Deutsche Konsum Real Estate AG (DKR) has made substantial progress in its restructuring efforts, as evidenced by its financial results for the first nine months of the 2025/2026 fiscal year, released on August 12, 2026. The company successfully reduced its financial liabilities to EUR 311.5 million as of June 30, 2026, down from EUR 471.1 million on September 30, 2025. This debt reduction was facilitated by completed property sales totaling approximately EUR 78 million since the restructuring began, with additional purchase agreements for two properties worth EUR 16 million already signed. The company's net loan-to-value (LTV) ratio improved significantly, falling from 57.8% to 41.1% during the same period, reflecting a stronger balance sheet.
The restructuring plan, which includes property disposals of up to EUR 220 million by September 2027, has also led to an increase in equity, which rose to EUR 397.0 million from EUR 304.3 million. This financial strengthening has reduced interest expenses to EUR 10.7 million in the first nine months, compared to EUR 18.7 million in the prior-year period. Consequently, Funds from Operations (FFO) increased to EUR 14.5 million, up from EUR 9.9 million in the previous year. However, FFO per share declined to EUR 0.18 from EUR 0.24 due to a higher number of shares outstanding following the restructuring capital increase and debt-to-equity swap.
Despite these improvements, the company reported a valuation loss of EUR 41.6 million on its portfolio as of June 30, 2026, representing a 5.7% decrease in value. This revaluation, conducted by CBRE, contributed to a net loss for the period of EUR -25.7 million, though this was an improvement from the EUR -32.6 million loss in the previous year. The portfolio now comprises 140 properties with a balance sheet value of EUR 693.7 million. Rental income declined to EUR 48.0 million from EUR 52.7 million, but net rental income remained nearly flat at EUR 29.2 million, indicating stable operational performance despite asset sales.
The company also announced changes to its leadership, with Daniel Lohken, formerly Chairman of the Supervisory Board, appointed as CEO on July 1, 2026, for a three-year term. Kyrill Turchaninov stepped down from the Management Board as planned on July 31, 2026. Dr. Kai Gregor Klinger succeeded Lohken as Chairman of the Supervisory Board, with Sebastian Wasser continuing as Vice Chairman. At the Annual General Meeting in April 2026, Thorsten Arsan was elected to the Supervisory Board, and new authorized and conditional capital was approved.
Looking ahead, DKR expects rental income for the full 2025/2026 fiscal year to be in the range of EUR 58 million to EUR 63 million, with FFO anticipated to increase due to lower interest expenses. However, the company acknowledges uncertainties in the transaction market due to the challenging geopolitical environment, which could affect the implementation of planned property sales. The restructuring progress is crucial for DKR's long-term stability, and the company remains focused on executing its plan to reduce debt and optimize its portfolio. For more details, the quarterly report is available at DKR's financial reports page, and the investor relations section provides additional information at DKR investor relations.
