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Original-Research: DEMIRE AG - from NuWays AG

15.08.2025 / 09:01 CET/CEST

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

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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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: 15.08.2025

Target price: EUR 1.20

Target price on sight of: 12 month

Last rating change:

Analyst: Philipp Sennewald

Q2 Rental income in line & FFO better than expected / Chg.

Yesterday, DEMIRE reported Q2 results, which were in line with our estimate

on rental income but stronger than expected at the bottom-line. In detail:

Q2'25 rental income declined 18% yoy to EUR 13.8m (eNuW: EUR 13.5m) following

the disposals of larger assets like the LogPark Leipzig, the deconsolidation

of the „LIMES“ portfolio as well as several smaller disposals. In total,

this should have affected DEMIRE's annualized contractual rent by c. EUR 20m

(eNuW). On this basis, the NOI also decreased to EUR 9.6m (Q2'24: EUR 11.4m),

however implying an improved margin of 69.8% (+ 2.3pp yoy).

Strong letting performance. In Q2, DEMIRE was able to achieve a letting

performance of 15k sqm, which led to a sequentially improved vacancy level

of 17.3% (-0.8pp qoq) While this is still a very high level (+7.8pp v

FY22), we regard the letting successes in Rostock and Langenfeld as a

positive sign. Yet the company is still far from vacancy, which should

be a level one can expect from a commercial real estate player.

Q2'25 FFO came in at EUR 2.9m (-62% yoy), which is significantly ahead of our

estimated EUR 1.7m. This is mainly explained by better than expected cost

control as well as the stronger than expected NOI margin (eNuW: 65%). It

should be noted that the interest related to the shareholder loan, which

DEMIRE capitalizes, is not included in this FFO figures.

Guidance upgrade. Based on these results, the company upgraded its FY25

guidance to rental income of EUR 52-54m (old: EUR 51-53m) and FFO of EUR 5-7m

(old: EUR 3.5-5.5m). While we were positioned slightly above the new guidance

even before (eNuW new: EUR 54.9m), we regard the new FFO guidance a

reasonable (eNuW new: EUR 6.9m). H2 FFO is seen to come in softer compared to

H1 due to planned investments.

Moreover, management struck an optimistic tone, that it will be able to

avoid the 3% penalty fee (if DEMIRE repays less than EUR 50m of corporate bond

in FY25). Yet, the company will need to sell 2-3 further mid-sized assets in

H2 to fund this, which is however reflected in our estimates.

Despite the ongoing muted operating performance, shares remain undervalued

trading at a 66% NAV discount, which we regard unjustified despite the

challenging situation for the company. We hence reiterate BUY with a new PT

of EUR 1.20 (old: EUR 1.30) based on our NAV model.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=ff1837792f4faa7db1aa076272124523

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 Abschlu

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2184364 15.08.2025 CET/CEST

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