Deutsche Konsum Real Estate AG Reports Progress in Restructuring, Debt Reduction, and Improved FFO

Deutsche Konsum Real Estate AG (DKR) has released its quarterly statement for the first nine months of the 2025/2026 financial year, showcasing significant strides in its restructuring efforts. The company has completed property sales totaling approximately EUR 78 million since the start of the restructuring process, with additional purchase agreements worth EUR 16 million signed. These sales are part of a broader plan to dispose of up to EUR 220 million in properties by September 2027.

The financial impact of these measures is evident in the company's balance sheet. Financial liabilities have been reduced to EUR 311.5 million as of 30 June 2026, down from EUR 471.1 million on 30 September 2025. This reduction has improved the net loan-to-value (LTV) ratio to 41.1%, a substantial improvement from 57.8% at the end of the previous fiscal year. Equity has increased to EUR 397.0 million, up from EUR 304.3 million, reflecting the successful restructuring capital increase and debt-to-equity swap.

Operating performance has also seen positive developments. Although rental income decreased to EUR 48.0 million from EUR 52.7 million in the prior-year period due to property sales, net rental income remained nearly flat at EUR 29.2 million compared to EUR 29.8 million. More notably, Funds from Operations (FFO) increased to EUR 14.5 million from EUR 9.9 million in the same period last year, driven by lower interest expenses, which fell to EUR 10.7 million from EUR 18.7 million. On a per-share basis, FFO declined to EUR 0.18 due to a higher number of shares outstanding, compared to EUR 0.24 in the prior year.

The company's net result for the period improved to EUR -25.7 million, a better performance than the EUR -32.6 million loss reported a year earlier. The portfolio, now comprising 140 properties with a balance sheet value of EUR 693.7 million, underwent a revaluation by CBRE as of 30 June 2026, resulting in a valuation loss of EUR 41.6 million, approximately a 5.7% decrease. This loss reflects the challenging market conditions but does not overshadow the strategic progress.

Leadership changes have also occurred during the reporting period. Daniel Lohken, formerly Chairman of the Supervisory Board, was appointed CEO of the Management Board, effective 1 July 2026. Kyrill Turchaninov stepped down from the Management Board on 31 July 2026. Dr. Kai Gregor Klinger has taken over as Chairman of the Supervisory Board, with Sebastian Wasser remaining Vice Chairman. At the Annual General Meeting in April 2026, shareholders elected Thorsten Arsan to the Supervisory Board and approved new authorized and conditional capital. Hank Boot did not seek re-election and left the board.

Looking ahead, DKR expects rental income to decline as property sales continue, with full-year guidance set between EUR 58 million and EUR 63 million. However, FFO is anticipated to increase due to reduced interest expenses. The company acknowledges uncertainties in the transaction market due to geopolitical challenges but remains focused on executing its restructuring plan.

More details are available in the quarterly report at Deutsche Konsum's financial reports page. Investors can also find additional information on the company's investor relations website at Deutsche Konsum IR.