DEMIRE Deutsche Mittelstand Real Estate AG: Publication of the DEMIRE Deutsche Mittelstand Real Estate AG’s results for fiscal year 2012/2013

DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Final

22.08.2013 / 15:56


- Successful operational management: Real estate projects disposed,
liabilities reduced, on-going costs trimmed, liquidity secured

- Group net loss for the period: EUR -5.9 million (previous year: EUR 12.9
million) - Previous year's figures impacted by positive one-off effects

- Realignment of investments in existing real estate for entrepreneurial
medium-sized companies (the 'Mittelstand') in Germany will be promptly
driven forward

Frankfurt/Main, August 22, 2013 - Today, DEMIRE Deutsche Mittelstand Real
Estate AG (DMRE, ISIN DE000A0XFSF0) published its results for fiscal year
2012/2013. The Supervisory Board of the Company dealt extensively with the
financial statements and the consolidated financial statements for fiscal
year 2012/2013 (April 1, 2012 to March 31, 2013) including the management
report for both the Company and the Group which have been audited and
furnished with unqualified audit certificates by the auditor. The
Supervisory Board adopted the financial statements and approved the
consolidated financial statements.

In the past fiscal year, the focus of the Group's operational management
was on the disposal of further real estate projects, the minimisation of
risks and liabilities, and the reduction of the on-going costs in order to
safeguard liquidity. The Group has made good progress in all of these

When comparing the numbers of the reporting year with those of the previous
2011/2012 fiscal year, the positive one-off effects that had impacted the
previous year must be taken into account. Those had resulted, among others,
from an accounting change following the examination by the German Financial
Reporting Enforcement Panel (DPR). In addition, extensive projects were
sold in the previous year.

Overall, DEMIRE Deutsche Mittelstand Real Estate' AGs consolidated
profit/loss before interest and taxes amounted to EUR -4.9 million in the
reporting year after EUR 14.8 million in the prior year. The profit/loss
before taxes was EUR -5.7 million after EUR 13.0 million. Net of taxes and
non-controlling interests, the Group's net profit/loss attributable to
parent company shareholders amounted to EUR -5.9 million after EUR 12.9
million in the prior year.

Several line items in the statement of income declined in the reporting
period due to the prior year's disposals. In contrast, the decline in
unrealised fair value adjustments as well as other impairments from EUR
-7.4 million to EUR -4.1 million had a positive earnings impact. So did the
reduction of general and administrative expenses from EUR 5.7 million to
EUR 3.8 million.

As of the balance sheet date, total assets declined from EUR 44.3 million
in the previous year to EUR 31.1 million. In particular, liabilities
decreased significantly from EUR 24.0 million to EUR 16.9 million. At 45.8
percent, the equity ratio remained at the previous year's level of 45.7
percent. As per the March 31, 2013, cash and cash equivalents amounted to
EUR 2.3 million. Thus, despite the loss in reporting year, they only
declined moderately compared to the level at the end of the prior year of
EUR 3.6 million. The net asset value (NAV) calculated according to EPRA
requirements amounted to EUR 14.4 million as at March 31, 2013. Based on
13.89 million shares outstanding, this is equivalent to a NAV of EUR 1.04
per share.

In the current 2013/2014 fiscal year, the focus will be on the further
prompt execution of the Group's realignment. In the future, it will
concentrate on investments in existing real estate for entrepreneurial
medium-sized companies ('the Mittelstand') in Germany. It is the intention
to dispose of the remaining investments in Eastern Europe and in the Black
Sea region and to establish a value-enhancing real estate portfolio in

About Deutsche Mittelstand Real Estate 
DEMIRE Deutsche Mittelstand Real Estate AG is a Frankfurt/Main
headquartered real estate Group with a clear focus on commercial real
estate for the entrepreneurial 'Mittelstand' in Germany.

The 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.

End of Corporate News


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Language:    English                                             
Company:     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                           
ISIN:        DE000A0XFSF0                                        
WKN:         A0XFSF                                              
Listed:      Regulierter Markt in Frankfurt (General Standard);  
             Freiverkehr in Berlin, Stuttgart                    
End of News    DGAP News-Service  
227110 22.08.2013