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Original-Research: DEMIRE AG - from NuWays AG

20.03.2026 / 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

Target price: EUR 0.8

Target price on sight of: 12 months

Last rating change:

Analyst: Philipp Sennewald

FY25 confirms ongoing deleveraging story amid earnings press

Yesterday, DEMIRE published its FY25 results, delivering figures broadly in

line with expectations and reflecting continued portfolio downsizing in a

still challenging market environment. The release mainly reinforces the

group's ongoing repositioning and liquidity-focused strategy rather than

signalling a near-term operational inflection.

FY25 was characterised by a material reduction in portfolio size and

earnings base. Rental income declined by 18% yoy to EUR 53.5m (eNuW: EUR 55.0m),

while FFO I dropped by 62% yoy to EUR 10.1m (eNuW: EUR 9.2m), mainly driven by

disposals and higher interest expenses. At the same time, property values

continued to adjust, with NAV falling significantly to EUR 168m (EUR 1.59 per

share), reflecting both valuation effects and weaker profitability.

Operationally, DEMIRE made visible progress on its disposal strategy,

selling 11 assets for EUR 64m and further streamlining the portfolio. This,

however, comes with the expected trade-off of a lower rental base, as also

reflected in annualised rents declining to EUR 51.3m. Encouragingly, letting

activity improved significantly, with leasing volume almost doubling yoy,

highlighting initial traction from the strengthened asset management

platform.

At the same time, key operating metrics remain under pressure. Vacancy

increased to 16.4%, mainly driven by larger tenant move-outs, while

like-for-like rental momentum remains limited in the current market

environment. Positively, lease duration improved slightly (WALT 4.7 years),

supporting cash flow visibility.

On the balance sheet side, DEMIRE maintained broadly stable leverage, with

net-LTV at 41.8% (excl. shareholder loan), despite continued valuation

headwinds. However, higher financing costs (4.83% avg.) and increased

interest burden are weighing on earnings, underlining the importance of the

ongoing refinancing strategy, particularly with regard to the 19/27

corporate bond.

Looking ahead, the company guides for a further decline in earnings in FY26

(FFO I EUR -1 to 1m) and top-line (rental income EUR 41.5-43.5m), reflecting the

smaller portfolio but also implying further asset disposals (eNuW: EUR 104m

GAV). As such, the investment case remains largely centred on execution of

disposals, refinancing and vacancy reduction rather than short-term earnings

growth.

Overall, FY25 confirms DEMIRE's transition phase: while operational

improvements in asset management are becoming visible, the key swing factors

remain balance sheet stabilisation and a recovery in transaction markets.

Reiterate BUY with a new EUR 0.80 PT (old: EUR 1.00) based on our NAV model.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=bf1917294b8f8876bf6f1e28e40e3d01

For additional information visit our website:

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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 Interessenkonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befindet sich in der vollständigen Analyse.

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2294918 20.03.2026 CET/CEST

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