DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE achieves a valuation gain of EUR 73 million

DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Real Estate
10.01.2022 / 06:58
The issuer is solely responsible for the content of this announcement.

DEMIRE achieves a valuation gain of EUR 73 million

Langen, 10 January 2022. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has had its portfolio valued by the external appraiser Savills on a regular basis as of 31 December 2021. Based on the preliminary valuation, which is yet to be confirmed by the auditor, the fair value of the real estate portfolio as at the end of 2021 is calculated at EUR 1,415.4 million. This corresponds to an appreciation over the previous year's value of EUR 73.1 million or 5.4% and results in a gross rental yield of 5.5%. These values do not include the Cielo property in Frankfurt, as it is accounted for using the equity method.

The positive valuation result is mainly driven by two factors. Some properties initially affected by the Corona pandemic achieved significant valuation gains compared to the previous year, especially in the hotel and retail sectors. These had been partially devalued in the previous year due to the uncertainty in connection with the pandemic. Besides that, numerous properties, but especially the logistics property in Leipzig, were upvalued after leasing successes.

The company's forecast for the 2021 financial year is independent of the valuation result and is confirmed once again. Management expects FFO I (after taxes, before minorities) to exceed the previous year's figure of EUR 39.2 million. Rental income is expected to be at the upper end of the forecast range of EUR 80.0 to 82.0 million.

About DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE - REALize Potential

DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial real estate in mid-sized cities and up-and-coming locations bordering metropolitan areas across German. The Company's particular strength lies in realising the potential of the properties at these locations while focusing on a range of properties that appeals to both regional and international tenants. As of 31 December 2021, DEMIRE's portfolio contains of 64 assets with lettable space totalling about 1 million sqm. Including the proportionately acquired Cielo property in Frankfurt/Main, the market value amounts to so approximately EUR 1.7 billion.

The portfolio's focus on office properties with a blend of retail, hotel and logistics properties results in a return / risk structure that is appropriate for the commercial real estate segment. The Company places importance on long-term contracts with solvent tenants and the realisation of the properties' potential. DEMIRE anticipates continued stable and sustainable rental income along with solid value appreciation and expects the portfolio to grow significantly in the medium term. As it expands its portfolio, DEMIRE is concentrating on FFO-strong assets with potential and, at the same time, disposing of properties that are not in line with its strategy. DEMIRE is taking several steps to further the development of its operations and processes. Next to cost consciousness, the operating performance is set to improve through an active asset and portfolio management approach.

DEMIRE Deutsche Mittelstand Real Estate AG shares are listed in the Regulated Market (Prime Standard segment) of the Frankfurt Stock Exchange.


DEMIRE Deutsche Mittelstand Real Estate AG
Michael Tegeder
Head of Investor Relations & Corporate Finance
Phone: +49 6103 372 49 44


10.01.2022 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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