Deutsche Konsum REIT-AG Reports Mixed Financial Results for H1 2023/2024

Deutsche Konsum REIT-AG experienced a varied performance in the first half of the 2023/2024 financial year. The company reported a slight increase in rental income by 2.9% reaching EUR 39.8 million, attributed to a marginally larger property portfolio and rent indexation. In contrast, net rental income declined by 6.5% to EUR 24.8 million due to rising rental expenses.

The company's funds from operations (FFO) saw a decrease of 17% from the previous year, amounting to EUR 16.5 million. This decline is mainly due to higher interest costs associated with variable-rate loans and new financing. The comprehensive portfolio consists of 183 properties valued at about EUR 1 billion, generating an annual rent of EUR 78.1 million. A decrease in rental income is noted from the previous 30 September 2023 figure of EUR 79.2 million.

Moreover, the EPRA NTA per share slightly increased to EUR 7.91, and the net loan-to-value (LTV) stood at 61.4% as of the last reported period. The management highlighted ongoing final discussions regarding the extension of maturing bonds, with temporary extensions already in place until the negotiations conclude.

Deutsche Konsum REIT-AG has committed to several strategic sales to improve its financial standing, including a notable sale of a sub-portfolio of 14 properties, expected to finalize by the end of June 2024. These proceeds will primarily address bank liabilities and partial bond repayments.