DEMIRE: Company grows to new dimension in 2015
- Real estate holdings nearly triple in 2015
- FFO expected at just under EUR 20 million in 2016
- Considerable potential for earnings growth
Frankfurt/Main, 19. April 2016 – Frankfurt/Main, 19 April 2016 – In the 2015 fiscal year, the real estate holdings of DEMIRE Deutsche Mittelstand Real Estate AG almost tripled to reach roughly EUR 930 million, making DEMIRE one of the leading holders of commercial real estate in Germany. Growth was driven by property acquisitions and the takeover of 77.7 percent of the shares in Fair Value REIT-AG. Rentable space of the DEMIRE Group also tripled to a total of 1.1 million sqm at year’s end. With the expansion in holdings of commercial real estate, contractual annual net rental income reached a new dimension at EUR 72 million. At the start of 2015, it had amounted to EUR 25 million only.
“In the year 2015, we significantly surpassed our strategic goal of doubling our business volume” commented Hon.-Prof. Andreas Steyer, CEO of DEMIRE Deutsche Mittelstand Real Estate AG. “Although this will not become fully visible yet in our 2015 financial results which we expect to publish at the end of April, we base our expectations for the year 2016 on this performance and anticipate positive funds from operations (FFO) before minority interests of just under EUR 20 million.”
“These estimates”, continued Steyer, “are supported by the developments in the first quarter of 2016 during which we continued to expand our portfolio through the purchase of the shopping centre Kurfürstengalerie in the town of Kassel. After the strong growth of the past two years, we will focus in 2016 on improving our profits further. Through increasing the occupancy rate of our core portfolio and reducing interest expenses via refinancing we will be able to exploit a considerable earnings potential which will also have a positive impact on FFO”.