DEMIRE AG: Profit soars in the first quarter of 2016

DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Quarterly / Interim Statement/Real Estate

2016-06-09 / 15:50
The issuer is solely responsible for the content of this announcement.

DEMIRE AG: Profit soars in the first quarter of 2016

- Rental income rises to EUR 17.8 million (previous year: EUR 7.0 million)

- EBIT increases to EUR 14.0 million (previous year: EUR 5.2 million)

- Net profit/loss for the period grows to EUR 4.2 million (previous year: EUR 0.5 million)

- Basic EPRA NAV per share rises to EUR 5.29 (December 31, 2015: EUR 5.20)

Frankfurt/Main, June 9, 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.

The DEMIRE Group's rental income in the first three months of 2016 amounted to EUR 17.8 million after just EUR 7.0 million in the prior year. Net rental income amounted to EUR 13.1 million following a sum of EUR 5.2 million in the comparable prior-year period.

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.

Total assets of the real estate group specialised in secondary locations increased slightly to EUR 1.1 billion as at March 31, 2016 (December 31, 2015: EUR 1.0 billion). Net debt (LTV) decreased further to a total of 66.3 % (December 31, 2015: 67.5 %) of real estate holdings of roughly EUR 971 million. Cash flow from operating activities in the first quarter of 2016 rose from EUR 6.4 million in the previous year's comparable quarter to EUR 8.1 million.

Basic EPRA NAV per share rose slightly in the first quarter of 2016 to EUR 5.29 (December 31, 2015: EUR 5.20).

CEO Hon.-Prof. Andreas Steyer in his comments on DEMIRE's strategic focus said: "Following the Company's successful growth since the start of the previous fiscal year, the focus has been on consolidating the new additions to the portfolio and improving our financial result going forward. With the refinancing of the first half of the HFS loan through cheaper loans scheduled for mid-June 2016, we will improve our financial result in the future by roughly EUR 2.2 million annually and thereby raise the FFO."

Net profit/loss for the period adjusted for the effects from valuation and non-recurring and special items (FFO) before non-controlling interests amounted to EUR 3.4 million in the first quarter of 2016. In view of the rentals and refinancing of financial liabilities already concluded or still planned and the gradually increasing savings in administrative costs through insourcing services that were previously outsourced, the Executive Board reconfirms the FFO forecast of nearly EUR 20 million before non-controlling interests for the full year of 2016.

The first quarter 2016 interim statement is available on the company's website at under the Investor Relations section:

Highlights of the DEMIRE Group's Key Financial Figures (EURk)

Consolidated income statement 01/01/2016 -31/03/2016 01/01/2015 - 31/03/2015
Rental income 17,815 6,962
Net rental income 13,092 5,177
EBIT 13,999 5,204
Financial result -8,844 -4,623
EBT 5,155 581
Net profit/loss for the period 4,156 471
Net profit/loss for the period per share (basic/diluted) in EUR 0.06 / 0.05 0.02 / 0.02
FFO before non-controlling interests 3,371 n/a
Consolidated balance sheet 31/03/2016 31/12/2015
Total assets 1,056,393 1,032,945
Investment properties 969,629 915,089
Non-current assets held for sale 1,780 13,005
Total core portfolio 971,409 928,094
Financial liabilities 675,802 655,239
Cash and cash equivalents 31,636 28,467
Net financial debt 644,166 626,772
In % of core portfolio (LTV) 66.3 67.5
Equity in consolidated balance sheet 269,337 264,902
Equity ratio in % 25.5 25.6
Basic/diluted EPRA NAV 260,238 / 271,438 256,267 / 271,585
Number of shares outstanding in million (basic/diluted) 49.31 / 62.96 49.29 / 63.95
Basic/diluted EPRA NAV in EUR per share 5.29 / 4.31 5.20 / 4.25


DEMIRE Deutsche Mittelstand Real Estate AG
Lyoner Straße 32
60528 Frankfurt am Main
Phone: +49 (0) 69-719 189 79 0
Fax: +49 (0) 69-719 189 79 11

Investor Relations
GFEI Aktiengesellschaft
Lars Kuhnke
Phone: +49 (0) 511 47 40 23 10


About DEMIRE - First in secondary locations

DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up and coming areas bordering German metropolitan areas. As at March 31, 2016, DEMIRE held real estate consisting of 180 properties with a market value of EUR 971 million. As at the reporting date, contractual rents had been firmly agreed upon in the amount of EUR 74.2 million (at an occupancy rate of 87.0 %) for a term of 5.5 years.

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

The shares of DEMIRE Deutsche Mittelstand Real Estate AG are listed on the regulated market (General Standard Segment) of the Frankfurt Stock Exchange.

2016-06-09 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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