EQS-News

Deutsche Konsum REIT-AG prepares for strong growth and repositions itself

EQS-News: Deutsche Konsum REIT-AG / Key word(s): Dividend/Personnel Deutsche Konsum REIT-AG prepares for strong growth and repositions itself 30.05.2023 / 18:08 CET/CEST The issuer is solely responsible for the content of this announcement. 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