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DEMIRE Deutsche Mittelstand Real Estate AG
Quarterly Report • May 16, 2022
96_10-q_2022-05-16_2877faa8-726e-459c-952e-50214da60b3f.pdf
Quarterly Report
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1 JANUARY – 31 MARCH INTERIM STATEMENT 2022
HIGHLIGHTS Q1 2022
10.5
EUR million FFO I (after taxes, before minority interests), compared to EUR 10.8 million in Q1 2021
19.3
EUR million RENTAL INCOME, below EUR 21.1 million in Q1 2021 owing to sales
49.5
per cent NET LOAN-TO-VALUE (NET LTV), compared to 49.7% at the end of 2021
1.66
per cent p.a. AVERAGE NOMINAL INTEREST COSTS – constant compared to year-end 2021
6.03
EUR NET ASSET VALUE (EPRA NAV PER SHARE, BASIC), compared to EUR 5.96 at year-end 2021
KEY EARNINGS FIGURES KEY FINANCIAL INDICATORS PORTFOLIO DEVELOPMENT
1.4
EUR billion PORTFOLIO VALUE, unchanged compared to year-end 2021
79.0
EUR million ANNUALISED CONTRACTUAL RENTS, compared to EUR 78.1 million at year-end 2021
42,915
m2 LETTING PERFORMANCE (Q1 2021: 23,265 m²) – above long-term average of approximately 80,000 m² on pro rata basis
4.7
years WALT, almost on a par with year-end 2021
11.0
per cent EPRA VACANCY RATE*, on a par with year-end 2021
* Excluding project developments and real estate held for sale
CONTENTS
Key for navigating the interim statement:
Reference to websites
FOREWORD BY THE EXECUTIVE BOARD 2 Reference to another page in the interim statement Reference to table of contents
| DEMIRE AT A GLANCE | 3 |
|---|---|
| Key Group figures | 4 |
| Portfolio highlights | 5 |
| INTERIM GROUP MANAGEMENT REPORT | 6 |
| Overview | 7 |
| Economic report | 10 |
| Opportunities and risks | 17 |
| Subsequent events | 17 |
| INTERIM CONSOLIDATED FINANCIAL STATEMENTS |
18 |
|---|---|
| Consolidated statement of income | 19 |
| Consolidated statement of comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of cash flows | 23 |
| Consolidated statement of changes in equity | 25 |
| Notes to the consolidated financial statements | 27 |
FOREWORD BY THE EXECUTIVE BOARD
Dear Shareholders, dear Readers,
With the war in Ukraine still raging and the huge amount of human suffering it has caused, it remains a difficult task for us to focus on financial matters. But we are nevertheless able to fulfil our duties here and are pleased to report that DEMIRE's business performance in the first quarter of 2022 has been stable and satisfactory in this regard. So far, neither the conflict in eastern Europe nor the coronavirus pandemic, which seems to be on the wane, have had any direct negative impact on our operational business activity or our business model overall. The key areas to focus on in terms of performance during the first quarter of the financial year are as follows:
- Rental income totalled EUR 19.3 million (previous year: EUR 21.1 million) in line with expectations.
- Funds From Operations (FFO I, after taxes, before minorities) fell less significantly by 3.0% to EUR 10.5 million, compared to EUR 10.8 million the previous year.
- At about 43,000 m², letting performance exceeded the previous year's excellent value of around 23,000m².
- An EPRA vacancy rate (excluding project developments and real estate held for sale) of 11.0% and WALT of 4.7 years remain constant compared to year-end 2021.
- NAV per share (basic) went up to EUR 6.03, an improvement of EUR 0.07 compared to the end of 2021.
- Net loan-to-value (LTV) fell to 49.5%. Liquidity as at the reporting date was comfortable at EUR 137.0 million.
- Average nominal financing costs remain at a low level nominally at 1.66%, with no significant maturities arising before 2024.
The deviations in key figures compared to the same period of the previous year are the result of sales completed in previous financial years. These sales are therefore in line with our expectations and plans. We primarily attribute this excellent stability in terms of performance to the fact that we remain focused on clearing smaller, strategically irrelevant properties from our portfolio whilst also making selective acquisitions. As part of our "REALize Potential" strategy, we are therefore strengthening the overall performance of our current portfolio and, in doing so, making DEMIRE more resilient.
The results obtained in the first three months of 2022 give us confidence that our performance will also be in line with our plans for the financial year as a whole. We are working on the assumption that neither the consequences of the pandemic nor the armed conflict in Ukraine will have a noticeable impact on our business activity. As DEMIRE has solid foundations, the fundamental shape of the real estate market, including in particular the office and commercial sector, and expected developments on the capital markets – including the possibility of the ECB gradually increasing interest rates – also give us grounds to believe our company will continue to perform strongly.
Now the first quarter has ended, we therefore remain committed to our forecast for the 2022 financial year. In this regard, we expect rental income to be between EUR 78.0 and 80.0 million (2021: EUR 82.3 million). We also expect FFO I (after taxes, before minority interests) to be between EUR 38.5 million and EUR 40.5 million (previous year: EUR 39.8 million).
Frankfurt am Main, 11 May 2022
Ingo Hartlief (FRICS) Tim Brückner (CEO) (CFO)
FOREWORD BY THE
INTERIM CONSOLIDATED FINANCIAL STATEMENTS 18
EXECUTIVE BOARD 2
IMPRINT 37
DEMIRE AT A GLANCE
| Key Group figures | 4 |
|---|---|
| Portfolio highlights | 5 |
KEY GROUP FIGURES
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| Key Group figures | 4 |
| Portfolio highlights | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
IMPRINT 37
| in EUR thousand | 01/01/2021 – 31/03/2021 |
01/01/2022 – 31/03/2022 |
|---|---|---|
| Key earnings figures | ||
| Rental income | 21,148 | 19,340 |
| Profit/loss from the rental of real estate | 17,729 | 15,635 |
| EBIT | 16,577 | 13,075 |
| Financial result | –5,266 | –4,309 |
| EBT | 11,311 | 8,766 |
| Net profit/loss for the period | 9,409 | 7,700 |
| Net profit/loss for the period attributable to parent company shareholders |
8,736 | 7,112 |
| Net profit/loss for the period per share (basic/diluted) (in EUR) |
0.08/0.08 | 0.07/0.07 |
| FFO I (after taxes, before minority interests) | 10,778 | 10,452 |
| in EUR thousand | 31/12/2021 | 31/03/2022 |
|---|---|---|
| Key balance sheet figures | ||
| Total assets | 1,705,594 | 1,717,579 |
| Investment property | 1,433,096 | 1,439,604 |
| Non-current assets held for sale | 0 | 0 |
| Total real estate portfolio | 1,433,096 | 1,439,604 |
| Financial and lease liabilities | 914,986 | 915,413 |
| Cash and cash equivalents | 139,619 | 136,984 |
| Net financial liabilities | 775,367 | 778,432 |
| Net loan-to-value (net LTV) (in %) | 49.7 | 49.5 |
| Equity according to Group balance sheet | 592,362 | 599,733 |
| Equity ratio (in %) | 34.7 | 34.9 |
| Net Asset Value (NAV) | 549,023 | 555,875 |
| NAV (basic/diluted) | 629,977/629,487 | 636,129/636,639 |
| Number of shares in thousands (basic/diluted) | 105,513/106,023 | 105,513/106,023 |
| EPRA NAV per share (basic/diluted) (in EUR) | 5.96/5.94 | 6.03/6.00 |
| 31/12/2021 | 31/03/2022 | |
|---|---|---|
| Key portfolio indicators | ||
| Properties (number) | 64 | 64 |
| Market value (in EUR million) | 1,412.5 | 1,412.5 |
| Contractual rents (in EUR million) | 78.1 | 79.0 |
| Rental yield (in %) | 5.5 | 5.6 |
| EPRA vacancy rate* (in %) | 11.0 | 11.0 |
| WALT (in years) | 4.7 | 4.7 |
* Excluding project developments and real estate held for sale
PORTFOLIO HIGHLIGHTS for the reporting period from 1 January to 31 March 2022
FOREWORD BY THE EXECUTIVE BOARD 2
DEMIRE AT A GLANCE 3 Key Group figures 4 Portfolio highlights 5
INTERIM GROUP MANAGEMENT REPORT 6
INTERIM CONSOLIDATED FINANCIAL STATEMENTS 18
1.4
EUR billion MARKET VALUE OF THE REAL ESTATE PORTFOLIO
IMPRINT 37 64
Properties at 53 LOCATIONS in 13 federal states
79.0
EUR million ANNUALISED CONTRACTUAL RENTS
* Excluding project developments and real estate held for sale
59.7
per cent OFFICE SHARE of the total portfolio by market value
8.11
EUR/m² AVERAGE RENT across the portfolio
11.0
per cent EPRA VACANCY RATE* across the portfolio
5.6
per cent GROSS RENTAL RETURNS
4.7
years WEIGHTED AVERAGE of lease term (WALT)
Brandenburg
Berlin
Saxony
Mecklenburg-Western Pomerania
INTERIM GROUP MANAGEMENT REPORT
for the reporting period from 1 January to 31 March 2022
| Overview | 7 |
|---|---|
| Economic report | 10 |
| Opportunities and risks | 17 |
| Subsequent events | 17 |
OVERVIEW
BUSINESS PERFORMANCE
DEMIRE performed to a satisfactory level in the first three months of 2022. Due to the sales completed in 2020 and 2021, the Group key figures are below those in the same period of the previous year and are, thus, in line with the plans and expectations of the Executive Board. Neither the coronavirus pandemic nor the war in Ukraine had any direct impact on DEMIRE's business performance during the period under review. The Company nevertheless remains focused on subsequently implementing the "REALize Potential" strategy and selling smaller, non-strategic properties in order to add to the portfolio by way of targeted purchases, should the opportunity arise. The performance during the period under review and in the previous financial year provides a stable basis to perform well during the current financial year and beyond.
- Rental income totalled EUR 19.3 million (previous year: EUR 21.1 million) in line with expectations.
- Funds From Operations (FFO I, after taxes, before minorities) fell less significantly by 3.0% to EUR 10.5 million, compared to EUR 10.8 million the previous year.
- At about 43,000 m², letting performance exceeded the previous year's excellent value of around 23,000m².
- An EPRA vacancy rate (excluding project developments and real estate held for sale) of 11.0% and WALT of 4.7 years remain constant compared to year-end 2021.
- NAV per share (basic) went up to EUR 6.03, an improvement of EUR 0.07 compared to the end of 2021.
- Net loan-to-value (LTV) fell to 49.5%. Liquidity as at the reporting date was comfortable at EUR 137.0 million.
- Average nominal financing costs remain at a low level nominally at 1.66%, with no significant maturities arising before 2024.
PERFORMANCE IN LINE WITH FORECAST FOR 2022 FINANCIAL YEAR
Given the backdrop of performance during the first quarter of 2022 and the expectation that neither coronavirus nor the war in Ukraine will significantly impact DEMIRE's business performance, the Executive Board remains committed to its forecast for the 2022 financial year that rental income will be between EUR 78.0 and 80.0 million (2021: EUR 82.3 million), and that FFO I (after taxes, before minority interests) is expected to be between EUR 38.5 and 40.5 million (2021: EUR 39.8 million).
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| Overview | 7 |
| Economic report | 10 |
| Opportunities and risks | 17 |
| Subsequent events | 17 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| IMPRINT | 37 |
| FOREWORD BY THE EXECUTIVE BOARD |
2 |
|---|---|
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| Overview | 7 |
| Economic report | 10 |
| Opportunities and risks | 17 |
| Subsequent events | 17 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| IMPRINT | 37 |
REAL ESTATE PORTFOLIO
There were no changes in the portfolio as at the reporting date 31 March 2022 compared to the end of 2021. The portfolio consists of 64 commercial properties with lettable floor space of around 1.0 million m² and a total market value of around EUR 1.4 billion. No sales agreements had been concluded as at the reporting date, meaning therefore that no properties are classified as being held for sale. An external property valuation of the portfolio was last performed on 31 December 2021.
The EPRA vacancy rate of the portfolio (excluding project developments and properties held for sale) was 11.0% as at the reporting date of 31 March 2022, which was unchanged compared to the figure as at 31 December 2021. The WALT amounted to 4.7 years as at 31 March 2022 and remained constant compared to the end of 2021. In the period under review, DEMIRE's letting performance reached roughly 43,000m². New lettings contributed around 42.4% of letting performance and follow-on lettings made up around 57.6%.
Active portfolio management and the successful repositioning of a number of properties reduced DEMIRE's dependency on GMG/Deutsche Telekom and diversified its tenant base. GMG now accounts for 14.3% of contractual rents, less than half the 30.4% as at the end of 2018.
TOP 10 TENANTS (AS AT 31 MARCH 2022)
| No. | Tenant | Type of use | Contractual rents p.a.* in EUR million |
in % of total |
|---|---|---|---|---|
| 1 | GMG/Dt. Telekom | Office | 11.3 | 14.3 |
| 2 | Imotex | Retail | 5.4 | 6.8 |
| 3 | GALERIA Karstadt Kaufhof |
Retail | 3.7 | 4.7 |
| 4 | Bima Bundesanstalt für Immobilien aufgaben |
Office | 2.1 | 2.7 |
| 5 | Roomers | Logistics | 1.9 | 2.4 |
| 6 | momox GmbH | Hotel | 1.8 | 2.3 |
| 7 | Sparkasse Südholstein |
Office | 1.6 | 2.1 |
| 8 | comdirect bank AG | Office | 1.3 | 1.6 |
| 9 | Die Autobahn GmbH des Bundes |
Office | 1.1 | 1.4 |
| 10 | BWI GmbH | Office | 1.1 | 1.4 |
| TOTAL | 31.3 | 39.7 | ||
| Other | 47.7 | 60.3 | ||
| TOTAL | 79.0 | 100.0 |
* Based on annualised contractual rents, excluding ancillary costs
IMPRINT 37
| FOREWORD BY THE | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EXECUTIVE BOARD | 2 | PORTFOLIO BY ASSET CLASS | ||||||||||
| DEMIRE AT A GLANCE | 3 | Share by | Lettable | Contractual rent |
Contractual | EPRA | ||||||
| INTERIM GROUP MANAGEMENT REPORT |
6 | Number of properties |
Market value in EUR million |
market value in % |
space in thousand m2 |
Market value/m2 |
in EUR million p.a. |
rent per m² |
Rental returns in % |
vacancy rate* in % |
WALT in years |
|
| Overview | 7 | Office | 42 | 843.7 | 59.7 | 516.7 | 1,633 | 47.8 | 9.0 | 5.7 | 12.2 | 3.8 |
| Economic report | 10 | Retail | 17 | 357.1 | 25.3 | 220.1 | 1,623 | 23.0 | 9.5 | 6.4 | 7.4 | 5.3 |
| Opportunities and risks | 17 | Logistics&Other | 5 | 211.6 | 15.0 | 176.0 | 1,202 | 8.2 | 4.4 | 3.9 | 13.3 | 8.0 |
| Subsequent events | 17 | Total 31 March 2022 | 64 | 1,412.5 | 100.0 | 912.7 | 1,548 | 79.0 | 8.1 | 5.6 | 11.0 | 4.7 |
| INTERIM CONSOLIDATED | Total 31 December 2021 | 64 | 1,412.5 | 100.0 | 912.7 | 1,548 | 78.1 | 8.0 | 5.5 | 11.0 | 4.7 | |
| FINANCIAL STATEMENTS | 18 | Change (in %/pp) | – | – | – | – | – | 1.1 | 1.4 | 0.1 pp | – | – |
| * Excluding real estate held for sale |
9
ECONOMIC REPORT
Results of operations, financial position and net assets
RESULTS OF OPERATIONS
In the first three months of 2022, the DEMIRE Group generated rental income totalling EUR 19.3 million (previous year: EUR 21.1 million). This 8.5% decrease year-onyear was due to the sale of properties. Profit/loss from the rental of real estate fell by 11.8% to EUR 15.6 million (previous year: EUR 17.7 million). The decline is mainly due to property sales in the past financial year. As was the case in the same period of the previous year, there were no sales revenues generated. As was the case the previous year, profit/loss from sales of EUR –0.1 million (previous year EUR –0.1 million) arose from transaction-related legal and consultancy fees for the sale of properties that have, however, yet to be certified. As a result, there is no profit/loss arising from changes to the fair value adjustments of properties. A notarised agreement had been signed for a property during the same period of the previous year; this property's book value is included in the profit/loss from adjustments to the fair value of investment properties (EUR 1.8 million).
Following the reversal of various provisions for bad debts, impairment on receivables was positive at EUR 0.1 million. The figure for the previous year (EUR –0.4 million) primarily included impairment on receivables from tenants of hotels that were either insolvent or threatened with insolvency as a result of the coronavirus pandemic. General administrative expenses in the first three months of 2022 increased slightly to EUR 2.7 million (previous year: EUR 2.6 million). Earnings before interest and taxes (EBIT) amounted to EUR 13.1 million, a 21.1% decrease on the previous year's figure of EUR 16.6 million.
During the period under review, the financial result was augmented by the effects arising from the investment in the Cielo office property in Frankfurt/Main, which was entered into as at 01 July 2021, amounting to EUR –4.3 million, following on from EUR –5.3 million during the same period in the previous year. In addition to higher financial income of EUR 1.1 million (previous year: EUR 0.2 million), this figure also includes profit/loss from companies accounted for using the equity method of EUR 0.5 million (previous year: EUR 0). The average nominal interest rate on financial debt as at 31 March 2022 remained constant at a nominal 1.66% p.a. compared to year-end 2021.
Earnings before taxes (EBT) fell to EUR 8.8 million in the period under review, compared to EUR 11.3 million in the previous year. The profit for the period for the first three months of 2022 was EUR 7.7 million, compared to EUR 9.4 million in the same period of the previous year.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| Overview | 7 |
| Economic report | 10 |
| Opportunities and risks | 17 |
| Subsequent events | 17 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| IMPRINT | 37 |
FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 17 Subsequent events 17 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 18 IMPRINT 37
CONSOLIDATED INCOME STATEMENT
| (selected information in EUR thousand) | 01/01/2021 – 31/03/2021 |
01/01/2022 – 31/03/2022 |
Change | in % |
|---|---|---|---|---|
| Rental income | 21,148 | 19,340 | –1,808 | –8.5 |
| Income from utility and service charges | 7,572 | 9,205 | 1,633 | 21.6 |
| Operating expenses to generate rental income | –10,991 | –12,910 | –1,919 | 17.5 |
| Profit/loss from the rental of real estate | 17,729 | 15,635 | –2,094 | –11.8 |
| Income from the sale of real estate and real estate companies | 0 | 0 | 0 | 0 |
| Expenses related to the sale of real estate and real estate companies | –83 | –51 | 32 | –38.6 |
| Profit/loss from the sale of real estate and real estate companies | –83 | –51 | 32 | –38.6 |
| Profit/loss from fair value adjustments of investment properties | 1,845 | 0 | –1,845 | –100.0 |
| Impairment of receivables | –388 | 149 | 537 | – |
| Other operating income | 177 | 453 | 276 | >100 |
| General and administrative expenses | –2,562 | –2,740 | –178 | 6.9 |
| Other operating expenses | –141 | –371 | –230 | >100 |
| Earnings before interest and taxes | 16,577 | 13,075 | –3,502 | –21.1 |
| Financial result | –5,266 | –4,309 | 957 | –18.2 |
| Earnings before taxes | 11,311 | 8,766 | –2,545 | –22.5 |
| Current income taxes | –496 | –747 | –251 | 50.6 |
| Deferred taxes | –1,406 | –319 | 1,087 | –77.3 |
| Net profit/loss for the period | 9,409 | 7,700 | –1,709 | –18.2 |
| Thereof attributable to parent company shareholders | 8,736 | 7,112 | –1,624 | –18.6 |
| Basic earnings per share (in EUR) | 0.08 | 0.07 | –0.01 | –18.3 |
| Weighted average number of shares outstanding (in thousands) | 105,599 | 105,513 | –86 | –0.1 |
| Diluted earnings per share (in EUR) | 0.08 | 0.07 | –0.01 | –16.3 |
| Weighted average number of shares outstanding (diluted) (in thousands) | 106,109 | 106,023 | –86 | –0.1 |
| FOREWORD BY THE EXECUTIVE BOARD |
2 |
|---|---|
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| Overview | 7 |
| Economic report | 10 |
| Opportunities and risks | 17 |
| Subsequent events | 17 |
| INTERIM CONSOLIDATED FINANCIAL STATEMENTS |
18 |
NET ASSETS
As at 31 March 2022, total assets went up by EUR 12.0 million compared to yearend 2021 to approximately EUR 1,717.6 million. The value of investment property amounted to EUR 1,439.6 million as at 31 March 2022, primarily increasing by EUR 6.5 million compared to the value at year-end 2021 as a result of the capitalisation of CapEx activities.
Group equity as at 31 March 2022 totalled approximately EUR 599.7 million, which was primarily higher compared to the level as at 31 December 2021 (EUR 592.4 million) due to the profit for the period. Consequently, the equity ratio amounted to 34.9% (31 December 2021: 34.7%). It should be noted that non-controlling minority interests reported in the Group's borrowed capital of around EUR 84.4 million (31 December 2021: EUR 82.9 million) are carried as non-current liabilities and not as equity in accordance with IFRS, solely as a result of the legal form of Fair Value REIT's fund participations as partnerships. The corresponding adjusted Group equity totalled EUR 684.2 million (31 December 2021: EUR 675.2 million).
Total financial liabilities as at 31 March 2021 amounted to EUR 891.0 million, remaining virtually unchanged compared to the total as at 31 December 2021 (EUR 890.5 million).
FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 17 Subsequent events 17 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 18
IMPRINT 37
CONSOLIDATED BALANCE SHEET – ASSETS
| (selected information in EUR thousand) | 31/12/2021 | 31/03/2022 | Change | in % |
|---|---|---|---|---|
| Assets | ||||
| Total non-current assets | 1,543,819 | 1,551,235 | 7,417 | 0.5 |
| Total current assets | 161,775 | 166,344 | 4,569 | 2.8 |
| Assets held for sale | 0 | 0 | 0 | 0.0 |
| TOTAL ASSETS | 1,705,594 | 1,717,579 | 11,986 | 0.7 |
CONSOLIDATED BALANCE SHEET – EQUITY AND LIABILITIES
| (selected information in EUR thousand) | 31/12/2021 | 31/03/2022 | Change | in % |
|---|---|---|---|---|
| Equity and liabilities | ||||
| Equity | ||||
| Equity attributable to parent company shareholders | 549,023 | 555,857 | 6,834 | 1.2 |
| Non-controlling interests | 43,339 | 43,876 | 537 | 1.2 |
| Total equity | 592,362 | 599,733 | 7,371 | 1.2 |
| Liabilities | ||||
| Total non-current liabilities | 1,066,581 | 1,065,913 | –667 | –0.1 |
| Total current liabilities | 46,651 | 51,933 | 5,282 | 11.3 |
| Total liabilities | 1,113,232 | 1,117,846 | 4,615 | 0.4 |
| TOTAL EQUITY AND LIABILITIES | 1,705,594 | 1,717,579 | 11,986 | 0.7 |
| FOREWORD BY THE EXECUTIVE BOARD |
2 |
|---|---|
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| Overview | 7 |
| 10 | |
| Economic report | |
| Opportunities and risks | 17 |
| Subsequent events | 17 |
| INTERIM CONSOLIDATED FINANCIAL STATEMENTS |
18 |
FINANCIAL POSITION
Cash flow from operating activities came to EUR 9.8 million (previous year: EUR 21.9 million) in the first three months of 2022, essentially depicting the Company's operating result. In the prior-year period, receivables amounting to EUR 8.4 million had been impaired as a result of the Corona pandemic.
Cash flow from investing activities during the period under review amounted to EUR –8.2 million, compared to EUR –11.4 million in the previous year. This was primarily driven by modernisation costs.
Cash flow from financing activities factors came to EUR –4.2 million, compared to EUR 43.1 million in the same prior-year period. This figure primarily includes interest and redemption payments during the period under review; mortgage loans of EUR 47.7 million were paid out and treasury shares were repurchased for EUR 1.2 million during the previous year.
Cash and cash equivalents amounted to EUR 137.0 million on 31 March 2022 (31 March 2021: EUR 155.2 million).
CONSOLIDATED STATEMENT OF CASH FLOWS
| Cash and cash equivalents at the end of the period |
155,243 | 136,984 | –18,259 |
|---|---|---|---|
| Net change in cash and cash equivalents | 53,622 | –2,635 | –56,257 |
| Cash flow from financing activities | 43,129 | –4,239 | –47,368 |
| Cash flow from investing activities | –11,440 | –8,217 | 3,222 |
| Cash flow from operating activities | 21,933 | 9,821 | –12,112 |
| (selected information in EUR thousand) | 01/01/2021 – 31/03/2021 |
01/01/2022 – 31/03/2022 |
Change |
FINANCIAL PERFORMANCE INDICATORS
Funds from operations (FFO)
Funds from Operations I (after taxes, before minority interests), the key operating performance indicator, fell slightly by 3.0% to EUR 10.5 million in the first quarter of 2022, compared to EUR 10.8 million during the same period of the previous year. On a diluted basis, this corresponds to an FFO I per share of EUR 0.10, compared to EUR 0.10 in the same period of the previous year.
| FOREWORD BY THE EXECUTIVE BOARD |
2 |
|---|---|
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| Overview | 7 |
| Economic report | 10 |
| Opportunities and risks | 17 |
| Subsequent events | 17 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| IMPRINT | 37 |
| FFO CALCULATION | ||||
|---|---|---|---|---|
| 01/01/2021 | 01/01/2022 | |||
| (selected information in EUR thousand) | – 31/03/2021 | – 31/03/2022 |
Change | in % |
| Earnings before taxes | 11,311 | 8,767 | –2,544 | –22.5 |
| Minority interests | 1,137 | 1,233 | 96 | 8.5 |
| Earnings before taxes (EBT) | 12,448 | 10,000 | –2,448 | –19.7 |
| ± Profit/loss from the sale of real estate | 83 | 51 | –32 | –38.6 |
| ± Profit/loss from the valuation of investment properties | –1,845 | 0 | 1,845 | –100.0 |
| ± Other adjustments* | 490 | 835 | 345 | 70.3 |
| FFO I before taxes | 11,175 | 10,886 | –289 | –2.6 |
| ± (current) income taxes | –398 | –434 | –36 | 9.0 |
| FFO I after taxes | 10,778 | 10,452 | –326 | –3.0 |
| Thereof attributable to parent company shareholders | 9,058 | 8,619 | –439 | –4.8 |
| Thereof attributable to non-controlling interests | 1,720 | 1,833 | 113 | 6.6 |
| ± Profit/loss from the sale of real estate companies/real estate (after taxes) | –83 | –51 | 32 | –39.1 |
| FFO II after taxes | 10,695 | 10,402 | –293 | –2.7 |
| Thereof attributable to parent company shareholders | 8,971 | 8,565 | –406 | –4.5 |
| Thereof attributable to non-controlling interests | 1,724 | 1,837 | 113 | 6.5 |
| FFO I after taxes and minority interests | ||||
| Basic earnings per share (in EUR) | 0.10 | 0.10 | 0.00 | –0.9 |
| Weighted average number of shares outstanding (in thousands) | 105,599 | 105,513 | –86 | –0.1 |
| Diluted earnings per share (in EUR) | 0.10 | 0.10 | 0.00 | –0.9 |
| Weighted average number of shares outstanding (diluted) (in thousands) | 106,109 | 106,023 | –86 | –0.1 |
| FFO II after taxes and minority interests | ||||
| Basic earnings per share (in EUR) | 0.10 | 0.10 | 0.00 | –1.4 |
| Weighted average number of shares outstanding (in thousands) | 105,599 | 105,513 | –86 | –0.1 |
| Diluted earnings per share (in EUR) | 0.10 | 0.10 | 0.00 | –1.9 |
| Weighted average number of shares outstanding (diluted) (in thousands) | 106,109 | 106,023 | –86 | –0.1 |
*Other adjustments include:
— One-time refinancing costs and effective interest payments (EUR 0.6 million; previous year: EUR 0.6 million)
— One-time transaction, legal and consultancy fees (EUR –0.2 million, previous year: EUR 0.1 million)
— One-time administrative costs (EUR 0.2 million; previous year: EUR –0.2 million)
— Non-period expenses/income (EUR 0.2 million, previous year: EUR 0.0 million)
| FOREWORD BY THE EXECUTIVE BOARD |
2 |
|---|---|
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| Overview | 7 |
| Economic report | 10 |
| Opportunities and risks | 17 |
| Subsequent events | 17 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| IMPRINT | 37 |
Net Asset Value (NAV)
The basic net asset value went up from EUR 629.0 million as at 31 December 2021 to EUR 636.1 million as at 31 March 2022, largely due to the positive result for the period. On a per-share basis, basic NAV amounted to EUR 6.03 per share on the reporting date (31 December 2021: EUR 5.96 per share).
NET ASSET VALUE (NAV)
| in EUR thousand | 31/12/2021 | 31/03/2022 | Change | in % |
|---|---|---|---|---|
| Net Asset Value (NAV) | 549,023 | 555,857 | 6,834 | 1.2 |
| Deferred taxes | 84,692 | 85,011 | 319 | 0.4 |
| Goodwill resulting from deferred taxes | –4,738 | –4,738 | 0 | 0.0 |
| NAV (basic) | 628,977 | 636,129 | 7,153 | 1.1 |
| Number of outstanding shares (basic) (in thousands) | 105,513 | 105,513 | 0 | 0.0 |
| NAV per share (basic) (in EUR) | 5.96 | 6.03 | 0.07 | 1.1 |
| Effect of the conversion of convertible bonds and other equity instruments | 510 | 510 | 0 | 0.0 |
| NAV (diluted) | 629,487 | 636,639 | 7,153 | 1.1 |
| Number of outstanding shares (diluted) (in thousands) | 106,023 | 106,023 | 0 | 0.0 |
| NAV per share (diluted) (in EUR) | 5.94 | 6.00 | 0.06 | 1.1 |
NET LOAN-TO-VALUE RATIO
The DEMIRE Group's loan-to-value ratio as defined in the 2019/2024 corporate bond prospectus is defined as the ratio of net financial liabilities to all assets, less intangible assets and cash and cash equivalents. The net loan-to-value fell to 49.5% as at 31 March 2022 from 49.7% at the end of 2021.
| FOREWORD BY THE | ||
|---|---|---|
| EXECUTIVE BOARD | 2 | |
| DEMIRE AT A GLANCE | 3 | |
| INTERIM GROUP | ||
| MANAGEMENT REPORT | 6 | |
| Overview | 7 | |
| Economic report | 10 | |
| Opportunities and risks | 17 | |
| Subsequent events | 17 | |
| INTERIM CONSOLIDATED | ||
| FINANCIAL STATEMENTS | 18 | |
| IMPRINT | 37 |
NET LOAN-TO-VALUE (NET LTV)
| Net LTV (in %) | 49.7 | 49.5 |
|---|---|---|
| Total assets less intangible assets and cash and cash equivalents |
1,559,192 | 1,573,812 |
| Cash and cash equivalents | –139,619 | –136,984 |
| Intangible assets | –6,783 | –6,783 |
| Total assets | 1,705,594 | 1,717,579 |
| Net financial debt | 775,367 | 778,429 |
| Cash and cash equivalents | 139,619 | 136,984 |
| Financial liabilities and lease liabilities | 914,986 | 915,413 |
| in EUR thousand | 31/12/2021 | 31/03/2022 |
Covenants for the 2019/2024 corporate bond
Within the scope of issuing the 2019/2024 corporate bond, DEMIRE undertook to comply with and regularly report on various covenants. The definition of the covenants to be reported on is listed in the offering prospectus for the 2019/2024 corporate bond.
| BOND COVENANTS 31/03/2022 | |||
|---|---|---|---|
| NET | |||
| NET LTV | SECURED LTV | ICR | |
| Covenant | max. 60% | max. 40% | min. 2.00 |
| Value | 49.5% | 9.8% | 4.47 |
As at 31 March 2022, DEMIRE had complied with all covenants of the 2019/2024 corporate bond. In addition, the planning for 2022 and beyond assumes that the covenants will also be complied with at all times in the future.
Opportunities and risks
Please refer to the disclosures made in the opportunities and risks report included within the consolidated financial statements as at 31 December 2021 for information on the opportunities and risks of future business performance. There were no material changes to the Group's opportunity and risk structure in the first three months of 2022.
The opportunities and risks are reviewed on a continual basis as part of a structured process. From today's perspective, there are no discernible risks that could jeopardise the Company.
Subsequent events
No events occurred after the interim reporting date that are of particular significance for DEMIRE's net asset, financial position and results of operations.
Frankfurt am Main, 11 May 2022
DEMIRE Deutsche Mittelstand Real Estate AG
Ingo Hartlief (FRICS) Tim Brückner (CEO) (CFO)
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
| Consolidated statement of income | 19 |
|---|---|
| Consolidated statement of comprehensive income |
20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of cash flows | 23 |
| Consolidated statement of changes in equity |
25 |
| Notes to the consolidated financial statements |
27 |
CONSOLIDATED STATEMENT OF INCOME
for the reporting period from 1 January to 31 March 2022
| 01/01/2021 | 01/01/2022 | ||
|---|---|---|---|
| in EUR thousand | NOTE | – 31/03/2021 | – 31/03/2022 |
| Rental income | 21,148 | 19,340 | |
| Income from utility and service charges | 7,572 | 9,205 | |
| Operating expenses to generate rental income | –10,991 | –12,910 | |
| Profit/loss from the rental of real estate | 17,729 | 15,635 | |
| Income from the sale of real estate and real estate companies | 0 | 0 | |
| Expenses related to the sale of real estate and real estate companies | –83 | –51 | |
| Profit/loss from the sale of real estate and real estate companies | –83 | –51 | |
| Profit/loss from fair value adjustments of investment properties | 1,845 | 0 | |
| Impairment of receivables | –388 | 149 | |
| Other operating income | 177 | 453 | |
| General and administrative expenses | –2,562 | –2,740 | |
| Other operating expenses | –141 | –371 | |
| Earnings before interest and taxes | D 1 | 16,577 | 13,075 |
| Financial income | 209 | 1,057 | |
| Financial expenses | –4,338 | –4,661 | |
| Profit/loss from companies accounted for using the equity method | 0 | 528 | |
| Minority interests | –1,137 | –1,233 | |
| Financial result | D 2 | –5,266 | –4,309 |
| Earnings before taxes | 11,311 | 8,766 | |
| Current income taxes | –496 | –747 | |
| Deferred taxes | –1,406 | –319 | |
| Net profit/loss for the period | 9,409 | 7,700 | |
| Thereof attributable to: | |||
| Non-controlling interests | 673 | 588 | |
| Parent company shareholders | 8,736 | 7,112 | |
| Basic/diluted earnings per share (in EUR) | D 3 | 0.08 | 0.07 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of | |
| comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of | |
| cash flows | 23 |
| Consolidated statement of | |
| changes in equity | 25 |
| Notes to the consolidated | |
| financial statements | 27 |
IMPRINT 37
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP MANAGEMENT REPORT |
6 |
| INTERIM CONSOLIDATED FINANCIAL STATEMENTS |
18 |
| Consolidated income statement 19 | |
| Consolidated statement of | |
| comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of cash flows |
23 |
| Consolidated statement of changes in equity |
25 |
| Notes to the consolidated financial statements |
27 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the reporting period from 1 January to 31 March 2022
| in EUR thousand | 01/01/2021 – 31/03/2021 |
01/01/2022 – 31/03/2022 |
|---|---|---|
| Net profit/loss for the period | 9,409 | 7,700 |
| Other comprehensive income | 0 | 0 |
| Total comprehensive income | 9,409 | 7,700 |
| Thereof attributable to: | ||
| Non-controlling interests | 673 | 588 |
| Parent company shareholders | 8,736 | 7,112 |
CONSOLIDATED BALANCE SHEET
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of | |
| comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of | |
| cash flows | 23 |
| Consolidated statement of | |
| changes in equity | 25 |
| Notes to the consolidated | |
| financial statements | 27 |
| IMPRINT | 37 |
as at 31 March 2022
| ASSETS | |||
|---|---|---|---|
| in EUR thousand | NOTE | 31/12/2021 | 31/03/2022 |
| Assets | |||
| Non-current assets | |||
| Intangible assets | 6,783 | 6,783 | |
| Property, plant and equipment | 228 | 210 | |
| Investment property | E 1 | 1,433,096 | 1,439,604 |
| Shares in companies accounted for using the equity method | 1,025 | 1,463 | |
| Loans to companies accounted for using the equity method | 26,505 | 25,205 | |
| Loans and financial assets | 64,264 | 63,946 | |
| Other assets | 11,917 | 14,024 | |
| Total non-current assets | 1,543,819 | 1,551,235 | |
| Current assets | |||
| Trade accounts receivable | 8,671 | 11,796 | |
| Financial assets | 3,925 | 5,102 | |
| Other assets | 3,191 | 5,983 | |
| Tax refund claims | 6,369 | 6,479 | |
| Cash and cash equivalents | 139,619 | 136,984 | |
| Total current assets | 161,775 | 166,344 | |
| Non-current assets held for sale | 0 | 0 | |
CONSOLIDATED BALANCE SHEET
FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 18 Consolidated income statement 19 Consolidated statement of comprehensive income 20 Consolidated balance sheet 21 Consolidated statement of cash flows 23 Consolidated statement of changes in equity 25 Notes to the consolidated financial statements 27 as at 31 March 2022
IMPRINT 37
| EQUITY AND LIABILITIES | |||
|---|---|---|---|
| in EUR thousand | NOTE | 31/12/2021 | 31/03/2022 |
| Equity and liabilities | |||
| Equity | |||
| Subscribed capital | E 2 | 105,513 | 105,513 |
| Reserves | 443,510 | 450,344 | |
| Equity attributable to parent company shareholders | 549,023 | 555,857 | |
| Non-controlling interests | 43,339 | 43,876 | |
| Total equity | 592,362 | 599,733 | |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax liabilities | 84,692 | 85,011 | |
| Minority interests | 82,882 | 84,441 | |
| Financial liabilities | E 3 | 874,417 | 872,016 |
| Lease liabilities | 24,285 | 24,222 | |
| Other liabilities | 305 | 233 | |
| Total non-current liabilities | 1,066,581 | 1,065,913 | |
| Current liabilities | |||
| Provisions | 4,012 | 3,689 | |
| Trade payables | 10,571 | 9,721 | |
| Other liabilities | 7,114 | 9,703 | |
| Tax liabilities | 8,670 | 9,645 | |
| Financial liabilities | E 3 | 16,097 | 18,955 |
| Lease liabilities | 187 | 220 | |
| Total current liabilities | 46,651 | 51,933 | |
| TOTAL LIABILITIES | 1,113,232 | 1,117,846 | |
| TOTAL EQUITY AND LIABILITIES | 1,705,594 | 1,717,579 |
CONSOLIDATED STATEMENT OF CASH FLOWS
23
for the reporting period from 1 January to 31 March 2022
| DEMIRE AT A GLANCE | 3 | |||
|---|---|---|---|---|
| 01/01/2021 | 01/01/2022 | |||
| INTERIM GROUP | in EUR thousand | – 31/03/2021 | – 31/03/2022 | |
| MANAGEMENT REPORT | 6 | Group profit/loss before taxes | 11,311 | 8,766 |
| INTERIM CONSOLIDATED FINANCIAL STATEMENTS |
Financial expenses | 4,338 | 4,661 | |
| 18 | Financial income | –209 | –1,585 | |
| Consolidated income statement 19 | Minority interests | 1,137 | 1,233 | |
| Change in trade accounts receivable | –2,249 | –2,976 | ||
| Consolidated statement of comprehensive income |
20 | Change in other receivables and other assets | 8,366 | –3,266 |
| Consolidated balance sheet | 21 | Change in provisions | –159 | –323 |
| Change in trade payables and other liabilities | 624 | 2,804 | ||
| Consolidated statement of cash flows |
23 | Profit/loss from fair value adjustments of investment properties | –1,845 | 0 |
| Consolidated statement of | Profit/loss from the sale of real estate and real estate companies | 83 | 51 | |
| changes in equity | 25 | Interest received from loans to companies accounted for using the equity method | 0 | 340 |
| Notes to the consolidated | Income taxes paid | –27 | –134 | |
| financial statements | 27 | Change in reserves | 19 | 0 |
| Depreciation and amortisation and impairment | 508 | 116 | ||
| IMPRINT | 37 | Distributions from companies accounted for using the equity method | 0 | 90 |
| Other non-cash items | 36 | 3 | ||
| Cash flow from operating activities | 21,933 | 9,821 |
CONSOLIDATED STATEMENT OF CASH FLOWS
for the reporting period from 1 January to 31 March 2022
| in EUR thousand | 01/01/2021 – 31/03/2021 |
01/01/2022 – 31/03/2022 |
|---|---|---|
| Payments for the acquisition of/investments in investment properties, incl. prepayments, | ||
| refurbishment measures and prepayments for property, plant and equipment | –3,641 | –9,467 |
| Payments for the acquisition of interests in fully consolidated companies, less net cash equivalents acquired | 0 | 0 |
| Payments for investments in companies accounted for using the equity method | –7,716 | 0 |
| Proceeds from loans to companies accounted for using the equity method | 0 | 1,300 |
| Proceeds from the sale of real estate | –83 | –51 |
| Cash flow from investing activities | –11,440 | –8,217 |
| Payments for borrowing costs | –450 | 0 |
| Proceeds from borrowings | 47,700 | 0 |
| Interest paid on financial liabilities | –945 | –1,240 |
| Payments for the purchase of additional shares in a subsidiary | –43 | –5 |
| Payment for the redemption of lease liabilities* | –95 | –32 |
| Payments for the redemption of financial liabilities* | –1,860 | –2,962 |
| Buyback of treasury shares | –1,178 | 0 |
| Cash flow from financing activities | 43,129 | –4,239 |
| Net change in cash and cash equivalents | 53,622 | –2,635 |
| Cash and cash equivalents at the start of the period | 101,620 | 139,619 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 155,243 | 136,984 |
* The previous year's figures were adjusted based on reporting changes during the period under review.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of | |
| comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of | |
| cash flows | 23 |
| Consolidated statement of | |
| changes in equity | 25 |
| Notes to the consolidated | |
| financial statements | 27 |
| IMPRINT | 37 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of | |
| comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of | |
| cash flows | 23 |
| Consolidated statement of | |
| changes in equity | 25 |
| Notes to the consolidated | |
| financial statements | 27 |
| IMPRINT | 37 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the reporting period from 1 January to 31 March 2022
| Share capital | Reserves | |||||
|---|---|---|---|---|---|---|
| in EUR thousand | Subscribed capital | Capital reserves | Retained earnings incl. Group profit/loss |
Equity attributable to parent company shareholders |
Non-controlling interests |
Total equity |
| 01/01/2022 | 105,513 | 88,366 | 355,144 | 549,023 | 43,339 | 592,362 |
| Net profit/loss for the period | 0 | 0 | 7,112 | 7,112 | 588 | 7,700 |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 |
| Total comprehensive income | 0 | 0 | 7,112 | 7,112 | 588 | 7,700 |
| Stock option programme | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend payments/distributions | 0 | 0 | 0 | 0 | 0 | 0 |
| Increase in shareholdings in subsidiaries | 0 | 0 | 0 | 0 | 0 | 0 |
| Acquisition of treasury shares | 0 | 0 | 0 | 0 | 0 | 0 |
| Other changes | 0 | 0 | –278 | –278 | –51 | –329 |
| 31/03/2022 | 105,513 | 88,366 | 361,978 | 555,857 | 43,876 | 599,733 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of | |
| comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of | |
| cash flows | 23 |
| Consolidated statement of | |
| changes in equity | 25 |
| Notes to the consolidated | |
| financial statements | 27 |
| IMPRINT | 37 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the reporting period from 1 January to 31 March 2021
| Share capital | Reserves | |||||
|---|---|---|---|---|---|---|
| in EUR thousand | Subscribed capital | Capital reserves | Retained earnings incl. Group profit/loss |
Equity attributable to parent company shareholders |
Non-controlling interests |
Total equity |
| 01/01/2021 | 105,772 | 88,404 | 363,780 | 557,956 | 598,041 | |
| Net profit/loss for the period | 0 | 0 | 8,736 | 8,736 | 9,409 | |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 |
| Total comprehensive income | 0 | 0 | 8,736 | 8,736 | 9,409 | |
| Stock option programme | 0 | 0 | 0 | 0 | 40,085 673 673 0 0 0 0 –29 40,730 |
0 |
| Dividend payments/distributions | 0 | 0 | 0 | 0 | 0 | |
| Increase in shareholdings in subsidiaries | 0 | 0 | 0 | 0 | 0 | |
| Acquisition of treasury shares | –260 | –919 | 0 | –1,179 | –1,179 | |
| Other changes | 0 | 0 | 19 | 19 | –10 | |
| 31/03/2021 | 105,513 | 87,485 | 372,535 | 565,533 | 606,263 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP MANAGEMENT REPORT |
6 |
| INTERIM CONSOLIDATED FINANCIAL STATEMENTS |
18 |
| Consolidated income statement 19 | |
| Consolidated statement of comprehensive income |
20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of cash flows |
23 |
| Consolidated statement of changes in equity |
25 |
| Notes to the consolidated financial statements |
27 |
| IMPRINT | 37 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the reporting period from 1 January to 31 March 2022
A. General information
1. Basis of preparation
DEMIRE Deutsche Mittelstand Real Estate AG (hereafter "DEMIRE AG") is recorded in the commercial register in Frankfurt am Main, Germany, the location of the Company's headquarters, under the number HRB 89041. The Company's registered office is located in Frankfurt am Main, Germany, and the Company's business address is Robert-Bosch-Strasse 11, Langen, Germany.
The Company's shares are listed in the Prime Standard segment of the Frankfurt Stock Exchange. The subject of these condensed interim consolidated financial statements as at 31 March 2022 is DEMIRE AG and its subsidiaries (hereafter "DEMIRE").
DEMIRE itself has not carried out any investments in real estate or real estate projects to date. Investments are generally processed through real estate companies. Interests in these real estate companies are held by DEMIRE AG either directly or indirectly (through intermediate holding companies). DEMIRE focuses on the German commercial real estate market where it is an active investor and portfolio manager. DEMIRE itself carries out the acquisition, management and leasing of commercial properties. Value appreciation is to be achieved through active real estate management. This may also include the targeted sale of properties when they are no longer a strategic fit or have exhausted their potential for value appreciation.
The condensed interim consolidated financial statements for the period from 1 January to 31 March 2022 were prepared in accordance with the requirements of IAS 34 Interim Financial Reporting (hereafter IAS 34). This report has not been audited and, for this reason, does not contain an auditor's opinion.
The condensed interim consolidated financial statements of DEMIRE AG were prepared in accordance with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB), as applicable in the European Union (EU), pursuant to Section 315e of the German Commercial Code (HGB). All International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), interpretations of the IFRS Interpretations Committee (IFRS IC) – formerly the International Financial Reporting Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC) – that were mandatory for the 2022 financial year have been taken into consideration. Furthermore, all disclosure and explanation requirements under German law above and beyond the provisions of the IASB have been fulfilled.
Under IAS 34, the condensed interim consolidated financial statements shall represent an update of the last financial year's financial statements and, therefore, do not contain all of the information and disclosures required for consolidated financial statements but rather concentrate on new activities, events and circumstances so as not to repeat information that has already been reported. The condensed interim consolidated financial statements of DEMIRE AG as at 31 March 2022 should therefore always be viewed in conjunction with the consolidated financial statements prepared as at 31 December 2021.
| FOREWORD BY THE EXECUTIVE BOARD |
2 |
|---|---|
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP MANAGEMENT REPORT |
6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of comprehensive income |
20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of cash flows |
23 |
| Consolidated statement of changes in equity |
25 |
| Notes to the consolidated financial statements |
27 |
| IMPRINT | 37 |
The euro (EUR) is the reporting currency of DEMIRE AG's condensed interim consolidated financial statements. Unless otherwise stated, all amounts are expressed in thousands of euros (EUR thousand). For computational reasons, rounding differences of ± one unit (EUR, %, etc.) may occur in the information presented in these financial statements. The consolidated statement of income has been prepared according to the cost-of-sales method.
These condensed interim consolidated financial statements of DEMIRE AG were approved for publication by a resolution of the Executive Board on 11 May 2022.
B. Scope and principles of consolidation
There were no changes to the scope of consolidation in the first quarter of 2022.
C. Accounting policies
The accounting policies applied to these interim consolidated financial statements are the same as those applied to the consolidated financial statements as at 31 December 2021. There were no material changes in estimates compared to those in the consolidated financial statements as at 31 December 2021.
The first-time application of amendments to IFRS 9, IAS 39, IFRS 7 and IFRS 4 have no effect on the consolidated financial statements of DEMIRE.
D. Notes to the consolidated statement of income
1. Earnings before interest and taxes
| in EUR thousand | 01/01/2021 – 31/03/2021 |
01/01/2022 – 31/03/2022 |
|---|---|---|
| Net rent | 21,148 | 19,340 |
| Income from utility and service charges | 7,572 | 9,205 |
| Rental revenue from real estate | 28,720 | 28,545 |
| Allocable operating expenses to generate rental income | –9,647 | –10,906 |
| Non-allocable operating expenses to generate rental income | –1,344 | –2,004 |
| Operating expenses to generate rental income | –10,991 | –12,910 |
| PROFIT/LOSS FROM THE RENTAL OF REAL ESTATE | 17,729 | 15,635 |
| FOREWORD BY THE EXECUTIVE BOARD |
2 |
|---|---|
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP MANAGEMENT REPORT |
6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of comprehensive income |
20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of cash flows |
23 |
| Consolidated statement of changes in equity |
25 |
| Notes to the consolidated financial statements |
27 |
| IMPRINT | 37 |
Rental revenue in the interim reporting period resulted exclusively from the rental of commercial real estate and is free from seasonal effects.
The fall in profit/loss from the rental of real estate to EUR 15,635 thousand (Q1 2021: EUR 17,729 thousand) is primarily due to lower rental income in the amount of EUR 19,340 thousand (Q1 2021: EUR 21,148 thousand) owing to the disposal of properties sold during the 2021 financial year.
The increase in non-allocable operating expenses was largely driven by higher maintenance costs in the amount of EUR 973 thousand (Q1 2021: EUR 487 thousand) and higher non-capitalised expenses for tenant improvements and depreciation of rental incentives in the amount of EUR 354 thousand (Q1 2021: EUR 52 thousand).
Of the operating expenses, an amount of EUR 10,906 thousand (Q1 2021: EUR 9,647 thousand) is generally allocable and can be charged on to tenants. This increase is primarily the result of a large increase in energy costs and a one-time effect arising from the passing on of costs to a tenant. The increase in non-allocable expenses is also shown in the increase in income from the allocation of service charges.
The Group generated a profit of EUR –51 thousand from the sale of real estate as at 31 March 2022 (Q1 2021: EUR –83 thousand).
The loss from the sale of real estate resulted, above all, from subsequent selling expenses that were incurred in connection with the sale of the property in Regensburg and Trier in the previous year.
As in the comparable prior-year period, no revaluation of investment properties was performed as at the 31 March 2022 reporting date. Profit/loss from adjustments to the fair value of investment properties in the amount of EUR 1,845 thousand from the previous year related to changes in the value of a property in Ansbach, which was reclassified to non-current assets held for sale.
Impairments on receivables amounted to EUR 149 thousand in the period under review (Q1 2021: EUR –388 thousand) and therefore represented income. This income was derived from the reversal of value adjustments on receivables.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of | |
| comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of cash flows |
23 |
| Consolidated statement of | |
| changes in equity | 25 |
| Notes to the consolidated financial statements |
27 |
| IMPRINT | 37 |
2. Financial result
| FINANCIAL RESULT | –5,266 | –4,309 |
|---|---|---|
| Minority interests | –1,137 | –1,233 |
| Profit/loss from companies accounted for using the equity method |
0 | 528 |
| Financial expenses | –4,338 | –4,661 |
| Financial income | 209 | 1,057 |
| in EUR thousand | 01/01/2021 – 31/03/2021 |
01/01/2022 – 31/03/2022 |
Financial income in the amount of EUR 1,585 thousand (previous year: EUR 209 thousand) mainly resulted from interest income from the granting of loans to the joint venture JV Theodor-Heuss-Allee-GmbH, which was founded in the comparable prior-year period, in the amount of EUR 25.1 million, as well as to the third party RFR Immobilien 5 GmbH in the amount of EUR 60 million. This is an affiliate of the joint venture partner RFR Immobilien 4 GmbH. The increase in financial expenses is largely due to taking out new loans in the 2021 financial year.
Profits from companies accounted for using the equity method in the amount of EUR 528 thousand (previous year: EUR 0 thousand) relate to the investment profits during the period under review in JV Theodor-Heuss-Allee GmbH, Frankfurt am Main.
The interests of minority shareholders in the amount of EUR –1,233 thousand (Q1 2021: EUR –1,137 thousand) relate to the share of profits of minority shareholders in Fair Value REIT-AG's subsidiaries, which are carried as liabilities under IAS 32. The year-on-year increase is largely due to lower administrative expenses for these subsidiaries.
3. Earnings per share
| 01/01/2021 – 31/03/2021 |
01/01/2022 – 31/03/2022 |
|
|---|---|---|
| Net profit/loss for the period (in EUR thousand) | 9,409 | 7,700 |
| Profit/loss for the period less non-controlling interests | 8,736 | 7,112 |
| Number of shares (in thousands) | ||
| Number of shares outstanding as at the reporting date | 105,513 | 105,513 |
| Weighted average number of shares outstanding | 105,599 | 105,513 |
| Impact of conversion of convertible bonds and exercise under the 2015 Stock Option Programme |
510 | 510 |
| Weighted average number of shares (diluted) | 106,109 | 106,023 |
| Earnings per share (in EUR) | ||
| Basic earnings per share | 0.08 | 0.07 |
| Diluted earnings per share | 0.08 | 0.07 |
As at 31 March 2022, the Company had potential ordinary shares outstanding from the 2015 Stock Option Programme entitling the owners to subscribe to 510,000 shares.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of | |
| comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of | |
| cash flows | 23 |
| Consolidated statement of | |
| changes in equity | 25 |
| Notes to the consolidated | |
| financial statements | 27 |
| IMPRINT | 37 |
E. Notes to the consolidated balance sheet
1. Investment property
Investment properties are measured at fair value. The fair values during the interim reporting period developed as follows:
| in EUR thousand | Office | Retail | Logistics | Other | Total |
|---|---|---|---|---|---|
| Fair value at the beginning of the 2022 financial year | 843,956 | 377,559 | 141,600 | 69,981 | 1,433,096 |
| Additions of properties | 1,596 | 1,641 | 2,658 | 613 | 6,508 |
| Reclassifications to non-current assets held for sale | – | – | – | – | – |
| Fair value as at 31/03/2022 | 845,553 | 379,200 | 144,258 | 70,593 | 1,439,604 |
The additions to investment properties consisted primarily of construction activities which were capitalised.
The fair value measurement of investment properties is allocated to Level 3 of the valuation hierarchy in accordance with IFRS 13 (measurement based on unobservable input factors). DEMIRE determines fair values within the framework of IAS 40 accounting. No revaluation of investment properties was performed as at the 31 March 2022 reporting date.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of | |
| comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of | |
| cash flows | 23 |
| Consolidated statement of | |
| changes in equity | 25 |
| Notes to the consolidated | |
| financial statements | 27 |
| IMPRINT | 37 |
Subscribed capital amounted to EUR 105,513 thousand (31 December 2021: EUR 105,513 thousand). 3. Financial liabilities Financial liabilities consisted of the following:
FINANCIAL LIABILITIES
2. Equity
| 31/12/2021 in EUR thousand 2019/2024 corporate bond 594,047 Other financial liabilities 296,467 |
TOTAL | 890,514 | 890,971 |
|---|---|---|---|
| 296,406 | |||
| 594,564 | |||
| 31/03/2022 |
The following table shows the nominal value of financial liabilities:
| FINANCIAL LIABILITIES | ||
|---|---|---|
| in EUR thousand | 31/12/2021 | 31/03/2022 |
| 2019/2024 corporate bond | 600,000 | 600,000 |
| Other financial liabilities | 297,866 | 297,687 |
| TOTAL | 897,866 | 897,687 |
The difference between the carrying amounts of financial liabilities and their nominal values is due to the subsequent measurement of financial liabilities at amortised cost using the effective interest method in accordance with IFRS 9.
All of the Group's financial liabilities have fixed interest rates. The nominal interest rate of the 2019/2024 corporate bond is 1.875% p.a. Other financial liabilities mainly include bank liabilities with a weighted average nominal interest rate of 1.23% p.a. as at 31 March 2022 (31 December 2021: 1.31% p.a.). The average nominal interest rate on financial debt across all financial liabilities amounted to 1.66% p.a. as at 31 March 2022 (31 December 2021: 1.66% p.a.).
The change in other financial liabilities during the interim period under review is due to current repayments.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of | |
| comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of | |
| cash flows | 23 |
| Consolidated statement of | |
| changes in equity | 25 |
| Notes to the consolidated | |
| financial statements | 27 |
| IMPRINT | 37 |
F. Condensed Group segment reporting
| 01/01/2022 – 31/03/2022 |
01/01/2021 – 31/03/2021 |
||||||||
|---|---|---|---|---|---|---|---|---|---|
| in EUR thousand | Core Portfolio |
Fair Value REIT | Corporate functions/ others |
Group | in EUR thousand | Core Portfolio |
Fair Value REIT | Corporate functions/ others |
Group |
| Total revenue | 22,278 | 6,267 | 0 | 28,545 | Total revenue | 22,686 | 6,033 | 0 | 28,720 |
| Segment revenue | 22,413 | 6,310 | 275 | 28,998 | Segment revenue | 24,636 | 6,095 | 11 | 30,742 |
| Segment expenses | –10,922 | –2,699 | 2,300 | –15,922 | Segment expenses | –9,429 | –2,989 | –1,747 | –14,165 |
| EBIT | 11,491 | 3,611 | –2,027 | 13,075 | EBIT | 15,207 | 3,106 | –1,736 | 16,577 |
| Net profit/loss for the period | 6,328 | 1,833 | –461 | 7,700 | Net profit/loss for the period | 10,298 | 1,133 | –2,021 | 9,409 |
| Segment assets 31/03/2022 |
1,260,891 | 348,499 | 108,188 | 1,717,579 | Segment assets 31/03/2021 |
1,249,213 | 334,078 | 102,204 | 1,685,495 |
| Thereof tax assets | 3,829 | 47 | 2,602 | 6,479 | Thereof tax assets | 3,398 | 0 | 4,029 | 7,428 |
| Thereof additions to non-current assets |
5,154 | 1,353 | 0 | 6,508 | Thereof additions to non-current assets |
2,647 | 372 | 0 | 3,019 |
| Thereof non-current assets held for sale |
0 | 0 | 0 | 0 | Thereof non-current assets held for sale |
49,000 | 0 | 0 | 49,000 |
| Segment liabilities 31/03/2022 |
915,202 | 190,736 | 11,907 | 1,117,846 | Segment liabilities 31/03/2021 |
884,629 | 185,663 | 8,940 | 1,079,232 |
| Thereof non-current financial liabilities |
796,891 | 75,125 | 0 | 872,016 | Thereof non-current financial liabilities |
782,363 | 78,090 | 0 | 860,452 |
| Thereof lease liabilities | 24,420 | 0 | 22 | 24,442 | Thereof lease liabilities | 18,626 | 0 | 36 | 18,662 |
| Thereof current financial liabilities |
16,162 | 2,793 | 0 | 18,955 | Thereof current financial liabilities |
15,302 | 2,705 | 0 | 18,008 |
| Thereof tax liabilities | 2,286 | 0 | 7,357 | 9,645 | Thereof tax liabilities | 2,059 | 0 | 2,532 | 4,591 |
| FOREWORD BY THE EXECUTIVE BOARD |
2 |
|---|---|
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP MANAGEMENT REPORT |
6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of comprehensive income |
20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of cash flows |
23 |
| Consolidated statement of changes in equity |
25 |
| Notes to the consolidated financial statements |
27 |
| IMPRINT | 37 |
The segmentation of the data in the financial statements is based on the internal alignment according to strategic business segments pursuant to IFRS 8. The segment information presented represents the information to be reported to the Executive Board.
The DEMIRE Group is divided into the two reportable business segments Core Portfolio and Fair Value REIT.
More than 10% of total revenue was generated from one customer in the "Core Portfolio" segment, corresponding to a total of EUR 3,070 thousand (Q1 2021: EUR 3,611 thousand) during the reporting period.
G. Other disclosures
1. Related party disclosures
DEMIRE AG has a loan receivable in the amount of EUR 25,240 thousand (including interest receivable) from the joint venture JV Theodor-Heuss-Allee-GmbH. Interest income from this loan comes to EUR 260 thousand as at 31 March 2022. In addition, an asset management agreement and an agency agreement exist between DEMIRE AG and the purchasing company JV Theodor-Heuss-Allee-GmbH, resulting in receivables of EUR 51 thousand and income of EUR 19 thousand as at 31 March 2022.
Furthermore, there were no business transactions with members in key Company positions during the reporting period, except for the compensation of the Executive Board mentioned in section G.5.
2. Financial instruments
The carrying amounts of the following financial instruments carried at cost or amortised cost do not correspond to their fair values:
| 31/12/2021 | 31/03/2022 | |||
|---|---|---|---|---|
| in EUR thousand | Carrying amount under IFRS 9 |
Fair Value | Carrying amount under IFRS 9 |
Fair Value |
| Bonds | 594,047 | 592,848 | 594,564 | 585,636 |
| Other financial liabilities |
282,459 | 278,638 | 296,406 | 279,419 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of | |
| comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of | |
| cash flows | 23 |
| Consolidated statement of | |
| changes in equity | 25 |
| Notes to the consolidated | |
| financial statements | 27 |
| IMPRINT | 37 |
3. Risk report
Please refer to the disclosures made in the risk reporting included within the consolidated financial statements as at 31 December 2021 for information on the risks of future business performance. There were no significant changes in the Group's risk structure in the reporting period from 1 January to 31 March 2022.
For a general overview of the risks, please refer to the report on risks and opportunities.
4. Other notes
As at the reporting date, there were no financial obligations stemming from purchase agreements for properties and real estate companies which are not yet due.
Contractual obligations for modification and expansion measures as well as maintenance and modernisation obligations for the properties totalled EUR 25,977 thousand as at 31 March 2022 (Q1 2021: EUR 22,363 thousand). These obligations are fixed in terms of their scope.
Purchase order commitments for maintenance and modernisation, as well as modification and expansion measures, totalled EUR 6,334 thousand as at the interim reporting date (Q1 2021: EUR 6,319 thousand).
As at 31 March 2022, unused credit lines in the amount of EUR 5,000 thousand (31 December 2021: EUR 5,000 thousand) were available.
5. Governing bodies and employees
In accordance with DEMIRE AG's Articles of Association, the Executive Board is responsible for managing business activities.
The following were members of the Executive Board during the interim period under review and comparable prior-year period:
Mr Ingo Hartlief (Chairman of the Executive Board since 20 December 2018)
Mr Tim Brückner (Chief Financial Officer since 1 February 2019)
For the interim period under review, performance-related remuneration in the amount of EUR 211 thousand (Q1 2021: EUR 83 thousand), fixed remuneration in the amount of EUR 183 thousand (Q1 2021: EUR 175 thousand) and share-based remuneration in the amount of EUR 246 thousand (Q1 2021: EUR 38 thousand) were recognised for the Executive Board of DEMIRE AG. No loans or advances were granted to the members of the Executive Board, nor were any contingent liabilities in favour of the members of the Executive Board entered into either.
6. Events after the interim reporting date of 31 March 2022
No events occurred after the interim reporting date that are of particular significance for DEMIRE's net asset, financial position and results of operations.
Frankfurt am Main, 11 May 2022
DEMIRE Deutsche Mittelstand Real Estate AG
(CEO) (CFO)
Ingo Hartlief (FRICS) Tim Brückner
| FOREWORD BY THE EXECUTIVE BOARD |
2 |
|---|---|
| DEMIRE AT A GLANCE | 3 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 6 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 18 |
| Consolidated income statement 19 | |
| Consolidated statement of | |
| comprehensive income | 20 |
| Consolidated balance sheet | 21 |
| Consolidated statement of | |
| cash flows | 23 |
| Consolidated statement of | |
| changes in equity | 25 |
| Notes to the consolidated | |
| financial statements | 27 |
Declaration by the executive directors
As members of the Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG, we hereby affirm that, to the best of our knowledge, the consolidated financial statements give a true and fair view of the Group's net assets, financial position and results of operations in accordance with the applicable accounting principles and that the Group management report gives a true and fair view of the development and performance of the business, including the business results and the position of the Group, together with a description of the principal opportunities and risks associated with the Group's expected development.
Frankfurt am Main, 11 May 2022
DEMIRE Deutsche Mittelstand Real Estate AG
IMPRINT 37
Ingo Hartlief (FRICS) Tim Brückner (CEO) (CFO)
FOREWORD BY THE EXECUTIVE BOARD DEMIRE AT A GLANCE INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED
IMPRINT
COMPANY CONTACT
| EXECUTIVE BOARD | 2 | DEMIRE Deutsche Mittelstand Real Estate AG |
|---|---|---|
| DEMIRE AT A GLANCE | 3 | Robert-Bosch-Straße 11 63225 Langen |
| INTERIM GROUP MANAGEMENT REPORT |
6 | Germany T + 49 (0) 6103 – 372 49 – 0 F + 49 (0) 6103 – 372 49 – 11 |
| INTERIM CONSOLIDATED FINANCIAL STATEMENTS |
18 | [email protected] www.demire.ag |
| IMPRINT | 37 |
PUBLISHER The Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG
CONCEPT AND LAYOUT
Berichtsmanufaktur GmbH, Hamburg
PUBLICATION DATE
11 May 2022