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DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE sells three non-strategic commercial assets significantly above market value

DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Real Estate/Disposal

DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE sells three non-strategic commercial assets significantly above market value

22.12.2021 / 07:05

The issuer is solely responsible for the content of this announcement.

DEMIRE sells three non-strategic commercial assets significantly above market value

Langen, 22 December 2021. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has adjusted its portfolio by disposing three non-strategic commercial properties. The transactions encompass office buildings in Regenburg (approx. 30,200 sqm), Potsdam (approx. 3,800 sqm) and Bad Bramstedt with approx. 1,000 sqm of rental space.

The transaction proceeds amount to more than EUR 46 million and surpasses the most recent determined market value in some cases significantly. As no financing is to be repaid from these proceeds, DEMIRE can use the entire liquidity for strategic acquisitions and asset management measures to optimise it’s portfolio. The disposals have no impact on the Company’s guidance for the current fiscal year, which was increased in November 2023. DEMIRE’s management expects the FFO I (after taxes, before minorities) to exceed the previous year’s figure of EUR 39.2 million. Rental income is expected to be at the upper end of the guidance range of EUR 80.0 to 82.0 million.

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.

Contact:

DEMIRE Deutsche Mittelstand Real Estate AG

Michael Tegeder

Head of Investor Relations & Corporate Finance

Phone: +49 6103 372 49 44

Email: tegeder@demire.ag


22.12.2021 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

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