DEMIRE Deutsche Mittelstand Real Estate (DMRE) Q1 2025 earnings summary

Executive summary

• Letting performance more than tripled year-over-year, exceeding 25,000 sqm, driven by major contract extensions with Deutsche Telekom and a DIY market, despite a challenging market environment.

• Rental income declined 24.7% year-over-year to EUR 14.0 million, mainly due to asset disposals and deconsolidation, while annualised contractual rent decreased to EUR 53.7 million.

• EPRA vacancy increased to 18.1%, while WALT improved to 4.8 years due to lease extensions.

• Two properties were sold and closed in Q1 2025, with further disposals planned.

• Two maturing mortgage loans were extended, strengthening the financial profile and shifting liabilities to longer terms.

Financial highlights

• Rental income for Q1 2025 was EUR 14 million, down 24.7% year-over-year due to asset disposals.

• FFO I reached EUR 2.1 million, a 73.7% decrease compared to Q1 2024, but slightly above internal expectations.

• EBIT dropped to EUR -3.4 million from EUR 4.8 million year-over-year, reflecting lower rental income and higher interest expenses.

• Finance expenses exceeded EUR 13 million in Q1, mainly due to a shareholder loan from bond restructuring.

• Cash and cash equivalents at period-end stood at EUR 46.2 million.

Outlook and guidance

• Full-year 2025 guidance confirmed: rental income of EUR 51–53 million and FFO I of EUR 3.5–5.5 million.

• Ongoing focus on deleveraging, further asset sales, and maintaining cost discipline.

• Reduction in Net-LTV towards 40% expected as further disposals are realized.