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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 EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
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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 months
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 estimates
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 vs
FY22), we regard the letting successes in Rostock and Langenfeld as a
positive sign. Yet the company is still far from <10% 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 as
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 Abschluss
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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