DEMIRE remains operationally stable in the first quarter of 2026 - guidance confirmed
• Rental income after disposals at EUR 11.6 million (Q1 2025: EUR 14.0 million)
• FFO I at EUR 0.3 million (Q1 2025: EUR 2.1 million) - decline primarily due to property sales
• 2026 forecast confirmed: rental income EUR 41.5 to 43.5 million; FFO I EUR -1.0 to 1.0 million
Langen, 7 May 2026. In the first quarter of 2026, DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) performed in line with operational plans based on its reduced portfolio. The results were in line with previously communicated expectations and underscore the high degree of predictability of the business model.
Rental income and FFO I in line with expectations following disposals - EBIT significantly improved due to lower fair value adjustments on properties
As expected, rental income fell by 17.3 per cent to EUR 11.6 million (Q1 2025: EUR 14.0 million) as a result of the reduced portfolio size. Earnings before interest and taxes (EBIT) rose significantly over the same period to EUR 2.7 million (Q1 2025: EUR -3.4 million). In the previous year, higher negative fair value adjustments on properties had weighed on EBIT.
FFO I (after tax, before minority interests and interest on shareholder loans) amounted to EUR 0.3 million in the reporting period (Q1 2025: EUR 2.1 million). This development is also largely a consequence of the reduction in DEMIRE's property portfolio.
Dr Dirk Rüffel, CEO of DEMIRE, comments: "Our sales strategy sets out a clearly defined framework for our future development, and this is reflected in our key performance indicators. At the same time, we are actively managing the current rise in vacancy rates resulting from the expiry of major leases, whilst exercising sound judgement. Through the disciplined repositioning of our portfolio, we are strengthening the company's operational foundation and paving the way for future value creation."
Following disposals, the market value of the DEMIRE portfolio fell to approximately EUR 670.2 million (YE 2025: EUR 688.3 million). At the same time, the net asset value (NAV, undiluted) fell by EUR 0.11 to EUR 1.48 per share during the reporting period (YE 2025: EUR 1.59).
In the first quarter of 2026, DEMIRE handed over the properties in Flensburg and Bonn (partial sale) that had been sold in 2025 to their new owners.
Increase in the remaining term of lease agreements
Leasing activity fell to 2,700 m² (Q1 2025: 25,500 m²), due to the weak economic environment. The EPRA vacancy rate (excluding properties classified as project development) rose to 21.0 per cent (YE 2025: 16.4 per cent) due to expired leases. The average remaining lease term (WALT) for the entire portfolio has increased to 5.2 years (YE 2025: 4.7 years).
Falling cost of debt and a lower net loan-to-value
The average nominal cost of debt as at the reporting date was 4.74 per cent per annum (excluding shareholder loans), representing a slight decrease compared with the end of 2025 (4.83 per cent per annum). The net loan-to-value (Net LTV) also fell to 41.2 per cent (end of 2025: 41.8 per cent). Cash and cash equivalents remained virtually unchanged at EUR 53.7 million as at the reporting date. Tim Brückner, CFO of DEMIRE, adds: "We have further strengthened our financial profile in the first quarter through consistent management of our financing. Lower average cost of debt, an improved net LTV and a continued solid liquidity position underscore this development. I am also delighted that my contract has been extended and look forward to further contributing to DEMIRE's continuity and stability."
Guidance for 2026 confirmed
The Executive Board confirms the guidance for the 2026 financial year. Accordingly, rental income is expected to be between EUR 41.5 million and EUR 43.5 million (2025: EUR 53.5 million) and FFO I (after tax, before minority interests and interests on shareholder loans) of between EUR -1.0 million and EUR 1.0 million (2025: EUR 10.1 million).
End of press release
Invitation to a conference call on 7 May 2026
The DEMIRE Management Board invites all interested parties to a conference call on 7 May 2026 at 11:00 a.m. (CEST)/ 10:00 a.m. (UK) to present the results for Q1 2026.
Please use the following registration link:
https://www.nuways-ag.com/events/q1-2026-earnings-call-34NEdfQ
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 of DEMIRE Deutsche Mittelstand Real Estate AG
| Consolidated income statement (in EUR million) | 1 January 2026- 31 March 2026 | 1 January 2025- 31 March 2025 |
| Rental income | 11.6 | 14.0 |
| Profit from the rental of real estate | 7.6 | 9.0 |
| EBIT | 2.7 | -3.4 |
| Financial result | -13.7 | -12.6 |
| Profit for the period after taxes | -8.6 | -15.5 |
| FFO I (after taxes, before minorities and interests on shareholder loans) | 0.3 | 2.1 |
| Undiluted/diluted FFO I per share (EUR) | 0.00/0.00 | 0.02/0.02 |
| Consolidated balance sheet (in EUR million) | 31 March 2026 | 31 December 2025 |
| Balance sheet total | 832.6 | 849.2 |
| Investment properties | 593.4 | 591.9 |
| Cash and cash equivalents | 53.7 | 54.2 |
| Properties held for sale | 85.4 | 103.5 |
| Equity (incl. non-controlling interests) | 211.3 | 219.3 |
| Equity ratio (in % of total assets) | 17.1 | 17.8 |
| Undiluted/diluted NAV | 156.5/156.2 | 168.1/168.1 |
| NAV per share (EUR. undiluted/diluted) | 1.48/1.48 | 1.59/1.59 |
| Net financial liabilities¹ | 320.8 | 332.3 |
| Net leverage ratio (Net-LTV) in %¹ | 41.2 | 41.8 |
| Portfolio key figures | 31 March 2026 | 31 December 2025 |
| Properties (number) | 42 | 43 |
| Market value (in EUR million) | 670.2 | 688.3 |
| Annualised contractual rents (in EUR million) | 45.7 | 51.3 |
| Rental yield (in %) | 6.8 | 7.5 |
| EPRA vacancy rate (in %)² | 21.0 | 16.4 |
| WALT (in years) | 5.2 | 4.7 |
| 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 March 2026. DEMIRE had a real estate portfolio of 42 properties with a lettable area of around 512 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
