DEMIRE Deutsche Mittelstand Real Estate (DMRE) Q1 2026 earnings summary

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.

• 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 increased vacancy.

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

• Management streamlined, reducing the board from three to two members, with responsibilities reallocated.

• Two properties (Flensburg and Bonn) sold for EUR 17.5 million; proceeds used to pay down loans.

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 sq m in Q1 2025 to 2,710 sq m 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.

• FFO I was EUR 0.3 million, down 85.7% year-over-year, reflecting lower rental income.

• 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 reduced from EUR 849 million to EUR 833 million, reflecting disposals and negative period result.

• Equity attributable to shareholders declined by 6.8% to EUR 120.4 million, reflecting negative profit for the period.

• NAV per share (basic) decreased to EUR 1.48 (year-end 2025: EUR 1.59).