Deutsche Konsum REIT-AG Faces Portfolio Devaluation and Tax Loss

Deutsche Konsum REIT-AG has announced a projected devaluation of its property portfolio and potential loss of its REIT tax exemption. The latest valuation reports a portfolio worth approximately EUR 794 million, reflecting a 4.9% decrease from previous estimates in September 2024. This results in a non-cash impairment of around EUR 41 million, adversely affecting the company's financial earnings for Q3 2024/2025.

The company is unlikely to satisfy the German REIT Act's requirement for an equity ratio of at least 45% by 30 September 2025. Having failed this requirement in the past two years, the tax benefits afforded as a REIT are expected to end by this date. These potential repercussions have been pre-emptively included in the company's restructuring plan.

As part of its restructuring efforts, Deutsche Konsum is negotiating with creditors and planning a capital increase. An Extraordinary General Meeting in autumn 2025 will likely formalize this. Furthermore, it intends to dispose of properties for EUR 300 to 350 million by 2027, with restructuring negotiations expected to conclude by August 2025.