Deutsche Konsum REIT (DKG) investor relations material

Executive summary

• Rental income for Q1 2025/2026 declined by 4.4% year-over-year to €16.9 million due to asset sales, while FFO rose 57% to €7.4 million, mainly from lower interest expenses.

• Eight properties were sold for €34.7 million, with annual rent of €3.2 million; two sales closed in Q1.

• Major restructuring plan approved, including a debt-to-equity swap of €118 million and a capital increase of about €59.6 million, with 59.6 million new shares to be issued at €2.00 per share.

• Loss of REIT tax exemption as of October 1, 2025, due to equity ratio falling below 45% for three consecutive years.

• Ongoing discussions with Obotritia regarding an outstanding receivable, with partial repayment and negotiations for remaining interest.

Financial highlights

• Net income for the quarter was €3.6 million, up 107% year-over-year; net rental income rose 30.7% to €13.8 million.

• FFO per share (undiluted) increased to €0.15; aFFO per share to €0.14.

• Net asset value (NAV) per share rose to €6.39, and EPRA NTA per share to €6.17.

• Loan-to-value (LTV) ratio reduced to 56.4% from the prior quarter; pro forma LTV post debt-to-equity swap estimated at 41%.

• Average weighted debt cost dropped to 2.92% due to zero-interest instruments pending the capital increase.

Outlook and guidance

• LTV and NAV per share expected to improve post-capital increase and debt-to-equity swap.

• Rental income for FY 2025/2026 forecasted between €58 million and €63 million, reflecting expected property sales.

• FFO is expected to increase, but timing and pricing of asset sales introduce uncertainty.

• Average debt cost likely to rise after restructuring is completed.

• Ongoing asset sales may result in further valuation changes, with some sales below book value anticipated.