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Original-Research: DEMIRE AG - from NuWays AG

07.11.2025 / 09:00 CET/CEST

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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: 07.11.2025

Target price: EUR 1.00

Target price on sight of: 12 months

Last rating change:

Analyst: Philipp Sennewald

Q3 results broadly in line as outlook remains muted / Chg.

Yesterday, DEMIRE released Q3 results, which came in largely as expected on

the top-line, but provided a beat on FFO. In detail:

Q3 rental income declined 10% yoy to EUR 13.6m (eNuW: EUR 13.5m), reflecting the

smaller asset base following several disposals as well as an inflated

vacancy level of 17.4%. Positively, the company was able to stabilize and

even slightly improve the NOI margin on a sequential basis (+1.2 pp vs H1),

as it came in at 68.3%. In our view, this underlines effective cost control

as well as the indexation impact, which partly offset the higher vacancy.

Q3 FFO came in at EUR 3.4m, very much ahead of our estimated EUR 1.5m but still

down 55% yoy. The sharp decline is mainly based on the lower rental income

as well as increased interest payments following the refinancing of the

corporate bond. Disciplined cost management on the other hand only partly

offset those effects, resulting in a significantly reduced FFO margin of

24.8%.

Guidance confirmed. Following the results, management confirmed the FY25

outlook of EUR 52-54m sales and EUR 5-7m FFO. Our estimates are positioned 12%

above the upper end of the FFO range, considering the 9m FFO of EUR 8.3m, and

even despite higher expected maintenance expenses in Q4, and slightly ahead

of the rental income guidance, which would need additional disposals in our

view.

Disposals postponed. Management confirmed last week's ad-hoc that planned

asset sales have been postponed into 2026, as current market bids remain

below acceptable price levels. As a result, the company will not repay the

mandatory EUR 50m of the corporate bond this year, thus triggering the 3%

penalty fee (eNuW: EUR 7.4m), which is however only partially P&L relevant in

FY25 and only cash relevant at maturity. Yet, management struck a slightly

optimistic tone, that the situation might ease going forward in order to

provide another penalty payment in FY26.

Overall, while the situation for DEMIRE remains challenging amid constrained

financial and operating flexibility due to obligations connected to the bond

refinancing framework, the company is still able to post solid operational

performances visible in the stable NOI margin and FFO profitability. Against

this backdrop, shares continue to trade at a substantial discount to the NAV

of EUR 1.80 per share, which we regard as unjustified even in this situation.

We hence confirm BUY with a new PT of EUR 1.00 (old: EUR 1.20) based on our NAV

model.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=a0508ed15cc53ab5d06a40624540492c

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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2225670 07.11.2025 CET/CEST

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