DEMIRE AG Annual Report Postponement and Preliminary Financial Results Released

DEMIRE AG has announced the postponement of its 2023 annual report, initially scheduled for April 25, to sometime in May due to extended negotiations over the restructuring of its corporate bonds, with the current maturity looming on October 15, 2024. Intensified discussions with bondholders are aimed at securing an extension and an increased coupon rate for the €499 million outstanding nominal amount.

Preliminary financial results for fiscal year 2023 show a decline in rental income by 3.2% year-over-year to €78.5 million, primarily due to property sales exceeding CPI-linked rent increases. This led to a 12.0% decrease in Funds From Operations (FFO), totaling €36.7 million, influenced by elevated income taxes. Despite these declines, DEMIRE reached its adjusted guidance for rental income and FFO, which had been revised upward twice over the year.

The company's preliminary EBIT for FY '23 was reported at €-187.9 million, dramatically down from €-72.9 million the previous year, largely due to property devaluation and setting aside provisions. The entire portfolio saw a 13.2% impairment on a like-for-like basis.

In a notable corporate development, DEMIRE’s supervisory board appointed Frank Nickel as the new CEO, succeeding Alexander Goepfert. Nickel brings significant industry experience, including high-level roles at CA Immo and Cushman & Wakefield.

NuWays AG maintains a "hold" recommendation on DEMIRE stock with a target price of €1.20, reflecting ongoing market uncertainties.