DEMIRE Achieves 2023 Guidance, Announces Successful Bond Refinancing

DEMIRE Deutsche Mittelstand Real Estate AG reported financial results and strategic updates for 2023. The company met its guidance, achieving a rental income of EUR 78.5 million and FFO I of EUR 36.7 million. Despite a reduced portfolio and challenging market conditions, operational success was maintained, and a liquidity cushion was formed through selective sales.

For the first half of 2024, rental income stood at EUR 35.5 million, a 13.1% decrease from the previous year, while FFO I dropped by 19.7% to EUR 15.5 million. DEMIRE agreed with bondholders to extend the 19/24 bond until 2027. CEO Frank Nickel stated that this agreement stabilizes the company's operations.

The company's portfolio was valued at EUR 950 million as of June 2024, down from EUR 1.3 billion at the end of 2022, due to strategic disposals and market devaluations. The Net-LTV was kept stable at 55.6%.

DEMIRE's bond refinancing involved extending the term with adjusted terms, including an interest rate increase to 5% and partial redemption. CFO Tim Brückner highlighted the refinancing as a significant milestone for future investments.