Deutsche Konsum Real Estate AG (DKR) has reported a significant improvement in its financing structure and operating performance for the first nine months of the 2025/2026 fiscal year, driven by the continued execution of its restructuring plan. The company has completed property sales totaling approximately EUR 78 million since the start of the restructuring process, with additional purchase agreements worth EUR 16 million already signed. These disposals have enabled DKR to reduce its financial liabilities from EUR 471.1 million to EUR 311.5 million as of 30 September 2025, while net loan-to-value (LTV) improved to 41.1% from 57.8% over the same period. Equity increased to EUR 397.0 million, up from EUR 304.3 million, and interest expenses declined to EUR 10.7 million from EUR 18.7 million in the prior-year period.
The restructuring capital increase, including the debt-to-equity swap, has been a key factor in strengthening the balance sheet. These measures are part of a broader plan that aims to dispose of up to EUR 220 million in properties by September 2027. The company's focus on debt reduction is already yielding tangible results in its operational metrics. Funds from Operations (FFO) rose to EUR 14.5 million in the nine-month period, compared to EUR 9.9 million in the same period last year, driven primarily by lower interest expenses. However, FFO per share decreased to EUR 0.18 from EUR 0.24 due to the higher number of shares outstanding following the capital increase. Net rental income remained nearly flat at EUR 29.2 million, despite a decline in rental income to EUR 48.0 million from EUR 52.7 million, reflecting the impact of property sales.
The company's portfolio, which now comprises 140 properties with a balance sheet value of EUR 693.7 million, was revalued by CBRE as of 30 June 2026, resulting in a valuation loss of EUR 41.6 million, a decrease of approximately 5.7%. This loss contributed to a net result of EUR -25.7 million, though this was an improvement from EUR -32.6 million in the prior-year period. The revaluation reflects the challenging market conditions and the ongoing strategic repositioning of the portfolio.
In addition to financial developments, DKR has undergone significant changes in its leadership. Daniel Lohken, formerly Chairman of the Supervisory Board, was appointed to the Management Board as Chief Executive Officer effective 1 July 2026, for a term of three years. Kyrill Turchaninov stepped down from the Management Board as planned on 31 July 2026. Dr. Kai Gregor Klinger has been elected as the new Chairman of the Supervisory Board, with Sebastian Wasser continuing as Vice Chairman. At the Annual General Meeting held on 17 April 2026, shareholders approved the election of Thorsten Arsan to the Supervisory Board and the creation of new Authorised Capital and Conditional Capital. Hank Boot did not stand for re-election and has left the Supervisory Board.
Looking ahead, the company expects rental income for the full 2025/2026 financial year to be in the range of EUR 58 million to EUR 63 million, consistent with the decline due to property sales. FFO is anticipated to increase further as interest expenses continue to fall. However, the implementation of the property sales plan remains subject to uncertainties arising from the persistently challenging geopolitical environment and its impact on the transaction market. The company's restructuring efforts are aimed at creating a more resilient and financially stable real estate portfolio focused on German retail properties for everyday goods.
