Deutsche Konsum REIT-AG
Deutsche Konsum REIT-AG: Devaluation of the property portfolio and value adjustments lead to a negative annual result of EUR 203 million / EPRA NTA at EUR 7.99 per share

Publication of an inside information pursuant to Article 17 MAR

Devaluation of the property portfolio and value adjustments lead to a negative annual result of EUR 203 million / EPRA NTA at EUR 7.99 per share

Potsdam, 24 November 2023 – The Management Board of Deutsche Konsum REIT-AG (“DKR”) (ISIN DE000A14KRD3) informs that the annual property valuation results in a devaluation of the property portfolio. Accordingly, the preliminary valuation of the real estate portfolio by an external and independent valuer shows a decline in value of around 9% (like-for-like) compared to the previous year’s valuation. The portfolio is valued at EUR 997 million as of 30 September 2023 (30 September 2022: EUR 1,051 million). The main factor influencing the devaluation is the significant rise in interest rates during the financial year.

In addition, the Management Board has decided to adjust the value of the loan receivables from Obotritia Capital KGaA, currently totalling EUR 65.7 million, by around 55% as a precautionary measure. Accordingly, the loan will be recognised at around EUR 30 million as at 30 September 2023 (subject to audit by the auditor). Irrespective of the accounting treatment, however, DKR continues to assume that the loan receivable will be repaid in full.

The devaluation of the properties and the impairment of the loans result in an increase in the LTV to around 60% (30 September 2022: 49.7%).

Furthermore, the Management Board has decided that, due to the unclear time perspective and the unclear outcome of the legal dispute with the tax authorities with regard to obtaining REIT status, all possible tax risks will be recognised for reasons of prudence. Accordingly, the previously recognised tax receivables will be derecognised and at the same time deferred taxes will be recognised for the first time in accordance with IFRS, resulting in total tax expenses of around EUR 72.5 million.

Despite the positive operating performance, the aforementioned accounting measures will result in a negative result for the period of around EUR -202.6 million for the past financial year 2022/2023 (previous year: EUR 60.4 million), which is also expected to lead to a net loss for the year of around EUR -63.7 million in accordance with German GAAP.

As a result, no dividend proposal can be made for the past financial year 2022/2023.

The EPRA NTA (fully diluted) will decrease by around EUR 2.99 per share due to the negative annual result and will amount to around EUR 7.99 per share as at 30 September 2023 (30 September 2023: EUR 10.98).

Contact:
Deutsche Konsum REIT-AG
Mr. Christian Hellmuth
CFO
Marlene-Dietrich-Allee 12 b
14482 Potsdam
Tel. 0331 / 74 00 76 – 517
Fax: 0331 / 74 00 76 – 599
E-Mail: ch@deutsche-konsum.de