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Original-Research: DEMIRE AG - from NuWays AG
05.12.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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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: 05.12.2025
Target price: EUR 1.00
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald
Topic: Yesterday, DEMIRE upgraded its FY25 outlook following postponed
disposals and stronger cost discipline. The shift of planned transactions
into 2026 leads to a higher-than-expected portfolio size, resulting in
increased rental income and FFO. In addition, operating and administrative
costs were kept below plan, further supporting earnings. The update follows
previous indications that the disposal pipeline was under review and several
transactions remained delayed.
Management now projects rental income at the upper end of the previous range
of EUR 52-54m (eNuW: EUR 55m) and lifted the FFO I expectation to EUR 9-11m (old:
EUR 5-7m; eNuW old/new: EUR 7.8m/EUR 9.2m). This represents a material upgrade
(+67% at mid-point for FFO) compared to the earlier guidance, which had
assumed further meaningful disposals in H2'25 (eNuW: EUR 25-40m). The revised
outlook is consistent with the latest quarterly trends as 9M FFO I already
came in at EUR 8.3m.
The postponement of asset sales means rental income remains supported by a
higher asset base, partially offsetting the elevated vacancy (17.4% at 9M).
While vacancy remains above the medium-term target (<10%), management
reiterates that leasing progress and selective capex should support future
occupancy. In fact, letting performance has also shown sequential
improvements (112k sqm YTD).
As previously discussed, the company needs to redeem EUR 50m of its corporate
bond in '25 and '26 to avoid penalty fees under the refinancing agreement.
The shift of disposals into 2026 means that this threshold will not be met
this year, as communicated before, implying a 3% penalty. However, this is
only partly P&L relevant in 2025 and cash-relevant only at maturity. The
company continues to prepare 2026 disposals to meet the next threshold
(eNuW: >EUR 75m at ±0% BV discount).
While the guidance upgrade shows that commercial real estate in B and C
locations is still not a seller's market (Q3 still deal volume still 70%
below Q3'22 level), it also displays the resilience of DEMIRE's cash
generation despite refinancing constraints and elevated vacancy. Cost
discipline continues to support margins even in this difficult environment,
and the larger portfolio base provides temporary earnings relief until
market conditions allow acceptable pricing for disposals.
Shares remain deeply discounted currently trading 75% below the company's
NAV. We thus continue to recommend BUY, especially for investors focused on
special situations, and keep our PT unchanged at EUR 1.00 based on our NAV
model.
You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=fe11cededa3b1545669858533069bde2
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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2240832 05.12.2025 CET/CEST
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