In This Article:
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Rental Income 2023: EUR78.5 million, slightly lower year-on-year.
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Rental Income H1 2024: EUR35.5 million, down 13% due to disposals.
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FFO I 2023: EUR36.7 million.
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FFO I H1 2024: EUR15.5 million.
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Net LTV 2023: 57.7%.
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Net LTV June 2024: 55.6%.
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Annual Contractual Rent June 2024: EUR66.9 million.
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Vacancy Rate June 2024: 15.5%.
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WALT: Stable at 4.3 years.
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Asset Sales 2023: Over EUR70 million.
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LogPark Leipzig Sale 2024: EUR103 million.
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Revaluation Loss 2023: EUR180 million (minus 13.2%).
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EBIT 2023: Minus EUR190 million.
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Total Assets June 2024: EUR1.1 billion.
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Average Cost of Debt Mid 2024: 1.8%, expected to rise to 3.5%.
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Guidance 2024 Rental Income: EUR64 million to EUR66 million.
Release Date: September 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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DEMIRE Deutsche Mittelstand Real Estate AG successfully refinanced its EUR499 million bond, extending maturity to December 2027, providing more than three years for balance sheet refinancing.
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The company achieved substantial shareholder support, including a EUR100 million shareholder loan for bond buybacks.
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DEMIRE Deutsche Mittelstand Real Estate AG managed to sell properties worth EUR176 million in 2023, contributing to liquidity and operational stability.
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The company's net Loan-to-Value (LTV) ratio decreased from 57.7% in 2023 to 55.6% in June 2024, with expectations to fall further to about 50% after bond extension.
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Despite a challenging market environment, DEMIRE Deutsche Mittelstand Real Estate AG maintained a stable Weighted Average Lease Term (WALT) of 4.3 years, indicating a solid lease structure.
Negative Points
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Rental income decreased by 13% in the first half of 2024 compared to the previous year, driven by asset disposals.
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The company's Funds From Operations (FFO) I dropped to EUR15.5 million in the first half of 2024, significantly lower than the previous year.
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DEMIRE Deutsche Mittelstand Real Estate AG's vacancy rate increased to 15.5% due to tenant move-outs, impacting rental income.
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The company reported a revaluation loss of EUR180 million in 2023, reflecting a challenging real estate market.
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The average cost of debt is expected to rise to approximately 3.5% after the bond extension, increasing financial expenses.
Q & A Highlights
Q: Could you provide an indication of the potential volume of smaller and mature asset disposals, and your strategy regarding these sales in light of the EUR50 million repayment requirement for the next two years? A: Frank Nickel, CEO: We need to be cautious not to sell our best assets. The refinancing solution provides flexibility, so there's no immediate pressure to sell. We are looking at disposing of smaller assets worth around EUR20 million and are working on another EUR30 million in larger disposals. The strategy will depend on market conditions over the next 12 months.