DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG: Successful 2015 fiscal year


DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Final
Results/Preliminary Results
DEMIRE Deutsche Mittelstand Real Estate AG: Successful 2015 fiscal year

29.04.2016 / 19:26
The issuer is solely responsible for the content of this announcement.

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DEMIRE: Successful 2015 fiscal year 

  - Real estate holdings nearly triple in 2015 

  - Increase in rental income and profit

  - EBIT stable at EUR 58.7 million 

  - NAV per share rises 9.9%

  - LTV substantially improved to 67.0% 

Frankfurt/Main, 29 April 2016 - DEMIRE Deutsche Mittelstand Real Estate AG
(DEMIRE, ISIN DE000A0XFSF0) generated significant growth in the 2015 fiscal
year driven by several property and portfolio purchases and the acquisition
of a majority interest in Fair Value REIT-AG. As at the reporting date, the
Company held 181 commercial properties with total rentable space of 1.1
million m² and a market value of roughly EUR 930 million, representing
nearly a threefold increase over the previous year.

"In 2015, we transformed DEMIRE into one of the leading listed holders of
German commercial real estate", said Hon.-Prof. Andreas Steyer, CEO of
DEMIRE, in his comments summarising the 2015 fiscal year. "The effects of
the acquisitions are fully reflected in the balance sheet whereas, in the
income statement, only the expenses related to the acquisitions are fully
recognised. The income relating to the acquisitions, however, is only
included on a pro rata basis. Or as in the case of Fair Value REIT-AG, the
largest single acquisition of the year, it is not recognised at all,
because the acquisition of the majority interests only occurred at the end
of the year. Therefore, DEMIRE's true earnings power is not fully reflected
in the figures for 2015."

Rental income and profit increase strongly 
According to the completed, but not yet testified annual financial
statements, the DEMIRE Group generated rental income of EUR 43.3 million in
the 2015 fiscal year. This not only represents a more than tenfold increase
over the level generated in the abbreviated 2014 fiscal year (April to
December) but is also around EUR 10 million higher than the forecast
published in the 2014 Annual Report.

The profit from the rental of real estate amounted to EUR 23.7 million,
which also represented a tenfold increase in comparison to the abbreviated
2014 fiscal year (EUR 2.3 million). This rise resulted from rents related
to the properties acquired in 2014 coming in for a full year for the first
time. In addition, the portfolio expanded step by step with each new
acquisition in the course of 2015. These new holdings made a corresponding
pro rata contribution to rental income.

EBIT stable
Other operating income, which are mainly composed by first-time
consolidation  effects of the properties and investments acquired and by
fair values adjustments of investment properties, came to a total of EUR
52.5 million in 2015 (Previous year EUR 63.7 million). General and
administrative expenses amounted to EUR 11.3 million and were significantly
higher than the prior year's level of EUR 3.6 million due to the
considerable rise in legal and consulting expenses related to the numerous
acquisitions and also due to growth-related rises in staff costs. After
consideration of other income and expenses, earnings before interest and
taxes (EBIT) were just slightly higher at EUR 58.7 million compared to the
abbreviated 2014 fiscal year (EUR 58.4 million).
  
The financial result amounted to an expense of EUR 25.7 million after EUR
2.9 million in the previous year. The rise in net interest expenses
corresponds to the rise in revenue in the past fiscal year and reflects the
higher financial expenses associated with the expansion in real estate
holdings.

The net profit for the period totalled EUR 28.9 million following EUR 45.7
million in the previous year of which EUR 28.1 million were attributable to
DEMIRE AG shareholders compared to EUR 43.3 million in the previous year.

Equity ratio improved
Total assets increased 275 percent year-on-year to EUR 1.0 billion as a
result of the acquisition-led growth. Investment properties, real estate
inventory and properties available for sale comprise the largest single
asset position amounting to a total of EUR 930.4 million. One-third of this
amount originates from the takeover of Fair Value REIT-AG.
 
Equity increased nearly fivefold mainly as a result of several capital
measures carried out during the reporting period and totalled EUR 264.9
million (previous year: EUR 54.6 million). This led to a significant
year-on-year improvement in the equity ratio from 14.6 percent in the prior
year to 25.6 percent in the reporting year.

NAV per share increases 
After deducting the interests of non-controlling shareholders, equity
amounted to EUR 230.7 million compared to EUR 51.7 million at the end of
the previous year. This is equivalent to an NAV per share of EUR 4.68, or
9.9 percent higher than at the end of the prior year (EUR 4.26).

Substantial improvement in LTV
Because the majority of the acquisitions in 2015 were completed based on
equity, the ratio of net debt to the carrying amount of properties
(Loan-to-Value, or LTV) improved substantially to 67.0 percent (previous
year: 85.6 percent).
 
"We achieved all our key strategic goals in 2015", said Andreas Steyer. "We
were successful in expanding and significantly increased our business
volume. At the same time we absorbed the acquisition related costs and aid
the groundwork for a significant increase in our operating results (FFO) in
2016 which we expect to only slightly fall short of EUR 20 million before
non controlling interests. This should correspond to EUR 15 million after
non controlling interests or FFO per share of EUR 0,30."

The publication of the testified results and the full 2015 Annual Report is
scheduled for mid-May 2016.

 

Selected Group key financials of DEMIRE Deutsche Mittelstand Real Estate AG

<pre>

In EUR million                                          2015           2014
                                                               (01/04 - 31/
                                                                        12)
Consolidated income statement
Rental income                                           43.3            3.7

Rental profit                                           23.7            2.3
Other operating income                                  52.5           63.7

General and administrative expenses                     11.3            3.6

EBIT                                                    58.7           58.4
Financial result                                       -25.7           -2.9
Net profit for the period                               28.9           45.7
Of which, attributable to DEMIRE shareholders           28.1           43.3
Basic/diluted earnings per share                    0.95/0.65     3.03/1.74

                                                    31.12.20     31.12.2014
                                                          15
Consolidated balance sheet
Total assets                                         1,032.9          373.0

Investment properties                                  915.1          333.1
Real estate inventory and properties available for      15.3            7.4
sale

Equity                                                 264.8           54.6
Equity ratio (in % of total assets)                     25.6           14.6

Net asset value (NAV) attributable to DEMIRE           230.7           51.7
shareholder
NAV per share (EUR)                                     4.68           4.26

Net debt                                               623.7          291.3
LTV (Net debt in % of real estate holdings)             67.0           85.6


</pre>

Contact

DEMIRE Deutsche Mittelstand Real Estate AG 
Dr. Rolf-Dieter Grass
Manager PR/IR
Lyoner Straße 32 
60528 Frankfurt am Main 
Phone: +49 (0) 69-719 189 79 0 
Fax: +49 (0) 69-719 189 79 11 
Email: ir@demire.ag
Web: www.demire.ag


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29.04.2016 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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459397 29.04.2016