Moody's confirms Ba2 rating for DEMIRE

Langen, 3 June 2020. The global rating agency Moody's Investors Service (Moody's) has confirmed the corporate issuer rating of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) at "Ba2" with a "stable outlook" in the course of a regular rating review.

"The confirmation of the rating by Moody's shows that our business model with a broadly diversified portfolio remains highly stable even in economically challenging times," explained Tim Brückner, CFO. In its assessment, Moody's points to the generally increased business risks due to the expected recession for Germany in 2020. The rating agency justifies DEMIRE's stable Ba2 rating with a reduced level of debt, positively developing portfolio ratios and the company's greater financial security. With the rating stance "stable outlook", Moody's underlines the assessment that, due to DEMIRE's good risk structure, the rating would not be affected even in an increasingly difficult market environment with possible declining rental income and property valuations.

Thanks to a well-structured refinancing strategy, DEMIRE was able to reduce the average nominal interest rate on debt in 2019 by about 120 basis points to 1.80 percent as of 31 March 2020. The net loan-to-value ratio (LTV) also fell to 45.4 percent at the end of March 2020. "In the medium term, DEMIRE continues to aim for an investment grade rating," concludes Tim Brückner.

About DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE - REALize Potential

DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up-and-coming locations bordering German metropolitan areas. The Company's specific forte is its focus on these second-tier cities - its claim being "First in Secondary Locations" - and on a range of assets that appeals to both internationally active and regionally rooted tenants. DEMIRE holds a portfolio with 87 assets with a combined lettable area of around 1.1 million m² and a market value of more than EUR 1.5 billion (as of 31 March 2020).

The portfolio focus on office, retail and logistics assets results in exactly the kind of risk/return structure that DEMIRE considers appropriate for the business line of commercial real estate. The Company puts a premium on long-term contracts with solvent tenants in anticipation of stable and sustainable rental revenues. DEMIRE has set itself the goal to keep optimising its corporate structure. To this end, it pursues an active property management approach, convinced that it is the best way to achieve economies of scale and portfolio optimisations.
DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard segment of the Frankfurt Stock Exchange.

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Investor Relations

Michael Tegeder
Head of Investor Relations & Corporate Finance
DEMIRE Deutsche Mittelstand Real Estate AG
Phone: + 49 6103 3724944
Email: tegeder@demire.ag