DEMIRE Delays Financial Report and Reveals Lower EBIT for 2023 Amid Bondholder Negotiations

DEMIRE Deutsche Mittelstand Real Estate AG announced a delay in the publication of its audited consolidated financial statements for 2023, originally set for April 25, due to ongoing discussions with bondholders and other stakeholders. The company now aims to release the financial report in May 2024 and will confirm the exact date complying with legal requirements.

Additionally, DEMIRE released preliminary business figures for 2023, showing a 3.2% drop in rental income to EUR 78.5 million, attributed to property sales, yet within the upwardly revised forecast range. Consequently, funds from operations (FFO I) were down 12.0% year-on-year to EUR 36.7 million; this was primarily influenced by decreased rental income and higher income taxes but met the higher end of the revised forecast. Moreover, the earnings before interest and taxes (EBIT) significantly decreased to EUR -187.9 million from last year's EUR -72.9 million, mostly due to price adjustments in property markets influenced by increased central bank rates and property-specific provisions, leading to a 13.2% impairment in the like-for-like property portfolio comparison to 2022.