DEMIRE closes the 2025 financial year in line with expectations despite a challenging market environment
- Rental income of EUR 53.5 million (previous year: EUR 65.3 million) and FFO I of EUR 10.1 million (previous year: EUR 26.2 million) in line with expectations
- Sales of nine properties generating proceeds of EUR 46.6 million, with two further sales totalling EUR 17.5 million in the first quarter of 2026
- Guidance for 2026: rental income between EUR 41.5 million and EUR 43.5 million and FFO I between EUR -1.0 million and EUR 1.0 million
Langen, 19 March 2026.?DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has closed the 2025 financial year with a solid result in line with the forecast revised upwards in December 2025, despite a persistently challenging economic environment and a reduced portfolio.
Lower rental income and FFO I are in line with expectations
As expected, rental income of EUR 53.5 million was generated in the 2025 financial year following property sales (previous year: EUR 65.3 million). This means that revenue falls within the upwardly revised forecast range of EUR 52.0 to 54.0 million published in August 2025. The FFO guidance from March 2025 (EUR 3.5 to 5.5 million) was most recently increased in December 2025 to EUR 9.0 to 11.0 million, with FFO I (after tax, before minority interests and interest on shareholder loans) of EUR 10.1 million (previous year: EUR 26.2 million) in the 2025 financial year.
CEO Dr Dirk Rüffel: "Thanks to strong letting performance and an improved cost base, we were able to steer FFO towards the target we last raised in December. As the new CEO, my goal for 2026 is to unlock further efficiency potential and continue to drive value creation across the portfolio."
Positive growth in EBIT and the sale of eleven properties
Earnings before interest and taxes (EBIT) improved in the 2025 financial year from EUR -93.0 million to EUR -34.9 million. As in the previous year, the continued negative EBIT is primarily attributable to the fair value adjustment of the property portfolio amounting to EUR -58.8 million (previous year: EUR -58.7 million). This corresponds to a like-for-like write-down of 4.6% on the portfolio value at the end of 2024 (previous year: -4.0%). This means that the decline in valuation is of a similar magnitude to that of the previous year.
As at 31 December 2025, the DEMIRE portfolio had a market value of EUR 688.3 million, compared with approximately EUR 779.3 million at the end of 2024. This decline is primarily attributable to the sale of properties and market-related write-downs of the portfolio. Nine properties were sold in 2025 for a total of EUR 46.6 million and transferred to the buyers. Two further properties followed in 2026, achieving a total sale price of EUR 17.5 million.
CIO Ralf Bongers commented: "Despite a market environment that remains challenging, we were able to successfully sell eleven properties in 2025 and early 2026. Thanks to our selective approach to property sales, we will be well placed to capitalise on any potential market recovery in 2026."
The net asset value (NAV) fell from EUR 258.1 million at the end of 2024 to EUR 168.1 million as at 31 December 2025. This corresponds to a decline per share from EUR 2.45 to EUR 1.59.
Net debt ratio remains stable - significantly lower administrative costs
The net debt ratio, as defined in the bond terms, remained virtually unchanged at 41.8% at the end of 2025 (previous year: 40.9%). Administrative expenses fell by 27.6% compared with the previous year to EUR 10.0 million. Bank loans totalling around EUR 77 million were extended or newly agreed for five properties. In some cases, loan amounts were also increased.
CFO Tim Brückner adds: "The optimisation of our group and cost structure, as well as the successful restructuring and expansion of our financing arrangements, clearly demonstrate the progress we have made in the 2025 financial year. This has enabled us to strengthen our organisational foundation and financial stability in the long term, and we are therefore well positioned for 2026."
As expected, the property sales that have taken place will be reflected in the rental income for 2026, which is forecast to be between EUR 41.5 million and EUR 43.5 million. FFO I (after tax, before minority interests and interest on shareholder loans) is expected to be between EUR -1.0 million and EUR 1.0 million. The decline in FFO I is primarily attributable to falling rental income.
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Invitation to a conference call on 19 March 2026
The DEMIRE Management Board invites all interested parties to a conference call on 19 March 2026 at 11:00 a.m. (CET) to present the results for the 2025 financial year.
Please use the following registration link:
https://www.nuways-ag.com/events/fy-2025-earnings-call-hGrXbYr
A presentation of the results and the reporting are available for download on the website https://www.demire.ag/en/publications/
Selected Group key figures for DEMIRE Deutsche Mittelstand Real Estate AG
| Consolidated income statement (in EUR million) | 1 January 2025- 31 December 2025 | 1 January 2024- 31 December 2024 |
| Rental income | 53.5 | 65.3 |
| Profit from the rental of real estate | 36.8 | 44.5 |
| EBIT | -34.9 | -93.0 |
| Financial result | -51.8 | 10.4 |
| Profit for the period after taxes | -90.3 | -87.5 |
| FFO I (after taxes, before minorities and interest on shareholder loan) | 10.1 | 23.4 |
| Undiluted/diluted FFO I per share (EUR) | 0.10/0.10 | 0.22/0.22 |
| Consolidated balance sheet (in EUR million) | 31 December 2025 | 31 December 2024 |
| Balance sheet total | 849.2 | 951.2 |
| Investment properties | 591.9 | 724.7 |
| Cash and cash equivalents | 54.2 | 44.8 |
| Properties held for sale | 103.5 | 76.7 |
| Equity (incl. non-controlling interests) | 219.3 | 312.9 |
| Equity ratio (in % of total assets) | 17.8 | 25.4 |
| Undiluted/diluted NAV | 168.1/168.1 | 258.1/258.1 |
| NAV per share (EUR, undiluted/diluted) | 1.59/1.59 | 2.45/2.45 |
| Net financial liabilities¹ | 332.3 | 371.1 |
| Net leverage ratio (Net-LTV) in %¹ | 41.8 | 40.9 |
| Portfolio key figures | 31 December 2025 | 31 December 2024 |
| Properties (number) | 43 | 51 |
| Market value (in EUR million) | 688.3 | 779.3 |
| Annualised contractual rents (in EUR million) | 51.3 | 56.4 |
| Rental yield (in %) | 7.5 | 7.2 |
| EPRA vacancy rate (in %)² | 16.4 | 15.1 |
| WALT (in years) | 4.7 | 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 31 December 2025, DEMIRE had a real estate portfolio of 43 properties with a lettable area of around 537 thousand square metres. Taking into account the proportionately acquired Cielo property in Frankfurt/Main, the market value amounts to around EUR 0.9 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
