DEMIRE Deutsche Mittelstand Real Estate AG has adjusted its full-year forecast for the 2026 financial year. This adjustment results from a more positive business development in the first half of 2026 than originally anticipated. Despite the expected decline in rental income, which is due to the ongoing property sales, the company reports positive FFO I (Funds From Operations) of EUR 2.0 million and EBIT (earnings before interest and taxes) of EUR 8.0 million.
For the full year 2026, the Management Board now anticipates rental income in a range of EUR 42.5 to 44.5 million. The forecast for FFO I after tax, before minority interests and interest on shareholder loans, is raised to EUR 0.5 to 2.5 million. Previously, expectations for rental income were EUR 41.5 to 43.5 million and for FFO I were EUR -1.0 to 1.0 million. In the 2025 financial year, rental income of EUR 53.5 million and FFO I of EUR 10.1 million were recorded.
Operating Key Figures and Portfolio Development
Rental income decreased by 17.1 percent to EUR 23.0 million in the first half of 2026, down from EUR 27.8 million in the first half of 2025, due to property sales. EBIT rose to EUR 8.0 million in the same period. In the prior-year period, EBIT had been EUR -24.9 million, influenced by special effects from write-downs of loans to Limes companies and valuation losses. FFO I amounted to EUR 2.0 million, compared to EUR 5.0 million in the first half of 2025.
The market value of the DEMIRE portfolio decreased to approximately EUR 670.8 million (31.12.2025: EUR 688.3 million). This decline is primarily attributable to the sale of the property in Flensburg and the partial sale of a residential building in Bonn. Consequently, the Net Asset Value (NAV) per share decreased by EUR 0.19 to EUR 1.40 during the reporting period (31.12.2025: EUR 1.59). Letting performance reached 18,300 m² (H1 2025: 40,460 m²), while the EPRA vacancy rate increased to 21.5 percent (31.12.2025: 16.4 percent). The weighted average lease term (WALT) of the entire portfolio improved to 5.0 years (31.12.2025: 4.7 years) after lease agreements, despite the reduced portfolio base.
Financing Strategy and Outlook
Average nominal cost of debt decreased slightly to 4.74 percent per annum during the reporting period (31.12.2025: 4.83 percent). The net loan-to-value ratio (Net-LTV) stood at 42.4 percent, marginally above the year-end 2025 figure of 41.8 percent. Cash and cash equivalents amounted to EUR 44.4 million on the reporting date, down from EUR 54.2 million on 31.12.2025.
Dr. Dirk Rüffel, CEO of DEMIRE, emphasised that the positive development in the first half of the year underscores the consistent implementation of the portfolio transformation even in a challenging market environment. For the second half, the focus will be on letting performance and the operational stabilisation of the portfolio. Tim Brückner, CFO of DEMIRE, explained that the forward-looking financing strategy, through early refinancing measures, contributed to lowering the cost of debt and strengthening the financing structure. The property sales currently underway are intended to generate additional liquidity and contribute to further debt reduction.
