Deutsche Konsum Real Estate AG (DKR) has released its quarterly statement for the first nine months of the 2025/2026 financial year, showing continued implementation of its restructuring plan. The company has completed property sales of approximately EUR 78 million since the restructuring began, with additional purchase agreements worth EUR 16 million signed. These measures have significantly strengthened the company's financing structure.
As of 30 September 2025, financial liabilities stood at EUR 471.1 million, but by 30 June 2026, they had been reduced to EUR 311.5 million. Net loan-to-value (LTV) improved to 41.1% from 57.8% over the same period. Equity increased to EUR 397.0 million from EUR 304.3 million. The debt reduction also led to a substantial decrease in interest expenses, which fell to EUR 10.7 million in the first nine months of fiscal 2025/2026, compared to EUR 18.7 million in the prior-year period.
Despite the ongoing property sales, which resulted in a decline in rental income to EUR 48.0 million from EUR 52.7 million, net rental income remained nearly flat at EUR 29.2 million versus EUR 29.8 million. The lower interest expenses positively impacted operating earnings, with Funds from Operations (FFO) rising to EUR 14.5 million from EUR 9.9 million. However, FFO per share decreased to EUR 0.18 from EUR 0.24 due to a higher number of shares outstanding. The result for the period improved to EUR -25.7 million from EUR -32.6 million.
The portfolio was revalued by CBRE as of 30 June 2026, resulting in a valuation loss of EUR 41.6 million, approximately a 5.7% decrease. The portfolio now comprises 140 properties with a balance sheet value of EUR 693.7 million. This revaluation loss reflects the challenging market conditions.
Changes were made to the Management and Supervisory Boards during the reporting period. 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 as planned on 31 July 2026. Dr. Kai Gregor Klinger became 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 the creation of new Authorised Capital and Conditional Capital. Hank Boot did not stand for re-election and stepped down.
Looking ahead, the company's focus remains on implementing its restructuring measures, which include property disposals of up to EUR 220 million by September 2027. As a result of these sales, rental income is expected to decline in line with plan. For the 2025/2026 financial year, DKR continues to anticipate rental income in the range of EUR 58 million to EUR 63 million, while FFO is expected to increase due to lower interest expenses. The implementation of the planned property sales is subject to uncertainties from the persistently challenging geopolitical environment and its impact on the transaction market.
The company's quarterly report and further information are available on its website. Additionally, an analyst conference call will be held today, 12 August 2026, at 10:00 a.m. CEST. Details can be found at https://www.deutsche-konsum.de/en/investor-relations.
