Deutsche Konsum REIT-AG with six purchases and five sales

In the Saxon municipalities of Dippoldiswalde and Grünhain-Beierfeld, DKR was able to acquire in each case one property with the anchor tenant Penny (REWE Group). In addition, the purchase of three retailers with the main tenants EDEKA (2x) and TEDi in Kemberg, Köthen and Coswig (all Saxony-Anhalt) was notarised. Furthermore, a retail park in Olbernhau (Saxony) was acquired. The anchor tenants of this property are Netto (EDEKA Group) and a non-food discounter.

The purchase price of the six properties, which have a combined rental area of around 9.000 sq m, amounts to a total of approximately 9.2 million Euro, which corresponds to 11.6 times the annual rent. Taking into account the annualised rent of currently 793.000 Euro, this results in an average acquisition yield of 8.6% with a WALT of 4.2 years and a vacancy rate of 1.6%.

In the current financial year 2021/2022, DKR has thus so far acquired 21 non-cyclical and mainly food-anchored retail properties with a rental area of around 67.500 sq m and an annual rent of approximately 5 million Euro for around 58.6 million Euro, which corresponds to an average initial yield of 8.5%. The average WALT is 5.3 years with a vacancy rate of around 6.5%.

This is contrasted by another package sale of three Penny stores in Ueckermünde, Rövershagen (both in Mecklenburg-Western Pomerania) and Schwerte (North Rhine-Westphalia), which was notarised at the end of June 2022. The sales price for the three properties with an annual rent of approximately 436.000 Euro amounts to 8.1 million Euro, which corresponds to 18.6 times the annual rent and leads to significant capital gains.

Furthermore, two vacant properties in Obertraubling and Scheyern (both in Bavaria) were sold for a total of 2.8 million Euro. Both properties were sold to local investors for significantly more than their current book value as part of a portfolio optimization.

Taking into account all notarised acquisitions and sales, the pro forma portfolio thus comprises a total of 179 properties with a total lettable area of approx. 1.04 million sq m and a balance sheet value of around 1 billion Euro. The portfolio currently generates an annual rent of 71.4 million Euro.