Business update for financial year 2023/2024, Deutsche Konsum REIT-AG on track in a challenging market environment

Press release

Business update for financial year 2023/2024

Deutsche Konsum REIT-AG on track in a challenging market environment

• Stable operational business with significant debt reduction of EUR 88.6 million
• Successful bond refinancing of EUR 145.9 million
• New CFO appointed in June 2024 to strengthen leadership team and enhance business processes

Potsdam, 26 November 2024. Deutsche Konsum REIT-AG, one of the leading German property companies investing in food-retail anchored assets, looks back to a successful financial year 2023/2024. Today, the company has given a business update. Full year results will be presented on 19 December 2024.

The company has decisively addressed its challenges with a management reshuffle and strengthened leadership team. The management has taken several measures to ensure the successful refinancing of maturing bonds, the repayment of outstanding debt, and systematically enhancing financial discipline and overall business processes.

Stable operational business with resilient key performance indicators

• Rental income amounted to EUR 77.4 million, reflecting a slight decline of 2.9% year-on-year, primarily due to portfolio sales.
• Net rental income decreased slightly by 1.8% year-on-year to EUR 47.4 million, also driven by portfolio sales.
• Funds from Operations (FFO) for the period were in line with expectations, despite being impacted by increased debt costs. FFO decreased to EUR 27-29 million (compared to EUR 33.1 million in FY 2022/23), equating to an FFO per share (undiluted) of EUR 0.77-0.82 and an FFO per share (fully diluted) of EUR 0.50-0.54.
• EPRA NTA (fully diluted) Improved to EUR 7.60-8.00 per share (from EUR 7.64 as of 30 September 2023).
• Leverage Ratio (LTV) reduced to 57-60% (from 61.6% as of 30 September 2023), supported by repayments from property disposal proceeds, LTV to be reduced further in the next quarters.

Significant debt reduction of EUR 88.6 million

Obotritia Capital KGaA repaid an EUR 11.6 million tranche on its outstanding EUR 62.5 million debt (as of 30 September 2023) to the company in financial year 2023/2024. An additional EUR 30.6 million tranche was paid back in October 2024. Funds were used to reduce debt.

With the sale of 14 properties the company achieved a further debt reduction of EUR 77.3 million.

Successful bond refinancing of EUR 145.9 million

Bond refinancing of EUR 145.9 million was finalized in June 2024 – new debt instruments are secured and mature on 30 September 2025.

Additional selective asset disposals to further improve financial flexibility

Deutsche Konsum REIT AG remains committed to improving its financial flexibility through additional selective asset disposals, disciplined CAPEX management and strategic debt reduction. The company’s continued focus on operational stability ensures resilience amid challenging market conditions.

The full business update presentation with preliminary unaudited 2023/2024 financial results is available here: https://www.deutsche-konsum.de/en/investor-relations/presentations

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 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.