DEMIRE Deutsche Mittelstand Real Estate AG
DEMIRE Doubles FFO I during its 2018 Financial Year
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Annual Results/Forecast DEMIRE Doubles FFO I during its 2018 Financial Year
Langen, 20 March 2019 – The listed German property company DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) achieved a successful performance and significant improvements in terms of key operating and portfolio ratios during the 2018 financial year. This is the gist of the annual report that the company published for the year 2018 today. The funds from operations (FFO I, before minority interests, after tax) added up to c. EUR 23.4 million during the year under review, and therefore doubled year on year (EUR 11.7 million). The underlying reasons include in particular the considerably improved net interest result, lower maintenance costs and the increased income from rental of property. With a view to the company’s positive performance, the company’s management board had already raised the FFO I year-end forecast for 2018 from EUR 16 million to EUR 18 million to somewhere between EUR 23 million and EUR 24 million in November 2018. The earnings before interest and tax (EBIT) increased by EUR 42.5 million to EUR 127.1 million (2017: EUR 84.6 million). Ingo Hartlief FRICS, CEO of DEMIRE AG, commented: “DEMIRE has set itself the goal of becoming one of the leading property asset holders on Germany’s commercial real estate market. With the successful operating performance during the past financial year and the significant boost to the company’s equity base by our major shareholders in 2018, we have taken another big step toward achieving this goal. At the same time, we created a solid foundation for the ongoing 2019 financial year and our continued growth.”
Year on year, the net loan-to-value ratio declined from 60.1 % to 38.7 % by 31 December 2018. This drastic reduction was primarily accomplished through the appreciation of portfolio properties and the year-on-year increase in cash and cash equivalents, which is particularly due to the inflow of shareholder capital within the framework of a cash capital increase that generated gross proceeds of c. EUR 150 million in November 2018. By 31 December 2018, the shareholders’ equity of DEMIRE amounted to EUR 582.3 million (31 December 2017: EUR 325.5 million). The brisk increase year on year is the result of a 10 % capital increase in April 2018, the continued expansion of the shareholdings of the two major shareholders, Apollo Global Management and Wecken Group-not least through a takeover bid in April 2018-as well as the premature conversion of a large proportion of the outstanding 2013/2018 convertible bonds in June 2018 and the cash capital increase by c. EUR 150 million in November 2018. The basic EPRA-NAV per share equalled EUR 5.52 as of the balance sheet date (31 December 2017: EUR 5.96) while the diluted EPRA-NAV per share was EUR 5.50 (31 December 2017: EUR 4.94).
To download the 2018 Annual Report, use the following link to the homepage of DEMIRE: https://www.demire.ag/en/investor-relations/reports-results/2018 Save the Date: In late March 2019, DEMIRE will present its third and latest survey of the office markets in Germany’s secondary cities. For more details, please contact Jan Schweiger (e-mail: schweiger@rueckerconsult.de).
DEMIRE’s Executive Board members, Ingo Hartlief (CEO) and Tim Brückner (CFO), invite anyone interested to join them for a conference call at 10:00 am (CEST) for a presentation of the 2018 financial year. Please use the following dial-in numbers: Germany: +49 (0)69 2222 25574 The earnings presentation will also be broadcast live via webcast. Please use the link https://webcasts.eqs.com/demire20190320/no-audio. To hear the presentation, please use the dial-in numbers above. The presentation will also be made available on our website at https://www.demire.ag/en/investor-relations/reports-results/2018 shortly before the call. Selected Key Performance Indicators of the Group DEMIRE Deutsche Mittelstand Real Estate AG
* Properties held exclusively for sale The Management Board Contact Details DEMIRE Deutsche Mittelstand Real Estate AG
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DEMIRE Deutsche Mittelstand Real Estate AG About DEMIRE Deutsche Mittelstand Real Estate AG
DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up-and-coming locations bordering German metropolitan areas. The company’s specific forte is its focus on these second-tier cities-its claim being “First in Secondary Locations”-and on a range of assets that appeals to both internationally active and regionally rooted tenants. By the end of the 2018 financial year, DEMIRE held a portfolio with a combined lettable area of around 926,000 sqm and a fair market value of more than EUR 1.1 billion. The portfolio focus on office, retail and logistics assets results in exactly the kind of risk/return structure that DEMIRE considers appropriate for the business line of commercial real estate. The Company puts a premium on long-term contracts with solvent tenants in anticipation of stable and sustainable rent revenues. DEMIRE has set itself the goal to keep optimising its corporate structure. To this end, it pursues an active property management approach, convinced that it is the best way to achieve economies of scale and portfolio optimisations. DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard segment of the Frankfurt Stock Exchange.
20.03.2019 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | DEMIRE Deutsche Mittelstand Real Estate AG |
Robert-Bosch-Straße 11 im ‘the eleven’ | |
63225 Langen (Hessen) | |
Germany | |
Phone: | +49 6103 37249-0 |
Fax: | +49 6103 37249-11 |
E-mail: | ir@demire.ag |
Internet: | www.demire.ag |
ISIN: | DE000A0XFSF0 |
WKN: | A0XFSF |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |
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