DEMIRE reports expected decline in earnings as a result of property sales in the first three quarters of 2025

DEMIRE reports expected decline in earnings as a result of property sales in the first three quarters of 2025

• Rental income fell to EUR 41.4 million (previous year: EUR 50.6 million) as a result of the smaller portfolio size.
• FFO I (after tax, before minorities and interests on shareholder loans) decreased to EUR 8.3 million (previous year: EUR 23.0 million).
• Guidance for 2025 confirmed: rental income between EUR 52.0 million and EUR 54.0 million; FFO I (after taxes, before minority interests and interests on shareholder loans) between EUR 5.0 million and EUR 7.0 million.

Langen, 6 November 2025.  DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) recorded the expected decline in earnings in the first nine months of 2025. This is in line with the forecast and is mainly attributable to the targeted reduction of the real estate portfolio.

Decline in rental income and FFO I continues as a result of portfolio streamlining

Rental income fell to EUR 41.4 million (9M 2024: EUR 50.6 million). Earnings before interest and taxes (EBIT) declined to EUR -28.1 million in the same period (9M 2024: EUR -13.8 million). The decline is primarily attributable to lower profit from the rental of real estate (EUR -6.5 million compared to the previous year) and write-downs on loans granted to the LIMES companies, which have now been deconsolidated (EUR 16.5 million). This was offset by lower administrative expenses (EUR -1.2 million compared to the previous year) and lower other operating expenses (EUR -5.5 million compared to the previous year).

Funds from operations (FFO I) after tax, before minorities and interests on shareholder loans fell to EUR 8.3 million (9M 2024: EUR 23.0 million). The decline is also a consequence of the reduced property volume of the portfolio, which has an impact on FFO I through lower rental income.

Stable letting performance in a complex market environment

Despite the smaller portfolio and the challenging economic situation, letting performance remained virtually stable in the first nine months of 2025 at 56,200 m² (9M 2024: 60,310 m²). New leases, including those in Langenfeld and Flensburg, contributed 18 per cent to the result, while 82 per cent was attributable to contract extensions, including those in Kempten, Celle and Zittau. The EPRA vacancy rate (excluding properties classified as project developments) rose to 17.4 per cent as at 30 September 2025 (31 December 2024: 15.1 per cent). The average remaining term of leases (WALT) for the entire portfolio rose slightly to 4.7 years (31 December 2024: 4.6 years).

Frank Nickel, CEO of DEMIRE: “We are demonstrating our strength even in a challenging economic environment: our consistent asset management ensures stable rental performance, while we are continuously increasing our operational efficiency. From next year onwards, we will also be tapping into additional earnings potential for our B2B property with the new centre management of Imotex in Neuss. In addition, we are gradually implementing energy savings in our portfolio – to the benefit of our tenants and the environment.”

The market value of the DEMIRE portfolio fell slightly to around EUR 735.3 million (31 December 2024: EUR 779.3 million). The decline in the portfolio value is mainly due to property sales. Ralf Bongers, CIO of DEMIRE, comments: “In a transaction market that remains subdued, we have deliberately sold properties that do not fit our strategy and are mature, thereby further focusing and strengthening our portfolio. We are proceeding cautiously and selectively in this regard – in some cases, we are also postponing sales processes if we believe that the potential for value appreciation through asset management measures has not yet been fully exploited.”

The negative result for the period caused the net asset value (NAV, undiluted) to fall by EUR 0.65 per share to EUR 1.80 (31 December 2024: EUR 2.45) in the reporting period.

Increasing liquidity and declining net debt through sales

The average nominal cost of debt remained virtually unchanged at 4.43 per cent per annum during the reporting period. The net debt ratio (net LTV) was 43.0 per cent, slightly above the year-end figure for 2024 (40.9 per cent). At the same time, net debt fell to EUR 362.2 million (31 December 2024: EUR 371.1 million). Cash and cash equivalents rose to EUR 49.8 million as of the reporting date (31 December 2024: EUR 44.8 million) mainly driven by sales. Tim Brückner, CFO of DEMIRE, commented: “After a period of subdued market activity, we are currently seeing renewed interest from investors and banks in real estate-related financing. This trend is underpinned by our latest transactions: in the current year, we have concluded five new loans with a total volume of around EUR 75 million. This confirms our assessment that the market’s willingness to provide financing is gradually returning – a positive signal for both our company and the industry as a whole.”

Guidance for 2025 confirmed

The Executive Board confirms its guidance for the 2025 financial year. Rental income of between EUR 52.0 and 54.0 million (2024: EUR 65.3 million) and FFO I (after tax, before minorities and interests on shareholder loans) of between EUR 5.0 and 7.0 million (2024: EUR 26.2 million) are expected.

End of press release

Invitation to conference call on 6 November 2025

The DEMIRE Management Board invites all interested parties to a conference call on 6 November 2025 at 11:00 a.m. (CET) to present the results for the first nine months of 2025.

Please use the following registration link:

https://www.nuways-ag.com/events/demire-q3-2025-earnings-call-eoixrt4z

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

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 September 2025, DEMIRE had a real estate portfolio of 46 properties with a lettable area of around 573 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