Corporate development

May 2017 – DEMIRE IMPROVES KEY FINANCIALS AND MAKES SUCCESSFUL START TO 2017 FINANCIAL YEAR

DEMIRE Deutsche Mittelstand Real Estate AG has made a successful start to the 2017 financial year. After the first risks and rewards of properties already sold in 2016 were transferred during the first quarter of 2017, the DEMIRE Group’s current portfolio as of the reporting date on March 31, 2017 comprised a total of 98 commercial properties with lettable floor space totalling nearly 1 million square meters and a value totalling EUR 994.1 million (December 31, 2016: EUR 1,005.6 million). Another 15 properties from the sales notarised in 2016 will be removed from the portfolio soon.

April 2017 – SUCCESSFUL EXPANSION in 2016 OF THE REAL ESTATE PLATFORM WITH FURTHER GROWTH POTENTIAL

The focus in the financial year 2016 was on the full integration and optimised management of the real estate assets worth around EUR 550 million acquired as part of a major growth step in 2015 and 2016. In addition, DEMIRE already successfully implemented the first improvements to its financial and balance sheet structure in the past 2016 financial year. With a current portfolio volume of more than EUR 1 billion, DEMIRE is planning further earnings growth in the current 2017 financial year, in particular by expanding its commercial real estate portfolio in secondary locations in Germany.

Hon. Prof. Andreas Steyer will resign from the Executive Board of DEMIRE effective June 30, 2017 to pursue new professional challenges.

February 2017 – CHANGES IN THE DEMIRE SHAREHOLDER STRUCTURE, SUPERVISORY BOARD AND EXECUTIVE BOARD

Frank Hoelzle, CEO of care4 AG, Basel, and Dr Thomas Wetzel, specialist lawyer and expert for construction and property law, Zumikon, have been appointed by the district court Frankfurt/Main – registry court – as the new members of DEMIRE’s supervisory board as of 14 February 2017. They succeeded Günther Walcher und Dr. Peter Maser, who have resigned.

In addition, DeGeLog, in which Günther Walcher held a minority share, sold its 8.32 % shareholding in DEMIRE to Klaus Wecken of Wecken & Cie.

Furthermore the supervisory board of DEMIRE has appointed Ralf Kind as CFO of the company.

November 2016 – DEMIRE RELOCATES OFFICES TO GROUP PROPERTY LOCATED IN LANGEN NEAR FRANKFURT

DEMIRE relocates its offices from Frankfurt/Main to Langen near Frankfurt.

Following Mr. Frank Schaich’s resignation, the Executive Board of DEMIRE consists of two board members.

August 2016 – SUCCESSFUL PLACEMENT OF 10 % CASH CAPITAL INCREASE

In the context of a private placementcash the 10 % cash capital increase was fully placed with primarily institutional investors. DEMIRE’s share capital raised by EUR 4,930,722.00.

July 2016 – DEMIRE ENTERS THE PRIME STANDARD

Since July 15, 2016, the shares of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) are traded in the Prime Standard segment, the segment of the regulated market of the German Stock xchange (Deutsche Börse) in Frankfurt with the strictest transparency requirements.

At the Annual General Meeting the authorised capital and conditional capital were newly created, adjusted for the increase in the share capital, and the Supervisory Board was re-elected,

June 2016 – PROFIT SOARS IN THE FIRST QUARTER OF 2016

After nearly tripling its real estate holdings in 2015 and adding the Kurfürstengalerie property in Kassel in January 2016, DEMIRE got off to a good start in the 2016 fiscal year. IFRS earnings before interest and taxes (EBIT) rose to EUR 14.0 million (previous year EUR 5.2 million). The net profit/loss for the period in the first quarter of 2016 increased to EUR 4.2 million after just EUR 0.5 million in the prior year.

May 2016 – 2015 GROWN TO A NEW DIMENSION

The financial statements for the 2015 fiscal year was dominated by growth – in part through direct investments in individual properties and commercial real estate portfolios, in part through the acquisition of a majority interest in Fair Value REIT-AG. These investments almost tripled the value of the real estate portfolio to a total of EUR 928.1 million (previous year: EUR 333.1 million).

FEBRUARY 2016 – ACQUISITION OF A REAL ESTATE MANAGEMENT COMPANY IN BREMEN

Acquisition of F. Krüger Immobilien GmbH in Bremen further strengthens the Property Management activities.

Frank Schaich is appointed to DEMIRE’s Executive Board.

JANUARY 2016 – CLOSING OF ALL ACQUISITIONS UNDERTAKEN IN 2015

In mid-January 2016, DEMIRE purchases Kurfürsten Galerie in Kassel’s city centre representing the portfolio’s first retail property and the last acquisition in 2015 to be successfully completed.

DECEMBER 2015 – SUCCESSFUL COMPLETION OF FAIR VALUE REIT ACQUISITION

On December 21, 2015, DEMIRE acquires a 77.7% interest in the share capital and voting rights of Fair Value REIT-AG, thereby successfully completing the acquisition.

Under the exchange offer, Obotritia KGaA, formerly a shareholder of Fair Value REIT-AG, becomes a DEMIRE shareholder.

The contract of CEO, Hon.-Prof. Andreas Steyer, is extended.

NOVEMBER 2015 – FAIR VALUE SHAREHOLDERS ACCEPT EXCHANGE OFFER

By the expiration of the first acceptance period, already 10.1 million Fair Value shares were tendered for exchange, representing roughly 71.6 % of Fair Value REIT-AG’s share capital and voting rights.

In the first nine months of 2015, DEMIRE improves all of its key figures.

OCTOBER 2015 – PURCHASE OF T6 PORTFOLIO COMPLETED

At the end of October, DEMIRE completes its purchase of a 94 % interest in Germavest Real Estate S.à.r.l. and acquires the so-called T6 portfolio comprising roughly 144,000 m² of rental space and 1,171 underground garage and parking spaces at 6 locations that have long-term leases with Deutsche Telekom AG.

In mid-October, the offer documents for the takeover offer for Fair Value REIT-AG are published. The first acceptance period begins.

SEPTEMBER 2015 – SHAREHOLDERS VOTE IN FAVOUR OF GROWTH

At DEMIRE’s Annual General Meeting in September 2015, shareholders approve the Company’s growth strategy. All agenda items are unanimously resolved.

AUGUST 2015 – EBIT OF EUR 16.1 MILLION GENERATED IN THE FIRST HALF YEAR

In the first half of 2015, DEMIRE increases its earnings before interest and taxes (EBIT) to EUR 16.1 million in comparison to EUR 0.2 million in the previous year’s comparable period. A key contributor to this performance is the rental result, which soared to EUR 11.2 million (previous year: EUR 0.9 million).

JULY 2015 – ENTRY INTO THE RETAIL ASSET CLASS

At the end of July 2015, DEMIRE announces a voluntary public takeover offer for the shares of Fair Value REIT-AG.

With the purchase of the Kurfürsten Galerie in Kassel, DEMIRE acquires its first retail property and broadens the portfolio’s focus to include a third asset class next to office and logistic properties.
A capital increase against contribution in cash through the issue of 2,474,152 shares is executed partially using the available authorised capital. Wecken & Cie. becomes a DEMIRE shareholder.

With the registration of the capital increase against contribution in kind, the purchase of Logistikpark Leipzig is completed, and DEMIRE gains M1 Beteiligungs GmbH as a shareholder.

JUNE 2015 – JUMP IN EARNINGS IN ABBREVIATED 2014 FISCAL YEAR

Publication of 2014 Annual Report: DEMIRE closes abbreviated 2014 fiscal year with a jump in earnings to EUR 45.7 million (net profit for the period).

MAY 2015 – ENTRY INTO THE LOGISTIC ASSET CLASS

German commercial real estate portfolio expands to include the logistic asset class with the purchase of Logistikpark Leipzig GmbH with total rental space of roughly 184,000 m².

Issue of a 2015/2018 mandatory convertible bond with a volume of EUR 15 million against contribution in kind. One investor subscribes to the mandatory convertible bond by contributing fractional bonds from the 2014/2019 corporate bond.

Ketom AG becomes a DEMIRE AG shareholder upon registration of a capital increase against contribution in kind to acquire the Gutenberg-Galerie.

APRIL 2015 – ACQUISITION OF THE GUTENBERG-GALERIE IN LEIPZIG

Purchase of the Gutenberg-Galerie in Leipzig by means of a capital increase against contribution in kind.

MARCH 2015 – INCREASE IN CORPORATE BOND

The 2014/2019 corporate bond issue is increased to EUR 100 million.

JANUARY 2015 – COMPLETION OF PORTFOLIO PURCHASE INITIATED IN 2014

With the registration of the capital increase against contribution in kind, the purchase of the property companies Hanse-Center and Glockenhofcenter is completed comprising total rental space of approx. 42,000 m². Alpine Real Estate GmbH becomes a DEMIRE shareholder.

DECEMBER 2014 – POPTFOLIO REACHES ROUGHLY 350,000 m²

At the end of 2014, the German commercial real estate portfolio contains roughly 350,000 m² of rental space. The annual net rent, excluding utilities, amounts to approx. EUR 25.4 million.

DEMIRE acquires a commercial real estate portfolio with nearly 42,000 m² of rental space in the context of a capital increase against contribution in kind.

NOVEMBER 2014 – LARGEST TRANSACTION IN THE COMPANY’S HISTORY

DEMIRE enters into the largest transaction in the Company’s history: the purchase of a commercial real estate portfolio containing 107 properties.

SEPTEMBER 2014 – SUCCESSFUL PLACEMENT OF CORPORATE BOND

The 2014/2019 corporate bond with an issue volume of EUR 50 million is placed successfully.

JUNE 2014 – STREAMLINING OF LEGACY PORTFOLIO

DEMIRE successfully concludes its engagement in Turkey as part of streamlining its legacy portfolio.

DECEMBER 2013 – FIRST INVESTMENT IN COMMERCIAL REAL ESTATE

Issue of a 2013/2018 convertible bond with a volume of EUR 11.3 million.

First investment made in commercial real estate: DEMIRE acquires a property in the greater Munich area. The build-up of holdings in German commercial real estate begins.

JUNE 2013 – COMPANY CHANGES NAME TO DEMIRE

Company changes its name to DEMIRE Deutsche Mittelstand Real Estate AG.

At the same time, a strategic realignment of the business activities begins by focussing on commercial real estate for Germany’s entrepreneurial “Mittelstand”.

SEPTEMBER 2010 – A CHANGE IN THE LEGAL FORM TO AN AG

A change in the legal form and a change in the former company’s name to MAGNAT Real Estate AG.

NOVEMBER 2009 – INTEGRATION OF AN ASSET MANAGER

Integration of the external asset manager.

OCTOBER 2007 – CHANGE TO THE GENERAL STANDARD SEGMENT

A change to the General Standard segment on the Frankfurt stock exchange.

JULY 2006 – IPO

Initial Public Offering on the German Stock Exchange in Frankfurt and listing in the Entry Standard segment.

APRIL 2006 – FOUNDING OF COMPANY

Founding of the former company with the name MAGNAT Real Estate Opportunities GmbH & Co. KGaA, with business activities focussed on real estate markets in Eastern Europe and the Black Sea region.