Focus
Business model
Real estate is our passion. It guides us every day in the service of our tenants and investors.”
DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial real estate in medium-sized cities and up-and-coming regions bordering metropolitan areas across Germany. We focus on office properties, with retail and hotel properties also featured in our portfolio. We are constantly increasing the value of our portfolio through ongoing optimisation measures.
As of 31 December 2024, we managed 51 properties with lettable floor space of around 0.6 million m² and a total market value of around EUR 1.0 billion.
We offer our international and regional tenants state-of-the-art, functional properties for long-term use. Our shareholders benefit from an attractive risk-return structure in a stable asset class. This is reflected in our stable performance.
DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard of the Frankfurt Stock Exchange.
Key data
| in EUR million | 01/01/2024 – 31/12/2024 | 01/01/2023 – 31/12/2023 |
|---|---|---|
| Earnings | ||
| Rental income | 65.3 | 78.5 |
| Profit/loss from the rental of real estate | 44.5 | 56.2 |
| Profit/loss from the sale of real estate | -7.3 | -14.3 |
| EBIT | -93.0 | -187.9 |
| FFO I (after taxes, before minority interests) | 23.4 | 36.7 |
| 31/12/2024 | 31/12/2023 | |
| Balance sheet | ||
| Total assets | 951 | 1,328 |
| Equity ratio (in %) | 25.4 | 25.1 |
| Net LTV (in %) | 40.9 | 57.7 |
| Avg. interest costs on the reporting date, (in %, p.a.) | 4.35 | 1.74 |
| NAV (basic/diluted) | 258.1/258.1 | 341.5/342.0 |
| NAV per share (basic/diluted) (in EUR) | 2.45/2.45 | 3.24/3.23 |
| Portfolio | ||
| Market value (in EUR Million) | 779.3 | 1,075.6 |
| Annualised contractual rents (in EUR Million) | 56.4 | 76.7 |
| Rental yield (in %) | 7.2 | 7.1 |
| EPRA vacancy rate* (in %) | 15.1 | 13.1 |
| WALT (in years) | 4.6 | 4.6 |
*Excluding project developments
Strategy
REALIZE POTENTIAL
We acquire and hold commercial real estate in regional centres, medium-sized cities and up-and-coming regions bordering metropolitan areas across Germany.
In such cases, the quality of the object, together with the location, is a material investment criterion. The portfolio has potential for real estate investments and is attractive both to international and regional tenants.
Our medium-term strategic plan for the further development of our company encompasses the following objectives:
- Enhancing portfolio quality to aim for risk-adjusted Company growth
- Re-establishing the Company’s ability to pay dividends in the long run
- Achieve an investment grade rating
In order to achieve these objectives, the Company pursues four central approaches or strategic levers:
Transactions
Continued optimisation of the portfolio structure and acquiring additional liquidity to lower the loan-to-value ratio, the medium-term objective is to expand the portfolio in secondary locations corresponding to the market situation
Asset Management
Exhausting real estate potential through active and value-oriented property management
Financials
Reducing the debt ratio and long-term stabilisation of the financing structure
Processes
Realising optimisation potential in processes and structures
Business philosophy
In line with our buy-and-hold strategy, we focus on commercial properties that will still be a good fit for their local areas in 15 years’ time. We achieve this through active asset and property management and forward-looking portfolio development.
- Our tenants should be able to make the best possible use of our properties.
- Our investors should see an economic benefit from their successful use.
- Our company should grow and successfully expand its market position with the ABBA strategy.
We are ...
agile
Our success is based on a sound knowledge of real estate that we have built up over many years. We harness this knowledge and grow it constantly. This helps us to make quick and practical decisions.
connected
Real estate markets are complex and are subject to regional cycles. In order to keep our expertise up to date, we maintain close contact with administration bodies, trade associations, estate agents and other regional real estate players.
reliable and cooperative
We want to be a reliable partner to our tenants. We keep in touch with our tenants to stay on top of the issues that are important to them. This means we are able to act quickly to find the right solutions together when crisis situations arise.
efficient
We are deeply committed to our duty towards our investors to generate stable income and to expand our portfolio value successfully. With this in mind we keep our processes efficient and maintain a close eye on costs.
balanced
With our multi-dimensional diversification approach (relating to regionality, asset class and risk profile) we follow a balanced risk/opportunity strategy that gives our business model a high degree of stability.