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 and a weak economic environment, but results were in line with expectations.

• Annualized contractual rent as of Q1 2026 was EUR 45.7 million, down from EUR 51.3 million at year-end 2025, mainly due to disposals and increased vacancy.

• Letting performance dropped to 2,700 sq m in Q1 2026, down from 25,000+ sq m in Q1 2025, with expectations for improvement later in the year.

• Two properties (Flensburg and Bonn) were sold for EUR 17.5 million, with proceeds used for loan repayments.

• Management board was reduced from three to two members, with responsibilities reorganized.

Financial highlights

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

• 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 LTV improved slightly to 41.2% (year-end 2025: 41.8%).

• Average cost of debt decreased to 4.74% from 4.83% at year-end 2025.

• Total assets decreased to EUR 832.6 million, mainly due to asset disposals.

Outlook and guidance

• Full-year 2026 guidance confirmed: expected rental income EUR 41.5–43.5 million and FFO I of approximately EUR ±1 million.

• Letting activity is expected to pick up in the next quarters, with a strong leasing pipeline.

• The company expects to comply with all bond covenants for 2026.