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EQS-News: Deutsche Konsum REIT-AG
/ Key word(s): Dividend/Personnel
PRESS RELEASE Deutsche Konsum REIT-AG prepares for strong growth and repositions itself Potsdam, 30 May 2023 – In the context of strategic discussions and considerations, Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has analysed the further business prospects for DKR and the situation on the real estate market as well as on the capital markets and derived measures from this. The Company considers the current situation on the real estate market to be exciting and full of opportunities and derives positive growth prospects for itself from this. Due to the sharp rise in borrowing costs in the last three quarters, the Company is feeling the effects of dynamically increasing interest costs for refinancing and new loans. On the other hand, the ECB's interest rate hikes in particular are leading to increasingly declining asking prices on the real estate market, which is reflected in a currently increasingly filling acquisition pipeline with interesting local supply properties that fit exactly into DKR's purchase profile. The Company expects this trend to intensify further, especially towards the end of 2023, and derives strong growth opportunities through a significant purchase volume from this. After careful consideration, the Management Board has come to the conclusion that in the current situation it is necessary to maintain the highest possible level of liquidity. On the one hand, this allows debt instruments that are expiring in the following year already to be gradually repaid, and on the other hand, growth opportunities that arise can be quickly seized through further acquisitions. Furthermore, the Company would like to strengthen its independence and push ahead with the separation from the founding shareholder and main shareholder Obotritia Capital KGaA. The Company has derived the following measures to achieve its goals: Amendment of the dividend proposal and reduction of the dividend distribution for the financial year 2021/2022 to EUR 0.12 per share In order to take into account possible opportunities and risks, the reduction of the dividend distribution is intended to ensure the highest possible flexibility in the further operational management of the Company. The Annual General Meeting must vote on the new resolution on the appropriation of profits. Termination of short-term investments of surplus cash and cash equivalents Capital recycling for further growth financing The Company currently has an attractive acquisition pipeline with local retail properties valued at approx. EUR 84 million at an average acquisition factor of 11 times the annual rent (9% yield), the realisation of which would lead to strong growth in the rental income of the property portfolio. Changes in the Supervisory Board and Management Board – Rolf Elgeti moves from the Management Board to the Supervisory Board At the same time, the Chairman of the Management Board Rolf Elgeti (CEO) has decided to resign his mandate with effect from the end of the next Annual General Meeting. In the future, the operational business activities will be carried out by the Management Board members Alexander Kroth (CIO) and Christian Hellmuth (CFO). Rolf Elgeti intends to stand for the chairmanship of the Supervisory Board at the upcoming Annual General Meeting. Annual General Meeting 2023 on 13th July 2023 Rolf Elgeti, CEO of Deutsche Konsum REIT-AG: Alexander Kroth, CIO: Christian Hellmuth, CFO: About the Company The shares of the Company are listed on the Prime Standard of Deutsche Börse (ISIN: DE000A14KRD3) and on the JSE (JSE Limited) (South Africa) by way of a secondary listing.
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30.05.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
| Language: | English |
| Company: | Deutsche Konsum REIT-AG |
| August-Bebel-Straße 68 | |
| 14482 Potsdam | |
| Germany | |
| Phone: | +49 (0)331 740076517 |
| Fax: | +49 (0)331 740076520 |
| E-mail: | |
| Internet: | -konsum.de |
| ISIN: | DE000A14KRD3 |
| WKN: | A14KRD |
| Listed: | Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Munich, Stuttgart, Tradegate Exchange; JSE Securities Exchange |
| EQS News ID: | 1645133 |
| End of News | EQS News Service |
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1645133 30.05.2023 CET/CEST
