NuWays AG Recommends Buy for DEMIRE AG Amid Portfolio Adjustments

NuWays AG released a research report on DEMIRE AG, maintaining a "Buy" recommendation with a target price of EUR 1.50 over 12 months. Despite a 20% year-on-year decline in Q3 rental income to €15.2 million, attributed to disposals and the deconsolidation of the Limes portfolio, the company shows operational resilience. DEMIRE AG’s letting performance increased by 121% year-on-year, signaling operational strength despite a difficult letting market environment.

Furthermore, the company’s Funds from Operations (FFO) saw a 12% decline to €7.5 million, impacted by negative operating leverage. Yet, an improved rental margin helped stabilize the figures. Management reaffirmed its full-year guidance and underscored the potential for asset stability despite the Limes insolvency.

Additionally, DEMIRE AG’s disposal strategy remains a focal point, with more asset sales anticipated, potentially impacting future valuations. The current 73% NAV discount highlights the undervaluation, reinforcing the "Buy" stance.