Broadly diversified Portfolio

Expansion of real estate portfolio

In the course of its rapid growth, DEMIRE’s real estate portfolio nearly tripled since 2014. At the end of 2016, the Group held 174 commercial properties with rentable building space totalling almost 1.1 million m². DEMIRE is among the leading listed commercial real estate holders in Germany. The properties are located exclusively in Germany, mostly in larger cities and mainly in the catchment areas of economically strong metropolitan regions. Real estate experts assessed the market value of the German real estate holdings (investment properties and noncurrent assets held for sale) at EUR 1,005.6 million as at the reporting date.

The DEMIRE portfolio is divided into office retail and logistic properties in order to diversify its risk. Measured by potential rent at full occupancy, office properties, at 66.9 %, made up the largest share of the portfolio at the end of 2016. A total of 23.9 % of the potential rent can be achieved with retail use, 5.5 % with logistic properties and 3.7 % can be achieved through other uses.

DEMIRE reports the occupancy rate as a ratio of the contractual rents (EUR 74.1 million at the end of 2016) to potential rent, in other words, the rent that could be achieved at full occupancy based on prevailing market rents. This results in a yield-weighted occupancy rate of 88.4 % of potential rent.

DEMIRE holds commercial properties in almost all federal states in Germany, but with different emphases. The properties’ distribution, their rental space, market values and net annual rents are provided in the following table.

The weighted average lease term (WALT ) at the end of 2016 was 5.3 years.

DEMIRE real estate portfolioPropertiesMarket valueTotal rental spaceNet rent, excl. utilitiesVacancy rate
Status as at: Year-end 2016NumberIn EUR millionin m²thereof office

in m²
thereof retail

in m²
thereof logistic

in m²
thereof others

in m²
in EURk
Mecklenburg-Western Pomerania11109.462,54338,62920,88603,0287,7686.4%
Lower Saxony1516.127,3545,89514,81806,6421,5330.7%
TOP 20 properties20651.1637,204314,224105,012217,968045,29413.3%