Deutsche Konsum Real Estate AG (DKR) has made significant progress in its restructuring plan, reducing financial liabilities and improving its loan-to-value ratio, according to its quarterly statement for the first nine months of the 2025/2026 financial year. The company completed property sales totaling around EUR 78 million since the start of the restructuring process, with additional purchase agreements worth EUR 16 million signed, as part of a plan to divest up to EUR 220 million by September 2027.
The debt reduction has strengthened DKR’s balance sheet. Financial liabilities fell to EUR 311.5 million as of 30 June 2026, down from EUR 471.1 million at 30 September 2025. Net loan-to-value (LTV) improved to 41.1% from 57.8% over the same period. Equity rose to EUR 397.0 million from EUR 304.3 million. Interest expenses dropped to EUR 10.7 million in the first nine months, compared to EUR 18.7 million in the prior-year period.
The improved financing structure positively impacted operating earnings. Funds from Operations (FFO) increased to EUR 14.5 million from EUR 9.9 million in the prior-year period, despite a decrease in rental income. Rental income declined to EUR 48.0 million from EUR 52.7 million, reflecting the ongoing property sales, but net rental income remained nearly flat at EUR 29.2 million versus EUR 29.8 million. FFO per share fell to EUR 0.18 due to a higher share count, down from EUR 0.24.
The company reported a net loss of EUR -25.7 million for the period, an improvement from EUR -32.6 million in the prior year. A portfolio revaluation as of 30 June 2026 resulted in a valuation loss of EUR 41.6 million, a 5.7% decrease, reflecting market conditions. The portfolio comprised 140 properties with a balance sheet value of EUR 693.7 million.
Management changes occurred during the period: Daniel Lohken, previously Chairman of the Supervisory Board, was appointed CEO effective 1 July 2026, while Kyrill Turchaninov stepped down as planned. Dr. Kai Gregor Klinger became the new Chairman of the Supervisory Board, with Sebastian Wasser remaining Vice Chairman. At the Annual General Meeting, Thorsten Arsan was elected to the Supervisory Board, and Hank Boot did not stand for re-election.
Looking ahead, DKR expects rental income to decline in line with its restructuring plan, forecasting EUR 58 million to EUR 63 million for the full 2025/2026 financial year, while FFO is expected to increase due to lower interest expenses. The company acknowledges uncertainties from the geopolitical environment that could impact the transaction market and the timing of property sales.
Details of the quarterly report and presentation are available at Deutsche Konsum’s investor relations page, and the full quarterly report can be downloaded from their financial reports section.
