DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG
/ Key word(s): Half Year Results
DEMIRE Deutsche Mittelstand Real Estate AG increases Funds From Operations by 15.2 % to EUR 19.4 million
12.08.2021 / 07:00
The issuer is solely responsible for the content of this announcement.
DEMIRE increases Funds From Operations by 15.2 % to EUR 19.4 million
- Strong letting performance of 122,000 sqm in the first half of 2021 includes long-term lease with Amazon for distribution hub in Leipzig
- Funds from Operations I (after taxes and before minorities) grow by 15.2 percent to EUR 19.4 million (H1 2020: EUR 16.9 million)
- Profit from rental increases to EUR 34.2 million, after EUR 33.0 million in the previous year
- After payment of the dividend of 62 euro cents per share, the NAV per share (basic) amounts to EUR 5.45 (end of 2020: EUR 5.91)
Langen, 12 August 2021. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has successfully completed the first half of 2021 despite the Corona pandemic. The company achieved a high letting performance of 122,000 sqm, including concluding a long-term lease with Amazon for a new distribution hub to be constructed with around 26,000 sqm of usable space in Leipzig.
DEMIRE also used the first half of the year to actively drive forward the strategic streamlining of its portfolio and, at the same time. The company also successfully concluded the largest single transaction in its history by acquiring the Cielo office building in Frankfurt am Main immediately after the record date. In the first half of the current financial year, the COVID 19 pandemic had a comparatively minor impact on DEMIRE's business acivities. Thanks to an active dialogue with tenants, rental income of only around EUR 2.4 million has been outstanding since the beginning of the year, which corresponds to 3.0 percent of the expected rental income for 2021. The company therefore considers itself well positioned for the future and confirms the earnings forecast for the current financial year.
Profit from the rental of real estate and FFO increase
DEMIRE's rental income of EUR 42.0 million (H1 2020: EUR 43.8 million) reflects, among other things, the successful sales in the course of the strategic portfolio streamlining. The profit from the rental of real estate increases from EUR 33.0 million to EUR 34.2 million, and earnings before interest and taxes (EBIT) rise by 35.2 percent year-on-year to around EUR 29.5 million. Earnings before taxes (EBT) improve by 57.5 percent to around EUR 18.8 million.
Funds from Operations I (after taxes, before minorities) rose in the reporting period to EUR 19.4 million or by 15.2 percent compared to the same period of the previous year (EUR 16.9 million). The basic NAV per share is EUR 5.45 after the dividend payment of 62 euro cents, compared to EUR 5.91 at the end of 2020.
The number of properties decreases further by five to 70 assets compared to year-end 2020 as part of the active portfolio optimisation. The value of the portfolio, however, remains almost constant at around EUR 1.4 billion. DEMIRE reports a high letting performance of around 122,000 sqm for the reporting period, of which 46.3 percent is attributable to new lettings and 53.7 percent to follow-on lettings. The EPRA vacancy rate for the portfolio (excluding assets held for sale) was 10.2 per cent as at the reporting date, down from 6.9 per cent as at 31 December 2020. This development is attributable to two factors: On the one hand, the term of some of the concluded leases will begin after reporting date only a few months after signing and thus after the reporting date. On the other hand, new spillovers were taken into re-letting.The WALT increases slightly to 4.9 years, after 4.8 years at year-end 2020.
Comfortable liquidity situation
The average nominal interest rate on debt improves again by 3 basis points to a nominal 1.68 per cent per annum as at 30 June 2021 compared to thel end of 2020. The net leverage ratio (LTV) increases by 2.7 percentage points to 52.7 per cent, and liquidity remains comfortable at EUR 121.1 million as of 30 June 2021.
Forecast for 2021 confirmed
Due to the ongoing vaccination campaign, the overall robust condition of the real estate market and in the expectation that there will be no further nationwide lockdown in Germany, the Management Board confirms its forecast for the 2021 financial year: rental income is expected to be between EUR 80 and EUR 82 million and FFO I (after tax, before minorities) between EUR 34.5 and EUR 36.5 million.
Ingo Hartlief, CEO of DEMIRE, says: "We are focusing on our proven "REALize Potential" strategy and our active asset management with a constructive and proactive tenant dialogue. The high letting performance and the signing of a long-term lease with Amazon emphasises our operational performance in raising the potential of our properties and the quality of our portfolio."
The DEMIRE interim report for H1 2021 is available on the Company's website:
End of press release
Invitation to the Conference Call on 12 August 2021
The Management Board of DEMIRE invites all interested parties to attend the presentation of the H1 2021 interim results at a conference call on 12 August 2021 at 10:00 CET.
Please use the following dial-ins:
Germany +49 89 2222 2018
United Kingdom +44 330 336 9434
united States +1 323 994 2082
The dial-in code is 7979469.
In addition, the conference call will be streamed online:
A presentation is available on
Selected Key Performance Indicators of DEMIRE Group
|Consolidated income statement
|Net income from the rental of real estate
|Profit/loss for the period after tax
|- thereof attributable to shareholders of the parent company
|FFO I (after tax, before minority interests)
|FFO II (after tax, before minority interests)
|Undiluted/diluted earnings per share (in EUR)
|Consolidated accounts (in EURm)
|Cash and cash equivalents
|Properties held for sale
|Shareholders' equity (incl. non-controlling shareholders)
|Equity ratio (in % of total assets)
|EPRA-NAV per share (EUR, basic/diluted)
|Net financial liabilities
|Net debt-to-equity ratio (net LTV), in %
|Portfolio key ratios
|Market value (in EURm)
|Annualised gross rental income (in EURm)
|Rental yield (in %)
|EPRA vacancy rate (in %) **
|WALT (in years)
** excl. assets held for sale
DEMIRE Deutsche Mittelstand Real Estate AG
Head of Investor Relations & Corporate Finance
Phone: +49 6103 372 49 44
Email: [email protected]
About DEMIRE Deutsche Mittelstand Real Estate AG
DEMIRE - REALize Potential
DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial real estate in mid-sized cities and up-and-coming locations bordering metropolitan areas across German. The Company's particular strength lies in realising the potential of the properties at these locations while focusing on a range of properties that appeals to both regional and international tenants. As of 30 June 2021, DEMIRE's portfolio contains of 70 assets with lettable space totalling about 1 million sqm and has a market value in excess of EUR 1.4 billion.
The portfolio's focus on office properties with a blend of retail, hotel and logistics properties results in a return / risk structure that is appropriate for the commercial real estate segment. The Company places importance on long-term contracts with solvent tenants and the realisation of the properties' potential. DEMIRE anticipates continued stable and sustainable rental income along with solid value appreciation and expects the portfolio to grow significantly in the medium term. As it expands its portfolio, DEMIRE is concentrating on FFO-strong assets with potential and, at the same time, disposing of properties that are not in line with its strategy. DEMIRE is taking several steps to further the development of its operations and processes. Next to cost consciousness, the operating performance is set to improve through an active asset and portfolio management approach.
DEMIRE Deutsche Mittelstand Real Estate AG shares are listed in the Regulated Market (Prime Standard segment) of the Frankfurt Stock Exchange.
12.08.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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