NuWays AG Upgrades DEMIRE AG to 'Buy' After Bond Prolongation

DEMIRE AG has been upgraded to a 'Buy' recommendation by NuWays AG following the successful extension of its corporate bond. This decision stems from DEMIRE's recent financial disclosures and strategic asset management, despite some challenges. DEMIRE's financial reports for FY 2023, Q1, and Q2 2024 highlighted a 13.1% drop in H1 rental income to €35.5 million, influenced by property disposals and increased vacancy rates, partially offset by rent adjustments.

A crucial development was the approval to prolong DEMIRE's €499 million bond until 2027, easing immediate financial pressures. The firm plans asset disposals as part of its strategy to reduce bond liabilities.

Though facing a 19.7% FFO decline year-over-year, DEMIRE's focus on strategic alignment and preserving NAV stability led to a reassessment, closing a valuation gap with peers. Without refinancing risks, NuWays AG raised the target price to €1.50.