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DEMIRE Deutsche Mittelstand Real Estate AG: Commercial real estate specialist DEMIRE achives strong letting performance and stable FFO development

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DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): 9 Month figures
11.11.2021 / 06:59
The issuer is solely responsible for the content of this announcement.

Commercial real estate specialist DEMIRE achives strong letting performance and stable FFO development

- Strong letting performance of around 138,000 sqm

- Portfolio value rises to around EUR 1.6 billion

- EPRA vacancy rate* at 8.8 percent - WALT at 4.6 years

- Funds from Operations I (after taxes, before minorities) increased to EUR 30.4 million

- Guidance for financial year 2021 confirmed

Langen, 11 November 2021: DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) is in robust shape in the first nine months of 2021 and has once again improved its key earnings figures. The commercial real estate specialist achieved a high letting performance of around 138,000 sqm, far above the long-term annual average of around 80,000 sqm. These figures include, among others, a lease extension and a lease with Amazon at "Logistikpark Leipzig" a logistics property in Leipzig, the most densely populated city in the federal state of Saxony.

Successful portfolio optimisation - largest transaction in the company's history

DEMIRE continued to optimise its portfolio with three strategic sales in the third quarter, reducing the number of properties held in the portfolio compared to 30 June 2021 to a total of 67 properties. As a result, the average property size rose to EUR 20.7 million after EUR 19.2 million at the end of 2020. In addition, the largest transaction in the company's history was completed in July with the fulfilled purchase of the "Cielo" office complex in Frankfurt am Main. Taking Cielo into account, the value of the portfolio rises to EUR 1.6 billion from around EUR 1.4 billion at the end of 2020.

The Corona pandemic had only a minor impact on DEMIRE's business activities in the third quarter of the current financial year. For the first nine months of 2021, rental payments of around EUR 1.6 million are outstanding, which corresponds to approximately 1.9 percent of the expected annual rent in 2021.

Funds from Operations I rise to EUR 30.4 million.

Funds from Operations I (after taxes, before minorities) increased by 1.1 percent to EUR 30.4 million (same period last year: 30.1 million). The NAV per share (basic) decreases after payment of the dividend of EUR 0.62 per share to EUR 5.52, after EUR 5.91 at the end of 2020. The net leverage ratio (LTV) increases as expected to 53.0 percent (end of 2020: 49.2 percent) due to the completed purchase of the Frankfurt office complex "Cielo". Liquidity as of the reporting date remains comfortable at EUR 98.4 million. The average nominal interest rate improved by 5 basis points to 1.66 per cent as at 30 September 2021 compared to the end of 2020.

Strong increase in letting performance to around 138,000 sqm

DEMIRE reported a letting performance of around 138,000 sqm for the first nine months of 2021. 49 percent of the letting performance is attributable to new lettings and 51 percent to lease extensions. The EPRA vacancy rate* of the DEMIRE portfolio was 8.8 percent as of the reporting date, compared to 6.9 percent as of 31 December 2020. The increase in the vacancy rate despite the strong letting performance is primarily due to the fact that some leases were concluded in the reporting period, but their lease term start dates are in the future. WALT decreases slightly to 4.6 years after 4.8 years at the end of 2020.

EBT increased significantly to EUR 27.3 million.

Taking the portfolio adjustment into account rental income was as expected and amounts to EUR 62.3 million, after EUR 65.8 million in the previous year. Letting results amount to EUR 51.8 million after EUR 54.0 million in the same period of the previous year; the Cielo investment is shown below the rental result from real estate. Earnings before taxes (EBT) rose to EUR 27.3 million in the reporting period after EUR 24.1 million in the previous year.

Guidance for 2021 confirmed

After the positive development of the year 2021 so far and in the expectation that there will be no further lockdown in Germany despite the rising Corona incidence, the Management Board confirms the guidance for the financial year 2021: due to the implemented portfolio adjustment, rental income is expected to be be between EUR 80 and 82 million (previous year: EUR 87.5 million). The FFO I (after taxes, before minorities), is expected to be in the range between EUR 34.5 and 36.5 million (previous year: EUR 39.2 million).

Ingo Hartlief, CEO of DEMIRE, comments: "The strong letting performance and the optimisation of our portfolio in 2021 prove that we are well positioned with our clear focus on ABBA locations. Combined with our proven "REALize Potential" strategy and active asset management approach, we are creating a stable portfolio, which is a key asset especially in uncertain times like these."
 

***
 

The DEMIRE interim report for the first 9 Month of 2021 is available on the Company's website:

https://www.demire.ag/en/investor-relations/reports-results

 

Invitation to the Conference Call on 11 November 2021

The Management Board of DEMIRE invites all interested parties to attend the presentation of the 9M 2021 interim results at a conference call on 11 November 2021 at 11:00 CET.

Please use the following dial-ins:

Germany +49 89 2222 25575
United Kingdom +44 330 336 9105
united States +1 323 794 2588

The dial-in code is 4561981.

In addition, the conference call will be streamed online:

https://www.webcast-eqs.com/demire20211111/no-audio

A presentation is available on

https://www.demire.ag/en/investor-relations/reports-results

 

 

Selected Key Performance Indicators of DEMIRE Group

 

01/01/2021-
09/30/2021

01/01/2020-
09/30/2020

Consolidated income statement
(in EURm)

 

 

Rental income

62.3

65.8

Net income from the rental of real estate

51.8

54.0

EBIT

42.6

39.7

Financial results

-15.2

-15.6

Profit/loss for the period after tax

24.6

18.1

- thereof attributable to shareholders of the parent company

22.7

16.5

FFO I (after tax, before minority interests)

30.4

30.1

FFO II (after tax, before minority interests)

31.2

29.4

Undiluted/diluted earnings per share (in EUR)

0.29/0.29

0.28/0.28

Consolidated accounts (in EURm)

09/30/2021

12/31/2020

Total assets

1,645.2

1,625.3

Investment properties

1,413.8

1,426.3

Cash and cash equivalents

98.4

101.6

Properties held for sale

0.0

31.0

Shareholders' equity (incl. non-controlling shareholders)

555.5

589.0

Equity ratio (in % of total assets)

33.8

36.8

Undiluted/diluted EPRA-NAV

582.3/582.8

625.3/625.9

EPRA-NAV per share (EUR, basic/diluted)

5.52/5.50

5.91/5.89

Net financial liabilities

797.2

728.1

Net debt-to-equity ratio (net LTV), in %

53.0

49.2

Portfolio key ratios

09/30/2021

12/31/2020

Properties (number)

67

75

Market value (in EURm)

1,386.9

1,441.5

Annualised gross rental income (in EURm)

81.9

85.6

Rental yield (in %)

5.9

5.9

EPRA vacancy rate (in %) *

8.8

6.9

WALT (in years)

4.6

4.8

 

* excl. assets held for sale and developments

 

About DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE - REALize Potential

DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial real estate in mid-sized cities and up-and-coming locations bordering metropolitan areas across German. The Company's particular strength lies in realising the potential of the properties at these locations while focusing on a range of properties that appeals to both regional and international tenants. As of 30 September 2021, DEMIRE's portfolio contains of 67 assets with lettable space totalling about 1 million sqm. cluding the proportionately acquired Cielo property in Frankfurt/Main, the market value exceeds EUR 1.6 billion.

The portfolio's focus on office properties with a blend of retail, hotel and logistics properties results in a return / risk structure that is appropriate for the commercial real estate segment. The Company places importance on long-term contracts with solvent tenants and the realisation of the properties' potential. DEMIRE anticipates continued stable and sustainable rental income along with solid value appreciation and expects the portfolio to grow significantly in the medium term. As it expands its portfolio, DEMIRE is concentrating on FFO-strong assets with potential and, at the same time, disposing of properties that are not in line with its strategy. DEMIRE is taking several steps to further the development of its operations and processes. Next to cost consciousness, the operating performance is set to improve through an active asset and portfolio management approach.

DEMIRE Deutsche Mittelstand Real Estate AG shares are listed in the Regulated Market (Prime Standard segment) of the Frankfurt Stock Exchange.

Contact:

DEMIRE Deutsche Mittelstand Real Estate AG

Michael Tegeder
Head of Investor Relations & Corporate Finance
Phone: +49 6103 372 49 44
Email: tegeder@demire.ag


 


11.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

DEMIRE Deutsche Mittelstand Real Estate AG

Robert-Bosch-Straße 11 im 'the eleven'

63225 Langen (Hessen)

Germany

Phone:

+49 6103 37249-0

Fax:

+49 6103 37249-11

E-mail:

ir@demire.ag

Internet:

www.demire.ag

ISIN:

DE000A0XFSF0

WKN:

A0XFSF

Listed:

Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange

EQS News ID:

1248017


 

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