Deutsche Konsum REIT (DKG) Q1 2025 earnings summary

Executive summary

• Rental income for Q1 2024/2025 declined to €17.7 million, down 11.2% year-over-year and 2.9% sequentially, mainly due to asset sales.

• Net rental income increased sequentially but fell 17.2% year-over-year to €10.6 million; net income dropped 73% to €1.7 million.

• FFO rose sequentially to €4.7 million (undiluted FFO per share at €0.13), but declined 41% year-over-year.

• Debt was reduced by €57 million (-10% QoQ) through property sales and repayments, improving LTV to 54.7%.

• Management introduced new board members and is focused on operational improvements, refinancing, and asset management insourcing.

Financial highlights

• AFFO per share improved sequentially to €0.07 but fell 58% year-over-year; aFFO dropped to €2.6 million.

• EPRA NTA per share (fully diluted) at €7.60, down from €7.78 at prior year-end.

• EBIT decreased 18.5% year-over-year to €8.9 million.

• Average debt cost is 3.95%.

• Administrative expense ratio increased to 5.5% from 4.3% year-over-year.

Outlook and guidance

• Rental income for FY 2024/2025 is estimated between €66 million and €71 million, with FFO expected to decrease.

• No reliable full-year earnings forecast provided due to ongoing refinancing and property sales; guidance may be updated at half-year results.

• Focus remains on refinancing or repaying short-term maturing bonds.