DEMIRE Deutsche Mittelstand Real Estate AG: Corporate News on Interim Statement as of September 30, 2016

DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): 9-month figures/Interim Report

2016-11-30 / 06:56
The issuer is solely responsible for the content of this announcement.


Corporate News on Interim Statement as of September 30, 2016

- Net profit for the period increases considerably to EUR 6.5 million

- FFO before minority interests reaches EUR 11.0 million

- Cost of debt reduced to 4.4 % p.a.

- LTV falls to 64.8 %

- Forecast for 2016 and 2017 confirmed

Frankfurt/Main, November 30, 2016 - DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) today published its interim statement for the first nine months of 2016. Rental income grew from EUR 21.9 million in the prior year period to EUR 56.7 million as a result of the real estate acquisitions concluded in 2015 and early 2016. Net profit rose from EUR 2.6 million to EUR 6.5 million, the net profit attributable to parent company shareholders climbed to EUR 4.1 million (reference period 2015: EUR 1.6 million). The adjusted profit for the period (FFO) before minority interests amounted to EUR 11.0 million in the first nine months of 2016.

Basic EPRA NAV rose from EUR 264.3 million as of June 30, 2016 to EUR 269.2 million as of September 30, 2016. Basic EPRA NAV per share amounted to EUR 4.96 as a result of the higher number of shares outstanding following the cash capital increase in August 2016.

The EPRA vacancy rate of the real estate portfolio amounted to 10.5 % as of September 30, 2016 and thus already reached de facto the target planned for the year-end. As of December 31, 2015, the EPRA vacancy rate had amounted to 12.8 % and was thus improved considerably by roughly 18 %.

DEMIRE Group's loan-to-value (LTV) dropped to 64.8 % of the real estate portfolio from 66.1 % as of mid-year 2016 as a result of the full repayment of the high-interest HFS bond. The Company continues to target an LTV of 60 % by the end of 2016.

The DEMIRE Group's average cost of debt were further reduced to 4.4 % p.a. and has reached the target range of 4.0 % to 4.5 % p.a. forecasted for the end of 2016. DEMIRE works intensively on undertaking additional refinancing measures in order to further reduce the average cost of debt, which will have a positive impact on the important key performance indicator funds from operations (FFO).

DEMIRE is on a good way to achieve both its medium and long term strategic and economic goals as planned. CEO Prof. Andreas Steyer in his comments on the results said: "DEMIRE's in-house asset, property and facility management, which steadily expanded in 2016, pave the way for further economies of scale and portfolio optimisation in the years ahead. This will allow us to realise further profitable growth of our business through strategic investments in real estate in secondary locations in Germany".

As a result, DEMIRE confirms its full-year 2016 forecast for FFO of EUR 19.1 million before minority interests and EUR 13.9 million after minority interests. For the 2017 fiscal year, DEMIRE strives in an unchanged way for FFO before minority interests of EUR 25 million and of EUR 18 million after minority interests.

The Interim Statement as of September 30, 2016 is available on the Company website at www.demire.ag under the Investor Relations section: https://www.demire.ag/en/investor-relations/reports-results/2016

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

Consolidated income statement 01/01/2016 -30/09/2016 01/01/2015 - 30/09/2015
Rental income 56,671 21,908
Profit/loss from the rental of real estate 43,291 17,032
EBIT 41,259 26,451
Financial result -35,431 -20,639
EBT 5,828 5,812
Net profit/loss for the period 6,527 2,617
Net profit/loss for the period per share (basic/diluted) in EUR 0.08 / 0.08 0.07 / 0.06
FFO after minority interests 6.016 n/a
     
Consolidated balance sheet 30/09/2016 31/12/2015
Total assets 1,059,086 1,032,945
Investment properties 960,624 915,089
Non-current assets held for sale 20,590 13,005
Total core portfolio 981,214 928,094
     
Financial liabilities 663,648 655,239
Cash and cash equivalents 28,145 28,467
Net financial debt 635,503 626,772
in % of core portfolio (LTV) 64.8 67.5
     
Equity in consolidated balance sheet 288,008 264,902
Equity ratio in % 27.2 25.6
     
Basic/diluted EPRA NAV 269,153 / 282,791 256,267 / 271,585
Number of shares outstanding in million (basic/diluted) 54.25 / 64.04 49.29 / 63.95
Basic/diluted EPRA NAV in EUR per share 4.96 / 4.42 5.20 / 4.25
 

Contact information

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

_______________________________________

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 September 30, 2016, DEMIRE held real estate consisting of 178 properties with a market value of EUR 981 million. As at the reporting date, contractual rents had been firmly agreed upon in the amount of EUR 74.4 million (at an occupancy rate of 87.3 % of the potential rents of EUR 85.2 million) for a term of 5.2 years.

DEMIRE 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.

DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard segment of the Deutsche Börse in Frankfurt.



2016-11-30 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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