DEMIRE raises guidance for 2025
- Rental income declines by 21.7 per cent to EUR 27.8 million following property sales
- FFO I (after taxes, before minority interests and interests on shareholder loans) reaches EUR 5.0 million (previous year: EUR 15.5 million)
- Guidance for 2025 raised: rental income between EUR 52.0 million and EUR 54.0 million and FFO I (after taxes, before minority interests and interests on shareholder loans) between EUR 5.0 million and EUR 7.0 million expected
Langen, 14 August 2025. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) reported lower earnings for the first half of 2025 compared to the previous year, as anticipated, primarily due to opportunistic property sales. However, the company’s performance exceeded its own guidance.
Property sales led to decline in rental income and FFO I
Rental income fell by 21.7 per cent to EUR 27.8 million (H1 2024: EUR 35.5 million) due to property sales. Earnings before interest and taxes (EBIT) fell to EUR -24.9 million in the same period (H1 2024: EUR -14.1 million). The decline is mainly related to write-downs on loans granted to Limes companies (Impairment of financial and other receivables: EUR -12.5 million).
FFO I after taxes and before minority interests and interests on shareholder loans amount to EUR 5.0 million (H1 2024: EUR 15.5 million).
Further property sales and increasing letting performance
The market value of the DEMIRE portfolio declined to around EUR 747.3 million (31 December 2024: EUR 779.3 million). Both the sales of the properties in Bad Kreuznach, Dortmund and Trier and the value adjustments in the sales portfolio led to a decline in the portfolio value. As a result, the net asset value (NAV, undiluted) decreased by EUR 0.48 to EUR 1.97 per share in the reporting period (31 December 2024: EUR 2.45). Ralf Bongers, CIO of DEMIRE, says: “Property sales are developing positively. We have already generated EUR 40 million in proceeds in the current year. We expect further success with the planned property sales in the second half of the year.”
Letting performance expanded to 40,460 m² (H1 2024: 25,000 m²). The EPRA vacancy rate rose slightly to 17.3 per cent (31 December 2024: 15.1 per cent). The average remaining lease term (WALT) of the entire portfolio increased to 4.8 years following the conclusion of lease agreements (31 December 2024: 4.6 years).
Declining net debt ratio foreseeable; further partial repayment of the bond achieved
The average nominal cost of debt remained virtually unchanged at 4.31 percent per annum in the reporting period. The net debt ratio (net LTV) was 42.4 percent, slightly above the year-end figure for 2024 (40.9 percent). Cash and cash equivalents decreased to EUR 34.9 million as of the reporting date (31 December 2024: EUR 44.8 million). “The sales currently being implemented will generate additional liquidity and contribute to a further reduction in debt. In addition, in July 2025, we were able to use proceeds from new property financing to partially repay the corporate bond. The outstanding nominal now amounts to EUR 247.1 million,” explains Tim Brückner, CFO of DEMIRE.
Guidance for 2025 raised
Frank Nickel, CEO of DEMIRE, says: “DEMIRE successfully completed transactions and new financing in the first half of 2025 and made initial progress in further reducing the bond. At the same time, we recorded operational improvements, particularly in the area of leasing. In view of the earnings development in …