Rental income fell to EUR 41.4 million (previous year: EUR 50.6 million) as a result of the smaller portfolio size.
FFO I (after tax, before minorities and interests on shareholder loans) decreased to EUR 8.3 million (previous year: EUR 23.0 million).
Guidance for 2025 confirmed: rental income between EUR 52.0 million and EUR 54.0 million; FFO I (after taxes, before minority interests and interests on shareholder loans) between EUR 5.0 million and EUR 7.0 million.
Langen, 6 November 2025. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) recorded the expected decline in earnings in the first nine months of 2025. This is in line with the forecast and is mainly attributable to the targeted reduction of the real estate portfolio.
Decline in rental income and FFO I continues as a result of portfolio streamlining
Rental income fell to EUR 41.4 million (9M 2024: EUR 50.6 million). Earnings before interest and taxes (EBIT) declined to EUR -28.1 million in the same period (9M 2024: EUR -13.8 million). The decline is primarily attributable to lower profit from the rental of real estate (EUR -6.5 million compared to the previous year) and write-downs on loans granted to the LIMES companies, which have now been deconsolidated (EUR 16.5 million). This was offset by lower administrative expenses (EUR -1.2 million compared to the previous year) and lower other operating expenses (EUR -5.5 million compared to the previous year).
Funds from operations (FFO I) after tax, before minorities and interests on shareholder loans fell to EUR 8.3 million (9M 2024: EUR 23.0 million). The decline is also a consequence of the reduced property volume of the portfolio, which has an impact on FFO I through lower rental income.
Stable letting performance in a complex market environment
Despite the smaller portfolio and the challenging economic situation, letting performance remained virtually stable in the first nine months of 2025 at 56,200 m² (9M 2024: 60,310 m²). New leases, including those in Langenfeld and Flensburg, contributed 18 per cent to the result, while 82 per cent was attributable to contract extensions, including those in Kempten, Celle and Zittau. The EPRA vacancy rate (excluding properties classified as project developments) rose to 17.4 per cent as at 30 September 2025 (31 December 2024: 15.1 per cent). The average remaining term of leases (WALT) for the entire portfolio rose slightly to 4.7 years (31 December 2024: 4.6 years).
Frank Nickel, CEO of DEMIRE: "We are demonstrating our strength even in a challenging economic environment: our consistent asset management ensures stable rental performance, while we are continuously increasing our operational efficiency. From next year onwards, we will also be tapping into additional earnings potential for our B2B property with the new centre management of Imotex in Neuss. In addition, we are gradually implementing energy savings in our portfolio, to the benefit of our tenants and the environment."
The market value of the DEMIRE portfolio fell slightly to around EUR 735.3 million (31 December 2024: EUR 779.3 million). The decline in the portfolio value is mainly due to property sales. Ralf Bongers, CIO of DEMIRE, comments: "In a transaction market that remains subdued, we have deliberately sold properties that do not fit our strategy and are mature, thereby further focusing and strengthening our portfolio. We are proceeding cautiously and selectively in this regard, in some cases, we are also postponing sales processes if we believe that the potential for value appreciation through asset management measures has not yet been fully exploited."
The negative result for the period caused the net asset value (NAV, undiluted) to fall by ...
