DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE improves all key ratios in the first nine months of 2015


DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): 9-month
figures/Interim Report
DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE improves all key ratios
in the first nine months of 2015

30.11.2015 / 23:02
The issuer is solely responsible for the content of this announcement.

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DEMIRE improves all key ratios in the first nine months of 2015

  - Rental income: EUR 28.1 million (previous year: EUR 1.5 million)

  - EBIT: EUR 26.5 million (EUR -0.4 million)

  - Equity: +115.3 percent to EUR 117.6 million

  - Equity ratio +9.4 percent to 24.0 percent

  - NAV increases to EUR 122.2 million and NAV per share rises to EUR 4.47
    (Q2 2015: EUR 4.23)

  - Real estate portfolio likely to reach EUR 1 billion by the end of the
    year

  - Further expansion of real estate portfolio planned in 2016

Frankfurt, 30 November 2015 - DEMIRE Deutsche Mittelstand Real Estate AG
("DEMIRE", ISIN DE000A0XFSF0) significantly improved all of its key
financial ratios in the first nine months of 2015. Income from the rental
of commercial space within the core portfolio evolved into the main source
of income as planned increasing to EUR 28.1 million (previous year: EUR 1.5
million). Profit/loss from the rental of real estate climbed sharply by EUR
16.2 million to EUR 17.5 million (previous year: EUR 1.3 million). Other
operating income, which includes fair value adjustments on investment
properties in the amount of EUR 16.4 million (previous year: EUR 2.9
million) rose to EUR 17.8 This million after their level of EUR 4.6 million
in the previous year's comparable period. Earnings before interest and
taxes (EBIT) went from a negative EUR -0.4 million in the previous year's
comparable period to a positive EUR 26.5 million in the first nine months
of 2015. Net of financial expenses and taxes, the profit/loss for the
period totalled EUR 2.6 million (previous year: EUR 3k. This is the
equivalent to basic earnings per share of EUR 0.07 (previous year: EUR
0.00) and diluted earnings per share of EUR 0.06 (previous year: EUR 0.00).

DEMIRE's real estate portfolio now comprises roughly 175 properties with a
gross asset value (GAV) of about EUR 638 million and total rental space of
approximately 805,000 m². The year-end finalisation of the takeover of Fair
Value REIT-AG, a company also focussed on Germany's secondary commercial
real estate locations, will increase the GAV to presumably EUR 1 billion.

The real estate group improved the profit/loss from the rental of real
estate not only by means of acquisitions but also as a result of its active
real estate management. The weighted average lease term was approximately 6
years as of the reporting date for the overall holdings. Rental income was
also boosted by internal property management as, for example, in the case
of the Logistikpark Leipzig purchase in only mid-2015.

In line with the expansion of DEMIRE's portfolio, total assets as of
September 30, 2015, increased by 31.5 percent to EUR 490.5 million in
comparison to their level on December 31, 2014 (EUR 373.0 million). Equity
also increased significantly by 115.3 percent to EUR 117.6 million
following capital increases against cash and contribution in kind. The
equity ratio advanced from 14.6 percent to 24.0 percent. As of September
30, 2015, the loan-to-value-ratio (LTV) amounted to 74 percent (December
31, 2014: 86 percent).

The conservative full-year 2015 forecast for rental income of approx. EUR
42 million an EBIT in the lower single-digit millions, excluding the fair
value adjustments on real estate, was reconfirmed by the DEMIRE Executive
Board. The finalisation of the Fair Value REIT-AG takeover expected and the
end of the year and the company's subsequent consolidation as a subsidiary,
DEMIRE's potential for acquisitions will expand and include indirect
investments in closed-end funds next to direct investments, which should
lead to a further expansion in the Company's real estate holdings in the
year 2016 as in 2015.

"The September 30, 2015 results confirm that all of our key balance sheet
ratios are on the right track. In 2016, we want to continue with our
expansion accompanied with an improvement in our key financial ratios and
at the same time leverage the expertise of Fair Value REIT-AG," explained
DEMIRE CEO Hon.-Prof. Andreas as he commented on the Company's promising
outlook.

"Our active portfolio management through our asset, property and facility
management activities, which were just started this year, has already
yielded initial success. Through the future management of the Fair Value
REIT-AG holdings as well as further acquisitions we will be able to
generate significant economies of scale with this internal expertise. We
are confident that we will be able to further optimise our portfolio in
terms of its future development," said Markus Drews, COO of DEMIRE, as he
described the key strength of the commercial real estate specialist.

The Executive Board 

Contact

DEMIRE Deutsche Mittelstand Real Estate AG 
Lyoner Straße 32 
60528 Frankfurt am Main 
Phone: +49 (0) 69-719 189 79 0 
Telefax: +49 (0) 69-719 189 79 11 
Email: ir@demire.ag
Web: www.demire.ag

Investor Relations 
GFEI Aktiengesellschaft 
Lars Kuhnke 
Phone: +49 (0) 511 47 40 23 10 
Email: ir@demire.ag


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30.11.2015 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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   Language:    English                                            
   Company:     DEMIRE Deutsche Mittelstand Real Estate AG         
                Lyoner Straße 32                                   
                60528 Frankfurt am Main                            
                Germany                                            
   Phone:       +49 (0)69 / 719 189 79 0                           
   Fax:         +49 (0)69 / 719 189 79 11                          
   E-mail:      info@demire.ag                                     
   Internet:    www.demire.ag                                      
   ISIN:        DE000A0XFSF0                                       
   WKN:         A0XFSF                                             
   Listed:      Regulated Market in Frankfurt (General Standard);  
                Regulated Unofficial Market in Berlin, Stuttgart   
 
 
   End of News    DGAP News Service  
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419751 30.11.2015