Deutsche Konsum Real Estate AG (DKR) has published its quarterly statement for the first nine months of the 2025/2026 financial year, revealing significant progress in its restructuring plan. The company 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 measures have strengthened the company's financing structure, reducing financial liabilities to EUR 311.5 million from EUR 471.1 million as of 30 September 2025, and improving the net loan-to-value (LTV) ratio to 41.1% from 57.8% over the same period.
The reduction in debt has led to lower interest expenses, which fell to EUR 10.7 million in the first nine months of the fiscal year, compared to EUR 18.7 million in the prior-year period. This contributed to a significant increase in Funds from Operations (FFO), which rose to EUR 14.5 million from EUR 9.9 million in the previous year. However, FFO per share decreased to EUR 0.18 from EUR 0.24 due to a higher number of shares outstanding following the restructuring capital increase, including a debt-to-equity swap.
Rental income decreased to EUR 48.0 million (prior year: EUR 52.7 million) as a result of ongoing property disposals, but net rental income remained nearly flat at EUR 29.2 million (prior year: EUR 29.8 million). The result for the period improved to EUR -25.7 million from EUR -32.6 million in the prior-year period.
As of 30 June 2026, the portfolio comprised 140 properties with a balance sheet value of EUR 693.7 million. A revaluation by CBRE resulted in a valuation loss of EUR 41.6 million, corresponding to a 5.7% decrease. This loss reflects the challenging real estate market conditions and the company's strategic focus on divestments.
In leadership changes, Daniel Lohken, previously Chairman of the Supervisory Board, was appointed to the Management Board as Chief Executive Officer effective 1 July 2026. Kyrill Turchaninov stepped down from the Management Board on 31 July 2026. Dr. Kai Gregor Klinger has been appointed as the new Chairman of the Supervisory Board, with Sebastian Wasser remaining as Vice Chairman. At the Annual General Meeting on 17 April 2026, shareholders elected Thorsten Arsan to the Supervisory Board and approved new Authorised and Conditional Capital.
Looking ahead, the company's focus remains on implementing its restructuring plan, which includes property disposals of up to EUR 220 million by September 2027. Rental income is expected to decline in line with the plan, but the company anticipates rental income in the range of EUR 58 million to EUR 63 million for the full 2025/2026 financial year, with FFO expected to increase due to lower interest expenses. The execution of planned property sales is subject to uncertainties arising from the persistently challenging geopolitical environment and its impact on the transaction market.
These developments are important for investors and stakeholders as they indicate the company's progress in reducing debt and improving operational performance amidst a difficult real estate market. The successful execution of the restructuring plan could position DKR for long-term stability and growth, while the valuation loss underscores the ongoing challenges in the sector. For more details, the quarterly report and additional information are available at Deutsche Konsum Investor Relations.
