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Rental Income: Decreased to EUR17.7 million from EUR18.2 million in the previous quarter.
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Net Rental Income: Slight increase due to lower property costs.
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FFO (Funds From Operations): Increased to EUR0.13 per share from EUR0.11 per share in Q4, totaling EUR3.9 million.
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CapEx: Decreased to EUR2 million from EUR4.1 million in the prior quarter.
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Debt Reduction: Reduced by approximately EUR57 million.
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Loan Repayment: EUR38 million loan from Obotritia repaid.
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Convertible Bond Conversion: EUR20.4 million converted in December, with an additional EUR9.6 million converted in January.
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Loan-to-Value (LTV): Decreased to 54.7%.
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EPRA NTA (Net Tangible Assets): Slightly increased to EUR7.6 per share.
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Average Debt Cost: 3.95%.
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Property Portfolio: 165 properties, with two assets closed in the quarter.
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Annualized Rent: EUR69 million, down from EUR69.7 million in the prior quarter.
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Fair Value of Portfolio: EUR886.6 million.
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Debt Structure: Total debt reduced by 10.4%.
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Scope Rating: Issue rating at C, unsecured debt at CC.
Release Date: February 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Deutsche Konsum REIT-AG (XTER:DKG) successfully reduced its debt by approximately EUR57 million, primarily through asset sales.
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The company reported a slight increase in net rental income due to lower property costs.
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FFO (Funds from Operations) increased slightly to EUR0.13 per share, up from EUR0.11 in the previous quarter.
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The loan-to-value ratio decreased to 54.7%, aided by the conversion of a convertible bond.
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The company is actively working on refinancing and property sales, with plans to further reduce liabilities.
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Rental income decreased slightly from EUR18.2 million to EUR17.7 million compared to the previous quarter.
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The company faces challenges with refinancing costs, with expected interest rates around 4% to 5%, higher than previous rates.
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There is uncertainty regarding the outstanding EUR60 million loan to Obotritia, deferred until December 2025.
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The vacancy rate remains a concern, with some properties having high vacancy rates since acquisition.
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The company is not providing a forecast for FFO results due to ongoing refinancing and property sales plans.
Q: What are the refinancing costs and potential challenges in securing financing for Deutsche Konsum REIT-AG? A: Kyrill Turchaninov, CFO, explained that while the volume of refinancing is substantial, they have not yet discussed issuing additional shares to increase capital. They are in talks with banks for refinancing and topping up real estate-backed loans. The company is considering variable financing to avoid breakage costs. Current discussions indicate interest rates around 4-5%, which is higher than previous rates. The company is not overindebted, with over EUR300 million in equity, and is working on operational improvements.
