DEMIRE Deutsche Mittelstand Real Estate (DMRE) investor relations material

Executive summary

• Rental income and FFO I declined year-over-year due to planned property disposals, increased vacancy, and a weak economic environment, but results were in line with expectations.

• Annualised contractual rent as of 31 March 2026 was EUR 45.7 million, down from EUR 51.3 million at year-end 2025, mainly due to disposals and higher vacancy.

• Letting performance dropped to 2,700 sqm, with expectations for improvement by year-end.

• Management streamlined, reducing the board from three to two members and reallocating responsibilities.

• Two properties sold for EUR 17.5 million; transaction activity remains selective and focused on non-strategic assets.

Portfolio highlights

• Annualised contractual rent declined from EUR 56.4 million in FY 2025 to EUR 45.7 million in Q1 2026, mainly due to asset disposals and higher vacancy.

• Letting performance fell from 25,530 sqm in Q1 2025 to 2,700 sqm in Q1 2026, with expectations for larger lettings later in the year.

• EPRA vacancy increased from 16.4% at FY 2025 to 21.0% in Q1 2026, primarily due to two assets becoming fully vacant.

• WALT improved from 4.7 years to 5.2 years, reflecting lease structure changes.

Financial highlights

• Rental income for Q1 2026 was EUR 11.6 million, down 17.3% year-over-year, mainly due to prior year disposals and higher vacancies.

• FFO I for the quarter was EUR 0.3 million, down from EUR 2.1 million year-over-year.

• EBIT improved to EUR 2.7 million from a loss of EUR 3.4 million in Q1 2025, as no material devaluations occurred.

• Net loss for the period was EUR -8.6 million, improved from EUR -15.5 million year-over-year.

• Balance sheet total declined from EUR 849 million to EUR 832.6 million, reflecting disposals and negative period result.