Deutsche Konsum REIT-AG reduces leverage

Press release

Deutsche Konsum REIT-AG reduces leverage

• Net Loan-to-Value (Net-LTV) reduced to 54.7% (30 September 2024: 57.2%)
• Equity increased to EUR 340.4 million (Q1 2023/2024: EUR 318.3 million)
• Rental income decreased as planned due to property sales to EUR 17.7 million (Q1 2023/2024: EUR 19.9 million)
• Rental income amounted to EUR 10.6 million
• Funds from operations (FFO) decreased to EUR 4.7 million (Q1 2023/2024: EUR 8.0 million), equating to an FFO per share of EUR 0.13 (undiluted) (Q1 2023/2024: EUR 0.23)
• Stable property portfolio value of EUR 886.6 million
• EPRA NTA (fully diluted) increases slightly to EUR 7.60 per share (30 September 2024: EUR 7.55 per share) due to positive result for the period

Potsdam, 14 February 2025 - Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) (“DKR”) publishes IFRS figures for the first quarter of the financial year 2024/2025.

Stable operational performance and successful strategic portfolio adjustments

The operating business development progressed as expected. As a result of the targeted property sales, rental income amounted to EUR 17.7 million, reflecting a decline of 11.2% compared to the previous year.

Funds from operations (FFO) declined to EUR 4.7 million (Q1 2023/2024: EUR 8.0 million), equivalent to EUR 0.13 per share (Q1 2023/2024: EUR 0.23 per share). The aFFO (after deduction of CAPEX) decreased to EUR 2.6 million (Q1 2023/2024: EUR 6.0 million). This decline was primarily due to higher financing costs and the impact of asset disposals.

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

As of the reporting date, the portfolio comprised 165 properties with a balance sheet value of EUR 886.6 million.

Financial stability further strengthened by debt reduction

DKR successfully continued to reduce leverage in the first quarter. Net-LTV decreased to 54.7% (Q1 2023/2024: 57.2%), primarily driven by targeted repayments and refinancing measures.

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.

The company's equity increased by the current period surplus of EUR 1.7 million and the capital increase from the conversion of convertible bonds, bringing total equity to EUR 340.4 million (Q1 2023/2024: EUR 318.4 million).

Outlook: Focus on refinancing and portfolio optimization

The leadership team continues to focus on strengthening the balance sheet and systematically improving financial discipline and overall business processes throughout the current financial year. The company is currently in constructive discussions with bondholders of maturing promissory notes and expiring bonds, as well as with lenders of secured loans set to mature within the current financial year.

A financial outlook for the full fiscal year is expected to be provided with the half-year financial report.

Conference Call

Deutsche Konsum REIT-AG will hold an analysts' conference (webcast and conference call) on the annual results of the 2024/2025 financial year today, 14 February 2025, 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 Quarterly Statement for the first quarter of the 2024/2025 financial year is  available for download under https://www.deutsche-konsum.de/en/investor-relations/financial-reports and is also available on the JSE ´s Website at: https://senspdf.jse.co.za/documents/2025/jse/isse/dkre/Q12025.pdf.

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
Mareike Kuliberda
Investor Relations
Marlene-Dietrich-Allee 12b
14482 Potsdam
Tel: 0331 / 74 00 76 - 533
Fax: 0331 / 74 00 76 - 599
E-Mail: mk@deutsche-konsum.de