EQS-News: Deutsche Konsum REIT reports stable rental performance in the first half of 2024/2025 with a focus on refinancing

PRESS RELEASE

Deutsche Konsum REIT reports stable rental performance in the first half of 2024/2025 with a focus on refinancing

• Finalisation of a restructuring plan to secure long-term balance sheet stability expected by end of August
• Portfolio adjustments with a potential volume of EUR 350 to 450 million in order to reduce debt by the end of 2027
• Net LTV reduced to 52.5% (September 30, 2024: 57.2%)
• FFO at EUR 8.0 million / aFFO at EUR 5.3 million / FFO per share at EUR 0.20
• EPRA NTA (fully diluted) per share stable at EUR 7.60

Potsdam, Germany, 15 May 2025 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) (the “Company”) has published its half-year report for the 2024/2025 fiscal year today.

Rental performance within the existing portfolio

The Company reports a largely stable operating performance in the first half of the fiscal year 2024/2025. Following property sales, the portfolio has decreased to 163 properties with a balance sheet value of EUR 877.6 million. Rental income was in line with expectations, amounting to EUR 35.4 million (H1 2023/2024: EUR 39.8 million from 183 properties). Net rental income was EUR 20.3 million (H1 2023/2024: EUR 24.8 million from 183 properties).

Funds from Operations (FFO) amounted to EUR 8.0 million or EUR 0.20 per share (H1 2023/2024: EUR 16.5 million or EUR 0.47 per share). The decline year-over-year is primarily attributable to the higher interest rate environment and the resulting increase in financing costs.

Debt reduction and strengthening of equity base

The Company continued to reduce its debt ratio in the first half of the year. The net loan-to-value (Net LTV) decreased to 52.5% (H1 2023/2024: 61.4%). At the same time, equity increased by EUR 37.9 million to EUR 356.3 million, mainly due to capital increases from bond conversions. Financial liabilities decreased by EUR 78.9 million to EUR 470.6 million.

Restructuring plan in progress

To secure long-term stability, the Company has commissioned a restructuring report from FTI Andersch AG. Completion is expected by the end of August. The restructuring plan includes strategic portfolio adjustments with sales proceeds of EUR 350 to 450 million by the end of 2027.

Bridge financing secured and standstill agreements under negotiation

To ensure liquidity, a bridge financing of EUR 14 million at 5.5% interest was secured. Standstill agreements with creditors with maturities in spring 2025 are in place until 30 May 2025. An extension until the end of August is currently being negotiated.

Outlook

In the second half of the year, the Company will focus on finalising and implementing the restructuring plan. This requires reaching agreements with all creditors and ensuring continuous financing security until at least the end of August. The overarching goal is to reduce debt and restore a sustainably positive cash flow profile.

 Conference Call

Deutsche Konsum REIT-AG will hold an analyst conference (webcast and conference call) on the results for the first half of the 2024/2025 financial year today, 15 May 2025, 10:00 a.m. CEST/10:00 SAST. The corresponding results presentation and further information on the webcast and the conference call can be found at https://www.deutsche-konsum.de/en/investor-relations. The half-yearly financial report of the 2024/2025 financial year is available for download at https://www.deutsche-konsum.de/en/investor-relations/financial-reports.

About Deutsche Konsum

Deutsche Konsum REIT-AG, Broderstorf, is a listed real estate company with a focus on German retail properties for everyday goods at established micro-locations. The Company’s primary focus is on acquiring, managing and developing local supply properties to achieve  consistent performance and leverage hidden reserves.

The shares of the Company are listed on the Prime Standard of the Deutsche Börse (ISIN: DE000A14KRD3) and on the JSE (JSE Limited) (South Africa) by way of a secondary listing.

 

Contact:
Deutsche Konsum REIT-AG
Mrs. Mareike Kuliberda
Investor Relations
Marlene-Dietrich-Allee 12b
14482 Potsdam
Tel: 0331 / 74 00 76 - 533
Fax: 0331 / 74 00 76 - 599
E-Mail: mk@deutsche-konsum.de