Q1 2026 Deutsche Konsum Real Estate AG Earnings Call Transcript
Key Points
- FFO increased by 57%, primarily driven by lower interest expenses.
- Loan-to-value ratio was reduced to 56.4%, with a pro forma expectation of 41% after the debt-to-equity swap.
- Average weighted debt cost was substantially lower at almost 3%.
- The vacancy rate decreased from 14.2% to 13.6%, driven by the sale of a property with substantial vacancy.
- The restructuring plan, including a capital increase and debt-to-equity swap, is expected to improve financial ratios and KPIs.
- Rental income decreased by EUR800,000 to EUR16.9 million, a 4.4% decline year-over-year due to asset sales.
- Outstanding receivable of EUR16 million from Obotritia remains unpaid, with ongoing discussions to resolve the issue.
- A write-down of EUR2.5 million was recorded due to bad debt provisions and a tenant bankruptcy.
- Some asset sales are expected to occur below current market value, potentially impacting future valuations.
- Interest rates are expected to increase after the capital increase and debt-to-equity swap are implemented.
Hello, and welcome to the Deutsche Real Estate first quarter financial year '25-'26 financial presentation. My name is Kyrill Turchaninov. I'm the CFO of Deutsche Consumer Real Estate; and Mr. Lars Wittan is also sitting right next to me. We will be presenting today's results, today's numbers.
We can start by taking a look at page 4, where we have the highlights. It is a bit more compact than we usually do. We have last time presented our numbers just under two months ago. So some things will be repeated because the events took place already in Q1, and we talked about those a little bit last time in December.
But anyway, the Q1, we have the rental income, which decreased by EUR800,000 to EUR16.9 million, about 4.4% down versus the same quarter of the prior financial year. So we are doing year-over-year comparison here, and that went pretty much as expected because of the asset sales.
FFO went up by about 57%. So it seems to be somewhat significant number. The primary
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