Original-Research: DEMIRE AG (von NuWays AG): Buy
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Original-Research: DEMIRE AG - from NuWays AG
07.11.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to DEMIRE AG
Company Name: DEMIRE AG
ISIN: DE000A0XFSF0
Reason for the research: Update
Recommendation: Buy
from: 07.11.2025
Target price: EUR 1.00
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald
Q3 results broadly in line as outlook remains muted / Chg.
Yesterday, DEMIRE released Q3 results, which came in largely as expected on
the top-line, but provided a beat on FFO. In detail:
Q3 rental income declined 10% yoy to EUR 13.6m (eNuW: EUR 13.5m), reflecting the
smaller asset base following several disposals as well as an inflated
vacancy level of 17.4%. Positively, the company was able to stabilize and
even slightly improve the NOI margin on a sequential basis (+1.2 pp vs H1),
as it came in at 68.3%. In our view, this underlines effective cost control
as well as the indexation impact, which partly offset the higher vacancy.
Q3 FFO came in at EUR 3.4m, very much ahead of our estimated EUR 1.5m but still
down 55% yoy. The sharp decline is mainly based on the lower rental income
as well as increased interest payments following the refinancing of the
corporate bond. Disciplined cost management on the other hand only partly
offset those effects, resulting in a significantly reduced FFO margin of
24.8%.
Guidance confirmed. Following the results, management confirmed the FY25
outlook of EUR 52-54m sales and EUR 5-7m FFO. Our estimates are positioned 12%
above the upper end of the FFO range, considering the 9m FFO of EUR 8.3m, and
even despite higher expected maintenance expenses in Q4, and slightly ahead
of the rental income guidance, which would need additional disposals in our
view.
Disposals postponed. Management confirmed last week's ad-hoc that planned
asset sales have been postponed into 2026, as current market bids remain
below acceptable price levels. As a result, the company will not repay the
mandatory EUR 50m of the corporate bond this year, thus triggering the 3%
penalty fee (eNuW: EUR 7.4m), which is however only partially P&L relevant in
FY25 and only cash relevant at maturity. Yet, management struck a slightly
optimistic tone, that the situation might ease going forward in order to
provide another penalty payment in FY26.
Overall, while the situation for DEMIRE remains challenging amid constrained
financial and operating flexibility due to obligations connected to the bond
refinancing framework, the company is still able to post solid operational
performances visible in the stable NOI margin and FFO profitability. Against
this backdrop, shares continue to trade at a substantial discount to the NAV
of EUR 1.80 per share, which we regard as unjustified even in this situation.
We hence confirm BUY with a new PT of EUR 1.00 (old: EUR 1.20) based on our NAV
model.
You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=a0508ed15cc53ab5d06a40624540492c
For additional information visit our website:
https://www.nuways-ag.com/research-feed
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 Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2225670 07.11.2025 CET/CEST
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