DEMIRE delivers Q3 2026 results in line with expectations and confirms full-year guidance
- Rental income falls to EUR 33.9 million (previous year: EUR 41.4 million) due to a reduced portfolio
- EBIT returns to positive territory at EUR 10.9 million (previous year: EUR -28.1 million)
- FFO I* falls to EUR 2.8 million (previous year: EUR 8.3 million)
- Guidance for 2026 confirmed: rental income between EUR 42.5 million and EUR 44.5 million; FFO I* between EUR 0.5 million and EUR 2.5 million
Langen, 5 November 2026. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) reported results in line with its full-year guidance for the first nine months of 2026. Declining revenues following continued property sales remain a key influencing factor.
A reduced portfolio base leads to a decline in rental income and FFO I
Rental income fell to EUR 33.9 million (9M 2025: EUR 41.4 million). Earnings before interest and tax (EBIT) rose to EUR 10.9 million over the same period (9M 2025: EUR -28.1 million). This significant increase is primarily attributable to the substantial negative effects in the prior period arising from high fair value adjustments on properties held for sale, as well as to write-downs on loans granted to the LIMES companies, which have now been deconsolidated (EUR 16.5 million).
Funds from Operations (FFO I) after tax, before minority interests and interests on shareholder loans fell as planned to EUR 2.8 million (9M 2025: EUR 8.3 million) as a result of reduced rental income following property sales.
Negotiations are at an advanced stage regarding further large-scale leases
The smaller portfolio and the continuing challenging economic environment reduced leasing activity in the first nine months of 2026 to 34,100 m² (9M 2025: 56,200 m²). Leasing activity was driven in particular by a lease renewal covering approximately 10,500 m² in Quickborn and a new lease covering approximately 10,000 m² in Bonn. Overall, new leases accounted for 64% of total leasing activity.
The EPRA vacancy rate (excluding properties classified as project developments) rose to 22.6 percent as of September 30, 2026 (December 31, 2025: 16.4 percent). The average remaining term of lease agreements (WALT) for the entire portfolio remained virtually unchanged at 4.6 years (December 31, 2025: 4.7 years).
Dr Dirk Rüffel, CEO of DEMIRE: “The challenging economic environment continues to weigh on the commercial real estate market and, in particular, on demand for larger office spaces. Nevertheless, in addition to leasing over 10,000 m² to the United Nations in Bonn, we have made further progress and are in advanced negotiations regarding additional large-scale leases in several properties.”
The real estate sales also affected the market value of the DEMIRE portfolio, which decreased to approximately EUR 627.0 million (Dec. 31, 2025: EUR 688.3 million). The net loss for the period caused the net asset value (NAV, undiluted) to decline by EUR 0.31 per share during the reporting period to EUR 1.28 (Dec. 31, 2025: EUR 1.59).
Liquidity continues to rise and net debt continues to fall as a result of sales
The average nominal cost of debt has decreased slightly since the end of 2025 to 4.69 percent per year (Dec. 31, 2025: 4.83 percent). At the same time, net debt fell to EUR 295.7 million (Dec. 31, 2025: EUR 332.3 million; in each case excluding shareholder loans as defined). The net loan-to-value ratio (Net LTV) stood at 40.1 percent, below the year-end figure for 2025 (41.8 percent). Cash and cash equivalents rose to EUR 82.6 million as of the reporting date (Dec. 31, 2025: EUR 54.2 million), primarily due to sales. Tim Brückner, CFO of DEMIRE, commented: “We are consistently pursuing our consolidation strategy by strengthening our liquidity and reducing our net debt.”
Guidance for 2026 confirmed
The Executive Board confirms the guidance for the 2026 financial year. Although FFO I performed well in the first nine months of the financial year and, at the end of the reporting period, was above the guidance range for the full year, the company is sticking to its previous full-year guidance. This is due to further investments in the property portfolio expected in the fourth quarter.
DEMIRE therefore continues to forecast rental income of between EUR 42.5 and 44.5 million for the 2026 financial year (2025: EUR 53.5 million) and FFO I* of between EUR 0.5 and 2.5 million (2025: EUR 10.1 million).
End of press release
Invitation to the conference call on 5 November 2026
The Executive Board of DEMIRE invites all interested parties to a conference call on 5 November 2026 at 11:00 am (CEST) to present the results for the first nine months of 2026.
Please use the following registration link:
A presentation of the results and the reporting are available for download on the website https://www.demire.ag/en/publications/
*): after tax, before minority interests and interests on shareholder loans
Selected Group key figures of DEMIRE Deutsche Mittelstand Real Estate AG
| Consolidated income statement (in EUR million) | 1 January 2026- 30 September 2026 | 1 January 2025- 30 September 2025 |
| Rental income | 33,9 | 41,4 |
| Profit from the rental of real estate | 22,9 | 27,9 |
| EBIT | 10,9 | -28,1 |
| Financial result | -41,8 | -38,3 |
| Profit for the period after taxes | -26,2 | -60,7 |
| FFO I (after taxes, before minorities and interests on shareholder loans) | 2,8 | 8,3 |
| Consolidated balance sheet (in EUR million) | 30 September 2026 | 31 December 2025 |
| Balance sheet total | 819,5 | 849.2 |
| Investment properties | 623,6 | 591.9 |
| Cash and cash equivalents | 15,3 | 54.2 |
| Properties held for sale | 82,6 | 103.5 |
| Equity¹ (incl. non-controlling interests) | 195,3 | 219.3 |
| Equity ratio¹ (in % of total assets) | 15,2 | 17.8 |
| Undiluted/diluted NAV | 135,4 | 168.1 |
| NAV per share (EUR, undiluted/diluted) | 1,28 | 1.59 |
| Net financial debt² | 295,7 | 332.3 |
| Net leverage ratio² (Net-LTV) in % | 40,1 | 41.8 |
| Portfolio key figures | 30 September 2026 | 31 December 2025 |
| Properties (number) | 39 | 43 |
| Market value (in EUR million) | 627,0 | 688.3 |
| Annualised contractual rents (in EUR million) | 42,0 | 51.3 |
| Rental yield (in %) | 6,7 | 7.5 |
| EPRA vacancy rate³ (in %) | 22,6 | 16.4 |
| WALT (in years) | 4,6 | 4.7 |
¹The reported equity figure includes non-controlling interests, which, due to the Group’s legal form as a partnership, are recognised as non-equity capital in accordance with IFRS. The equity ratio is calculated on the basis of the IFRS equity shown in the balance sheet, excluding these non-controlling interests. ²according to bond terms and conditions ³excl. properties classified as project development |
DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial properties in medium-sized cities and up-and-coming peripheral locations in metropolitan areas throughout Germany. The company's particular strength lies in realising real estate potential in these locations and focuses on an offering that is attractive to both international and regional tenants. As of 30 September 2026. DEMIRE had a real estate portfolio of 39 properties with a lettable area of around 481 thousand square metres. The market value of the directly held property portfolio stands at around EUR 627.0 million. When the financial investment in the Cielo office complex in Frankfurt, which is accounted for using the equity method, is included, the total value under management amounts to around EUR 0.8 billion.
The portfolio's focus on office properties with an admixture of retail and hotel properties is appropriate for the risk/return structure of the commercial property segment. The Company attaches great importance to long-term contracts with solvent tenants and the realisation of potential and therefore continues to expect stable and sustainable rental income and solid value growth. DEMIRE's portfolio is to be significantly expanded in the medium term. In expanding the portfolio. DEMIRE will focus on FFO-strong assets with potential. while properties that do not conform to the strategy will continue to be sold in a targeted manner. DEMIRE will continue to develop its operations and processes with numerous measures. In addition to cost discipline. operating performance is being improved through an active asset and portfolio management approach.
The shares of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) are listed in the Prime Standard of the German Stock Exchange in Frankfurt.
Contact:
Julius Stinauer
Head of Investor Relations & Corporate Finance
T: +49 6103 372 49 44
E: ir@demire.ag
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