NuWays AG Recommends BUY for DEMIRE AG Shares

NuWays AG provides an update on DEMIRE AG, maintaining a BUY recommendation with a target price of EUR 0.70 for the next 12 months. Despite a 20.2% year-over-year decline in Q3 rental income to €10.9 million, the Free Funds from Operations (FFO) exceeded expectations, reaching €0.8 million.

The company successfully executed a significant portion of its disposal pipeline, increasing its cash reserves to €82.6 million. However, around 40% of this liquidity is constrained within Fair Value REIT, with immediate access limited for addressing maturing notes by 2027.

DEMIRE's management confirms fiscal year guidance for rental income between €42.5-44.5 million and FFO of €0.5-2.5 million. The ongoing shareholder process may impact future value, reflecting the significant discount of shares trading 83% below NAV. A resolution is anticipated by year-end.