DEMIRE Deutsche Mittelstand Real Estate (DMRE) Q4 2025 earnings summary

Executive summary

• Rental income and FFO for FY 2025 met expectations and guidance, reflecting stable operational performance despite portfolio shrinkage.

• Letting performance nearly doubled year-over-year, mainly due to conversion of a master lease in Neuss to individual contracts and new management.

• Annualized contractual rent decreased from €56.4m to €51.3m, primarily due to asset disposals.

• EPRA vacancy increased to 16.4%, mainly due to Deutsche Telekom vacating space in Bonn, partly offset by new lettings.

• €77m in mortgage loans refinanced or newly raised; Gold Awards achieved for EPRA Best Practice Reporting.

Financial highlights

• Rental income reached €53.5m, with FFO I at €10.1m, both in line with guidance, but reflecting an 18% year-over-year decline due to disposals.

• NOI margin stabilized at 68%, despite lower rental income.

• Net LTV remained stable at 41.8%.

• Average cost of debt increased to 4.85% from 4.35% due to refinancing at higher rates.

• Total assets contracted by 10.7% to €849.2m; equity fell 37.7% to €150.8m.

Outlook and guidance

• For 2026, rental income is guided between €41.5m and €43.5m, with FFO I expected between -€1m and +€1m.

• Focus areas include cost reduction, efficiency measures, improving rental income through renewals and new lettings, and further deleveraging.

• Market conditions remain challenging, impacting transaction timelines and buyer pools.