DEMIRE Deutsche Mittelstand Real Estate (DMRE) Q4 2024 earnings summary

Executive summary

• Achieved operationally solid results for 2024, with rental income and FFO aligned with expectations and guidance.

• Successfully completed bond restructuring and extension, including partial redemption below par, reducing indebtedness and strengthening the financial profile.

• Achieved the highest property sales volume in company history, focusing on non-strategic and mature asset disposals to support deleveraging.

• Letting performance exceeded 68,000 sq m despite a smaller portfolio and challenging market conditions.

• EPRA vacancy at 15.1% and WAULT stable at 4.6 years as of December 2024.

Financial highlights

• Rental income for 2024 was EUR 65.3 million, down 17% year-over-year from EUR 76.7 million, mainly due to asset disposals and deconsolidation.

• FFO1 reached EUR 23.4 million, a 36.4% decrease from the prior year but in line with guidance.

• Net LTV reduced from 57.7% to 40.9% due to bond repayments and deleveraging; including shareholder loan, LTV stands at 51.7%.

• EBIT loss improved to -€93.0m from -€187.9m year-over-year, mainly due to lower revaluation losses.

• Balance sheet contracted by 28.3% as total assets fell to €951.2m, reflecting asset sales and deleveraging.

Outlook and guidance

• FY 2025 guidance: rental income expected at EUR 51–53 million and FFO1 at EUR 3.5–5.5 million.

• Focus remains on deleveraging, optimizing the financial profile, and opportunistic asset sales.

• Plans to reduce vacancies and optimize asset conditions.