DEMIRE Deutsche Mittelstand Real Estate AG: AGM 2017 – HIGH DEGREE OF APPROVAL FOR ALL AGENDA ITEMS

DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): AGM/EGM/Forecast

29.06.2017 / 14:50
The issuer is solely responsible for the content of this announcement.


 

DEMIRE Deutsche Mittelstand Real Estate AG: AGM 2017 - HIGH DEGREE OF APPROVAL FOR ALL AGENDA ITEMS

- All agenda items approved with a large majority

- Frank Hölzle and Dr Thomas Wetzel confirmed as Supervisory Board members

- Mr Markus Drews supersedes Hon.-Prof. Andreas Steyer as CEO

- "DEMIRE 2.0": Strategic package of measures for further company
growth presented

- New forecast for 2017: FFO I (after taxes, before minority interests)
of EUR 8-10 million

Langen, 29 June 2017 - The Annual General Meeting of DEMIRE Deutsche Mittelstand Real Estate AG [German Securities Code Number (WKN) A0XFSF/ISIN DE000A0XFSF0] today approved all of the proposed agenda items with a large majority. With 29.6 percent of the share capital represented, this year's Annual General Meeting ended after 3.5 hours at 2:25 p.m. In the elections to the Supervisory Board, Frank Hölzle and Dr Thomas Wetzel were confirmed in their current positions as Supervisory Board members. Markus Drews will take over as CEO following the departure of Hon.-Prof. Andreas Steyer with effect from 30 June 2017. This means the two members of the Executive Board from 1 July 2017 will be Markus Drews (CEO) and Ralf Kind (CFO). As announced, the Executive Board reported to the Annual General Meeting on the strategic review of the company that was initiated in April 2017 and issued a new forecast for funds from operations (FFO I) and the development of other key performance indicators for the current 2017 financial year on this basis.

"DEMIRE 2.0" programme forms the basis for further growth

Under the name "DEMIRE 2.0", the company has defined specific targets for its further growth that it intends to achieve in the medium term by realising a comprehensive package of measures including cost optimisation, a more streamlined group structure and reduced financing costs. The cornerstone of the programme is the planned further expansion of the current portfolio of around EUR 1 billion to EUR 2 billion. The business model will continue to focus on commercial real estate acquisitions in secondary locations in Germany. The cost base will also be reduced further thanks to permanent efficiency improvements and economies of scale in real estate management as a result of the planned growth. The ongoing implementation of the programme and the further optimisation of the financing mix (in respect of which the Company is continuously considering potential refinancing options, including debt and equity capital markets transactions) are expected to reduce average interest costs in the medium term, with the loan-to-value ratio declining from the current level of 62.5 percent (as of 31 March 2017) to around 50 percent as a result. With regard to communications and capital market access, DEMIRE is intensifying its active and transparent dialogue with existing and new investors. As well as increasing its market capitalisation, DEMIRE is aiming to position its risk profile as investment grade in order to sustainably secure the financing of its future growth at favourable conditions in the long term.

 

Forecast for 2017

DEMIRE expects to generate FFO I (after taxes, before minority interests) of EUR 8-10 million in 2017. The Executive Board is also anticipating a further significant increase in FFO from 2018 following the successful implementation of the "DEMIRE 2.0" strategy programme. Based on its current real estate holdings, the company is forecasting rental income of EUR 72-73 million in the 2017 financial year.

In the Executive Board's report to the Annual General Meeting, Markus Drews, designated CEO of the DEMIRE Group, noted: "The company's development in recent years has been characterised by strong growth. With the 'DEMIRE 2.0' programme, we are aiming to further expand and sustainably establish our position on the German real estate market, particularly in secondary locations. We are harnessing the high efficiency of our integrated real estate platform in order to leverage the identified earnings and optimisation potential for DEMIRE in the short to medium term while further accelerating the company's growth."

Information on DEMIRE's Annual General Meeting can be found on the company's website at: www.demire.ag/en/investor-relations/agm/2017

Voting results at a glance:

Agenda item Approval in percent
Presentation of 2016 annual financial statements No vote
Approval of the actions of the Executive Board 99.96
Approval of the actions of the Supervisory Board 99.96
Election of the auditor for 2017 100
Elections to the Supervisory Board - Mr Frank Hölzle 99.97
Elections to the Supervisory Board - Dr. Thomas Wetzel 99.97
Resolution on the amendment of the Articles of Association nearly 100
Resolution on the cancellation and creation of new authorised capital nearly 100
Resolution on the cancellation of the existing authorisation to issue convertible bonds and/or bonds with warrants, profit-sharing certificates and/or profit participation bonds nearly 100
Resolution on the cancellation and creation of new contingent capital nearly 100
 

 

Contact

DEMIRE Deutsche Mittelstand Real Estate AG
Robert-Bosch-Straße 11

D-63225 Langen

Phone: +49 (0) 6103 - 372 49 - 0

Fax: +49 (0) 6103 - 372 49 - 11

ir@demire.ag

www.demire.ag

_______________________________________

Über die DEMIRE Deutsche Mittelstand Real Estate AG


DEMIRE - First in Secondary Locations

DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up-and-coming locations bordering German metropolitan areas. As of March 31, 2017, DEMIRE held real estate with a value of EUR 994.1 million. As of the reporting date, annualised contractual rents had been firmly agreed upon in the amount of EUR 72.1 million for an average term of 5.3 years.

DEMIRE aims to keep its corporate organisation as lean as possible, but it still believes that economies of scale and portfolio optimisation are best achieved with its own in-house asset, property and facility management. This safeguards the company's business expertise and, at least equally important, allows it to maintain direct contact with the customer.



29.06.2017 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.

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