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Original-Research: DEMIRE AG - from NuWays AG
09.05.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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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: 09.05.2025
Target price: EUR 1.30
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald
Q1 results in line with guidance, chg.
Topic: Yesterday, DMRE released Q1'25 figures, showing the expected decline
in rental income and FFO following the decreased asset base. In detail:
Q1 rental income decreased 25% yoy to EUR 14.0m (eNuW: EUR 13.5m), which was
mainly driven by the sale of the "LogPark" in Leipzig and the
deconsolidation of the "LIMES" portfolio. Both have a combined effect of EUR
17.5m on DMRE's annualized rent. On this basis, also the NOI significantly
decreased implying a slightly weaker NOI margin of 64.5% (-0.8pp yoy), which
should be mainly attributable to the increased vacancy rate of 18.1% (FY24:
15.1%). This was mainly caused by Deutsche Telekom leaving parts of their
rental space, which was only partly offset by the strong letting performance
in Q1 (25k sqm). Going forward, we expect the vacancy rate to go down again,
driven by an ongoing strong letting performance as well as the targeted
disposal of higher vacancy assets.
Q1 FFO came in at EUR 2.1m, much stronger than our estimated EUR 1.2m but still
74% down yoy. Mind you, this figure displays the FFO before shareholder loan
interest (EUR 93.5m volume & 22% interest), which the company capitalizes,
thus not being cash but P&L relevant. The disproportionately strong decline
was mainly caused by the increased interest payments for DMRE's corporate
bond as well as the weaker NOI margin.
Guidance confirmed. On the basis of the results, management confirmed the
FY25 guidance of EUR 51-53m rental income and EUR 3.5-5.5m FFO. In our view,
which is already reflecting a certain amount of disposals, both are to
conservative. For the top-line, we now expect DMRE to achieve EUR 54.6m, which
is based on the Q1 rental income, an annualized contractual rent of EUR 53.7m
as well as an improved vacancy. Our FFO estimate of EUR 5.6m is also ahead of
the guidance following the stronger than expected result in Q1 and a
conservative estimate going forward.
Despite the muted operating performance, the stock remains highly
undervalued in our view and should provide a good opportunity, particularly
for special situation investors. Reiterate BUY with an unchanged EUR 1.30 PT
based on our NAV model.
You can download the research here: http://www.more-ir.de/d/32530.pdf
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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2133682 09.05.2025 CET/CEST
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