DEMIRE AG reports EBIT of EUR 16.1 million for the first half of 2015

- Rental income becomes key earnings contributor

- Cash flow from operating activities: EUR 5.8 million (previous year: EUR -5.0 million)

- Equity ratio improves to 20.4 % with a further significant improvement targeted in the medium term

- NAV increases to EUR 94.2 million, NAV per share at EUR 4.23 (Q1 2015: EUR 3.55)

Frankfurt/Main, August 28, 2015 - In the first half of 2015, DEMIRE Deutsche Mittelstand Real Estate AG ("DEMIRE", ISIN DE000A0XFSF0) generated earnings before interest and taxes (EBIT) of EUR 16.1 million after EUR 0.2 million in the previous year's comparable period. Rental income from the German commercial real estate portfolio, which was expanded further in the first half of 2015, was the chief contributor. The profit/loss from the rental of real estate climbed to EUR 11.2 million (previous year: EUR 0.9 million). After financing and other expenses as well as one-off expenses for the expansion of the portfolio, DEMIRE reached the break-even level for net profit/loss for the period.

DEMIRE's cash flow from operating activities improved sharply to EUR 5.8 million in the first half of 2015 (first half of 2014: EUR -5.0 million).

The total assets of the real estate group increased 15.1 % to EUR 429.7 million in comparison to the end of 2014 and liabilities rose 10.7 % to EUR 341.9 million. Equity amounted to EUR 87.7 million as of June 30, 2015, after a reported EUR 54.6 million on December 31, 2014. The equity ratio improved to 20.4 % as of the reporting date (December 31, 2014: 14.6 %). Over the medium term, the Company is aiming for a significant improvement in equity ratio.

The EPRA-NAV increased by roughly 32.7 % from EUR 71.0 million as of March 31, 2015, to EUR 94.2 million as of June 30, 2015. NAV per share rose accordingly during the same period by EUR 0.68 from EUR 3.55 to EUR 4.23.

By the end of July 2015, DEMIRE's real estate holdings had more than doubled in comparison to the end of 2014 and therefore already exceeded the Company's targets by mid-year. The Company, which is listed in the General Standard of the Frankfurt Stock Exchange, currently has total rental space of over 810,000 m² and annual net rent excluding utilities of EUR 52.3 million. The Company plans to continue the targeted expansion of its portfolio.

While in 2014, DEMIRE's portfolio was mainly focused on the office asset class, there was a targeted expansion in the portfolio in 2015 to include the logistics and retail asset classes. This diversification led to a further improvement in the risk profile of the entire portfolio. Rental space currently breaks down into approximately 80 % office space, 9 % retail space, 8 % logistics space and 3 % other space.

Hon.-Prof. Andreas Steyer, Speaker of the Executive Board (CEO) commented: "Rental income from our growing portfolio is becoming a key source of earnings as planned. We plan to continue to grow steadily in the future. One key step in our growth strategy was the announcement of a voluntary public takeover offer for the shares of Fair Value REIT-AG made at the end of July 2015. If the offer is accepted, our Company would become one of Germany's leading holders of commercial real estate focussed on secondary locations with a combined portfolio of roughly EUR 1 billion as early as 2016. Since the announcement of the takeover offer, we have received very positive feedback on our plans during numerous discussions."

Dipl.-Kfm. (FH) Markus Drews, member of the Executive Board (COO) added: "With the level our portfolio's expansion has achieved to date, DEMIRE has reached a size that more easily facilitates the Company's future growth. Our weighted average lease term (WALT) of roughly 6.2 years also gives us a sustainable and reliable planning basis. In addition, DEMIRE can also further improve the management of its properties with its in-house asset, property and facility management activities. Increasing synergies and economies of scale can be achieved when the management of properties is assumed when making new transactions. These economies of scale will lead to growing revenues and result in higher real estate values. A reduction in the average vacancy rate is a key task of our fully integrated management platform and offers our properties additional improvement and appreciation potential that we want seize in the near term."

The Executive Board

About DEMIRE Deutsche Mittelstand Real Estate AG

Leading holder of commercial real estate

DEMIRE Deutsche Mittelstand Real Estate AG is transforming itself into a leading holder of German commercial real estate. The core business activities of the Frankfurt/Main headquartered real estate group consist of the acquisition, the management and the rental of commercial real estate and their further development, for example, through modification, modernisation or expansion, and increasing their value through active portfolio management.

The commercial property portfolio consists of more than 810,000 m² of rentable space as of 30 June 2015, mainly comprising of office. logistics and retail properties. Annualised net rent excluding utilities amounts to approximately EUR 52.2 million. The portfolio's regional focus lies in Bavaria, North Rhine-Westphalia, Baden-Württemberg, Saxony, Hamburg and Bremen as well as the Rhein-Main and Rhein-Neckar regions. The in-house asset, property, and facility management ensures the optimum management and development of the holdings

The DEMIRE real estate group pursues a buy-and-hold-strategy combined with active portfolio management. It is concentrated on both the value-added and core-plus investment approaches. The combination of these two approaches offers a balanced risk-return ratio and attractive opportunities.

The real estate group's lean structure allows it to take action quickly and flexibly. The shares of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN DE000A0XFSF0) are listed in the regulated market (General Standard Segment) of the Frankfurt Stock Exchange.

Contact

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
Email: ir@demire.ag
Web: www.demire.ag

Investor Relations
GFEI Aktiengesellschaft
Lars Kuhnke
Phone: +49 (0) 511 47 40 23 10
Email: ir@demire.ag