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Publication of an Inside Information – Devaluation of the Property Portfolio and Value Adjustments
DEUTSCHE KONSUM REIT-AG
(Incorporated in the Federal Republic of Germany)
(Registration number: HRB 13072)
FSE Share Code: A14KRD
JSE Share Code: DKR
ISIN: DE000A14KRD3
LEI: 529900QXC6TDASMCSU89
("DKR" or "the Company")
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 DKR 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).
DKR has a primary listing on the Prime Standard on the Frankfurt Stock Exchange and a
secondary listing on the JSE.
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
Potsdam, 24 November 2023
JSE Sponsor
PSG Capital
Date: 24-11-2023 05:00:00
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