Deutsche Industrie REIT : Annual Report 2020/2021

Deutsche Industrie REIT-AG

Annual Report 2020/ 2021

1 October 2020 to 30 September 2021

Key figures

	01/10/2020-	01/10/2019-		%
	30/09/2021	30/09/2020	Difference
Income statement (TEUR)
Gross Rental income	50,965	40,781	10,184	25.0 %
Net rental income	40,010	31,286	8,725	27.9 %
Result from the revaluation of investment	91,110	36,982	54,129	>100
properties
EBIT	123,087	62,289	60,798	97.6 %
Finance result	−3,270	−11,468	8,198	−71.5 %
Net income	119,817	50,821	68,996	>100
FFO	33,602	24,646	8,956	36.3 %
FFO per share (€)	1.05	0.84	0.21	24.5 %
Recurring costs ratio	6.2 %	6.9 %	−0.7 %	−9.5 %
	30/09/2021	30/09/2020	Difference	%
Balance sheet (TEUR)
Investment properties	814,097	585,820	228,277	39.0 %
Total assets	927,453	715,849	211,605	29.6 %
Equity	489,009	377,200	111,809	29.6 %
Total debt	287,634	309,638	-22,004	-7.1 %
(net) Loan-to-Value (LTV)	42.0 %	37.1 %	4.9 %	13.2 %
Ø Cost of debt	2.45 %	2.60 %	-0.2%	-5.8 %
Ø Loan Duration (years)	6.7 %	6.7 %	0.0 %	0.0 %
EPRA NTA	489,655	385,441	104,214	27.0 %
EPRA NTA per share diluted (€)	14.25	11.22	3.03	27.0 %
EPRA NAV	488,826	376,709	112,117	29.8 %
EPRA NAV per share undiluted (€)	15.24	11.74	3.50	29.8 %
REIT metrics
REIT equity ratio	59.5 %	64.4%	−4.9 %	−7.6 %
Share information
Shares issued	32,079,505	32,079,505	0	0.0 %
Average number of shares 01/10 - 30/09	32,079,505	29,297,634	2,781,871	9.5 %
Market cap in € million	561.4	574.2	22.5	4.2 %
Share price XETRA (€)	17.50	17.90	0.70	4.2 %
Real estate portfolio
# Properties	88	69	19	27.5 %
Commercial rental space in m²	1,577,343	1,229,072	348,271	28.3 %
Annualised In place rent in € million	58.5	44.5	14.0	31.4 %
Occupancy commercial	87.3 %	85.1 %	2.2 %	2.6 %
WALT in years	5.0	5.0	0.1	1.6 %
IPR commercial in €/m²	3.46	3.47	−0.01	−0.3 %
Market value in € million	795.9	565.0	230.9	40.9 %
Rental yield	7.3 %	7.9 %	0.0	−6.7 %

Content

Letter to our shareholders	2
The share	4
Declaration on corporate governance	8
Report of the Supervisory Board	19
Composition of the Management Board
and Supervisory Board	23
Deutsche Industrie as REIT	24
The Acquisition Pipeline	26
The Real Estate Portfolio	32
Key figures according to EPRA	50
Management Report	54
Financial Statement	86
Balance sheet	88
Statement of comprehensive income	89
Cash flow statement	90
Statement of changes in equity	93
Notes	94
Audit Opinion of the independent
individual financial statements	150
Statement by the Management Board regarding
compliance with the requirements of the REITG	156

PICTURE:

Rosenheim, Schlierseestraße

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Deutsche Industrie REIT-AG Annual report 2020/2021

Letter to our shareholders

Dear Shareholders, Dear Ladies and Gentlemen,

Once again, an eventful year is coming to an end, which was also marked by corona-related circum- stances. The economic consequences of this crisis continue and there is currently no end in sight.

Regardless of the far-reaching effects, restrictions and challenges, however, our business model has proven to be stable and resistant. The management board looks back on a successful 2020/2021 financial year. We were able to continue to grow this year and increase our turnover and result.

including cooperative banks, savings banks, private banks, and an insurance company. The nominal total financing volume amounted to € 106.0 million.

Positive period result

Net rental income increased by 28% from just under

• 31.3 million in the previous year to € 40.0 million in the 2020/2021 financial year. FFO (Funds From Operations) increased by 37% from € 24.6 million to € 33.6 million. Similarly, FFO per share increased by 25% from € 0.84 to € 1.05.

Real estate portfolio expands and increases significantly in value

Due to our planned business development, we were able to achieve our goals. Our main growth factor was the acquisitions we made. Since the beginning of the financial year, 19 properties have been added to our portfolio with a purchase price volume of € 123.8 million and annualised rent of approx. € 12.5 million. In total, the portfolio consists of 88 properties as of 30 September 2021 and is balanced at just under € 814.1 million. In addition, there are five other properties with an investment volume of € 17.8 million, for which the transfer of ownership will not take place until after the balance sheet date. One property in Berlin was sold at lucrative conditions. Taking into account all properties purchased, the pro forma portfolio consists of 92 properties with an annualised total rent of around € 60.2 million and

a portfolio value of approximately € 807.0 million.

Financing to strengthen liquidity

In the past financial year 2020/2021, Deutsche Industrie concluded a total of 21 contracts at attractive financing conditions with various institutions,

EPRA NTA per share increased by 27 % from € 11.22 to € 14.25. The REIT equity ratio amounts to 60 % and is thus significantly above the relevant value of 45 %.

Outlook 2021/2022

After we paid a dividend of 0.09 € per share for the first time last year, this year shareholders were pleased to receive a dividend payment of 0.16 € per share.

We intend to continue this positive development and plan to propose the distribution of a dividend of EUR 0.24 for the 2019/2020 financial year at the next Annual General Meeting.

The chapter of DIR's independent growth story is slowly coming to an end. We have initiated all the necessary steps for the merger with CTP.

The completion of CTP's offer will create a leading pan-European listed real estate group for logistics and corporate real estate with a combined portfolio of over € 7.2 billion and extensive project development activity for its own portfolio. For CTP, the transaction

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Deutsche Industrie REIT-AG Letter to our shareholders

offers the opportunity to enter the German market, where CTP has not been present so far.

We intend to continue the development of the past years, with steady and sustainable growth, together with CTP in 2021/2022. In addition to manageable risks, the effects of the Corona crisis also offer additional opportunities that we can use and develop together.

On behalf of the entire DIR team, we would like to take this opportunity to thank you for the trust you have placed in us and for the good cooperation with our tenants, service providers and business partners.

With best regards

Rolf Elgeti	René Bergmann
Chief Executive Officer	Chief Financial Officer

Sonja Petersen	Potsdam in December 2021
Chief Investment Officer