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August 2021 1 1 Office Building, Frankfurter Str. 29-35, Eschborn Company Presentation August 2021

DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

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Page 1: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

11

Office Building, Frankfurter Str. 29-35, Eschborn

Company Presentation

August 2021

Page 2: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

22

Disclaimer

This document is for informational purposes only. This document is not intended to form the basis of any investment decision and should not be considered as a

recommendation by DEMIRE Deutsche Mittelstand Real Estate AG (the “Company”) or any other person in relation to the Company. This document does not constitute

an offer to sell, a solicitation of an offer of the sale or purchase of securities or an invitation to purchase or tender for the Company. Securities of the Company shall not

be offered or sold, in any jurisdiction in which such an offer, solicitation or sale would be unlawful.

Certain information in this document is based on management estimates. Such estimates have been made in good faith and represent the current beliefs of

management. Management believes that such estimates are founded on reasonable grounds. However, by their nature, estimates may not be correct or complete.

Accordingly, no representation or warranty (express or implied) is given that such estimates are correct or complete.

This document includes 'forward-looking statements'. Forward-looking statements are all statements which do not describe facts of the past but contain the words

"believe", "estimate", "expect", "anticipate", "assume", "plan", "intend", "could", and words of similar meaning. These forward-looking statements are subject to inherent

risks and uncertainties since they relate to future events and are based on current assumptions and estimates of the Company, which might not occur at all or occur not

as assumed. They therefore do not constitute a guarantee for the occurrence of future results or performances of the Company. The actual financial position and the

actual results of the Company as well as the overall economic development and the regulatory environment may differ materially from the expectations which are

assumed explicitly or implicitly in the forward-looking statements and do not comply to them. Therefore, investors are warned to base their investment decisions with

respect to the Company on the forward-looking statements mentioned in this document.

Page 3: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

33

Agenda

DEMIRE at a Glance

Financials

Strategy & Portfolio

Page 4: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

44

Office Building, Konrad-Adenauer-Allee 1-11, Bad Vilbel

DEMIRE at a Glance

Page 5: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

55

Company Credit Rating (Ba) from Moody‘s

(1) Data as of 30 June 2021

(2) A-locations in B-cities and B-locations in A-cities

(3) Excl. assets held for sale

Guidance 2021: Rental Income € 80.0-82.0m and FFO I(4) € 34.5-36.5m

2020 Rental Income Guidance: exceeded € 85.0-87.0m with € 87.5m

2020 FFO I(4) Guidance: beat > € 38.0m with € 39.2m

EPRA-Vacancy Rate at 10.2%(3), high quality Tenant Roster with 4.9 Years WALT

€ 83.1m contractual Rent representing 5.9% Gross Yield

German-wide diversified Portfolio with an approx. 64% Office Overweight

Sizeable € 1.4bn German commercial Portfolio consisting of 70 Assets

DEMIRE is a leading German public Real Estate Firm focused on Office, Retail, Logistic and Hotel

Properties across Germany foremost in Secondary Locations (ABBA)

DEMIRE at a Glance(1)

Applying the ABBA-Approach(2)

(4) After taxes, before minorities

Page 6: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

66

DEMIRE at a Glance

From Founding to one of the leading commercial Real Estate Platforms in Germany

Founding of MAGNAT

Real Estate Opportunities

GmbH & Co. KGaA

Apr 2006

Equity listing

(IPO)

Jul 2006

» Corporate activities

» Capital market activities

Changed name to

DEMIRE Deutsche

Mittelstand Real

Estate AG

Jun 13

Acquisition of

three portfolios

for c. € 385m

Jan 14 – Dec 14

Issuance of

corporate

bond € 50m

Sep 14

10% Capital

increase

Issuance of

convertible bond

Jul 15

Acquisition of

three portfolios

for c. € 250m

77.7% stake in

Fair Value REIT-AG

Jan 15 – Dec 15

Placed rated

corporate Bond

€ 270m

Jul 17

Tap of rated

corporate bond

€ 130m

Sep 17

Apollo acquires

controlling stake

in DEMIRE

Apr 18

Closing of

Office portfolio

for c. € 167m

Apr 19

Rights issue

with gross

proceeds of c. €

150m

Nov 18 Closing of

retail portfolio

for c. € 71m

Apr 19

Placed rated

corporate Bond

€ 600m

Oct 19

Set up and growth Accelerated growthConsolidation

and refinancing

Institutionalisation

and growth

Signing of two

assets worth

c. € 115m

Dec 19First dividend

payout in the

company’s his-

tory

0.54€ per share

Sep 20

€ 36m

GAV

€ 1.0bn

GAV

€ 1.4bn

GAV

Acquisition of

50% stake in

landmark office

building “Cielo”

c. € 276m(1)

Jul 21

(1) Overall transaction volume and property value

Page 7: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

77

Office Building, Eckernförder Landstrasse 65, Flensburg

Strategy & Portfolio

Page 8: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

88

FFO I(1)

Realizing potential through active and value-oriented

real estate management and portfolio dynamization

Strategy

REALize Potential: four strategic Goals ultimately aiming at FFO Accretion

(1) After taxes, before minorities

FFO Growth

Asset Management

Portfolio growth through

the ongoing purchase of real estate in ABBA locationsAcquisitions

Realizing enhancement potential in our financing structureFinancials

Realizing optimization of processes and structuresProcesses

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

€ 8.1m € 11.7m

€ 23.4m

€ 34.5m€ 39.2m

Page 9: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

99

Key Achievements since 2019

Substantial Improvements as sound Basis for strong future Development

REALize Potential

Successful issuance

of € 600m senior notes

at 1.875% coupon in

October 2019

GAV grown

by 28% to c. € 1.4bn(3)

Acquisition of eleven

assets worth c. € 355m

completed and “Cielo” with

€ 276m transaction volume

Annual Rent (run-rate)

increased to

€ 83.1m(3) from € 73.2m

Disposals of non-strategic

assets with a premium to

market value of roughly

€ 25m (15%) achievedFirst and second dividend

payout in the company’s

history (2020: 0.54 € per

share, 2021: 0.62 €)

Financing costs reduced

to 1.68%(1,3) and maturity

profile prolonged

Senior management

team with real estate

professionals and 150

years of experience

(1) Based on nominal interest

(2) After taxes, before minorities

(3) As of 30 June 2021

Page 10: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

1010

North Rhine Westphalia29%

Hesse15%

Saxony13%

Baden-Wurttemberg11%

Mecklenburg-Western Pomerania

8%

Bavaria8%

Schleswig-Holstein5%

Other9%

Attractive € 1.4bn Commercial Portfolio

German-wide diversified Portfolio

Total GRI

€ 83.1m

Diversified Portfolio in densely populated Regions Distribution by Location

Office62%

Retail28%

Logistics & Others10%

Total GRI

€ 83.1m

Distribution by Asset Class

As of 30 June 2021

Page 11: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

1111

Portfolio Breakdown

Superb Letting Performance, stable WALT, Vacancy temporarily higher

(1) Annualized contractual rent

(2) Deviation to GAV in balance sheet mainly due to capitalization of leaseholds

(3) Excl. assets held for sale

GAV (€ m)

GRI p.a. (€ m)(1)

GRI p.a. (€/m²/p.m.)(1)

GRI Yield(%)

EPRA-Vacancy (%)(3)

WALT(Years)

# of Properties

Office 48 902.8 51.8 8.7 5.7 10.1 3.8

Retail 17 360.7 23.2 9.6 6.4 10.0 6.2

Total (30 June 2021)

70 1,404.9(2) 83.1 8.1 5.9 10.2 4.9

Attractive KPI’s across Asset Classes

Letting Performance on track to reach

Record Level of FY 2020

EPRA-Vacancy Rate(3)

temporarily around 10%Stable WALT since over 2 yearsGRI affected by Disposals(1)

% Years€ mk sqm

Logistics & Others 5 141.4 8.1 4.3 5.7 11.4 7.6

31 Dec

2019

31 Dec

2018

172,700

82,600

31 Dec

2020

177,300

31 Dec

2019

31 Dec

2018

90.0

73.2

31 Dec

2020

85.6

31 Dec

2019

31 Dec

2018

9.4%

7.5%

31 Dec

2020

6.9%

31 Dec

2019

31 Dec

2018

4.84.5

31 Dec

2020

4.8

30 Jun

2021

121,929

30 Jun

2021

83.1

30 Jun

2021

10.2%

30 Jun

2021

4.9

Page 12: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

1212

DEMIRE continues to monitor

the market in order to identify

attractive investment

opportunities to upsize the

portfolio to its mid-term target

of € 2bn

» c. € 42.7m closing of the

acquisition in Frankfurt

» Revaluation losses of c.

€ (22.5)m

» c. € (73.1)m disposals and

other effects(4)

Upscaling of the Portfolio by active Asset Management, accretive Acquisitions & Revaluation Gains

Portfolio Growth

€ m

FY 2020 Mid-term Target

1,152

1,510

2,000

Mid-term Target

» 10 portfolio additions for c.

€ 294.9m plus € 5.0m

down-payment for

acquisition in Frankfurt(2)

» Revaluation gains of

c. € 83.0m

» c. € (24.9)m disposals and

other effects(3)

FY 2019

» Revaluation gains of

c. € 93.1m

» c. € 21.8m down-payment

for office portfolio signed

end of 2018

» c. € 3.2m disposals and

other effects(1)

FY 2018FY 2017

(1) € (1.0)m disposals, € 1.7m reclassification IFRS 16, € 2.5m Capex

(2) Closed in March 2020

(3) € (29.1)m disposals, € 4.2m Capex

Development of Gross Asset Value

1,034

1,457

(4) € (86.9)m disposals, € 13.4m Capex, € 0.3m subsequent acquisition costs, € 0.1m land

transfer tax for several assets

Page 13: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

1313

» Modern and refurbished office-building in attractive location in

Frankfurt-City-West close to the Trade Fair

» Fully let to Commerzbank with long-term double-net contract

» In line with DEMIREs ABBA-strategy and significant improvement of

the Portfolio on various levels

» Transaction volume with € 276m at valuation of Savills

» Acquisition via Joint Venture-structure to enable at-equity accounting

and limit Net-LTV increase and conserve liquidity

» Call-option for stake of JV-partner after five years

» Annual expected FFO-accretion of c. € 5m(2) through interest

revenue and investment income

» DEMIREs invested capital c. € 85m

» FFO-accretion p.a.(1) c. € 5m (6% yield)

» Net-LTV increase 2.5-3.0 pp.

» Closing July 2021

July 2021: Closing of Acquisition of Stake in Landmark Office-Building „CIELO”

Transaction via JV-Structure conserves LTV Increase and offers attractive FFO-Yield

(1) After taxes

Transaction Rationale

Key Investment Facts

» Year of constr. / refurb. 2003 / 2018-2020

» Use type Office

» Lettable area c. 37,000sqm

» Occupancy 100%

» Tenant Commerzbank

» Rental Income c. € 9.3m (indexed)

» Lease end June 2033

Key Property Facts

Page 14: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

1414

„LogPark” Leipzig: Development of a large Distribution Centre for Amazon

REALize Potential Case Study

» DEMIRE transforms the former Quelle high-bay

warehouse and builds an energy-efficient

distribution centre for Amazon

» Structural vacancy will be converted into rental

space

» Amazon has signed a fifteen-year lease contract

with DEMIRE

» The area for the distribution hub covers about

26,000sqm plus parking slots

» Completion of the development planned for

autumn 2022

» The existing lease with the online distributor in the

LogPark for 20,000sqm storage space from 2020

will also be extended by 15 years and integrated

into the project

Occupancy rate

rises to c. 92%

WALT increases

to 6.1 years

Significant

increase in market

value

Conversion of

structural vacancy

to rental space

Excellent

credit quality of

the tenant

Page 15: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

1515

» Transformation from a single tenant property to a multi

tenant asset

» Establishing a tenant related asset- and property

management approach

» Optimization of the stacking plan

» Marketing initiatives

Bad Vilbel: Vacancy decreased from almost 70% to less than 23%

REALize Potential Case Study

Konrad Adenauer Allee 1-11, Bad Vilbel

REALize Potential Measures

Achievements since Acquisition

Purchase Price

/ Market Value

GRI(2)

Vacancy

WALT

Closing

Date(1) Today

(3)

€ 31.0m

€ 1.1m

69.0%

4.6 years

€ 47.3m

€ 2.9m

22.7%

6.2 years

Change

+53%

+164%

-46.3 p.p.

+1.6 years

(1) 1 May 2019

(2) Annualized

(3) As of 30 June 2021

Page 16: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

1616

» Strategic asset management to attract institutional

tenants with long-term lease agreements

» Well connected within the market to avoid additional

consultant / broker fees

» Good relationships with tenants to create early

contract extensions

Essen: Attracting institutional Tenants resulting in GRI Growth of c. 27%

REALize Potential Case Study

Theodor-Althoff-Straße 39-47, Essen

(1) 1 May 2019

(2) Annualized

(3) As of 30 June 2021

Purchase Price

/ Market Value

GRI(2)

Vacancy

WALT

Closing

Date(1) Today

(3)

€ 81.5m

€ 4.5m

12.8%

3.1 years

€ 98.0m

€ 5.7m

10.7%

3.6 years

Change

+20%

+27%

-2.1 p.p.

+0.5 years

REALize Potential Measures

Achievements since Acquisition

Page 17: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

1717

Corona-Effect on DEMIRE‘s Portfolio

Small Impact in 2020, Increase in Q2 2021 expected to decline over Course of the Year

(1) As of 2 August 2021

Rental Collections

€ m

Monthly target rent

Rent suspensions(1)

» As of 2 August 2021, rent suspensions from DEMIRE’s

tenants in context with the Corona crisis amount to

€ 5.6m overall (4.5% of target rent)

» For the first seven months of 2021, € 2.4m rents were

suspended, representing 3.0% of the expected rental

income 2021 or 5.0% of the target rent until July

» The majority among the affected tenants belongs to the

asset classes retail (56%) and hotel (41%), while office

tenants only account for 3%

» In H1 2021, only € 0.5m were classified as irrecoverable

receivables and therefor impact the P&L

» We assume to collect the outstanding rent suspensions

in arrears and do not expect further large effects on the

P&L

2020

-4%

Q1/21

-4%

Q2/21 +

July 21

-6%

Overall

-5%

Page 18: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

1818

Office Building, Max-Planck-Straße 3, Aschheim

Financials

Page 19: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

1919

While FFO I steadily improved over past Years, accelerated Rental Income Growth recently

Development of Rental Income and Funds from Operations I(1)

» After a portfolio consolidation phase until 2018, intensified

acquisition and letting efforts lead to substantially

increased rental income in FY 2019 and FY 2020

» Guidance for rental income 2021 moderately lower at

€ 80.0-82.0m, mainly due to several disposals of non-

strategic assets in 2020 and 2021

€ m

FY

2016

73.7

Rental Income

(1) After taxes, before minorities

FY

2020

87.5

» FFO accretion since 2016 based on material

improvements in terms of portfolio size/quality, debt book

optimizations and reduced administrative expenses

» Guidance for FFO I(1) 2021 slightly lower (€ 34.5-36.5m),

related to disposals, mitigated by „Cielo” transaction and

lower administration and interest expenses

€ m

FY

2019

81.8

Funds from Operations I(1)

FY

2017

FY

2018

73.776.4

FY

2016

23.4

FY

2020

FY

2019

34.5

FY

2017

FY

2018

11.7

8.1

39.2

Page 20: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

2020

Successful comprehensive Work on our Debt Structure pays off

Debt Book Development

Bond 17/22

Notional

amount(1)

Financing KPIs substantially improved through wide-ranging refinancing activities

» Debt volume increased by € 150m to create a comfortable liquidity position and enable acquisitions

» Increase of average volume of the financing instruments from € 40m to € 55m simplifies administration

» Reduction of average nominal interest rate of more than one percentage point lowers annual interest expenses significantly (€ 8m p.a.)

» Extension of average remaining term of the financing instruments of half a year

» Improvement of the unencumbered asset ratio from 40% to over 55% creates capacities for new secured financings

Bond-Refinancing

New secured loans

Refinancings on

FVR-level

Redemption of

high-yielding loans

(1) Nominal value (IFRS value differs slightly)

(2) Weighted average of all DEMIRE-level loans

(3) Weighted average of all FVR-level debt

Debt Book before Bond-Refinancing (30 Sep 2019)

Promissory

Notes

4 loans on

DEMIRE-Level

12 loans on

FVR-Level

Overall /

Average

Interest

Rate p.a.

Remaining

Term

€ 367m 2.875% 2.8 years

€ 142m 4.000% 2.5 years

€ 119m 1.480%(2) 4.7 years(2)

€ 100m 2.211%(3) 1.6 years(3)

€ 728m 2.775% 2.9 years

Bond 19/24

Notional

amount(1)

Debt Book as of Today(30 Jun 2021)

5 loans on

DEMIRE-Level

10 loans on

FVR-Level

Overall /

Average

Interest

Rate p.a.

Remaining

Term

€ 600m 1.875% 3.3 years

€ 199m 1.203%(2) 3.3 years(2)

€ 80m 1.379%(3) 4.9 years(3)

€ 879m 1.678% 3.4 years

Page 21: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

2121

Solid Net-LTV Ratio and average Cost of Debt Level

Key financial KPI’s (1/2)

(1) Net-LTV according to bond definition at 51.1%

(2) Based on nominal interest rate

» Net-LTV increased to over 50% in the context of

dividend payouts for FY 2019 and FY 2020 and

numerous acquisitions

» After significantly lowering the average cost of debt in the

context of comprehensive refinancing measures in 2019,

the average cost of debt improved further in 2020 and

2021, mainly due to raising of two secured loans at

favorable conditions

Leverage slightly above Target of 50%

31 Dec 2018 31 Dec 2019 31 Dec 2020 30 Jun 2021(1)

Net-LTV (in %)

52.7

38.7

46.750.0

Average Cost of Debt further improved

31 Dec 2018 31 Dec 2019 31 Dec 2020 30 Jun 2021

Average cost of debt (in %)(2)

3.0

1.84 1.71 1.68

Page 22: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

2222

2024

600

164

2021

10

Senior Notes represent main Financing Instrument

Key financial KPI’s (2/2)

(1) As of 30 June 2021

(2) Nominal amounts (IFRS amounts defer slightly)

(3) Including scheduled repayment

Maturity Profile: no major Refinancing Needs before 2024(1,2,3)

€ m nominal

c. 68% unsecured Debt(1,2) Improved unencumbered Asset Ratio

> 2025

19

68%

23%

9%32%

Secured Debt

Bond 19/24

Average Debt Maturity

3.4 years

Bank loans on DEMIRE level

Bank loans on FVR level

€ 879m € 279m

31 Dec

2017

31 Dec

2018

31 Dec

2020

45% 47% 46%

31 Dec

2019

62%

Bond 19/24

Bank Debt

2022

11

2023

11

2025

56

30 Jun

2021

56%

Page 23: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

2323

Office Building, Kuhberg 17-19 / Kieler Straße 1, Neumünster

Appendix

Page 24: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

2424

Positive Effects from Disposals of non-strategic Assets while Rental Income slightly lower

Profit & Loss Statement H1 2021

» Rental income slightly lower

due to several disposals

» Despite disposals, improvement

mainly due to lower

maintenance expenses

» Valuation gains due to the

premium to selling price for the

asset in Ansbach (= new market

value)

» Very moderate Corona-effects

in 2021

» FFO I (after taxes, before

minorities) H1 2021 up 15.2%

to € 19.4m (H1 2020: € 16.9m)

1

2

3

Rental Income

Income from utility and service charges

Other operating expenses to generate rental income

Income from the rental of real estate

Profit/loss from fair value adjustments in investment properties

Other operating income & expenses, net

Profit/loss from the sale of real estate/-companies

General and administrative expenses

Impairments of receivables

Earning before interest and taxes (EBIT)

Financial income

Minorities

Earnings before taxes (EBT)

Financial expenses

Current income taxes

Deferred taxes

Net profit/loss for the period

Of which attributable to:

Parent company shareholder

Non controlling shareholder

42.0

12.2

(20.0)

34.2

0.7

1.8

(0.8)

(5.7)

(0.7)

29.5

0.5

(8.9)

(2.3)

18.8

(0.9)

(2.3)

15.5

1.5

14.0

43.8

12.4

(23.3)

33.0

(1.8)

0.0

0.1

(5.7)

(3.7)

21.8

0.5

(9.1)

(1.3)

11.9

(1.5)

(1.2)

9.3

1.0

8.3

1

3

H1 2020 (in € m)

H1 2021 (in € m)

2

4

4

Page 25: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

2525

Balance Sheet affected by Disposals, Dividend Payout and new secured Loan

Balance Sheet 30 June 2021

» Reclassification of two assets

(Ansbach & Barmstedt) from

investment properties to assets

held for sale

» Granting of one loan in context

with the “Cielo” transaction

» Liquidity position influenced by

dividend payout, new loan and

disposals

» Dividend payout reduces

reserves

» Issuance of one secured loan

» NAV per share (diluted) down

by 46 Cents to € 5.43 from

end of 2020 due to dividend

payout, mitigated by positive

profit for the period

1

2

ASSETS

Investment properties

Properties held for sale

Other assets

TOTAL ASSETS

EQUITY & LIABILITIES

Cash and cash equivalents

Subscribed capital

Reserves

Equity attributable to parent company shareholders

Non-controlling interests

Minority interest

Non-current financial debt

Total equity

Current financial debt

Other liabilities

Total liabilities

TOTAL EQUITY & LIABILITIES

1,408,3

20.2

86.0

121.1

1,635.6

105.5

400.0

505.5

41.0

546.5

78.9

858.1

15.2

136.9

1,089.1

1,426.3

31.0

66.4

101.6

1,625.3

105.8

452.2

558.0

40.1

598.0

78.9

817.3

12.4

118.7

1,027.3

1

2

1,635.6 1,625.3

31 Dec 2020 (in € m)

30 Jun 2021(in € m)

4

3

5

3

4

5

Page 26: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

2626

H1 2021

Funds From Operations I Reconciliation

Rental

Income

Fair Value

adjust-

ments in

investment

properties

Sale of

real estate

Operating

expenses,

net(1)

G&A

expenses

Other

operating

result,

net(2)

Financial

result

Profit/loss

before

taxes

Fair Value

adjust-

ments in

investment

properties

Sale of

real estate

Re-

valuation

of financial

instru-

ments

Other

adjust-

ments(3)

Minority

interest

FFO I

before

taxes

Current

income

taxes

FFO I

after taxes

42.0

1.80.7

(7.8)

(5.7)

(10.8)

18.8

(1.8)(0.7)

0.0

2.0

2.3 20.6

(1.2)

19.4

(1) Includes income from utility and service charges of € 12.2m and operating expenses to

generate rental income of € (20.0)m

(2) Includes impairment of receivables of € (0.7)m, other op. income of € 0.4m and other op. expenses of € (1.1)m

(3) Other adjustments primarily relate to effective interest rate payments of € 1.1m and

one-time other operating expenses of € 0.9m

(1.4)

Page 27: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

2727(1) As of 30 June 2021

(2) Excl. assets held for sale

(3) Excl. capitalised leases

Overview of the Real Estate Portfolio

64%

26%

10%

Office Retail Logistics & Others

Property Locations(1) Portfolio Split by Asset Class(1)

GAV (€ m)# of

Properties

Baden-Wuerttemberg 5

EPRA-

Vacancy (%)(2)

4.3

GAV(2)

(€ m)

162.9

Total rental

space (k sqm)

93.6

Bavaria 8 20.0134.4 99.9

Brandenburg 1 10.05.5 3.8

Bremen 1 30.13.2 6.1

Hamburg 1 0.010.0 4.0

Hesse 7 7.8213.2 97.4

Mecklenburg-Western Pom. 6 4.4120.0 58.0

Lower Saxony 6 0.847.6 39.8

North Rhine-Westphalia 15 7.3404.4 233.3

Rhineland Palatinate 2 90.211.3 19.3

Saxony 9 8.5183.3 227.9

Saxony-Anhalt 2 3.736.3 24.0

Schleswig-Holstein

1 56.51.8 5.6Thuringia

6 6.771.2 58.0

Germany 70 10.21,404.9 961.2

Total

Gross Asset

Value

€ 1,404.9m(2)

Split by Region and Asset Class

Page 28: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

2828(1) As of 30 June 2021

(2) Excl. capitalised leases

(3) Excl. assets held for sale

Overview of the Real Estate Portfolio

Property Locations(1)

Asset

Class

Essen Office

EPRA-

Vacancy (%)(3)

9.0

GAV (€ m)(2)

98.0

Total rental

space (k sqm)

45.5

Top 20 Assets

Share(%)

7.0

GAV/sqm(€ k)

2.2

GRI p.a.(€ m)

5.7

WALT (Years)

3.6

Bonn Office 0.089.0 38.46.3 2.3 4.6 3.7

Ulm Office 2.685.1 47.66.1 1.8 4.3 3.4

Leipzig (LogPark) Logistics 10.476.0 147.15.4 0.5 5.2 2.1

Neuss Retail 0.072.1 56.15.1 1.3 5.4 1.5

Rostock Logistics 0.071.6 19.35.1 3.7 3.9 8.1

Kassel Retail 4.460.5 21.54.3 2.8 3.6 5.3

Bad Vilbel Office 14.747.3 26.53.4 1.8 2.9 6.2

Frankfurt Other (Hotel) 0.043.7 6.13.1 7.2 1.8 18.5

Freiburg Office 7.239.9 22.62.8 1.8 2.1 5.4

Top 10 Properties 4.9683.2 430.648.6 1.6 39.6 4.7

Regensburg Office 38.138.0 29.22.7 1.3 1.7 3.5

Leipzig (Gutenberg-Galerie) Office 5.036.3 23.42.6 1.6 2.0 3.4

Düsseldorf Office 20.436.0 24.32.6 1.5 2.2 2.8

Aschheim Office 25.830.1 12.22.1 2.5 1.2 2.4

Eschborn Office 0.029.4 18.92.1 1.6 2.1 3.5

Flensburg Office 14.125.0 24.21.8 1.0 1.7 6.5

Lutherstadt-Wittenberg Retail 5.923.8 14.71.7 1.6 1.7 3.1

Köln (Max-Glomsda-Straße) Office 0.423.3 5.21.7 4.5 1.3 4.0

Zittau Retail 3.521.8 17.41.6 1.3 1.3 8.0

Langen Office 28.418.9 13.71.3 1.4 1.1 2.8

Top 20 Properties 8.1965.8 613.768.7 1.6 55.9 4.5

Other Properties 14.4439.1 347.531.3 1.3 27.2 5.7

Total Properties 10.21,404.9 961.2100.0 1.5 83.1 4.9

Page 29: DEMIRE Deutsche Mittelstand Real Estate AG Roadshow

August 2021

2929

Phone + 49 (0) 61 03 372 49 44

Fax + 49 (0) 61 03 372 49 11

Email [email protected]

Web www.demire.ag/en/investor-relations

Contact Details & Share Information

(1) As of 30 June 2021

(2) Holdings < 3%

Financial Calendar 2021 Share Information(1)

DMRESymbol / Ticker

€ 4.35Share Price (XETRA)

Prime StandardMarket Segment

DE000A0XFSF0ISIN

€ 468.8mMarket Capitalisation

7.15%Free Float(2)

107,777,324Number of Shares

Michael Tegeder – Head of Investor Relations & Corporate Finance

Interim Results Q3 202111 November 2021