DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE with a successful start into the year 2020: Rental income and FFO grow significantly in the first quarter
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Quarterly / Interim Statement/Quarter Results DEMIRE with a successful start into the year 2020: Rental income and FFO grow significantly in the first quarter - Rental income rises to EUR 22.0 million - FFO I (after taxes, before minorities) improves by 7.7 percent to EUR 9.6 million - Letting performance reaches approx. 47,200 m² and underscores operating strength* - EPRA vacancy rate improves to 8.9 percent - Effects of the COVID-19 pandemic moderate thus far Langen, 19 May 2020. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) recorded a successful first quarter of 2020. Key operating and portfolio-related figures improved once again. Business activities were only slightly affected by the COVID-19 pandemic in the reporting period. For the months of April and May, a total of just 2.6 percent of annual contractual rents are outstanding. FFO and EPRA NAV increase Funds from Operations I (FFO I: before minorities, after taxes) increased year-on-year by 7.7 percent to EUR 9.6 million in the reporting period (Q1 2019: EUR 8.9 million). In the same period, DEMIRE recorded an increase in rental income to EUR 22.0 million (Q1 2019: EUR 18.2 million). Earnings before interest and taxes (EBIT) amounted to around EUR 12.9 million, and profit / loss before taxes (EBT) rose by 12.0 percent to EUR 8.0 million. The value of DEMIRE's portfolio continued to increase compared with the end of 2019, rising from EUR 1.51 billion to over EUR 1.55 billion. The purchase of one property and the sale of four smaller properties during the first quarter of 2020 further enhanced the portfolio from a strategic perspective and brought the number of properties to a total of 87. The average value per property increased from EUR 16.5 million at the end of 2019 to EUR 17.6 million as at the reporting date. Diluted EPRA NAV increased from EUR 6.32 to EUR 6.38 per share. In terms of letting performance, DEMIRE was able to continue building on the very solid performance of the prior year. The Company succeeded in letting* of around 47,200 m², of which roughly 80 percent represented new lettings and around 20 percent follow-on lettings. As a result, the EPRA vacancy rate improved to 8.9 percent, corresponding to a reduction in the vacancy rate of 0.6 percentage points compared to the end of 2019. The WALT remained constant in the reporting period at 4.8 years. Financing costs continue to fall DEMIRE also made further progress in terms of financing costs. At 1.80 percent, the average nominal interest rate on borrowings as of the reporting date is 4 basis points below the 2019 year-end figure. During the same period, the net loan-to-value ratio (net LTV) fell 1.3 percentage points to 45.4 percent. "The sustained reduction in financing costs is primarily a result of the refinancing activities carried out in 2019," explains Tim Brückner, CFO of DEMIRE AG. Financial expenses declined from a level of EUR 5.9 million in the first quarter of 2019 to EUR 4.7 million in the reporting period, in part, due to the issue of the 2019 / 2024 corporate bond. COVID-19 effects moderate so far; new outlook for 2020 not yet possible The effects of the COVID-19 pandemic have hit large parts of the German economy starting in mid-March 2020. Since rent payments are usually made at the beginning of a month, the pandemic had little impact on DEMIRE's quarterly figures. The effect on the second quarter has also been moderate so far. Outstanding rent payments amounted to EUR 1.1 million for April and EUR 1.2 million for May, corresponding to a total of EUR 2.3 million or around 2.6 percent of the current annualised contractual rents of EUR 89.9 million. As the effects of the pandemic cannot yet be assessed with any certainty, DEMIRE refrains from issuing an updated guidance for the remainder of the 2020 financial year. Ingo Hartlief, CEO of DEMIRE: "Our REALize Potential strategy and its multitude of efficiency improvements are increasingly impacting both our operative performance with 47.200 m² in letting performance, as well as in a futher increasing FFO. We see ourselves in a position to continue to optimise our portfolio despite the challenging market environment". The DEMIRE quarterly report is available on the Company's website for downloading at: https://www.demire.ag/en/investor-relations/reports-results Invitation to the Conference Call on 19 May 2020 To dial in, please use the following phone numbers: The presentation of the quarterly financial report will also streamed as a live webcast. Please use the link https://webcasts.eqs.com/demire20200519/no-audio For the audio broadcast, please use the dial-in numbers listed above. A presentation will be available on https://www.demire.ag/en/investor-relations/reports-results Selected Key Performance Indicators of DEMIRE Group
* Includes a contract signed after the reference date, whose term started on 1 April 2020
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. DEMIRE's portfolio contains lettable space totalling more than 1.1 million square metres and has a market value in excess of EUR 1.5 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. Contact: Michael Tegeder Head of Investor Relations & Corporate Finance DEMIRE Deutsche Mittelstand Real Estate AG T: +49 6103 372 4944 Email: tegeder@demire.ag 19.05.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | DEMIRE Deutsche Mittelstand Real Estate AG |
Robert-Bosch-Straße 11 im 'the eleven' | |
63225 Langen (Hessen) | |
Germany | |
Phone: | +49 6103 37249-0 |
Fax: | +49 6103 37249-11 |
E-mail: | ir@demire.ag |
Internet: | www.demire.ag |
ISIN: | DE000A0XFSF0 |
WKN: | A0XFSF |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange |
EQS News ID: | 1050139 |
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