Original-Research: DEMIRE AG (von NuWays AG): BUY

Classification of NuWays AG to DEMIRE AG

Company Name:	DEMIRE AG
ISIN:	DE000A0XFSF0
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 0.8
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

FY25 confirms ongoing deleveraging story amid earnings press Yesterday, DEMIRE published its FY25 results, delivering figures broadly in line with expectations and reflecting continued portfolio downsizing in a still challenging market environment. The release mainly reinforces the group’s ongoing repositioning and liquidity-focused strategy rather than signalling a near-term operational inflection. FY25 was characterised by a material reduction in portfolio size and earnings base. Rental income declined by 18% yoy to € 53.5m (eNuW: € 55.0m), while FFO I dropped by 62% yoy to € 10.1m (eNuW: € 9.2m), mainly driven by disposals and higher interest expenses. At the same time, property values continued to adjust, with NAV falling significantly to € 168m (€ 1.59 per share), reflecting both valuation effects and weaker profitability. Operationally, DEMIRE made visible progress on its disposal strategy, selling 11 assets for € 64m and further streamlining the portfolio. This, however, comes with the expected trade-off of a lower rental base, as also reflected in annualised rents declining to € 51.3m. Encouragingly, letting activity improved significantly, with leasing volume almost doubling yoy, highlighting initial traction from the strengthened asset management platform. At the same time, key operating metrics remain under pressure. Vacancy increased to 16.4%, mainly driven by larger tenant move-outs, while like-for-like rental momentum remains limited in the current market environment. Positively, lease duration improved slightly (WALT 4.7 years), supporting cash flow visibility. On the balance sheet side, DEMIRE maintained broadly stable leverage, with net-LTV at 41.8% (excl. shareholder loan), despite continued valuation headwinds. However, higher financing costs (4.83% avg.) and increased interest burden are weighing on earnings, underlining the importance of the ongoing refinancing strategy, particularly with regard to the 19/27 corporate bond. Looking ahead, the company guides for a further decline in earnings in FY26 (FFO I € -1 to 1m) and top-line (rental income € 41.5-43.5m), reflecting the smaller portfolio but also implying further asset disposals (eNuW: € 104m GAV). As such, the investment case remains largely centred on execution of disposals, refinancing and vacancy reduction rather than short-term earnings growth. Overall, FY25 confirms DEMIRE’s transition phase: while operational improvements in asset management are becoming visible, the key swing factors remain balance sheet stabilisation and a recovery in transaction markets. Reiterate BUY with a new € 0.80 PT (old: € 1.00) based on our NAV model. You can download the research here: demire-ag-2026-03-20-previewreview-en-6f3e6 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 ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse. ++++++++++