents | 1,150.9 | 1,160.5 | |
| 5,484.8 | 4,824.6 | ||
| TOTAL ASSETS | 315,608.7 | 280,674.5 | |
| Equity and liabilities | |||
| Equity | (2.5) | ||
| Issued share capital | 27,236.3 | 24,760.3 | |
| Capital reserve | 94,197.2 | 72,533.0 | |
| Other reserves | 855.7 | 855.7 | |
| Retained earnings | 62,951.3 | 56,587.0 | |
| 185,240.5 | 154,736.0 | ||
| Non-current liabilities | |||
| Financial liabilities | (2.6) | 46,113.9 | 40,891.3 |
| Convertible bonds | (2.7) | 35,815.9 | 35,541.0 |
| Other provisions | 3.5 | 3.5 | |
| Other non-current liabilities | (2.9) | 4,166.0 | 4,166.0 |
| 86,099.3 | 80,601.9 | ||
| Current liabilities | |||
| Financial liabilities | (2.6) | 32,409.9 | 31,471.8 |
| Liabilities to other creditors | (2.8) | 8,599.7 | 10,819.1 |
| Other provisions | 717.3 | 1,655.5 | |
| Trade payables | (2.9) | 1,962.8 | 1,117.3 |
| Other current liabilities | (2.9) | 579.3 | 273.0 |
| 44,269.0 | 45,336.7 | ||
| TOTAL EQUITY AND LIABILITIES | 315,608.7 | 280,674.5 | |
| kEUR | Notes | 01/10/2017- 31/03/2018 |
01/01/2018- 31/03/2018 |
01/10/2016- 31/03/2017 |
01/01/2017- 31/03/2017 |
|---|---|---|---|---|---|
| Rental income | (3.1) | 13,550.4 | 6,973.4 | 8,860.5 | 4,565.3 |
| Operating expenses | (3.1) | -3,666.1 | -1,931.8 | -2,003.6 | -1,209.9 |
| Net rental income | (3.1) | 9,884.3 | 5,041.6 | 6,856.9 | 3,355.4 |
| Proceeds from disposal of properties | 30.0 | 30.0 | 0.0 | 0.0 | |
| Expenses on the sale of properties | -30.0 | -30.0 | 0.0 | 0.0 | |
| Net proceeds from the disposal of properties | 0.0 | 0.0 | 0.0 | 0.0 | |
| Other income | (3.2) | 18.1 | 15.3 | 47.1 | 16.8 |
| Unrealised gain/loss from the revaluation of investment | |||||
| properties | 0.0 | 0.0 | 1,474.6 | 0.0 | |
| Subtotal | 9,902.4 | 5,056.8 | 8,378.6 | 3,372.2 | |
| Personnel expenses | (3.4) | -232.6 | -99.2 | -65.9 | -49.3 |
| Amortisation of intangible assets, depreciation of property, plant and equipment |
-0.5 | -0.2 | -0.4 | -0.2 | |
| Impairment loss of inventories and receivables | -121.1 | 103.0 | 0.0 | 77.3 | |
| Other operating expenses | (3.5) | -775.4 | -503.8 | -491.2 | 55.0 |
| Operating expenses | -1,129.6 | -500.2 | -557.5 | 82.8 | |
| EBIT | 8,772.8 | 4,556.6 | 7,821.1 | 3,455.0 | |
| Interest income | |||||
| Interest expense | (3.6) (3.6) |
31.7 -2,429.6 |
22.8 -1,132.4 |
0.0 -2,245.2 |
0.0 -1,080.9 |
| Net finance costs | -2,398.0 | -1,109.6 | -2,245.2 | -1,080.9 | |
| EBT | 6,374.8 | 3,447.0 | 5,575.9 | 2,374.1 | |
| Income tax | -10.5 | -10.5 | 0.0 | 0.0 | |
| Other tax | 0.0 | 0.0 | 0.0 | 0.0 | |
| Total comprehensive income | 6,364.3 | 3,436.5 | 5,575.9 | 2,374.1 | |
| Earnings per share (in EUR) | (3.7) | ||||
| Undiluted result per share | 0.24 | 0.13 | 0.28 | 0.12 | |
| Diluted result per share | 0.18 | 0.09 | 0.19 | 0.08 |
Deutsche Konsum REIT-AG, Broderstorf Statement of changes in equity
| Issued share | Capital | Other | Retained | ||
|---|---|---|---|---|---|
| kEUR | capital | reserve | reserves | earnings | Total equity |
| As at 01/10/2016 | 18,447.0 | 45,786.9 | 855.7 | 13,941.7 | 79,031.3 |
| Period result | 5,575.9 | 5,575.9 | |||
| Cash capital increase | 4,653.3 | 34,899.6 | 39,552.9 | ||
| Costs of capital measures | -1,244.8 | -1,244.8 | |||
| Capital increase from conversion of mandatory bond | 1,660.0 | -1,660.0 | 0.0 | ||
| As at 31/03/2017 | 24,760.3 | 77,781.8 | 855.7 | 19,517.6 | 122,915.4 |
| As at 01/10/2017 | 24,760.3 | 72,533.0 | 855.7 | 56,587.0 | 154,736.0 |
| Period result | 6,364.3 | 6,364.3 | |||
| Cash capital increase/ - reduction | 2,476.0 | 22,284.3 | 24,760.3 | ||
| Costs of capital measures | -620.1 | -620.1 | |||
| As at 31/03/2018 | 27,236.3 | 94,197.2 | 855.7 | 62,951.3 | 185,240.5 |
| Information in kEUR | 01/10/2017- 31/03/2018 |
01/10/2016- 31/03/2017 |
|
|---|---|---|---|
| Period result | 6,364.3 | 5,575.9 | |
| +/- Interest expense/interest income | 2,398.0 | 2,245.2 | |
| +/- | Depreciation, amortisation and write-down/ reversals of intangible assets, tangible as sets and financial assets |
0.5 | 0.5 |
| + | Impairments on inventories and receivables | 121.1 | -5.0 |
| -/+ | Gains/Losses from the revaluation of investment properties | 0.0 | -1,474.6 |
| +/- Increase/decrease in provisions | -938.2 | -163.4 | |
| +/- Income tax expense/ -income effective | 10.5 | 0.0 | |
| + | Income tax received | 102.8 | 0.0 |
| -/+ | Increase/decrease in inventories, trade receivables and other assets not attributable to investing or financing activities |
-1,195.8 | -1,144.2 |
| +/- | Increase/decrease in trade payables and other liabilities not attributable to investing or financing activities |
1,152.6 | -300.1 |
| Cash flow from operating activities | 8,015.8 | 4,734.4 | |
| + | Cash receipts relating to disposals of investment properties (less disposal costs) | 30.0 | 0.0 |
| - | Cash payments related to property investments | -34,304.5 | -31,037.3 |
| + | Interest received | 5.6 | 0.0 |
| Cash flow from investing activities | -34,269.0 | -31,037.3 | |
| + | Cash proceeds from the issue of shares | 2,476.0 | 4,653.3 |
| + | Proceeds from capital increases | 22,284.3 | 34,899.6 |
| - | Costs of capital measures | -620.1 | -1,244.8 |
| + | Proceeds from borrowings | 7,300.0 | 9,650.0 |
| - | Cash payments related to the issue of borrowings | 0,0 | -132.8 |
| - | Amortisation of loans | -3,469.3 | -14,523.4 |
| - | Interest paid | -1,727.3 | -1,983.6 |
| Cash flow from financing activities | 26,243.6 | 31,318.3 | |
| Change in cash and cash equivalents | -9.6 | 5,015.4 | |
| Cash and cash equivalents at the beginning of the period | 1,160.5 | 10,334.6 | |
| Cash and cash equivalents at the end of the period | 1,150.9 | 15,350.0 |
Selected explanatory notes to the condensed interim financial statements as of 31 March 2018
Deutsche Konsum REIT-AG is a Germany-based and nationally active real estate corporation headquartered in Broderstorf, registered in the commercial register of the Local Court of Rostock, HRB 13072. The business address is August-Bebel-Str. 68 in 14482 Potsdam. As of 1 January 2016, the Company has the status of a REIT ("Real Estate Investment Trust") and is, therefore, exempt from income tax. Main business field is the management of commercial real estate in Germany. The focus is on activities that are geared towards the long-term and sustained increase in the value of the real estate portfolio. In doing so, compliance with the REIT criteria must always be considered.
The present half-yearly financial report of Deutsche Konsum REIT-AG ("Deutsche Konsum" or "Gesellschaft") as of 31 March 2018 was prepared in accordance with the provisions of section 115 WpHG (new version).
The condensed interim financial statements have been prepared in accordance with IFRSs as applied in the EU and with the provisions of IAS 34 ("Interim Financial Reporting"). In addition, the provisions of German Accounting Standard 16 (DRS 16 - Interim Financial Reporting) have been considered.
The reporting period covers the first six months ("H1") of the 2017/2018 financial year. The balance sheet as of 30 September 2017 and the income statement for the period from 1 October 2016 to 31 March 2017 serve as comparative figures.
The accounting and valuation as well as the explanations and disclosures are based on the same accounting and valuation methods that were used in the separate financial statements as of 30 September 2017. Changes in accounting policies have not been made. New accounting standards to be applied as of 1 October 2017 have no material effect on the interim financial statements. These condensed interim financial statements do not include all the information required for annual financial statements and should, therefore, be read in conjunction with the separate financial statements as of 30 September 2017. The individual interim financial statements were prepared under the assumption of going concern and were neither audited nor subjected to an audit review.
These interim financial statements are prepared in Euros (EUR). Unless otherwise indicated, all values are presented in thousands of Euros (TEUR). This can result in rounding differences.
The profit and loss account is prepared according to the total cost method.
An appraisal of real estate holdings is usually done annually by an external and independent expert on 30 June. Fair value is measured using internationally recognised valuation techniques and is based on information provided by the Company, e.g. current rentals, maintenance and administrative costs or the current vacancy, as well as assumptions of the appraiser based on market data and judged on the basis of their professional qualifications, e.g. future market rentals, typical maintenance and administration costs, structural vacancy rates or discount and capitalisation rates (level 3 of the fair value hierarchy). For the valuation as of 31 March 2018, the principles were applied as they were on 30 September 2017. In the valuation of the first-time recognition, the acquisition or production costs as well as the transaction costs are included. In the subsequent valuation, value-increasing measures are considered when measuring the fair value.
The information provided to the appraiser and the assumptions made as well as the results of the real estate valuation are analysed by the Board of Management.
In the period from 1 October 2017 to 31 March 2018, the transfer of benefits and encumbrances in favour of the Company was carried out for eight properties with a volume of TEUR 16,678.6 (previous year: TEUR 38,227.4). Furthermore, value-enhancing measures amounting to TEUR 5,532.2 were made. In addition, purchase price deposits on notary accounts for several properties in the amount of TEUR 12,476.8 were made.
In the first half year of 2017/2018, a total of valuation results from investment properties in the amount of TEUR 0.0 (31/03/2017 TEUR 1,474.6) were recorded.
The following overview shows the development of investment properties:
| TEUR | 31/03/2018 | 30/09/2017 |
|---|---|---|
| Opening balance at 1.10.PY | 275,433.9 | 147,822.5 |
| Property purchases | 16,678.6 | 96,050.8 |
| Activation of leasing object | 0.0 | 717.9 |
| Capex | 5,532.2 | 2,438.9 |
| Market value change | 0.0 | 28,403.8 |
| Closing balance on the reporting date | 297,644.7 | 275,433.9 |
Of the investment property, real estate with a carrying amount of TEUR 181,434.9 (30/09/2017: TEUR 175,434.9) was secured by mortgages or by the assignment of rental income during the year under review.
There are leasehold contracts in which the associated properties are built on commercial real estate. The leasehold contracts are classified as finance leases. The capitalised amount as of 31/03/2018 amounts to TEUR 4,095.9 (30/09/2017: TEUR 4,095.9). The liability recognised as of 31/03/2018 amounts to TEUR 4,189.9 (30/09/2017: TEUR 4,189.9). A revaluation of the investment properties is carried out by an external real estate valuation as of 30/06/2018. Due to the insignificant effects of lease hold agreements during the year, no adjustments are made here.
The income statement includes the following significant amounts for investment property:
| TEUR | H1 2016/2017 | H1 2015/2016 |
|---|---|---|
| Rental income | 13,550.4 | 8,860.5 |
| Operating expenses (maintenance expenses, property management, | 3,666.1 | 2,003.6 |
| property taxes, etc.) | ||
| Total | 9,884.3 | 6,856.9 |
Deferred tax liabilities are formed on temporary differences between the valuations in the balance sheet and the tax balance sheet and the resulting future taxes. Due to the company's REIT status since 1 January 2016, the Company is exempt from both corporation tax and trade tax. In this respect, no deferred taxes are currently recognised.
The trade receivables consist exclusively of the leases and amount to TEUR 378.1 as of 31 March 2018 (30 September 2017: TEUR 222.6). This includes value adjustments of TEUR 605.2 (30 September 2017: TEUR 484.1).
There were no impairments on other financial assets.
Other noncurrent assets include payments on account of TEUR 12,476.8 (30/09/2017: TEUR 413.1) on investment properties.
Other current assets are made up as follows:
| TEUR | 31/03/2018 | 30/09/2017 |
|---|---|---|
| Deposit balances/deposits | 1,396.9 | 899.9 |
| VAT receivables | 893.9 | 845.9 |
| Work in progress after offsetting with advance payments received | 860.4 | 767.6 |
| Trust accounts | 430.7 | 479.2 |
| Claims against shareholders | 1.7 | 290.1 |
| Others | 372.1 | 45.4 |
| Total | 3,955.7 | 3,328.1 |
The first half year of the 2017/2018 financial year was characterised in particular by the cash capital increase on 8 December 2017. Overall, subscribed capital increased by TEUR 2,476.0 to TEUR 27,236.3.
Capital increase costs of TEUR 620.1 were offset against the capital reserves.
For the further development of equity, please refer to the statement of changes in equity.
Liabilities to banks are as follows:
| TEUR | 31/03/2018 | 30/09/2017 |
|---|---|---|
| Non-current | 46,113.9 | 40,891.3 |
| Current | 32,409.9 | 31,471.8 |
| Total | 78,523.8 | 72,363.1 |
| of which secured | 78,523.8 | 72,363.1 |
Liabilities to banks have increased significantly due to the addition of new secured bank loans. This was offset by current repayments.
The liabilities from convertible bonds, considering the issue costs, are composed as follows:
| TEUR | 31/03/2018 | 30/09/2017 |
|---|---|---|
| Convertible bond I TEUR 30,000 (nominal), 5% coupon p.a. | 29,462.4 | 29,337.6 |
| Convertible bond II TEUR 7,000 (nominal), 1% coupon p.a. | 6,353.5 | 6,203.4 |
| Total | 35,815.9 | 35,541.0 |
Both convertible bonds mature on 30 January 2020 and are, therefore, fully recognised as non-current.
Liabilities to other lenders result from loans from associates and related parties with an agreed maximum basic term, which are subject to variable and permanent repayment. There is only interest on outstanding amounts.
There are shareholder loans in the amount of TEUR 8,599.7 (30/09/2017: TEUR 10,819.1).
The development of other non-current and current liabilities is as follows:
| TEUR | 31/03/2018 | 30/09/2017 |
|---|---|---|
| Liabilities from finance leases | 4,166.0 | 4,166.0 |
| Total non-current other liabilities | 4,166.0 | 4,166.0 |
| Liabilities to tenants | 196.5 | 160.1 |
| Liabilities from finance leases | 23.9 | 23.9 |
| Deposits | 339.8 | 61.7 |
| Others | 19.1 | 27.3 |
| Total short-term other liabilities | 579.3 | 273.0 |
| Total | 4,745.3 | 4,439.0 |
The rental result is calculated from the rental income less management expenses and is as follows:
| TEUR | H1 2017/2018 | H1 2016/2017 |
|---|---|---|
| Rental income | 13,550.4 | 8,860.5 |
| Total income | 13,550.4 | 8,860.5 |
| Maintenance | 913.8 | 595.0 |
| Non-recoverable operating costs | 2,752.3 | 1,408.6 |
| Total management expenses | 3,666.1 | 2,003.6 |
| Rental income | 9,884.3 | 6,856.9 |
The maintenance expenses relate in particular to the properties in Greifswald and Hohenmölsen. In H1 2017/2018, value-enhancing maintenance measures in the amount of TEUR 5,532.2 were capitalised.
The non-recoverable operating costs include, among other things, property management expenses in the amount of TEUR 635.8 (H1 2016/2017: TEUR 443.8). Of this amount, around TEUR 427 are not related to the period.
The reimbursements of tenants for operating and ancillary costs were netted against the expenses.
Other operating income amounts to TEUR 18.1 in the reporting period (H1 2016/2017: TEUR 47.1).
The valuation result includes the net valuation gains and losses from the fair value measurement of the investment properties as at the balance sheet date. The valuation result in H1 2017/2018 does not include any results from the valuation because the valuation is generally made annually on 30 June.
In H1 2017/2018, the personnel expenses of the Company amounted to approximately TEUR 232.6 (H1 2016/2017: TEUR 65.9) and comprises two members of the Executive Board and two salaried employees as well as five marginally employed employees. Further services for the Company are provided by employees of Obotritia Capital KGaA. Here, a cost allocation is levied, which is recognised in other operating expenses. The increase in personnel expenses resulted in particular from the full-time employment of new members of the Executive Board and the hiring of an IR manager.
Other operating expenses are as follows:
| TEUR | H1 2017/2018 | H1 2016/2017 |
|---|---|---|
| Legal, consulting and auditing costs | 515.4 | 251.3 |
| Agency fees | 193.8 | 167.1 |
| Others | 66.3 | 72.8 |
| Total | 775.4 | 491.2 |
| of which one-time expenses | 185.9 | 0.0 |
| Adjusted | 589.5 | 491.2 |
Adjusted for special effects and one-time expenses, other operating expenses rose by TEUR 98.3. These essentially result from higher business administration fees and higher fees.
The interest result has the following structure:
| TEUR | H1 2017/2018 | H1 2016/2017 |
|---|---|---|
| Interest income from shareholder loans | 26.1 | 0.0 |
| Other interest income | 5.6 | 0.0 |
| Total interest income | 31.7 | 0.0 |
| of which non-cash | 0.0 | 0.0 |
| Interest on bonds | -1,059.8 | -1,052.9 |
| Interest expense from shareholder loans | -314.5 | -413.4 |
| Other interest expenses | -950.3 | -691.0 |
| Ground rent | -105.0 | -87.9 |
| Total interest expenses | -2,429.6 | -2,245.2 |
| of which non-cash | 274.8 | 372.6 |
| Total | -2,398.0 | -2,245.2 |
The reduction in the interest result is mainly due to the higher loan portfolio, which corresponds to the growth in the real estate portfolio.
Earnings per share are as follows:
| TEUR | H1 2017/2018 | H1 2016/2017 |
|---|---|---|
| Result for the period (undiluted) | 6,364.3 | 5,575.9 |
| Interest expenses on convertible bonds | 1,059.8 | 1,052.9 |
| Result for the period (diluted) | 7,424.1 | 6,628.8 |
| Average number of shares issued in the reporting period (undi | 26,243,181 | 20,245,317 |
| luted) | ||
| Potential conversion shares | 14,792,787 | 14,792,787 |
| Average number of shares issued in the reporting period (di | 41,035,968 | 35,038,104 |
| luted) | ||
| Earnings per share (EUR)13 | ||
| undiluted | 0.24 | 0.28 |
| diluted | 0.18 | 0.19 |
13 Previous year's earnings adjusted by share
The company is currently a one-segment company. Sales are generated exclusively with retail real estate within Germany. In the first half year of 2017/2018, the largest tenant accounted for revenues of TEUR 1,416.5 (H1 2016/2017: TEUR 1,416.5).
There are no other contingent liabilities.
The Company has the following financial obligations from long-term contracts:
| TEUR | 31/03/2017 | 30/09/2016 |
|---|---|---|
| Asset and property management agreements | 5,151.1 | 3,970.2 |
| Management fee agreements | 330.7 | 250.6 |
| Total | 5,481.8 | 4,220.8 |
| of which up to 1 year | 2,155.1 | 1,573.4 |
| of which one year to five years (undiscounted) | 3,326.7 | 2,647.4 |
| of which over five years (undiscounted) | 0.0 | 0.0 |
As at the balance sheet date of 31 March 2018, the Company has purchase price obligations from notarised purchase agreements for ten properties. The total purchase price obligations amount to TEUR 85,670, of which TEUR 12,477 have already been deposited in a notary account.
The Company maintains business relationships with related companies and persons. Essentially, these relationships include financial services through short-term provision of liquidity on the basis of concluded master agreements and services.
The scope of transactions with related parties is shown below:
Deutsche Konsum is an affiliate of Obotritia Capital KGaA, Potsdam. For the use of business premises, the provision of office equipment and administrative staff, including the activities of the Chairman of the Management Board (CEO), Obotritia Capital KGaA invoiced TEUR 193.8 (H1 2016/2017: TEUR 167.1) in the reporting period under the concluded agency agreement. There are short-term receivables to Obotritia Capital KGaA in the amount of TEUR 1.7 (30/09/2016: TEUR 49.9), which are reported under other current assets.
With a contract dated 13/04/2013 and a supplement from 30/06/2016 and 01/12/2016, DKR was granted a credit line from Obotritia Capital KGaA within the framework of a current account loan facility of TEUR 25,000. The loan is paid out at the request of Deutsche Konsum REIT-AG and must be repaid at any time, but at the latest by the end of the contract period on 31/12/2023. Interest will only be incurred on the outstanding amount, provisioning fees will not be charged additionally. As of 31/03/2018, there was a liability of TEUR 8,599.7 (30/09/2017: TEUR 10,819.1). Overpayments are subject to the same terms and conditions that apply to the claim. For these cases, a loan framework agreement was concluded on 30/04/2015. The interest rate is 8.0% p.a. The interest payments are deferred and are due at the latest upon termination of the loan. Interest income of TEUR 26.1 (H1 2016/2017: TEUR 0.0) and interest expenses of TEUR 314.5 (H1 2016/2017: TEUR 413.4) were generated for the first half year of 2017/2018.
There is a management agreement with GV Nordost Verwaltungsgesellschaft mbH, Rostock, on the property management of the main real estate portfolio. Depending on the object, the agreed remuneration amounts to between 2% and 3% of the net rental income received (plus value added tax) on a monthly basis. Expenses of TEUR 169.7 (H1 2016/2017: TEUR 212.4) were incurred in the reporting period.
There is also a management and consulting agreement with Elgeti Brothers GmbH, Berlin. The agreed remuneration amounts annually to 0.5% of the gross asset value of the real estate, calculated on the basis of the purchase prices and transaction costs and is paid in quarterly discounts. In the reporting period, expenses amounted to TEUR 763.0 (H1 2016/2017: TEUR 86.0).
The following receivables and liabilities to related parties exist in the balance sheet:
| TEUR | 31/03/2018 | 30/09/2017 |
|---|---|---|
| Other current assets | ||
| against parent company | 1.7 | 290.1 |
| Other related parties | 5.0 | 5.0 |
| Liabilities to other lenders | ||
| against parent company | 8,599.7 | 10,819.1 |
No loans and advances were granted to related persons. Close family members of the Management Board and the Supervisory Board have no influence on the Company's business decisions.
In the reporting period, the Supervisory Board consisted of the following persons:
| Name | Occupation | Membership of other statutory boards as defined in § 125 (1) sentence 5 of the German Stock Corpora tion Act (AktG) |
|---|---|---|
| Hans-Ulrich Sutter Chairman of the Supervisory Board Dusseldorf, Germany |
Former CFO of TAG Immobilien AG, Hamburg, Ger many MA in Business Administration |
• TAG Colonia-Immobilien AG, Hamburg, Ger many (Deputy Chairman of the Supervisory Board) |
| Achim Betz Deputy Chairman of the Supervisory Board, Neuffen, Germany |
Auditor, Tax Advi sor, Nürtingen, Ger many MA in Business Administration |
• Hevella Capital GmbH & Co. KGaA, Pots dam, Germany (Chairman of the Supervisory Board since 24 May 2017) • Deutsche Leibrenten Grundbesitz AG, Frank furt am Main, Germany (Deputy Chairman of the Supervisory Board) • Deutsche Industrie REIT-AG, Rostock, Ger many (until 22 January 2018: Deutsche In dustrie Grundbesitz AG) (Member of the Su pervisory Board) |
| Johannes C.G. (Hank) Boot London, United Kingdom |
Fund manager, London, United Kingdom |
• Berentzen AG, Haselünne, Germany (Mem ber of the Supervisory Board) |
| Nicholas Cournoyer Monaco, Monaco |
Fund manager, Monaco, Monaco |
• None |
| Kristian Schmidt-Garve Munich, Germany Member of the DKR Supervisory Board since 8 March 2018 |
Member of the Ex ecutive Board of MIG Verwaltungs AG, Munich, Ger many |
• Advisory (Beirat) of Cynora GmbH, Munich, Germany (since 26 September 2017, Chair man) • Nfon AG, Munich, Germany (Member of the Supervisory Board from 21 September 2009 to 9 April 2017; Chairman since 10 Novem ber 2017) |
On 8 March 2018, the Annual General Meeting of DKR confirmed the previous four members of the Supervisory Board, Mr. Hans-Ulrich Sutter, Mr. Achim Betz, Mr. Nicholas Cournoyer and Mr. Johannes C. G. (Hank) Boot in their office. In addition, the shareholders elected Kristian Schmidt-Garve to the Supervisory Board as a new member. In the election of each member of the Supervisory Board, approval was 99.173%. Following the registration of the corresponding amendment to the Articles of Association in the commercial register, the Supervisory Board of Deutsche Konsum REIT-AG, thus, consists of five persons.
At the inaugural meeting of the Supervisory Board, which took place after the Annual General Meeting, Mr. Hans-Ulrich Sutter was confirmed as Chairman of the Supervisory Board. Mr. Achim Betz was again appointed Deputy Chairman.
During the reporting period, the Management Board consisted of the following persons:
| Name | Beruf | Mitgliedschaften in anderen Kontrollgremien |
|---|---|---|
| Rolf Elgeti Chairman, CEO Potsdam, Germany |
MA in Business Administration |
• TAG Immobilien AG, Hamburg, Germany (Chairman of the Supervisory Board) • Deutsche Leibrenten Grundbesitz AG, Frankfurt am Main, Germany (Chairman of the Supervisory Board) • Staramba SE, Berlin, Germany (Member of the Administrative Board) • Laurus Property Partner, Munich, Germany (Member of the Advisory Board) • Fair Value REIT-AG, Munich, Germany (until 30 November 2017, Chairman of the Supervisory Board) |
| Alexander Kroth Member of the Management Board, CIO (since 1 July 2017) Berlin, Germany |
MA in Business Administration |
None |
| Christian Hellmuth Vorstandsmitglied CFO since 1 July 2017) Berlin, Germany |
MA in Business Administration (FH) |
None |
After the balance sheet date, the following material events occurred that were not considered in this financial statement as of 31 March 2018:
As of 1 April 2018, the transfers of burden and encumbrances of the acquired properties in Halberstadt, Dierdorf, Weilheim, Freiberg, Niesky, Seeberg, Berlin (Buddestraße), Berlin (Blankenburger Strasse) and Waldbröl were made.
With notarised contracts in March and April 2018, the Company also acquired ten further properties in Torgelow, Sassnitz, Leipzig, Pfullingen, Angermünde, Werdau, Unterwellenborn, Bad Sachsa, Elsterwerda and Weisswasser, which will be transferred to DKR after 31 March 2018, The total investment volume of these properties is around EUR 81 million with an annualised rent of approximately EUR 8.2 million.
On the financing side, in April 2018, DKR took up new fixed-rate loans with a total of EUR 33.8 million from various savings banks. The loans have maturities between five and eight years and have between 1.85% and 2.07% p.a. interest rate.
Broderstorf, 14 May 2018
Rolf Elgeti Alexander Kroth Christian Hellmuth Chairman of the CIO CFO Management Board – CEO
"We assure to the best of our knowledge that the interim financial statements for the period ending 31 March 2018 give a true and fair view of the net assets, financial position and results of operations of Deutsche Konsum REIT-AG in accordance with the applicable accounting principles and, in the interim management report, the course of business including the results of operations and the position of the Company are presented in a way that gives a true and fair view and describes the material opportunities and risks of the expected development of the Company."
Broderstorf, 14 May 2018
Chairman of the CIO CFO Management Board – CEO
Rolf Elgeti Alexander Kroth Christian Hellmuth
| 14 August 2018 | Publication of the quarterly statement for the third quarter of 2017/2018 financial year |
|---|---|
| 29 August 2018 | Berenberg Real Estate Helsinki Seminar, Helsinki |
| 6 September 2018 | EPRA Conference 2018, Berlin |
| 24 to 26 September 2018 | Berenberg and Goldman Sachs Seventh German Corporate Conference, Munich |
| 24 to 27 September 2018 | Baader Investment Conference, Munich |
| 26 to 28 November 2018 | Deutsches Eigenkapitalforum 2018, Frankfurt am Main |
| 18 December 2018 | Publication of the final annual statements/ annual financial report for the financial year 2017/2018 |
The Management Board of Deutsche Konsum REIT-AG
Deutsche Konsum REIT-AG Business address: August-Bebel-Str. 68 14482 Potsdam
| Telephone | +49 (0) 331 74 00 76 -50 |
|---|---|
| Fax | +49 (0) 331 74 00 76 -520 |
| [email protected] |
This half-yearly financial report contains forward-looking statements. These are based on current estimates and are, therefore, subject to risks and uncertainties. In this respect, the events actually occurring may deviate from the statements formulated here.
The report is also available in English. In doubtful cases, the German version is authoritative.
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