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 efforts. The company has completed property sales totaling approximately EUR 78 million since the start of the restructuring process, with additional purchase agreements for two properties worth EUR 16 million signed. These measures have contributed to a substantial reduction in financial liabilities, which decreased to EUR 311.5 million as of 30 September 2025, down from EUR 471.1 million. Net loan-to-value (LTV) improved to 41.1% from 57.8% in the same period, reflecting a stronger balance sheet.
The restructuring capital increase, including a debt-to-equity swap, has boosted equity to EUR 397.0 million, up from EUR 304.3 million. Interest expenses have also fallen significantly to EUR 10.7 million from EUR 18.7 million in the prior-year period, positively impacting operating earnings. Funds from Operations (FFO) increased to EUR 14.5 million from EUR 9.9 million, although FFO per share declined to EUR 0.18 from EUR 0.24 due to a higher number of shares outstanding.
Rental income decreased to EUR 48.0 million from EUR 52.7 million, as expected due to property disposals, but net rental income remained nearly flat at EUR 29.2 million versus EUR 29.8 million. The result for the period improved to EUR -25.7 million from EUR -32.6 million. 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, approximately a 5.7% decrease.
Changes in leadership were also announced. Daniel Lohken, previously Chairman of the Supervisory Board, was appointed to the Management Board as CEO effective 1 July 2026. Kyrill Turchaninov stepped down from the Management Board on 31 July 2026. Dr. Kai Gregor Klinger is the new Chairman of the Supervisory Board, with Sebastian Wasser remaining 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. Hank Boot did not stand for re-election.
Looking ahead, DKR remains focused on executing its restructuring plan, which includes property disposals of up to EUR 220 million by September 2027. The company expects rental income for the 2025/2026 financial year to be in the range of EUR 58 million to EUR 63 million, while FFO is anticipated to increase due to lower interest expenses. However, the implementation of planned sales is subject to uncertainties from the challenging geopolitical environment and its impact on the transaction market.
The company will hold an analyst conference on the results today, 12 August 2026, at 10:00 a.m. CEST. The presentation and further information are available at https://www.deutsche-konsum.de/en/investor-relations. The quarterly report can be downloaded at https://www.deutsche-konsum.de/en/investor-relations/financial-reports.
