Strong Growth: German REIT DKR Achieves Record Performance

  • Rental Income Surges: Deutsche Konsum REIT-AG records a 6.0% rise in rental income, reaching EUR 58.7 million, driven by a growing property portfolio and rent hikes.
  • FFO Impact and Shifting Valuation: Funds from Operations (FFO) decline by 15%, EUR 27.0 million, due to higher borrowing costs and operational expenses. Valuation cycle shifts to address volatility.
  • Robust Portfolio Growth: With a EUR 1.1 billion real estate portfolio, DKR adds 184 retail properties and increases annualized rent to EUR 78.9 million during the reporting period.

Deutsche Konsum REIT-AG (DKR), a German real estate company specializing in retail properties, has reported impressive business performance for the first nine months of the 2022/2023 financial year. The company’s resilient approach to challenges like inflation and shifting valuation cycles has led to notable growth in key financial metrics.

Steady Rise in Rental Income

DKR’s rental income surged by 6.0% during the reporting period, reaching EUR 58.7 million. This increase was largely driven by a growing property portfolio and strategic rent hikes. The company also implemented Consumer Price Index (CPI)-linked rent increases, which amounted to EUR 2.1 million. These measures helped mitigate the impact of high inflation and contributed to an annualized rent of EUR 78.9 million.

FFO and aFFO Challenges

Despite the positive rental income growth, the company’s Funds from Operations (FFO) experienced a decline of 15%, totaling EUR 27.0 million (EUR 0.77 per share). The reduction was primarily due to increased borrowing costs, which amounted to EUR 3.4 million, and higher operating expenses related to the portfolio. Adjusted FFO (aFFO), which considers capitalised modernisation measures, also saw a significant decrease of 38.5%, totaling EUR 12.7 million, driven by higher investments in modernisation projects.

Shifting Valuation Cycle

To address the volatile interest rate and inflation environment, DKR made a significant change by adjusting its real estate portfolio valuation cycle from 30 June to 30 September each year. This change aims to enhance the accuracy of property valuations, providing a more realistic reflection of the market conditions.

Expansion of Real Estate Portfolio

DKR’s real estate portfolio continues to grow, now comprising 184 retail properties with a balance sheet value of approximately EUR 1.1 billion as of 30 June 2023. The annualized rent for this portfolio reached EUR 78.9 million, showcasing the company’s commitment to expansion. The acquisition of a food discounter in Suhl (Thuringia) marked a notable addition to the portfolio.

Financial Metrics and Outlook

The company’s EPRA Net Tangible Assets (NTA) per share demonstrated a positive trend, increasing to EUR 11.37 compared to EUR 10.98 per share as of 30 September 2022. The Net Loan-to-Value (LTV) ratio stood at 51.2%, slightly above the targeted level of around 50%.

Despite the Brandenburg Fiscal Court’s decision to deny DKR’s appeals against tax payments, the company’s management board confirmed a forecasted FFO of EUR 36 million to EUR 39 million for the current financial year.

Analyst Conference

To discuss these results, Deutsche Konsum REIT-AG conducted an analyst conference, including a webcast and conference call, on August 14, 2023. Stakeholders were provided with valuable insights into the company’s performance and its strategies for future growth.

Visited 1 times, 1 visit(s) today

Stay ahead in the financial world – Sign Up to Rateweb’s essential newsletter for free. Get the latest insights on business trends, tech innovations, and market movements, directly to your inbox. Join our community of savvy readers and never miss an update that could impact your financial decisions.

Do you have a news tip for Rateweb reporters? Please email us at


Start trading with a free $30 bonus

Trade stocks, forex, commodities, metals and CFDs on stock indices with an internationally licensed and regulated broker. For all clients who open their first real account, XM offers a $30 trading bonus without any initial deposit needed. Learn more about how you can trade over 1000 instruments on the XM MT4 and MT5 platforms from your PC and Mac, or from a variety of mobile devices.


Personal Financial Tools

Below is a list of tools built to assist South Africans to make the best financial decisions:



South Africa’s primary source of financial tools and information

Contact Us


Rateweb strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions.

Rateweb is not a financial service provider and should in no way be seen as one. In compiling the articles for our website due caution was exercised in an attempt to gather information from reliable and accurate sources. The articles are of a general nature and do not purport to offer specialised and or personalised financial or investment advice. Neither the author, nor the publisher, will accept any responsibility for losses, omissions, errors, fortunes or misfortunes that may be suffered by any person that acts or refrains from acting as a result of these articles.