DEMIRE’s half-year results slightly positive
- Expansion of core portfolio progressing rapidly
- Rising earnings contributions from new commercial properties
- Successful raising of capital secures financing
Frankfurt/Main, December 1, 2014 – DEMIRE Deutsche Mittelstand Real Estate AG (“DEMIRE”, ISIN DE000A0XFSF0) published first half-year results (April 1 to September 30) for the abbreviated financial year ending on December 31, 2014. During this time period, the Group generated slightly positive results.
These results reflect the rapid progress of DEMIRE’s repositioning: profit/loss from the rental of real estate rose to EUR 1.0 million after EUR 0.2 million for the comparable period of the previous year. This income item will continue to grow immensely in the future and make a major contribution to the Group’s success. Our withdrawal from our former target regions was consistently executed and our engagement in Turkey was disposed of at a profit. The remaining holdings are still having a negative impact due to negative currency effects. In addition to the improvement in revenues, we have also reduced costs. The profit/loss for the period reported for the first six months of 2014 amounted to EUR 0.1 million after EUR –2.0 million. This is equal to earnings per share of EUR 0.01 after EUR –0.14 for the comparable period of the previous year.
The DEMIRE Group’s total assets grew an appreciable 96 percent in comparison to the end of the 2013/2014 financial year (reporting date March 31, 2014) and rose from EUR 48.4 million to EUR 95.0 million. This rise was mainly due to the purchase of commercial real estate.
DEMIRE accelerated the pace of the Group’s realignment once again in the current abbreviated financial year. The purchase of a portfolio of an initial seven commercial properties in several German metropolitan areas, which in the meantime has risen to eight properties, was initiated in the first quarter of the current financial year and is expected to close by the end of 2014. In September 2014, DEMIRE issued a bond with a term of five years and an interest coupon of 7.5 %. Meanwhile, the issue volume EUR 50 million has been almost entirely invested in the expansion of the
commercial real estate portfolio: following the end of the reporting period, DEMIRE acquired a portfolio consisting of a total of 107 properties. With rentable space of almost 270,000 square metres, these properties generate annual net rental income of over EUR 19 million. This transaction is also expected to close in the current year.
Upon publication of the half-year results, Hon.-Prof. Andreas Steyer, Speaker of the Executive Board, stated, “With the position we have achieved, we have created a solid basis for expanding the Group. The portfolio is already making an extensive contribution to limiting our risk and accelerating our growth. We will continue with our declared strategy of making DEMIRE one of the major participants in the market with even greater speed”.
The 2014 Half-Year Report will be published today on the Company’s website under the link