DGAP-News: DEMIRE and bulwiengesa study shows higher yield potential of office properties in secondary locations


DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Study/Market Report
DEMIRE and bulwiengesa study shows higher yield potential of office properties in secondary locations

03.12.2021 / 09:00
The issuer is solely responsible for the content of this announcement.

DEMIRE and bulwiengesa study shows higher yield potential of office properties in secondary locations

Langen, 3 December 2021. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) and independent consulting company bulwiengesa AG have conducted a joint study of the investment market for office properties in secondary locations for the fourth time. The study examined 35 secondarie cities (secondaries) in economically strong regions throughout Germany. The study shows that secondary locations continue to offer higher yield potential compared to the German A-cities Berlin, Hamburg, Munich, Frankfurt, Düsseldorf, Cologne and Stuttgart (A-cities). However, the excess yield declines due to rising purchase factors. In addition, secondaries also showed a comparatively high resilience during the Corona pandemic. DEMIRE and bulwiengesa attribute this, among other things, to the economic structure of secondaries. It is characterised by small and medium-sized companies which are highly relevant as tenants.

Focus on secondary locations

Against the backdrop of the Corona pandemic, the discussion about the future of office real estate was largely determined by the focus on the A-cities and the decline in transaction volume in 2020. In the study, DEMIRE and bulwiengesa examined the question of how secondaries have reacted to the Corona pandemic compared to A-cities and what prospects may arise for the future of these investment markets. The study examines a total of 35 locations. In addition to smaller communities such as Aschheim in Upper Bavaria, large cities such as Leipzig and Dortmund are also included in the analysis.

Secondary locations show resilience even in the pandemic

Germany is characterised by a decentralised economic structure with relevant secondaries. These cities are not dependent on international tenants to the same extent as A-cities. They mostly appeal to public tenants or medium-sized companies with a strong regional background. The study concludes that secondaries have shown themselves to be largely resilient in the pandemic.

Development volume geared to demand

The good economic conditions have led to a positive development on the office markets in secondaries in recent years. In this context, the number of office employees has risen in almost all the cities studied, which has led to a decline in vacancies and rising rents. The corona pandemic has temporarily thwarted the positive development in many cities. In contrast to the A-cities, however, construction activity in the majority of secondary locations is demand-driven. Only few office space is built speculatively. This reduces the probability of market distortions.

Vacancy rate averages at 4.2 per cent

The analysis revealed an average vacancy rate of 4.2 per cent across all secondaries observed. This is due to low building actitivy with partly disproportionate, dynamic demand for office space in the past ten years.

Secondary locations with higher yield potentials

The secondary locations examined were analysed with regard to their yield stability and the achievable yield. This shows that all secondary locations have higher yield potential than the A-cities, whereby the spread has narrowed. The range of achievable net initial yields in the secondaries extends from 3.5 per cent in Freiburg im Breisgau to 5.9 per cent in Chemnitz. In A-cities a level of between 2.I6 per cent (Berlin) and 3.1 per cent (Cologne and Stuttgart) is currently being achieved.

Rental growth rates over the ten-year period

The good demand situation of the past years is also reflected in the development of average rents. With few exceptions, an upward trend was registered in almost all secondary locations in the past decade. The growth range here extends from around 4 per cent in Darmstadt to almost 50 per cent in Leipzig.

Sven Carstensen, member of the board of bulwiengesa: "The good economic development of the recent years and digitalisation have led to a strong increase in office employees. This increased demand for new office space, combined with a low level of speculative building activity, has led to a reduction in vacancies in almost all secondaries. In many locations the situation is therefore positive for future investments."

Ingo Hartlief, CEO of DEMIRE AG, says: "The study underscores the strengths and potential of secondaries. With our clear focus on secondary locations we see ourselves well positioned. Especially in economically uncertain times, the stability of our portfolio has proven to be a key advantage. For further portfolio development, we are also consistently focusing on secondaries, in which we feel at home."


The complete study cab be found here:



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 September 2021, DEMIRE's portfolio contains of 67 assets with lettable space totalling about 1 million sqm. cluding the proportionately acquired Cielo property in Frankfurt/Main, the market value exceeds EUR 1.6 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.


DEMIRE Deutsche Mittelstand Real Estate AG
Michael Tegeder
Head of Corporate Finance & Investor Relations 
Phone: +49 6103 372 49 44
Email: [email protected]


03.12.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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Language: English
Company: DEMIRE Deutsche Mittelstand Real Estate AG
Robert-Bosch-Straße 11 im 'the eleven'
63225 Langen (Hessen)
Phone: +49 6103 37249-0
Fax: +49 6103 37249-11
E-mail: [email protected]
Internet: www.demire.ag
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange
EQS News ID: 1253385

End of News DGAP News Service

1253385  03.12.2021 


Die wichtigsten Finanzdaten auf einen Blick
  2016 2017 2018 2019 2020 2021 2022
Umsatzerlöse1 92,12 73,72 73,71 81,80 87,51 82,33 81,08
EBITDA1,2 85,23 87,54 129,18 155,97 34,88 105,92 -62,65
EBITDA-Marge3 92,52 118,75 175,25 190,67 39,86 128,65 -77,27
EBIT1,4 83,17 84,60 127,07 155,17 27,65 101,87 -72,93
EBIT-Marge5 90,28 114,76 172,39 189,69 31,60 123,73 -89,95
Jahresüberschuss1 27,65 19,43 69,05 79,74 9,17 61,59 -71,50
Netto-Marge6 30,02 26,36 93,68 97,48 10,48 74,81 -88,18
Cashflow1,7 35,35 35,81 38,86 45,84 -24,10 65,22 48,00
Ergebnis je Aktie8 0,39 0,22 0,85 0,70 0,08 0,55 -0,62
Dividende8 0,00 0,00 0,00 0,54 0,62 0,31 0,00
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2022 - Kostenfrei herunterladen.  
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: PricewaterhouseCoopers

WKN Kurs in € Einschätzung Börsenwert in Mio. €
A0XFSF 2,360 Halten 254,35
KGV 2024e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
9,83 8,29 1,20 4,90
0,69 5,30 3,14 -16,38
Dividende '22 in € Dividende '23e in € Div.-Rendite '22e
in %
0,00 0,07 0,00 17.05.2023
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
11.05.2023 24.08.2023 09.11.2023 16.03.2023
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
-6,09% -12,72% -5,60% -48,02%
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