NuWays AG Provides "Buy" Rating for DEMIRE AG Despite Mixed FY24 Results

NuWays AG has updated its research on DEMIRE AG, maintaining a "Buy" recommendation with a reduced target price of EUR 1.30. The FY24 results showed a 16.9% decline in rental income to €65.3 million, influenced by asset disposals and deconsolidations. FFO for FY24 fell by 36.4% to €23.8 million, due to a reduced NOI margin and increased administrative costs.

The vacancy rate at DEMIRE grew by 2 percentage points, reaching 15.1%, attributed to tenant insolvency and relocations. The company aims to lower this rate but targets remain unspecified. Conversely, DEMIRE improved its LTV ratio to 51.0% following bond refinancing and asset sales.

FY25 projections foresee rental income of €51-53 million and FFO of €3.5-5.5 million. Despite mixed performance, synergies with asset disposals position DEMIRE as undervalued against a NAV discount of 65%.