Original-Research: DEMIRE AG (von NuWays AG)

Original-Research: DEMIRE AG - from NuWays AG

Classification of NuWays AG to DEMIRE AG

Company Name: DEMIRE AG
ISIN: DE000A0XFSF0

Reason for the research: Update
Recommendation: Halten
Target price: EUR 1.20
Target price on sight of: 12 Monaten
Last rating change: 
Analyst: Philipp Sennewald

Annual report postponed due to prolonged bond negotiations
 
Yesterday, DEMIRE announced the postponement of the publication of the 2023
annual report due to the ongoing negotiations with the bondholders
regarding the restructuring of the company’s corporate bond. The company
recently confirmed the restructuring negotiations, which likely include an
extension as well as an increased coupon (see our last update). The bond’s
current maturity is on October 15th  2024 (€ 499m outstanding nominal
amount). The publication of the annual report was originally scheduled for
25 April. Now, management aims to provide the capital market with the
audited figures in the course of May.
 
In this context, the company also published preliminary FY ’23 figures. FY
rental income looks set to decline by 3.2% yoy to € 78.5m (eNuW: € 79.4m),
mainly due to property sales throughout the year, which overcompensated for
CPI linked organic rent increases. Accordingly, FFO is seen to come in at €
36.7m, down 12.0% yoy. The sharper decline compared to rental income can be
mainly explained by increased FFO-relevant income taxes.
 
With this, the company reached its guidance regarding rental income (€
78-80m) as well as FFO (€ 35-37m). Mind you, the company increased the
guidance twice during the year following lower than expected property
disposals.
 
The preliminary FY ’23 EBIT came in at € -187.9m, which compares to €
-72.9m in the previous year. The steep decline is mainly explained by the
devaluation of the property portfolio as well as the recognition of
provisions for some properties. In total, the portfolio was impaired by
13.2% on a like-for-like basis.
 
On a different note, the supervisory board of DEMIRE recently appointed a
new CEO, as Mr. Frank Nickel succeeds Mr. Alexander Goepfert. Nickel, who
joined DEMIRE in September 2023 as a Senior Advisor, provides extensive
industry experience, including positions as CEO of CA Immo as well as CEO
Germany of Cushman & Wakefield.
 
The stock remains a HOLD with an unchanged PT of € 1.20 given the
prevailing uncertainty.

You can download the research here:
http://www.more-ir.de/d/29467.pdf
For additional information visit our website
www.nuways-ag.com/research.

Contact for questions
NuWays AG  - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.