NuWays AG Recommends "Buy" for DEMIRE AG

NuWays AG has updated its recommendation for DEMIRE AG to "Buy" with a target price of EUR 1.20, effective from August 15, 2025. The recent Q2 report showed rental income declining by 18% year-on-year to €13.8 million, partially due to asset disposals. However, Funds from Operations (FFO) exceeded expectations at €2.9 million, driven by effective cost control and a strong Net Operating Income margin.

The vacancy rate improved to 17.3% following successful lettings of 15,000 sqm. Despite an upgraded full-year rental income guidance of €52-54 million and FFO of €5-7 million, DEMIRE AG continues trading at a 66% NAV discount, considered undervalued by NuWays AG. The focus will be on further asset sales in H2 to improve financial positioning.