DEMIRE raises guidance for 2025
- Rental income declines by 21.7 per cent to EUR 27.8 million following property sales
- FFO I (after taxes, before minority interests and interests on shareholder loans) reaches EUR 5.0 million (previous year: EUR 15.5 million)
- Guidance for 2025 raised: rental income between EUR 52.0 million and EUR 54.0 million and FFO I (after taxes, before minority interests and interests on shareholder loans) between EUR 5.0 million and EUR 7.0 million expected
Langen, 14 August 2025.? DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) reported lower earnings for the first half of 2025 compared to the previous year, as anticipated, primarily due to opportunistic property sales. However, the company's performance exceeded its own guidance.
Property sales led to decline in rental income and FFO I
Rental income fell by 21.7 per cent to EUR 27.8 million (H1 2024: EUR 35.5 million) due to property sales. Earnings before interest and taxes (EBIT) fell to EUR -24.9 million in the same period (H1 2024: EUR -14.1 million). The decline is mainly related to write-downs on loans granted to Limes companies (Impairment of financial and other receivables: EUR -12.5 million).
FFO I after taxes and before minority interests and interests on shareholder loans amount to EUR 5.0 million (H1 2024: EUR 15.5 million).
Further property sales and increasing letting performance
The market value of the DEMIRE portfolio declined to around EUR 747.3 million (31 December 2024: EUR 779.3 million). Both the sales of the properties in Bad Kreuznach, Dortmund and Trier and the value adjustments in the sales portfolio led to a decline in the portfolio value. As a result, the net asset value (NAV, undiluted) decreased by EUR 0.48 to EUR 1.97 per share in the reporting period (31 December 2024: EUR 2.45). Ralf Bongers, CIO of DEMIRE, says: "Property sales are developing positively. We have already generated EUR 40 million in proceeds in the current year. We expect further success with the planned property sales in the second half of the year."
Letting performance expanded to 40,460 m² (H1 2024: 25,000 m²). The EPRA vacancy rate rose slightly to 17.3 per cent (31 December 2024: 15.1 per cent). The average remaining lease term (WALT) of the entire portfolio increased to 4.8 years following the conclusion of lease agreements (31 December 2024: 4.6 years).
Declining net debt ratio foreseeable; further partial repayment of the bond achieved
The average nominal cost of debt remained virtually unchanged at 4.31 percent per annum in the reporting period. The net debt ratio (net LTV) was 42.4 percent, slightly above the year-end figure for 2024 (40.9 percent). Cash and cash equivalents decreased to EUR 34.9 million as of the reporting date (31 December 2024: EUR 44.8 million). "The sales currently being implemented will generate additional liquidity and contribute to a further reduction in debt. In addition, in July 2025, we were able to use proceeds from new property financing to partially repay the corporate bond. The outstanding nominal now amounts to EUR 247.1 million," explains Tim Brückner, CFO of DEMIRE.
Guidance for 2025 raised
Frank Nickel, CEO of DEMIRE, says: "DEMIRE successfully completed transactions and new financing in the first half of 2025 and made initial progress in further reducing the bond. At the same time, we recorded operational improvements, particularly in the area of leasing. In view of the earnings development in the first half of the year and the current assessment for the rest of the year, we see scope to adjust our forecast for the full year 2025 upwards."
The Executive Board is therefore raising its guidance for the 2025 financial year. In this respect, rental income is expected to be between EUR 52.0 and 54.0 million (previously: EUR 51.0 to 53.0 million; 2024: EUR 65.3 million) and FFO I (after taxes, before minority interests and interests on shareholder loans) between EUR 5.0 and 7.0 million (previously: EUR 3.5 to 5.5 million; 2024: EUR 26.2 million).
End of press release
Invitation to the conference call on 14 August 2025
The Executive Board of DEMIRE invites all interested parties to a conference call on 14 August 2025 at 10:00 am (CEST) to present the results for the first half of 2025.
Please use the following registration link: https://webcast.meetyoo.de/reg/CfhdFxOYXPSa
The presentation of the results will also be broadcast live via webcast. Please use the link https://www.webcast-eqs.com/demire-2025-h1/no-audio
For audio transmission, please use the dial-in via the registration link above. A presentation of the results will be made available for download on the website https://www.demire.ag/en/publications/
Selected Group key figures of DEMIRE Deutsche Mittelstand Real Estate AG
| Consolidated income statement (in EUR million) | 1 January 2025- 30 June 2025 | 1 January 2024- 30 June 2024 |
| Rental income | 27.8 | 35.5 |
| Profit from the rental of real estate | 18.6 | 23.5 |
| EBIT | -24.9 | -14.1 |
| Financial result | -24.1 | -7.0 |
| Profit for the period after taxes | -45.8 | -27.6 |
| FFO I (after taxes, before minorities and interests on shareholder loans) | 5.0 | 15.5 |
| Undiluted/diluted FFO I per share (EUR) | 0.05/0.05 | 0.15/0.15 |
| Consolidated balance sheet (in EUR million) | 30 June 2025 | 31 December 2024 |
| Balance sheet total | 889.8 | 951.2 |
| Investment properties | 624.1 | 724.7 |
| Cash and cash equivalents | 34.9 | 44.8 |
| Properties held for sale | 133.1 | 76.7 |
| Equity (incl. non-controlling interests) | 264.9 | 312.9 |
| Equity ratio (in % of total assets) | 22.0 | 25.4 |
| Undiluted/diluted NAV | 207.8/207.8 | 258.1/258.1 |
| NAV per share (EUR, undiluted/diluted) | 1.97/1.97 | 2.45/2.45 |
| Net financial debt¹ | 362.2 | 371.1 |
| Net leverage ratio (Net-LTV¹) in % | 42.4 | 40.9 |
| Portfolio key figures | 30 June 2025 | 31 December 2024 |
| Properties (number) | 48 | 51 |
| Market value (in EUR million) | 747.3 | 779.3 |
| Annualised contractual rents (in EUR million) | 54.5 | 56.4 |
| Rental yield (in %) | 7.3 | 7.2 |
| EPRA vacancy rate² (in %) | 17.3 | 15.1 |
| WALT (in years) | 4.8 | 4.6 |
| ¹according to bond terms and conditions ² excl. properties classified as project development |
About DEMIRE Deutsche Mittelstand Real Estate AG
DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial properties in medium-sized cities and up-and-coming peripheral locations in metropolitan areas throughout Germany. The company's particular strength lies in realising real estate potential in these locations and focuses on an offering that is attractive to both international and regional tenants. As of 30 June 2025, DEMIRE had a real estate portfolio of 48 properties with a lettable area of around 582 thousand square metres. Taking into account the proportionately acquired Cielo property in Frankfurt/Main, the market value amounts to around EUR 1.0 billion.
The portfolio's focus on office properties with an admixture of retail and hotel properties is appropriate for the risk/return structure of the commercial property segment. The Company attaches great importance to long-term contracts with solvent tenants and the realisation of potential and therefore continues to expect stable and sustainable rental income and solid value growth. DEMIRE's portfolio is to be significantly expanded in the medium term. In expanding the portfolio, DEMIRE will focus on FFO-strong assets with potential, while properties that do not conform to the strategy will continue to be sold in a targeted manner. DEMIRE will continue to develop its operations and processes with numerous measures. In addition to cost discipline, operating performance is being improved through an active asset and portfolio management approach.
The shares of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) are listed in the Prime Standard of the German Stock Exchange in Frankfurt.
Contact:
Julius Stinauer
Head of Investor Relations & Corporate Finance
T: +49 6103 372 49 44
E: ir@demire.ag
