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MAINVESTOR GMBH / MAGNAT REAL ESTATE OPPORTUNITIES GMBH & CO (FRA:M5RK) DEMIRE AG boosts Funds from Operations I to EUR 20.8 million

Directive transparence : information réglementée

25/08/2022 07:00

DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Half Year Report
DEMIRE AG boosts Funds from Operations I to EUR 20.8 million

25.08.2022 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.


 

DEMIRE boosts Funds from Operations I to EUR 20.8 million

  • Record first-half performance, with new and extended lease signings totalling approx. 145,000 m²
  • Funds from Operations I (after taxes, before minority interests) increase by 7.1 per cent to EUR 20.8 million (1H 2021: EUR 19.4 million)
  • Six-month net income from rental of real estate at EUR 31.5 million (1H 2021: EUR 34.2 million) as expected following portfolio adjustment sales
  • Following dividend pay-out of EUR 0.31 per share, NAV per share (undiluted) now at EUR 5.79 (year-end 2021: EUR 5.96)

 

Langen, Germany, 25 August 2022.  Despite the difficult macroeconomic environment and ongoing geopolitical crises, DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has been able to confirm the resilience of its business model: During the first half of 2022, the company achieved record letting performance, with new and extended leases signed totalling almost 145,000 m². DEMIRE was able to score its largest single signing in Neuss, a city on the outskirts of Düsseldorf, where the lease agreement with fashion wholesale platform IMOTEX for 56,000 m² was extended for a further three years.

Profit from rental of real estate in line with expectations; increase in FFO I

The group’s consolidated rental income of EUR 39.5 million for the first half (H1 2021: EUR 42.0 million) was in line with the forecast, following strategic disposals in the previous year. Net income from rental of real estate likewise dipped from EUR 34.2 million in the first half of 2021 to EUR 31.5 million, while earnings before interest and taxes (EBIT) dropped to approx. EUR 26.4 million, a decline of 10.6 per cent compared to the prior-year period (EUR 29.5). Earnings before taxes (EBT) was EUR 17.5 million compared to EUR 18.8 million in the first half of 2021.

Over the same six-month period, Funds from Operations I (after taxes, before minority interests) grew by 7.1 per cent to EUR 20.8 million, compared to EUR 19.4 million in the prior-year period. Following a dividend pay-out of EUR 0.31 per share, net asset value (NAV) per share (undiluted) was EUR 5.79, compared to EUR 5.96 at the close of fiscal year 2021.

Decline in vacancy rate due to strong lease signings

The number of properties remained constant at 64 compared to the end of fiscal 2021, as did the total portfolio value of approx. EUR 1.4 billion. Following the close of the reporting period, one property was sold at a price above its estimated market value. For the six-month period, DEMIRE reported strong letting performance with leases signed totalling around 145,000 m², of which 72 per cent were lease extensions and 28 per cent new leases. The overall portfolio EPRA vacancy rate* declined to 9.5 per cent compared to 11.0 per cent at the end of 2021. The portfolio’s weighted average remaining lease term (WALT) of 4.6 years is virtually unchanged compared to December 31, 2021 (4.7 years). On a like-for-like basis, annualised rental income from lease contracts has grown by 0.9% since June 30, 2021.

The average nominal interest rate paid on financial liabilities of 1.67 per cent p.a. remains favourable. The company’s loan-to-value (LTV) ratio following the dividend payment is now 51.4 percent, while cash and cash equivalents as of June 30, 2022 remain comfortable at EUR 93.5 million.

2022 guidance confirmed

Against the backdrop of current economic and geopolitical developments, the outlook is still mixed. Russia’s war of aggression in Ukraine and the current energy crisis have been the cause of macroeconomic uncertainties. In this context, the company intends to create a liquidity cushion for future refinancing needs. The Executive Board of DEMIRE still sees the group well prepared for the current challenges and remains confident regarding its business and financial outlook. The full-year forecast thus remains intact: For 2022, the Executive Board continues to expect rental income of between EUR 78.0 and EUR 80.0 million and Funds from Operations I (after taxes, before minority interests) in the range of EUR 38.5 to EUR 40.5 million.

“Our REALize Potential strategy is proving itself in the stable performance of our investment portfolio,” says Ingo Hartlief, Chief Executive Officer of DEMIRE. “We continue to see brisk demand for our rental space while also benefitting from the heterogeneous tenant structure of our investment properties. Despite the current macroeconomic uncertainties, we see ourselves as well positioned for the future.”


***

*excl. properties held for sale or classified as project developments

 

The complete mid-year report can be downloaded from the DEMIRE company website at: https://www.demire.ag/publications/

Invitation to Conference Call on 25 August 2022

The Executive Board of DEMIRE is pleased to invite all interested parties to participate in a conference call on Thursday, 25 August 2022, starting at 10:00 a.m. (CEST) during which the financial results for the first half of 2022 will be presented.

Please use one of the following dial-in numbers:

Germany            +49 69 2222 5197
United Kingdom   +44 330 165 4012
United States      +1 646-828-8073

Dial-in code: 3568625

The presentation of the financial results will also be webcast live via the following link: https://www.webcast-eqs.com/demire20220825/no-audio

To listen to the audio, please use one of the above dial-in numbers. The financial results presentation will also be available for download at https://www.demire.ag/en/publications/

 

DEMIRE Group – Key financial performance indicators

Consolidated income statement
(in EUR million)
1H 2022 1H 2021  
Rental income 39.5 42.0  
Net income from rental of real estate 31.5 34.2  
EBIT 26.4 29.5  
Net financial income (loss) -8.9 -10.8  
Period net income (after taxes) 14.0 15.5  
- of which attributable to shareholders of parent company 12.9 14.0  
FFO I (after taxes, before minority interests) 20.8 19.4  
Undiluted/diluted earnings per share (in EUR) 0.20/0.20 0.18/0.18  
 
Consolidated balance sheet (in EUR million)
30/06/2022 31/12/2021  
Total assets 1,688.3 1,705.6
Investment properties 1,449.5 1,433.1
Cash and cash equivalents 93.5 139.6
Properties held for sale 0 0
Equity capital (incl. non-controlling shareholders) 572.5 592.4
Equity ratio (as % of total assets) 33.9 34.7
Undiluted/diluted NAV 610.8/611.3 629.0/629.5
EPRA-NAV per share (in EUR, basic/diluted) 5.79/5.77 5.96/5.94
Net financial liabilities 816.8 775.4
Net debt-to-equity ratio (net LTV), in % 51.4 49.7
 
Key portfolio metrics
30/06/2022 31/12/2021
Number of properties 64 64
Total market value (in EUR million) 1,412.5 1,412.5
Annualised gross rental income (in EUR million) 80.6 78.1
Rental yield (in %) 5.7 5.5
EPRA vacancy rate* (in %) 9.5 11.0
WALT (in years) 4.6 4.7
 
 *excluding properties held for sale or classified as project developments
 
         

 

 

About DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE – REALize Potential

DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial real estate in mid-sized cities and up-and-coming locations bordering metropolitan areas across German. The Company's particular strength lies in realising the potential of the properties at these locations while focusing on a range of properties that appeals to both regional and international tenants. As of 30 June 2022, DEMIRE's portfolio contains of 64 assets with lettable space totalling about 1 million sqm. Including the proportionately acquired Cielo property in Frankfurt/Main, the market value amounts to so approximately EUR 1.7 billion.

The portfolio's focus on office properties with a blend of retail, hotel and logistics properties results in a return / risk structure that is appropriate for the commercial real estate segment. The Company places importance on long-term contracts with solvent tenants and the realisation of the properties' potential. DEMIRE anticipates continued stable and sustainable rental income along with solid value appreciation and expects the portfolio to grow significantly in the medium term. As it expands its portfolio, DEMIRE is concentrating on FFO-strong assets with potential and, at the same time, disposing of properties that are not in line with its strategy. DEMIRE is taking several steps to further the development of its operations and processes. Next to cost consciousness, the operating performance is set to improve through an active asset and portfolio management approach.

DEMIRE Deutsche Mittelstand Real Estate AG shares are listed in the Regulated Market (Prime Standard segment) of the Frankfurt Stock Exchange.

 

Contact:
DEMIRE Deutsche Mittelstand Real Estate AG
Telefon: +49 (0) 6103 – 372 49 – 0
E-Mail: ir@demire.ag



25.08.2022 CET/CEST Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: DEMIRE Deutsche Mittelstand Real Estate AG
Robert-Bosch-Straße 11 im „the eleven“
63225 Langen (Hessen)
Germany
Phone: +49 6103 37249-0
Fax: +49 6103 37249-11
E-mail: ir@demire.ag
Internet: www.demire.ag
ISIN: DE000A0XFSF0
WKN: A0XFSF
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange
EQS News ID: 1427683

 
End of News DGAP News Service

1427683  25.08.2022 CET/CEST

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