DEMIRE Deutsche Mittelstand Real Estate (DMRE) investor relations material

Executive summary

• Rental income declined 17% year-over-year to EUR 23 million, mainly due to asset disposals and a smaller portfolio, but operational margins improved and EBIT turned positive at EUR 8 million.

• FFO I for H1 2026 dropped to EUR 2 million from EUR 5 million, reflecting lower rental income but outperforming internal expectations due to positive one-off effects and lower maintenance costs.

• Asset sales in Flensburg and Bonn generated EUR 17.5 million, with further transactions signed for EUR 40 million expected to close in Q3, strengthening liquidity and supporting refinancing.

• Updated full-year 2026 guidance for rental income and FFO I was raised, reflecting improved visibility and operational progress.

• Fifth sustainability/EPRA report published, expanding ESG coverage across nearly the entire portfolio.

Financial highlights

• Rental income for H1 2026: EUR 23 million, down from EUR 27.8 million year-over-year.

• FFO I: EUR 2 million, compared to EUR 5 million in H1 2025.

• EBIT positive at EUR 8 million, compared to a loss of EUR 24.9 million in the prior year.

• Operating margin from rental activities improved from 67% to 68% year-over-year.

• Profit from rental of real estate: EUR 15.7 million (H1 2025: EUR 18.6 million).

Outlook and guidance

• Full-year 2026 rental income guidance raised to EUR 42.5–44.5 million (previously EUR 41.5–43.5 million).

• FFO I guidance increased to EUR 0.5–2.5 million (previously -EUR 1 million to +EUR 1 million).

• Upward revision driven by higher-than-expected rental income and lower maintenance costs.

• No major negative surprises expected in lease renewals; healthy leasing pipeline may drive improvement by year-end.