DEMIRE

DE: DMRE

€487.2m market cap

€4.52 last close

DEMIRE Deutsche Mittelstand Real Estate is an investor in German commercial real estate with a focus on properties in secondary locations, attractive to medium-sized companies. The portfolio is well diversified geographically and by tenant and is spread across office, retail and logistics assets.

Investment summary

The first nine months of FY17 showed good operational development as well as significant progress with the strategic programme (DEMIRE 2.0) that targets efficiency gains and portfolio growth. Management has raised FY17 guidance to reflect tax optimisation measures as well as operational performance. FY18 will benefit from significant interest cost savings following recent refinancing. Management targets further efficiencies and simplification of the group structure and is seeking opportunities for portfolio growth with the potential for scale economies. With funds from operations (FFO) earnings rising strongly, we would expect DEMIRE to consider dividend distributions (not in our forecasts), a potential trigger for closing the 17% discount to EPRA NAV.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2015A 23.7 12.3 33.0 71.38 6.3 N/A
2016A 58.6 44.1 40.0 39.28 11.5 N/A
2017E 55.8 41.0 13.4 10.00 45.2 N/A
2018E 56.4 42.6 39.2 44.00 10.3 N/A
Last updated on 18/01/2019
Share price graph
Price performance
%
1m
3m
12m
Actual 6.4 14.4 15.0
Relative* 1.9 18.3 36.3
52-week high/low €4.5/€3.7
*% relative to local index
Key management
Markus Drews Member of the Board - CEO
Peer Schlinkmann Head of Investor Relations & Communications
Ralf Kind Member of the Board - CFO