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Business description

DEMIRE Deutsche Mittelstand Real Estate is an investor in German commercial real estate with a focus on properties in secondary locations, attractive to medium-sized companies. The portfolio is well diversified geographically and by tenant and is spread across office, retail and logistics assets.

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (c) P/E (x) P/CF (x)
2015A 23.7 12.3 33.0 71.38 6.0 N/A
2016A 58.6 44.1 40.0 39.28 10.8 N/A
2017E 55.8 41.0 13.4 10.00 42.5 N/A
2018E 56.4 42.6 39.2 44.00 9.7 N/A

Last updated on 19/07/2018

Investment summary

2017 is a year of implementation for Demire’s (DEMIRE 2.0) strategic plan, which targets significant reductions in financing cost, efficiency improvements and scale economies from additional portfolio growth. Over the medium term, it looks to double the portfolio value to c €2bn while reducing LTV to c 50% (H117: 62.5%). The placement of rated, unsecured five-year 2.875% debt is a significant step forward in extending debt maturity and reducing debt cost (with the first significant impacts seen in 2018) . €270m was issued in July and a further €130m in September with the proceeds directed at refinancing expensive shorter maturity debt, as well as general corporate purposes including property acquisition. H1 FFO1 (after tax, before minorities), a measure of cash earnings, was €4.9m (H116: €5.6m) and diluted EPRA NAV/share was €4.81. Guidance of €8-10m FFO1 and rental income of €72-73m was maintained.

Last updated on 27/07/2018

Industry outlook

The geographical diversity and strength of the German economy make for dynamic property markets outside the seven biggest cities. Secondary cities are characterised by low-vacancy, low-rent volatility and have attracted less investment in new stock in recent years, providing support for rents and opportunities for investors.

Last updated on 27/07/2018

Key management

Markus Drews, Member of the Board - CEO
Ralf Kind, Member of the Board - CFO
Peer Schlinkmann, Head of Investor Relations & Communications

Company address

the eleven / Robert-Bosch-Str. 11
+49 (0) 6103 372 49 0
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