Deutsche Konsum REIT-AG publishes full year 2023/2024 results

Press release

Deutsche Konsum REIT-AG publishes full year 2023/2024 results

• Rental income amounted to EUR 77.4 million, representing a slight decline of 2.9% year-on-year, primarily due to selective portfolio sales
• Stable net rental income of EUR 48 million (previous year EUR 48.2 million)
• Funds from Operations (FFO) decreased to EUR 28 million (previous year EUR 33.1 million), equating to an FFO per share (undiluted) of EUR 0.80 and an FFO per share (fully diluted) of EUR 0.52, mainly impacted by increased debt costs
• Property portfolio value of EUR 886.2 million
• EPRA NTA (fully diluted) at EUR 7.55 per share, reflecting portfolio adjustments
• Net LTV reduced to 57.2% (previous year 61.6 %)
• Full-year Net Income result: EUR 1.97 million (previous year: EUR -181 million).
• Significant debt reduction of EUR 88.6 million, supported by strategic asset disposals
• Successful bond refinancing of EUR 145.9 million: after partial repayment of EUR 50 million in FY 23/24 and an additional repayment of EUR 10 million in 1Q 24/25 current remaining notional is EUR 85.9 million maturing in September 2025
• Repayment of a significant tranche of EUR 38 million loan from Obotritia Capital KGaA
• New CFO appointed in June 2024 to strengthen the leadership team and enhance business processes

Potsdam, 19 December 2024 – Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) (“DKR”) publishes audited IFRS figures for financial year 2023/2024.

Stable operational business with resilient key performance indicators

Deutsche Konsum REIT-AG delivered a solid operational performance in the financial year 2023/2024 with rental income amounting to EUR 77.4 million. The slight decline of 2.9% compared to the previous year was primarily driven by the company’s decision to sell selected assets as part of its strategic efforts to reduce debt. Despite the portfolio adjustments, net rental income was stable, experiencing a marginal decline of 0.5% to EUR 48 million.

DKR maintained a solid financial performance. Funds from Operations (FFO) for the period were in line with expectations, totaling EUR 28 million, down from EUR 33.1 million in the prior year. The decrease was largely the result of increased interest expenses following rising financing costs in the market and the effects of portfolio disposals. The FFO per share (fully diluted) was reported at EUR 0.52, reflecting a continued commitment to value creation despite challenging external conditions.

Significant debt reduction and successful bond refinancing 

DKR reduced debt by EUR 88.6 million, improving its financial flexibility and reducing risk. This was primarily achieved by the targeted sale of 17 selected properties during the fiscal year.

Furthermore, the company successfully refinanced EUR 145.9 million in maturing bonds in June 2024 and after partial repayment of EUR 50 million in FY 23/24 and an additional repayment of EUR 10 million in 1Q 24/25 current remaining notional is EUR 85.9 million maturing in September 2025. As a result of these measures, the Loan to Value ratio (LTV) was reduced to 57.2%, compared to 61.6% in the previous year.

After the end of the financial year, in addition to the notarization of selective individual property sales, DKR received a substantial portion of the outstanding loan from Obotritia Capital KGaA, amounting to EUR 38 million.

As of early December, DKR also welcomed the Federal and State Government Employees Retirement Fund (VBL) as a new shareholder through the conversion of a convertible bond, further strengthening its shareholder base.

Strategic focus and strengthened leadership

DKR appointed a new Chief Financial Officer in June 2024. The leadership team is focused on strengthening the balance sheet and systematically improving financial discipline and overall business processes.

In view of strengthening DKR's leadership and operational control, the company has decided to insource Asset and Property Management activities.

Outlook: Building resilience and financial flexibility

Looking ahead, Deutsche Konsum REIT-AG remains committed to its long-term strategy of delivering sustainable growth. In the short- to mid-term, the company is focused on selective asset disposals, disciplined capital expenditure (CAPEX), and continued debt reduction.

With the current portfolio continuing to benefit from strong locations for everyday goods retailers, the company remains well-positioned to weather challenging market conditions and pursue growth opportunities in its core markets. Strengthened by the positive momentum of recent weeks and months, the management board sees significant opportunities to advance in its long-term strategy.

Conference Call

Deutsche Konsum REIT-AG will hold an analysts' conference (webcast and conference call) on the annual results of the 2023/2024 financial year today, 19 December 2024, 10:00 a.m. CET/11:00 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 Annual Report 2023/2024 is  available for download under https://www.deutsche-konsum.de/en/investor-relations/financial-reports.

About Deutsche Konsum REIT-AG

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 focus of the Company's activities is on the acquisition, management and development of local supply properties with the aim of continuous performance and the leveraging of 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 12 b
14482 Potsdam
Tel: 0331 / 74 00 76 - 533
Fax: 0331 / 74 00 76 - 599
E-Mail: mk@deutsche-konsum.de

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