Original-Research: DEMIRE AG (von NuWays AG): BUY

Original-Research: DEMIRE AG - from NuWays AG



08.05.2026 / 09:00 CET/CEST
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Classification of NuWays AG to DEMIRE AG



     Company Name:                DEMIRE AG
     ISIN:                        DE000A0XFSF0



     Reason for the research:     Update
     Recommendation:              BUY
     Target price:                EUR 0.8
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Philipp Sennewald



Q1 in line with est. but vacancy increases further



Yesterday, DEMIRE published its Q1'26 results, coming in broadly in linw on
both top-line and FFO. While the headline numbers held no surprises, vacancy
remains a key operational concern.



Q1 rental income declined 17.3% yoy to EUR 11.6m (eNuW: EUR 11.4m), reflecting
the smaller asset base following multiple disposals throughout FY25, as well
as the impact of higher vacancy, which was only partly offset by rent
indexation. Annualised contractual rents fell to EUR 45.7m (FY25: EUR 51.3m),
driven by two asset disposals in Q1 as well as two assets becoming fully
vacant.



As a result, the EPRA vacancy rate rose sharply to 21.0% (FY25: 16.4%).
Re-letting in the current soft German office market remains challenging, and
the letting volume of only ~2,700 sqm in Q1 (vs. 25,500 sqm a year ago)
underlines the difficult demand environment, although the Q1'25 figure was
inflated by two large one-off prolongations. Management expects larger
lettings to materialise over the remainder of the year and appeared
confidentappeared confident that it could quickly recover at least part of
the rental income of the two fully vacant properties. Here, execution
remains the most decisive factor. Positively, WALT improved 0.5 years to 5.2
years, mainly reflecting the conversion of a single-tenant master lease into
individual rental contracts at one of DEMIRE's larger assets.



FFO I came in at EUR 0.3m (eNuW: EUR 0.7m; Q1'25: EUR 2.1m), which was almost
entirely driven by the decline in rental income, only partly offset by a
slightly improved NOI margin (+2pp yoy). Mind you, this figure reflects the
FFO before shareholder loan interest (EUR 93.5m volume & 22% interest), which
the company capitalises, and is therefore P&L-relevant, despite not being
cash-effective.



The FY26 guidance was confirmed with rental income of EUR 41.5-43.5m and FFO I
of EUR -1.0-1.0m. In our view, this is, as in previous years, too
conservative. Even reflecting a certain amount of disposals, we expect
rental income of EUR 44.2m, based on (i) the Q1 top-line, (ii) the contractual
rent of EUR 45.7m as well as (iii) improving vacancy levels during the
remainder of FY26e. On FFO, we expect EUR 2.9m, supported by stable G&A and
the aforementioned effects. Despite the muted near-term operational
backdrop, the stock continues to trade at a significant discount to NAV and
remains an attractive opportunity, particularly for special situation
investors.



Reiterate BUY, PT EUR 0.80.



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https://eqs-cockpit.com/c/fncls.ssp?u=50d7c7fe8684b0e73ff98fd3fdb8b654
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Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befindet sich in der vollständigen Analyse.
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2323678 08.05.2026 CET/CEST