DEMIRE raises its guidance for 2026 following better-than-expected business performance
- Rental income declined by 17.11 per cent to EUR 23.0 million following property sales
- FFO I (after taxes, before minority interests and interest on shareholder loans) amounted to EUR 2.0 million (previous year: EUR 5.0 million)
- 2026 guidance revised upwards: rental income expected at EUR 42.5-44.5 million (previously: EUR 41.5-43.5 million) and FFO I at EUR 0.5-2.5 million (previously: EUR -1.0-1.0 million)
Langen, 13 August 2026.? DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has performed better than expected in the first half of 2026 and is therefore raising its guidance for the full year. Despite a decline in rental income, as expected, due to ongoing property sales, the company achieved positive FFO I of EUR 2.0 million and EBIT of EUR 8.0 million. For 2026, the Executive Board now expects rental income of between EUR 42.5 million and EUR 44.5 million, as well as FFO I of between EUR 0.5 million and EUR 2.5 million.
Positive operating performance despite a reduced portfolio base
Rental income fell by around 17.1¹ per cent to EUR 23.0 million (H1 2025: EUR 27.8 million) due to property sales. Earnings before interest and tax (EBIT) rose to EUR 8.0 million over the same period (H1 2025: EUR -24.9 million). In the previous year, one-off effects arising from write-downs on loans granted to Limes companies and an impairment loss had a negative impact on EBIT.
FFO I after tax and before minority interests and interest on shareholder loans amounted to EUR 2.0 million (H1 2025: EUR 5.0 million).
WALT is performing better despite a higher vacancy rate
The market value of the DEMIRE portfolio declined to around EUR 670.8 million (31 December 2025: EUR 688.3 million). The reduction of the portfolio value was primarily due to the sale of the property in Flensburg and the partial sale in Bonn (residential building). Consequently, the net asset value (NAV, undiluted) fell by EUR 0.19 to EUR 1.40 per share during the reporting period (31 December 2025: EUR 1.59).
Letting volume stands at 18,300 m² (H1 2025: 40,460 m²). The EPRA vacancy rate has risen to 21.5 per cent (31 December 2025: 16.4 per cent). The average remaining term of tenancy agreements (WALT) for the entire portfolio increased to 5.0 years following the signing of new tenancy agreements (31 December 2025: 4.7 years).
"The better-than-expected performance in the first half of the year shows that DEMIRE is consistently implementing its portfolio transformation even in a challenging market environment. In the second half of the year, we will be focusing clearly on letting performance and the operational stabilisation of the portfolio. Based on the results achieved and our current assessment of future business performance, we are raising our guidance for 2026," explains Dr Dirk Rüffel, CEO of DEMIRE.
Lower borrowing costs thanks to early refinancing measures
The average nominal cost of debt fell slightly during the reporting period to 4.74 per cent per annum (31 December 2025: 4.83 per cent). The net loan-to-value ratio (Net LTV) stood at 42.4 per cent, slightly above the year-end figure for 2025 (41.8 per cent). Cash and cash equivalents fell to EUR 44.4 million as at the reporting date (31 December 2025: EUR 54.2 million).
"Our forward-looking financing strategy is paying off: by taking early refinancing measures, we have been able to further reduce our average cost of debt whilst at the same time strengthening our financing structure in the long term. The property sales currently being carried out will generate additional liquidity and help to reduce our debt," explains Tim Brückner, CFO of DEMIRE.
Guidance for 2026 revised upwards
Based on the better-than-expected performance in the first half of 2026 and the current assessment of future business prospects, the Executive Board is raising its guidance for the 2026 financial year. Rental income is now expected to be between EUR 42.5 and 44.5 million, compared with the previous guidance of EUR 41.5 to 43.5 million, whilst FFO I after tax, before minority interests and interest on shareholder loans is expected to be between EUR 0.5 and 2.5 million, compared with the previous guidance of EUR -1.0 to 1.0 million. In the 2025 financial year, rental income stood at EUR 53.5 million and FFO I at EUR 10.1 million.
1 Difference due to rounding
End of press release
Invitation to the conference call on 13 August 2026
The Executive Board of DEMIRE invites all interested parties to a conference call on 13 August 2026 at 11:00 am (CEST) to present the results for the first half of 2026.
Please use the following registration link:
https://www.nuways-ag.com/events/earnings-call-2026-08-13-demire-ag-f4zh0
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- 30 June 2026 | 1 January 2025- 30 June 2025 |
| Rental income | 23.0 | 27.8 |
| Profit from the rental of real estate | 15.7 | 18.6 |
| EBIT | 8.0 | -24.9 |
| Financial result | -27.4 | -24.1 |
| Profit for the period after taxes | -15.7 | -45.8 |
| FFO I (after taxes, before minorities and interests on shareholder loans) | 2.0 | 5.0 |
| Undiluted/diluted FFO I per share (EUR) | 0.02/0.02 | 0.05/0.05 |
| Consolidated balance sheet (in EUR million) | 30 June 2026 | 31 December 2025 |
| Balance sheet total | 823.9 | 849.2 |
| Investment properties | 621.7 | 591.9 |
| Cash and cash equivalents | 44.4 | 54.2 |
| Properties held for sale | 59.2 | 103.5 |
| Equity (incl. non-controlling interests) | 205.0 | 219.3 |
| Equity ratio (in % of total assets) | 16.4 | 17.8 |
| Undiluted/diluted NAV | 147.4 | 168.1 |
| NAV per share (EUR, undiluted/diluted) | 1.40 | 1.59 |
| Net financial debt¹ | 330.8 | 332.3 |
| Net leverage ratio (Net-LTV¹) in % | 42.4 | 41.8 |
| Portfolio key figures | 30 June 2026 | 31 December 2025 |
| Properties (number) | 42 | 43 |
| Market value (in EUR million) | 670.8 | 688.3 |
| Annualised contractual rents (in EUR million) | 46.0 | 51.3 |
| Rental yield (in %) | 6.9 | 7.5 |
| EPRA vacancy rate² (in %) | 21.5 | 16.4 |
| WALT (in years) | 5.0 | 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 30 June 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
