EQS-Adhoc: DEMIRE postpones publication of audited consolidated financial statements for 2023 due to ongoing negotiations with bondholders and its EBIT in 2023 deviates materially from previous year figures

DEMIRE postpones publication of audited consolidated financial statements for 2023 due to ongoing negotiations with bondholders and its EBIT in 2023 deviates materially from previous year figures

Langen, 18 April 2024 – Due to the ongoing negotiations with a group of bondholders of its unsecured corporate bond (ISIN: DE000A2YPAK1) and various stakeholders regarding an extension of the term and an adjustment of further conditions, DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) ("Company") postpones the publication of the audited consolidated financial statements for the 2023 financial year originally scheduled for 25 April 2024. The Company expects to be able to publish the audited consolidated financial statements for the 2023 financial year in the course of May 2024. The Company will inform the capital market and the public of the exact publication date in accordance with legal requirements.

In this context, today the Company also decided to publish the preliminary business figures for 2023. Based on the preliminary business figures, rental income fell by 3.2% to EUR 78.5 million in the 2023 financial year (previous year: EUR 81.1 million), mainly due to property sales. Rental income is within the forecast of EUR 78 million to EUR 80 million, which was adjusted upwards in November 2023. According to preliminary calculations, funds from operations (FFO I after taxes and before minority interests) totalled EUR 36.7 million, around 12.0% below the previous year's figure (previous year: EUR 41.8 million). The lower FFO I is in particular due to lower rental income and higher FFO-relevant income taxes. However, they are at the upper end of the forecast of EUR 35 million to EUR 37 million, which was adjusted upwards in November 2023.

Preliminary earnings before interest and taxes (EBIT) fell from EUR -72.9 million to EUR -187.9 million in the 2023 financial year, mainly due to market-related devaluations of the property portfolio as a result of price adjustments on the property markets in the wake of higher key interest rates from central banks and the recognition of provisions for some properties. The portfolio was thus impaired on a like-for-like basis by 13.2% compared to the end of 2022.

The business figures in this press release are to be regarded as preliminary.

1884049  18-Apr-2024 CET/CEST