DEMIRE confirms stable operating performance in the first quarter of 2025

Core Insights - DEMIRE Deutsche Mittelstand Real Estate AG reported stable operating performance in Q1 2025, aligning with the Executive Board's expectations despite a reduced portfolio base [1] Financial Performance - Rental income decreased by 24.7% to EUR 14.0 million compared to EUR 18.6 million in Q1 2024, primarily due to a smaller portfolio [2] - Earnings before interest and taxes (EBIT) fell to EUR -3.4 million from EUR 4.8 million in the same period last year, largely due to market value adjustments of properties held for sale amounting to EUR -10.8 million [2] - FFO I (after taxes, before minority interests) totaled EUR 2.1 million, down from EUR 7.9 million in Q1 2024, reflecting the impact of the reduced property portfolio [3] Portfolio and Market Value - The market value of DEMIRE's portfolio decreased to approximately EUR 766.0 million after sales and value adjustments, down from EUR 779.3 million at the end of 2024 [4] - The net asset value (NAV) per share decreased by EUR 0.16 to EUR 2.29 in the reporting period, compared to EUR 2.45 at year-end 2024 [4] Letting Performance - The letting performance tripled to 25,500 square meters in Q1 2025, compared to 8,200 square meters in Q1 2024, marking the highest letting performance in a first quarter since 2022 [5] - The EPRA vacancy rate increased to 18.1% from 15.1% at year-end 2024, while the average remaining lease term (WALT) rose slightly to 4.8 years [5] Financial Stability - The net loan-to-value (LTV) ratio was stable at 41.5%, compared to 40.9% at year-end 2024, indicating a strengthened balance sheet [6] - Cash and cash equivalents amounted to EUR 46.2 million as of the reporting date [6] Guidance for 2025 - The Executive Board confirmed the guidance for 2025, expecting rental income between EUR 51.0 million and EUR 53.0 million, down from EUR 65.3 million in 2024, and FFO I between EUR 3.5 million and EUR 5.5 million, compared to EUR 26.2 million in 2024 [7][8]