Langen, 30. May 2018 - DEMIREDeutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has continued its solid performance in the first quarter of 2018. Thanks to successful letting activities and the associated reduction of vacancies, annualised contractual rent rose from EUR72.1 million as at 31 December 2017 to EUR72.4 million as at 31 March 2018. On a like-for-like basis, annualised rental income has increased by 1.6 % since 31 December 2017. Funds from operations (FFOI, after taxes, before minorities) amounted to EUR5.2 million in the first quarter of 2018 (Q1 2017: EUR2.0 million) as a result of lower interest expenses and an improved tax charge. In the first quarter, in the context of the planned overall capital expenditure for the 2018 financial year, funds from operations still showed a lower capital expenditure. Earnings before taxes (EBT) rose sharply as against the same quarter of the previous year to EUR30.5 million (Q1 2017: EUR3.7 million). The significant increase stems from fair value adjustments in investment properties, reduced finance expenses and lower general administrative expenses.

At 8.6 % as at the reporting date, the EPRAvacancy rate was down 80 basis points compared to the end of 2017. Driven by new lettings and reduced vacancies, the DEMIREGroup generated rental income of EUR18.3 million in the first three months of 2018, only 1.5 % lower than in the same period of the previous year (EUR18.5 million) on account of property sales.

Net Loan-to-Value falls by 200 basis points to below 60 %
At EUR6.47 (basic, up 8.5 %) and EUR5.29 (diluted, up 7.1 %), the figures for EPRANAVper share were higher than at the end of 2017 (EUR5.96 and EUR4.94 respectively). The net loan-to-value ratio improved significantly by a further 200 basis points as against the end of 2017 (60.1 %) to 58.1 % as at 31 March 2018. The average interest costs are unchanged at a low level of 3.0 % p.a.
CEO/CFO Ralf Kind commented: 'After successfully completing the 2017 financial year, we were able to seamlessly continue on the path taken with our DEMIRE2.0 strategy in the first quarter of 2018. Our focus in the current fiscal year will therefore be on the gradual expansion of the real estate portfolio and the continued optimisation of our Group structure.'

Forecast for year as a whole confirmed
The Executive Board is reiterating the forecast for the 2018 financial year of FFOI between EUR16 million and EUR18 million. On the basis of the current property portfolio, the company is anticipating rental income of approximately EUR71 million to EUR73 million for the year as a whole.

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DEMIRE Deutsche Mittelstand Real Estate AG published this content on 30 May 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 30 May 2018 05:07:06 UTC