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Original-Research: DEMIRE AG - from NuWays AG

05.12.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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Classification of NuWays AG to DEMIRE AG

Company Name: DEMIRE AG

ISIN: DE000A0XFSF0

Reason for the research: Update

Recommendation: BUY

from: 05.12.2025

Target price: EUR 1.00

Target price on sight of: 12 months

Last rating change:

Analyst: Philipp Sennewald

Topic: Yesterday, DEMIRE upgraded its FY25 outlook following postponed

disposals and stronger cost discipline. The shift of planned transactions

into 2026 leads to a higher-than-expected portfolio size, resulting in

increased rental income and FFO. In addition, operating and administrative

costs were kept below plan, further supporting earnings. The update follows

previous indications that the disposal pipeline was under review and several

transactions remained delayed.

Management now projects rental income at the upper end of the previous range

of EUR 52-54m (eNuW: EUR 55m) and lifted the FFO I expectation to EUR 9-11m (old:

EUR 5-7m; eNuW old/new: EUR 7.8m/EUR 9.2m). This represents a material upgrade

(+67% at mid-point for FFO) compared to the earlier guidance, which had

assumed further meaningful disposals in H2'25 (eNuW: EUR 25-40m). The revised

outlook is consistent with the latest quarterly trends as 9M FFO I already

came in at EUR 8.3m.

The postponement of asset sales means rental income remains supported by a

higher asset base, partially offsetting the elevated vacancy (17.4% at 9M).

While vacancy remains above the medium-term target (<10%), management

reiterates that leasing progress and selective capex should support future

occupancy. In fact, letting performance has also shown sequential

improvements (112k sqm YTD).

As previously discussed, the company needs to redeem EUR 50m of its corporate

bond in '25 and '26 to avoid penalty fees under the refinancing agreement.

The shift of disposals into 2026 means that this threshold will not be met

this year, as communicated before, implying a 3% penalty. However, this is

only partly P&L relevant in 2025 and cash-relevant only at maturity. The

company continues to prepare 2026 disposals to meet the next threshold

(eNuW: >EUR 75m at ±0% BV discount).

While the guidance upgrade shows that commercial real estate in B and C

locations is still not a seller's market (Q3 still deal volume still 70%

below Q3'22 level), it also displays the resilience of DEMIRE's cash

generation despite refinancing constraints and elevated vacancy. Cost

discipline continues to support margins even in this difficult environment,

and the larger portfolio base provides temporary earnings relief until

market conditions allow acceptable pricing for disposals.

Shares remain deeply discounted currently trading 75% below the company's

NAV. We thus continue to recommend BUY, especially for investors focused on

special situations, and keep our PT unchanged at EUR 1.00 based on our NAV

model.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=fe11cededa3b1545669858533069bde2

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2240832 05.12.2025 CET/CEST

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