DEMIRE confirms stable operating performance in the first quarter of 2025
- Rental income decreases to EUR 14.0 million after sales (previous year: EUR 18.6 million)
- FFO I (after taxes, before minority interests and interests on shareholder loans) falls to EUR 2.1 million (previous year: EUR 7.9 million)
- Guidance for 2025 confirmed: rental income of between EUR 51.0 million and EUR 53.0 million and FFO I of between EUR 3.5 million and EUR 5.5 million
Langen, 8 May 2025.  The results of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) were stable in the first quarter of 2025, given the reduced portfolio base, and developed in line with the Executive Board’s expectations.
Rental income and FFO reduced as expected following sales
Rental income decreased sharply by 24.7 per cent to EUR 14.0 million (Q1 2024: EUR 18.6 million) as a result of the reduced portfolio size. Earnings before interest and taxes (EBIT) fell to EUR -3.4 million in the same period (Q1 2024: EUR 4.8 million). The decline is mainly due to market value adjustments to properties held for sale (EUR -10.8 million).
FFO I (after taxes, before minority interests and interests on shareholder loans) totalled EUR 2.1 million in the reporting period (Q1 2024: EUR 7.9 million). This development is also largely a consequence of DEMIRE’s reduced property portfolio.
Frank Nickel, CEO of DEMIRE, says: ‘Our consistently implemented sales strategy led to the expected declines in key earnings figures. At the same time, we tripled our letting performance in the first quarter – a strong sign of the effectiveness of our reorganised asset management. This is a clear exclamation mark, especially in this market environment.’
The market value of the DEMIRE portfolio fell to around EUR 766.0 million after sales and value adjustments (year-end 2024: EUR 779.3 million). The net asset value (NAV, undiluted) decreased accordingly by EUR 0.16 to EUR 2.29 per share in the reporting period (year-end 2024: EUR 2.45).
DEMIRE handed over two properties to their new owners in the first quarter of 2025. Ralf Bongers, CIO of DEMIRE, commented: ‘In addition to these already completed transactions, we are in advanced negotiations on further sales. We are making measurable progress in the implementation of our transaction strategy, driving forward the streamlining of our portfolio and strengthening our liquidity.’
Tripling of letting performance
The letting performance expanded to 25,500 m² (Q1 2024: 8,200 m²). This represents a tripling compared to the same period of the previous year and is the highest letting performance in a first quarter since 2022. The EPRA vacancy rate (excluding properties classified as project developments) nevertheless increased once again to 18.1% (year-end 2024: 15.1%). The average remaining lease term (WALT) of the entire portfolio rose slightly to 4.8 years (year-end 2024: 4.6 years).
Net LTV stable
‘By partially repaying the bond, we have significantly reduced our net loan-to-value and strengthened our balance sheet structure considerably. Next, we will focus on property financing and the company’s running costs,’ explains Tim Brückner, CFO of DEMIRE. The average nominal cost of debt as of the reporting date was 4.32 per cent per year, almost unchanged from the end of 2024. The net leverage ratio (net LTV) was 41.5 per cent (year-end 2024: 40.9 per cent). Cash and cash equivalents totalled a solid EUR 46.2 million as at the reporting date.
Guidance for 2025 confirmed
The Executive Board confirms the guidance for the 2025 financial year and expects rental income of between EUR 51.0 million and EUR 53.0 million (2024: EUR 65.3 million) and FFO I (after taxes, before minority interests and interests on shareholder loans) of between EUR 3.5 million and EUR 5.5 million (2024: EUR 26.2 million).
End of press release
Invitation to the conference call on 8 May 2025
The Executive Board of DEMIRE invites all interested parties to a conference call on 8 May 2025 at 10:00 am (CEST) to present the results for the first quarter of 2025.
Please use the following registration link:
https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=9835784&linkSecurityString=1799faac10
The presentation of the results will also be broadcast live via webcast. Please use the link https://www.webcast-eqs.com/demire-2025-q1/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- 31 March 2025 |
01 January 2024- 31 March 2024 |
| Rental income | 14.0 | 18.6 |
| Profit from the rental of real estate | 9.0 | 12.2 |
| EBIT | -3.4 | 4.8 |
| Financial result | -12.6 | -3.9 |
| Profit for the period after taxes | -15.5 | -4.4 |
| FFO I (after taxes, before minorities) | 2.1 | 7.9 |
| Undiluted/diluted FFO I per share (EUR) | 0.02/0.02 | 0.07/0.07 |
| Â | Â | Â |
| Consolidated balance sheet (in EUR million) | 31 March 2025 | 31 December 2024 |
| Balance sheet total | 942.7 | 951.2 |
| Investment properties | 710.8 | 724.7 |
| Cash and cash equivalents | 46.2 | 44.8 |
| Properties held for sale | 78.4 | 76.7 |
| Equity (incl. non-controlling interests) | 298.5 | 312.9 |
| Equity ratio (in % of total assets) | 24.0 | 25.4 |
| Undiluted/diluted NAV | 241.2/241.2 | 258.1/258.6 |
| NAV per share (EUR, undiluted/diluted) | 2.29/2.29 | 2.45/2.44 |
| Net financial liabilities¹ | 478.7 | 468.5 |
| Net leverage ratio (Net-LTV) in %¹ | 41.5 | 40.9 |
| Â | Â | Â |
| Portfolio key figures | 31 March 2025 | 31 December 2024 |
| Properties (number) | 49 | 51 |
| Market value (in EUR million) | 766.0 | 779.3 |
| Annualised contractual rents (in EUR million) | 53.7 | 56.4 |
| Rental yield (in %) | 7.0 | 7.2 |
| EPRA vacancy rate (in %)² | 18.1 | 15.1 |
| WALT (in years) | 4.8 | 4.6 |
| ¹according to bond terms and conditions ² excl. properties classified as project development |
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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 2025, DEMIRE had a real estate portfolio of 49 properties with a lettable area of around 594 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.
Press contact:Â
DEMIRE Deutsche Mittelstand Real Estate AG
Julius Stinauer, Head of Investor Relations & Corporate Finance
Robert-Bosch-Straße 11
D-63255 Langen
Telefon: +49 (0) 6103 – 372 49 44
[email protected] www.demire.ag
