Business news for the stock market
Potsdam (pta005/12.08.2021/07:14) - Deutsche Industrie REIT-AG nine month result (Q3/9M 2020/2021) with revaluation result of 87.0 € million
* Gross rental income increased from 29.7 € million to 37.3 € million
* FFO grows from 18.3 € million to 24.4 € million
* FFO per share increases by 18% from 0.64 € to 0.76 € per share
* Appreciation of the property portfolio with valuation result of 87.0 € million
* Property assets of 775.3 € million on the balance sheet
* EPRA NAV at 14.95 € per share – 27% higher
* Net LTV at 41.4%
* FFO forecast of 32 € million to 34 € million for financial year 2020/2021 confirmed
Significant increase in rental income and FFO
Due to the steady portfolio growth of DIR, gross rental income increased by 26% from 29.7 € million to 37.3 € million in the nine months compared to the same period of the previous year. Net rental income also increased by 21% from 23.7 € million in the previous year to 28.8 € million at Q3/9M 2020/2021.
In line with this, FFO (Funds from Operations) as a key indicator of operating activities rose by 18% to 24.4 € million (0.76 € per share) in Q3/9M 2020/2021. In the comparable period of the previous financial year, FFO Q3/9M 2019/2020 was 18.3 € million (0.64 € per share).
Value of the property portfolio increases by 15.1%
As part of the regular property valuation as at 30 June 2021, the property portfolio was revalued by 98.8 € million or 15.1%. Taking into account purchase prices, incidental acquisition costs, subsequent production costs (capex) and leasehold effects, a valuation result of 87.0 € million was booked. The valuation increase in the initial valuations resulted from the favourable new acquisition of properties of approx. 20% below market value. There were several factors that had a positive impact on the revaluations, such as specific purchase offers, letting activities, yield compression and capex measures. For some of the revalued properties, rising market rents and shorter vacancy periods had a positive effect on the valuation. Value-creating asset management measures and a general increase in market demand in the Light Industrial segment also contributed to the good valuation result.
As of 30 June 2021, the portfolio has been valued at a yield of 7.3% or 13.7 times the annualised rent. The valuation was carried out by an external independent valuation team.
Property portfolio grows to 775.3 € million
DIR's property portfolio balanced on 30 June 2021 now comprises 84 Light Industrial properties with a balance sheet value of around 775.3 € million (30 September 2020 585.8 € million). The company continues to implement its continuous portfolio growth and has acquired five additional properties for which the transfer of ownership has taken place or will take place after the balance sheet date.
Pro forma, taking into account all properties already notarised, the portfolio comprises 89 properties with a commercial area of 1.6 million m², an annualised total rent of approximately 58.8 € million and a portfolio value of approximately 789.4 € million.
The company continues to examine specific properties for purchase and expects further acquisitions.
EPRA NAV increases to 14.95 € per share / Net-LTV at 41.4%
Due to the result for the period and despite the dividend payment of 0.24 € per share, the EPRA NAV as of 30 June 2021 increased significantly to 14.95 € (30.09.2020: 11.74 € per share), which corresponds to an increase of 27%. The Net-LTV as at the reporting date is 41.4% (30.09.2020: 37.1%) and thus continues to offer sufficient scope for further borrowing up to the target level of approx. 50%.
Positive outlook for the remaining financial year 2020/2021 and earnings forecast
Due to the positive business development in Q3/9M 2020/2021 as well as the recent transfer of ownership of larger properties and the very low impact of the Corona crisis, there will be further growth in earnings growth in the fourth quarter. Therefore, the Management Board confirms its forecast and expects FFO between 32 € million and 34 € million for the financial year 2020/2021. Furthermore, the Management Board confirms its forecast to achieve an FFO run rate (annualised FFO excluding accrual effects) between 38 € million and 40 € million as of 30 September 2021.
Deutsche Industrie REIT-AG will hold an analyst conference call on the results of the past nine months Q3/9M 2020/2021 today at 11:00 am (CEST). The conference language will be English.
Publications on the quarterly results Q3/9M 2020/2021
The quarterly announcement Q3/9M 2020/2021, the presentation on the results of the past nine months of the financial year 2020/2021 as well as further information on the Company can be found at:
Details of DIR's current property portfolio can be found at:
About Deutsche Industrie REIT-AG
Deutsche Industrie REIT-AG makes sustainable investments in light industrial real estate in Germany. Light Industrial includes not only the activities of storage and distribution of commercial goods, but also their administration and production. The asset class consists mainly of medium to large industrial and commercial park sites. The areas are usually more complex than pure logistics properties and have a high local relevance.
The share is listed on the regulated market of Börse Berlin 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.
emitter: Deutsche Industrie REIT-AG
address: August-Bebel-Str. 68, 14482 Potsdam
contact person: René Bergmann
phone: +49 331 740 076 535
ISIN(s): DE000A2G9LL1 (share), DE000A2GS3T9 (bond), DE000A2YNQU1 (bond)
stock exchanges: regulated market in Frankfurt, Berlin