Interim / Quarterly Report • Aug 25, 2021
Interim / Quarterly Report
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KEY EARNINGS FIGURES
19.4
EUR million FFO I (after taxes, before minority interests), compared to EUR 16.9 million in H1 2020
42.0
EUR million RENTAL INCOME, compared to EUR 43.8 million in H1 2020
52.7
per cent NET LOAN-TO-VALUE RATIO (NET LTV), compared to 50.0% at year-end 2020
1.68
per cent p.a. AVERAGE NOMINAL INTEREST COSTS – improved by 3 basis points compared to year-end 2020
5.45
EUR NET ASSET VALUE (NAV PER SHARE, BASIC), compared to EUR 5.91 at year-end 2020
KEY FINANCIAL INDICATORS PORTFOLIO DEVELOPMENT
1.4
EUR billion PORTFOLIO VALUE unchanged compared to year-end 2020
83.1
EUR million ANNUALISED RENTAL INCOME, compared to EUR 85.6 million at year-end 2020
121,929
m2 LETTING PERFORMANCE (previous year: 70,000m²) – above long-term average of 80,000 m² on pro rata basis
years WALT, compared to 4.8 at year-end 2020
10.2
per cent EPRA VACANCY RATE*, compared to 6.9% at year-end 2020
* Excluding real estate held for sale
Key for navigating the interim statement:
Reference to table of contents
Reference to another page in the interim statement
FOREWORD BY THE EXECUTIVE BOARD 2
1
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
DEMIRE remained on course for success in the first half of 2021 and underlined its resilience in the face of a crisis. DEMIRE is staying true to its successful course, via which it will continue to increase the value of its portfolio in a sustainable manner. We are committed to our tried and tested "REALize Potential" strategy, which focuses on properties in ABBA locations, active asset management and constructive dialogue with our tenants.
We also intend to bolster the portfolio with selective purchases while simultaneously streamlining smaller properties. Strategic streamlining of the portfolio and forward-looking liquidity management will keep DEMIRE in a position to act on opportunities to purchase attractive properties. The transfer of the Cielo office property in Frankfurt was completed just after the reporting date. This was the biggest single transaction in the company's history. Thanks to DEMIRE's comfortable liquidity situation, the company was able to finance the entire purchase from its existing funds.
Our key indicators are on a par with the previous year or slightly better despite the ongoing uncertainty caused by the coronavirus pandemic and some selected property sales. We remain in a good position to handle the pandemic's impact on the company. Here is an overview of some key developments:
DEMIRE is staying true to its successful course, via which it will continue to increase the value of its portfolio in a sustainable manner."
(CEO) (CFO) INGO HARTLIEF (FRICS), CEO
DEMIRE has a solid foundation for excellent operating performance thanks to its diversified portfolio, active asset management, and a letting performance of around 122,000 m² in the first half of the year. The vacancy rate rose to 10.2% despite DEMIRE finalising a large number of tenancy agreements. This was driven by two factors. Firstly, some of the tenancy agreements in question are set to begin a few months after they were finalised and therefore have yet to come into effect. Secondly, a large retail property in Trier is temporarily vacant for the first time.
Even though infections are currently going up, we are cautiously optimistic about the rest of the year due to the progress of the vaccination drive and the robust overall position of the real estate market. Based on the expectation that there will not be another national lockdown in Germany, we remain committed to our forecast for the 2021 financial year that rental income will be between EUR 80 million and EUR 82 million due to the successful sale of non-strategic properties. We expect FFO I (after taxes, before minority interests) of between EUR 34.5 million and EUR 36.5 million.
Frankfurt am Main, 12 August 2021
Ingo Hartlief (FRICS) Tim Brückner
| Key Group figures | 5 |
|---|---|
| Portfolio highlights | 6 |
| DEMIRE on the capital market | 7 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| Key Group figures | 5 |
| Portfolio highlights | 6 |
| DEMIRE on the capital market | 7 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| in EUR thousand | 01/01/2020 – 30/06/2020 |
01/01/2021 – 30/06/2021 |
|---|---|---|
| KEY EARNINGS FIGURES | ||
| Rental income | 43,843 | 42,024 |
| Profit/loss from the rental of real estate | 32,979 | 34,185 |
| EBIT | 21,843 | 29,534 |
| Financial result | – 9,926 | – 10,761 |
| EBT | 11,917 | 18,773 |
| Net profit/loss for the period | 9,259 | 15,547 |
| Net profit/loss for the period attributable to parent company shareholders |
8,275 | 14,036 |
| Net profit/loss for the period per share (basic/diluted) (in EUR) |
0.08/0.08 | 0.13/0.13 |
| FFO I (after taxes, before minority interests) | 16,852 | 19,411 |
| FFO I per share (basic/diluted) (in EUR) | 0.16/0.16 | 0.18/0.18 |
| 31/12/2020 | 30/06/2021 |
|---|---|
| 1,625,311 | 1,635,624 |
| 1,426,291 | 1,408,257 |
| 31,000 | 20,190 |
| 1,457,291 | 1,428,447 |
| 829,712 | 873,285 |
| 101,620 | 121,135 |
| 728,092 | 752,150 |
| 50.0 | 52.7 |
| 598,041 | 546,535 |
| 36.8 | 33.4 |
| 557,956 | 505,522 |
| 625,340/625,850 | 575,186/575,696 |
| 105,772/106,282 | 105,513/106,023 |
| 5.91/5.89 | 5.45/5.43 |
| 31/12/2020 | 30/06/2021 | |
|---|---|---|
| KEY PORTFOLIO INDICATORS | ||
| Properties (number of) | 75 | 70 |
| Market value (in EUR million) | 1,441.5 | 1,404.9 |
| Contractual rents (in EUR million) | 85.6 | 83.1 |
| Rental yield (in %) | 5.9 | 5.9 |
| EPRA vacancy rate* (in %) | 6.9 | 10.2 |
| WALT (in years) | 4.8 | 4.9 |
* Excluding real estate held for sale
Key Group figures 5 Portfolio highlights 6 DEMIRE on the capital market 7
INTERIM STATEMENT 11 INTERIM CONSOLIDATED
as at 30 June 2021
1.4
MARKET VALUE OF THE REAL ESTATE PORTFOLIO (in EUR billion)
Assets at 59 LOCATIONS in 15 federal states
83.1
ANNUALISED CONTRACTUAL RENTS (in EUR million)
64.3
OFFICE SHARE of the total portfolio by market value (in %)
5.9
10.2
8.11
AVERAGE RENT across the portfolio (in EUR/m²)
EPRA VACANCY RATE* across the portfolio
(in %)
GROSS RENTAL YIELD (in %)
4.9
AVERAGE REMAINING TERM of lease agreements (WALT) (in %)
* Excluding real estate held for sale
6
Stock exchange Frankfurt Stock
Market segment Regulated market
Designated sponsors BaaderBank,
The share capital of DEMIRE Deutsche Mittelstand Real Estate AG consists of a total of 107.78 million no-par value bearer shares that are admitted for trading on the Frankfurt Stock Exchange and the XETRA electronic trading platform.
SHARE 31/12/2020 30/06/2021 ISIN DE000A0XFSF0 DE000A0XFSF0 Symbol/ticker DMRE DMRE
Share capital (in EUR) EUR 107,777,324 EUR 107,777,324 Number of shares 107,777,324 107,777,324
(in EUR) 4.51 4.35
01/01 – 31/12/2020 10,625 13,348 Market capitalisation (in EUR) EUR 486 million EUR 469 million Free float < 3% 7.39% 7.15%
Exchange (FSE); XETRA Open markets in Stuttgart, Berlin, Düsseldorf
(Prime Standard)
Pareto Securities AS
Frankfurt Stock Exchange (FSE); XETRA Open markets in Stuttgart, Berlin, Düsseldorf
Regulated market (Prime Standard)
BaaderBank, Pareto Securities AS
Demire key share data
Closing price 30/06/2021 / 31/12/2020 (XETRA)
Avg. daily trading volume 01/01 – 30/06/2021 /
So far, the 2021 stock market year has continued the positive trend of the second half of 2020 fairly seamlessly. Most indices continued to recover from the pandemic-induced collapse of the stock markets in the second quarter of 2020, with many even reaching new record highs.
The German DAX benchmark performed well and closed the first half of 2021 at 15,531 points, a gain of 13.2% compared to the end of 2020.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| Key Group figures | 5 |
| Portfolio highlights | 6 |
| DEMIRE on the capital market | 7 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| Key Group figures | 5 |
| Portfolio highlights | 6 |
| DEMIRE on the capital market | 7 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION |
The 7.0% rise in the EPRA Developed Europe Index demonstrates that European property shares also performed well, despite falling short of the market as a whole.
Demire's share price clearly underperformed the sector index with a decline of 3.5%, but still achieved a performance of 10.2% when the dividend payment of EUR 0.62 per share is factored in.
In May 2021, DEMIRE disbursed a dividend of EUR 0.62 per share to its shareholders for the 2020 financial year in accordance with the resolution of the Annual General Meeting. The dividend per share in the previous year was EUR 0.54. The dividend yield was thus significantly higher than that of other real estate stocks once again.
Unlike the stock market, the bond market was stable in the first half of 2021 and did not see any significant fluctuations. The DEMIRE bond followed this trend and ranged in a narrow margin between 95.60% and 98.26%.
| Name Issuer Rating Stock exchange listing Applicable law ISIN code WKN Issue volume Denomination Coupon Interest payments Maturity date Repayment Distribution Change of control Closing price 30/06/2021 |
|
|---|---|
| DEMIRE corporate bond 2019 / 2024 | |
| DEMIRE Deutsche Mittelstand Real Estate AG | |
| Ba2 (Moody's), BB+ (S&P) | |
| Open market of the Luxembourg Stock Exchange (Euro MTF) | |
| German law | |
| DE000A2YPAK1 | |
| A2YPA | |
| EUR 600,000,000 | |
| EUR 100,000 | |
| 1.875% | |
| On 15 April and 15 October, starting on 15 April 2020 | |
| 15 October 2024 | |
| Non Call Life (incl. 3-month option for early repayment) | |
| Regulation S, excl. registration rights | |
| 101% plus accrued and not yet paid interest | |
| 97,32% |
With the rating assessments, DEMIRE strengthens transparency and supports the independent assessment of its business activities. In the medium term, DEMIRE aims to position its risk profile in the "investment grade" range. Among other things, this should enable the Company to finance future growth and refinance the existing bond at even more favourable conditions.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| Key Group figures | 5 |
| Portfolio highlights | 6 |
| DEMIRE on the capital market | 7 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
Moody's carried out its regular review of its rating assessments during the reporting period. DEMIRE was downgraded by one notch due to the Company's payment of a dividend rather than its operational performance. During the lockdowns in Germany, DEMIRE was in regular contact with the ratings agencies and provided information about the Company's performance during this special period in a proactive and timely manner.
The detailed rating of the bond is available on the DEMIRE's website.
| Company | Bonds | ||
|---|---|---|---|
| Rating agency | Rating | Outlook | Rating |
| Moody's | Ba3 | stable | Ba3 |
DEMIRE does not expect there to be any debt capital transactions in the foreseeable future. As part of its general efficiency measures, DEMIRE has decided to only work with one rating agency until further notice. The contract with S&P was terminated with effect from the end of June 2021.
On 28 April 2021, DEMIRE's Annual General Meeting once again took place virtually due to the special circumstances. All of the agenda items proposed by the management were resolved by a large majority, including the reappointment of the current Supervisory Board for a further three years and the disbursement of a dividend for the 2020 financial year.
The DEMIRE shareholder structure remained largely unchanged in the 2021 financial year. Apollo and the Wecken Group remain the Company's major shareholders and still hold around 90.7% of the shares in the Company between them.
DEMIRE took the opportunity to buy back 259,729 shares by way of a public repurchase offer at the turn of the year when the share price was low. This decreased the free float from 7.39% as at 31 December 2020 to 7.15%.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| Key Group figures | 5 |
| Portfolio highlights | 6 |
| DEMIRE on the capital market | 7 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
The Investor Relations department is responsible for approaching investors and analysts and communicating with debt specialists in a professional manner. Thus, the department handles communication for all capital market activities and is responsible for the reporting requirements for equity and bond investors as well as for the rating agencies.
As in the 2020 financial year, DEMIRE took part in various German and international equity and debt capital market conferences in the first half of 2021. The majority of these were held virtually. It also regularly presented the Company's current development to existing and potential equity and bond investors and rating agencies.
DEMIRE keeps its stakeholders up to date regularly and comprehensively. This includes publishing its results as at the balance sheet date and organising conference calls for interested investors, analysts and the media, and reporting in detail on the results as at the most recent reporting date.
On the capital market, DEMIRE relies on active and transparent dialogue in its communication with all current and potential investors. With the support of existing shareholders and further growth, DEMIRE's market capitalisation and visibility on the capital market are expected to continue to rise in the future. With the perspective goal of inclusion in the DAX family of indices, awareness among domestic and international investors should increase. However, DEMIRE will require a larger free float to achieve this objective.
The Investor Relations section of DEMIRE's website provides a wide range of information for investors, analysts and the media. The documents available include all published annual reports, half-year reports and quarterly statements. The website also provides summary presentations of these, as well as recordings of conference calls, the latest company presentations and additional information. With respect to its communications policy, DEMIRE is committed to the equal treatment of bond investors and analysts, as well as equity investors and analysts.
DEMIRE's shares are currently covered and valued by three financial analysts.
| Bank/broker | Analyst | Current rating | Current price target (in EUR) |
|---|---|---|---|
| Hauck & Aufhäuser | Christian Glowa | Buy | 6.00 |
| Pareto Securities | Dr Philipp Häßler | Hold | 4.40 |
| Baader Bank | Andre Remke | Reduce | 4.20 |
for the reporting period from 1 January to 30 June 2021
| Overview | 12 |
|---|---|
| Economic report | 15 |
| Opportunities and risks | 22 |
| Subsequent events and | |
| related parties | 22 |
INTERIM STATEMENT 11 Overview 12 Economic report 15 Opportunities and risks 22
DEMIRE performed well in the first half of 2021. Despite the coronavirus pandemic, all of the Group's key indicators remained consistent year-on-year or saw a slight increase following some strategic property sales. This was in line with the Company's plans and expectations. The effects of the pandemic on DEMIRE's business remain tolerable and manageable. The roll-out of the "REALize Potential" strategy, the earnings contributed by acquisitions in previous years and the sale of a number of small non-strategic properties all provide a stable foundation for solid future growth. These measures will also help to effectively limit the restrictive impact of the pandemic on DEMIRE's business in 2021.
DEMIRE's key performance indicators in the first half of 2021 developed positively overall:
Following the lockdown imposed at the turn of the year, public life started to get back to normal over the first half of 2021 as infection rates fell and vaccination rates went up. DEMIRE also performed well over the course of the first half of the year thanks in large part to its diversified portfolio and active portfolio management.
DEMIRE is pushing forth with the programme of measures adopted by the Executive Board back in March 2020 immediately after the beginning of the pandemic, which includes measures to improve efficiency and safeguard liquidity. The Company's liquidity remained comfortable at EUR 121.1 million as at the reporting date following the payment of a dividend in May. DEMIRE also has enough liquidity to cover the completion of the Cielo transaction in July. DEMIRE is well-positioned to take advantage of any growth opportunities that arise and to further increase the value of its portfolio through active portfolio management.
Around EUR 1.9 million in rent is outstanding for the first half of 2021. This is equivalent to approx. 2.3% of the annual rents expected for 2021 and approx. 4.5% of the rent expected for the first half of 2021.
EUR 3.1 million or 3.6% of rents for 2020 were still outstanding as at the reporting date. EUR 0.8 million of the rents outstanding for 2020 have been paid so far in 2021. As before, all unpaid rents are recognised as a receivable. The Company assumes that the receivables will be settled in line with statutory payment deferral provisions.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| Overview | 12 |
| Economic report | 15 |
| Opportunities and risks | 22 |
| Subsequent events and | |
| related parties | 22 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
Based on DEMIRE's positive performance in the first half of 2021 and the expectation that there will be no more lockdowns in Germany as more of the population are vaccinated, the Executive Board remains committed to its forecast that rental income will be between EUR 80 million and EUR 82 million (previous year: EUR 87.5 million) in the 2021 financial year due to the sale of a number of nonstrategic properties. The Executive Board expects FFO I (after taxes, before minority interests) of between EUR 34.5 million and EUR 36.5 million (previous year: EUR 39.2 million).
Ownership of five properties which were previously held for sale had been transferred as at 30 June 2021. DEMIRE's portfolio had a total of 70 commercial properties in its portfolio as at the reporting date (31 December 2020: 75 properties) with lettable space of 0.961 million m² (31 December 2020: 0.989 million m²) and a total market value of around EUR 1.4 billion (31 December 2020: around EUR 1.5 billion). This includes three properties for which sales contracts have been concluded. Ownership of these properties will be transferred during the current financial year. An external property valuation of the portfolio was last performed on 31 December 2020.
The EPRA vacancy rate for the portfolio excluding properties held for sale came to 10.2% as at the reporting date of 30 June 2021 (31 December 2020: 6.9%). WALT was 4.9 years as at 30 June 2021, compared to 4.8 years as at year-end 2020. DEMIRE's letting performance reached a very strong 121,929 m² in the reporting period. New lettings contributed 46.3%, while follow-on lettings made up 53.7%. The fact that the vacancy rate went up despite the strong letting performance is partially due to some leases taking effect at a future date despite being agreed in the reporting period. An extensive retail property in Trier with around 11,200 m² in lettable space was temporarily in a repositioning period. This drove up the vacancy rate, particularly in this asset class.
| No. | Tenant | Type of use | Contractual rents p.a.* in EUR million |
as % of total |
|---|---|---|---|---|
| 1 | GMG/Dt. Telekom | Office | 12.2 | 14.7 |
| 2 | Imotex | Retail | 5.4 | 6.5 |
| 3 | GALERIA Karstadt Kaufhof |
Retail | 3.7 | 4.5 |
| 4 | Bima Bundesanstalt für Immobilien aufgaben |
Office | 2.0 | 2.5 |
| 5 | Momox GmbH | Logistics | 1.9 | 2.3 |
| 6 | Roomers | Hotel | 1.8 | 2.2 |
| 7 | ThyssenKrupp | Office | 1.7 | 2.1 |
| 8 | Sparkasse Südholstein |
Office | 1.7 | 2.1 |
| 9 | Barmer | Office | 1.2 | 1.4 |
| 10 | comdirect bank AG | Office | 1.2 | 1.4 |
| Total | 32.9 | 39.6 | ||
| Other | 50.2 | 60.4 | ||
| Total | 83.1 | 100.0 | ||
* Based on annualised contractual rents, excluding ancillary costs
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| Overview | 12 |
| Economic report | 15 |
| Opportunities and risks | 22 |
| Subsequent events and | |
| related parties | 22 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| Number of properties |
Market value in EUR million |
Share by mar ket value in % |
Lettable space in thousand m2 |
Market value in m2 |
Contractual rent in EUR million p.a. |
Contractual rent per m² |
Rental yield in % |
EPRA vacancy rate in %* |
WALT in years |
|
|---|---|---|---|---|---|---|---|---|---|---|
| Office | 48 | 902.8 | 64.3 | 565.1 | 1.597.5 | 51.8 | 8.72 | 5.7 | 10.1 | 3.8 |
| Retail | 17 | 360.7 | 25.7 | 220.1 | 1.639.2 | 23.2 | 9.57 | 6.4 | 10.0 | 6.2 |
| Logistics&Others | 5 | 141.4 | 10.1 | 176.0 | 803.5 | 8.1 | 4.28 | 5.7 | 11.4 | 7.6 |
| Total 30/06/2021 | 70 | 1.404.9 | 100.0 | 961.2 | 1.461.5 | 83.1 | 8.11 | 5.9 | 10.2 | 4.9 |
| Total 31/12/2020 | 75 | 1.441.5 | 100.0 | 989.1 | 1.457.2 | 85.6 | 8.00 | 5.9 | 6.9 | 4.8 |
| Change (in %/pp) | – 6.7 | – 2.5 | – | –2.8 | + 0.3 | – 3.0 | + 1.3 | – | + 3.3 pp | + 1.3 |
* Excluding real estate held for sale
Net assets, financial position and results of operations
In the first half of 2021, the DEMIRE Group generated rental income totalling EUR 42.0 million (previous year: EUR 43.8 million). This 4.1% decrease year-on-year was due to the sale of properties. Profit/loss from the rental of real estate went up 3.7% to EUR 34.2 million (previous year: EUR 33.0 million). The increase is largely due to a downturn in expenses incurred to generate rental income. Property sales totalling EUR 37.5 million (previous year: EUR 33.3 million) generated EUR 0.7 million in income (previous year: EUR –1.8 million). In addition, profit/loss from fair value adjustments in investment properties came to EUR 1.8 million (previous year: EUR 0.0 million).
Impairments of receivables fell to EUR –0.7 million (previous year: EUR –3.7 million), and were largely related to tenants of hotels and retail properties that are either insolvent or threatened with insolvency as a result of the pandemic. One major tenant was subject to protective shield proceedings in the first half of the previous year. At EUR 5.7 million, general administrative expenses in the first half of 2021 were on a par with the previous year's value of EUR 5.7 million. Earnings before interest and taxes (EBIT) amounted to EUR 29.5 million, a 35.2% increase on the previous year's figure of EUR 21.8 million.
The refinancing activities in 2019 and 2020 continued to have a positive impact on the financial result. Minority interests had a negative effect, however. The financial result declined to EUR –10.8 million in the first half of 2021 compared to EUR –9.9 million in the same period of the previous year. Financial expenses fell from EUR –9.1 million in the first six months of 2020 to EUR –8.9 million in the reporting period, a decrease of 2.2%. The profit attributable to minority interests went up to EUR –2.3 million (previous year: EUR –1.3 million). The average nominal interest rate on financial debt as at 30 June 2021 improved by three basis points compared to the end of 2020 to 1.68 % p.a.
Earnings before taxes (EBT) went up to EUR 18.8 million in the reporting period, compared to EUR 11.9 million in the previous year. The profit for the period for the first half of 2021 was EUR 15.5 million, compared to EUR 9.3 million in the same period of the previous year.
15
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| Overview | 12 |
| Economic report | 15 |
| Opportunities and risks | 22 |
| Subsequent events and | |
| related parties | 22 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| Overview | 12 |
| Economic report | 15 |
| Opportunities and risks | 22 |
| Subsequent events and | |
| related parties | 22 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| (selected information in EUR thousand) | 01/01/2020 – 30/06/2020 |
01/01/2021 – 30/06/2021 |
Change | in % |
|---|---|---|---|---|
| Rental income | 43,843 | 42,024 | – 1,819 | – 4.1 |
| Income from utility and service charges | 12,386 | 12,173 | – 213 | – 1.7 |
| Operating expenses to generate rental income | – 23,250 | – 20,012 | 3,238 | – 13.9 |
| Profit/loss from the rental of real estate | 32,979 | 34,185 | 1,206 | 3.7 |
| Income from the sale of real estate and real estate companies | 33,340 | 37,500 | 4,160 | 12.5 |
| Expenses related to the sale of real estate and real estate companies | – 35,159 | – 36,761 | – 1,602 | 4.6 |
| Profit/loss from the sale of real estate and real estate companies | –1,819 | 739 | 2,558 | – |
| Profit/loss from fair value adjustments in investment properties | 0 | 1,764 | 1,764 | – |
| Impairment of receivables | – 3,747 | – 670 | 3,077 | 82.1 |
| Other operating income | 965 | 374 | – 591 | – 61.2 |
| General administrative expenses | – 5,654 | – 5,727 | – 73 | 1.3 |
| Other operating expenses | – 880 | – 1,131 | – 251 | 28.5 |
| Earnings before interest and taxes | 21,845 | 29,534 | 7,689 | 35.2 |
| Financial result | – 9,926 | – 10,761 | – 835 | 8.4 |
| Earnings before taxes | 11,918 | 18,773 | 6,855 | 57.5 |
| Current income taxes | – 1,477 | – 946 | 531 | – 36.0 |
| Deferred taxes | – 1,181 | – 2,280 | – 1,099 | 93.1 |
| Net profit/loss for the period | 9,260 | 15,547 | 6,287 | 67.9 |
| Thereof attributable to parent company shareholders | 8,275 | 14,036 | 5,761 | 67.9 |
| Earnings per share (basic) (EUR) | 0.08 | 0.13 | 0.06 | 71.4 |
| Weighted average number of shares outstanding (in thousands) | 107,777 | 105,686 | – 2,092 | – 1.9 |
| Earnings per share (diluted) (EUR) | 0.08 | 0.13 | 0.06 | 70.5 |
| Weighted average number of shares outstanding (diluted) (in thousands) | 108,287 | 106,196 | – 2,092 | – 1.9 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| Overview | 12 |
| Economic report | 15 |
| Opportunities and risks | 22 |
| Subsequent events and | |
| related parties | 22 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
As at 30 June 2021, total assets went up by EUR 10.3 million compared to the end of 2020 to approximately EUR 1,635.6 million. This increase was primarily due to a EUR 19.5 million rise in cash and cash equivalents. The majority of this rise can be attributed to sales revenue and a new loan. The dividend payment had an offsetting effect. Other assets also rose by EUR 26.8 million due to the granting of a loan in connection with the acquisition of the Cielo property.
The value of investment property amounted to EUR 1,408.3 million as at 30 June 2021, representing a decrease of EUR 18.0 million compared to the value as at 31 December 2020. This is roughly equivalent to the carrying amount of the properties in Ansbach, Cologne and Barmstedt which were either reclassified as non-current assets held for sale (Ansbach and Barmstedt) or sold (Cologne) after the relevant sales contracts were signed. The capitalisation of capex activities totalling EUR 5.9 million had an offsetting effect.
Non-current assets held for sale went down from EUR 31.0 million as at 31 December 2020 to EUR 20.2 million, a decrease of EUR 10.8 million, following the completion of five sales transactions in the reporting period. These included properties in Garbsen, Ansbach and Barmstedt.
Group equity as at 30 June 2021 totalled EUR 546.5 million, compared with EUR 598.0 million as at 31 December 2020. The downturn was mainly due to the payment of the dividend in May 2021. The profit for the period had an offsetting effect. The equity ratio came to 33.4% (31 December 2020: 36.8%). It should be noted that non-controlling minority interests reported in the Group's borrowed capital of around EUR 79.0 million (31 December 2020: EUR 78.9 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 around EUR 625.5 million (31 December 2020: EUR 676.9 million).
Total financial liabilities as at 30 June 2021 amounted to EUR 873.3 million. The increase of EUR 43.6 million compared to 31 December 2020 was caused by a new mortgage loan. Planned repayments had an offsetting effect.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| Overview | 12 |
| Economic report | 15 |
| Opportunities and risks | 22 |
| Subsequent events and | |
| related parties | 22 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| (selected information in EUR thousand) | 31/12/2020 | 30/06/2021 | Change | in % |
|---|---|---|---|---|
| ASSETS | ||||
| Total non-current assets | 1,451,125 | 1,459,841 | 8,716 | 0.6 |
| Total current assets | 143,186 | 155,593 | 12,407 | 8.7 |
| Assets held for sale | 31,000 | 20,190 | – 10,810 | – 34.9 |
| Total assets | 1,625,311 | 1,635,624 | 10,313 | 0.6 |
| (selected information in EUR thousand) | 31/12/2020 | 30/06/2021 | Change | in % |
|---|---|---|---|---|
| EQUITY AND LIABILITIES | ||||
| EQUITY | ||||
| Equity attributable to parent company shareholders | 557,956 | 505,523 | – 52,433 | – 9.4 |
| Non-controlling interests | 40,085 | 41,012 | 927 | 2.3 |
| Total equity | 598,041 | 546,535 | –51,506 | –8.6 |
| LIABILITIES | ||||
| Total non-current liabilities | 987,235 | 1,029,872 | 42,637 | 4.3 |
| Total current liabilities | 40,035 | 59,217 | 19,182 | 47.9 |
| Total liabilities | 1,027,270 | 1,089,089 | 61,819 | 6.0 |
| Total equity and liabilities | 1,625,311 | 1,635,624 | 10,313 | 0.6 |
| FOREWORD BY THE | FINANCIAL POSITION | |
|---|---|---|
| EXECUTIVE BOARD | 2 | Cash flow from operating activities came to EUR –35.7 million (previous year: |
| EUR 23.7 million) in the first six months of 2021, largely due to the dividend | ||
| DEMIRE AT A GLANCE | 4 | payment in May. The dividend was paid in September in the previous year. |
| INTERIM STATEMENT | 11 | Cash flow from investing activities in the reporting period amounted to EUR 22.1 |
| Overview | 12 | million, compared to EUR –12.7 million in the previous year. This included a |
| Economic report | 15 | loan to the joint venture in connection with the purchase of the Cielo property as |
| Opportunities and risks | 22 | well as revenue from the sale of five properties. In the same prior-year period, one |
| Subsequent events and | property was purchased, and three properties were sold. | |
| related parties | 22 | |
| Cash flow from financing activities came to EUR 33.1 million, compared to | ||
| INTERIM CONSOLIDATED | EUR –32.2 million in the prior-year period. Mortgage loans totalling EUR 47.7 | |
| FINANCIAL STATEMENTS | 23 | million were paid out in the reporting period. Repayments came to EUR 4.9 million. Furthermore, treasury shares were repurchased for EUR 1.2 million. |
| FURTHER INFORMATION | 41 | A loan of EUR 24.2 million was repaid as planned in the previous year. |
Cash and cash equivalents amounted to EUR 121.1 million on 30 June 2021 (31 December 2020: EUR 102.1 million; 30 June 2020: EUR 81.0 million).
| Cash and cash equivalents at the end of the period |
81,006 | 121,135 | 40,129 |
|---|---|---|---|
| Net change in cash and cash equivalents | –21,133 | 19,514 | 40,647 |
| Cash flow from financing activities | – 32,154 | 33,059 | 65,213 |
| Cash flow from investing activities | – 12,707 | 22,132 | 34,839 |
| Cash flow from operating activities | 23,728 | – 35,676 | – 59,405 |
| (selected information in EUR thousand) | 01/01/2020 – 30/06/2020 |
01/01/2021 – 30/06/2021 |
Change |
Funds from operations I (after taxes, before minorities), the key operating performance indicator, increased by 15.2% to EUR 19.4 million in the first six months of 2021, compared to EUR 16.9 million in the same period of the prior year. On a diluted basis, FFO I per share came to EUR 0.18, compared to EUR 0.16 in the same period of the prior year.
19
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| Overview | 12 |
| Economic report | 15 |
| Opportunities and risks | 22 |
| Subsequent events and | |
| related parties | 22 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| (selected information in EUR thousand) | 01/01/2020 – 30/06/2020 |
01/01/2021 – 30/06/2021 |
Change | in % |
|---|---|---|---|---|
| Profit/loss before taxes | 11,918 | 18,775 | 6,857 | 57.5 |
| Minority interests | 1,263 | 2,326 | 1,063 | 84.2 |
| Earnings before taxes (EBT) | 13,182 | 21,101 | 7,919 | 60.1 |
| ± Profit/loss from the sale of real estate | 1,819 | – 739 | – 2,558 | – |
| ± Profit/loss from fair value adjustment in investment properties | 0 | – 1,764 | – 1,764 | – |
| ± Other adjustments* | 3,342 | 1,983 | 1,359 | – 40.7 |
| FFO I before taxes | 18,343 | 20,581 | 2,238 | 12.2 |
| ± (Current) income taxes | – 1,491 | – 1,170 | 321 | – 21.5 |
| FFO I after taxes | 16,852 | 19,411 | 2,559 | 15.2 |
| Thereof attributable to parent company shareholders | 14,473 | 15,659 | 1,186 | 8.2 |
| Thereof attributable to non-controlling interests | 2,379 | 3,752 | 1,373 | 57.7 |
| ± Profit/loss from the sale of real estate companies/real estate (after taxes) | – 1,816 | 743 | 2,559 | – |
| FFO II after taxes | 13,559 | 20,154 | 6,595 | 48.6 |
| Thereof attributable to parent company shareholders | 10,418 | 16,534 | 6,116 | 58.7 |
| Thereof attributable to non-controlling interests | 3,140 | 3,620 | 480 | 15.3 |
| FFO I after taxes and minorities per share | ||||
| Earnings per share (basic) (EUR) | 0.13 | 0.15 | 0.02 | 14.0 |
| Weighted average number of shares outstanding (in thousands) | 107,777 | 105,686 | – 2,092 | – 1.9 |
| Earnings per share (diluted) (EUR) | 0.13 | 0.15 | 0.02 | 13.4 |
| Weighted average number of shares outstanding (diluted) (in thousands) | 108,287 | 106,196 | – 2,092 | – 1.9 |
| FFO II after taxes and minority interests | ||||
| Earnings per share (basic) (EUR) | 0.10 | 0.16 | 0.06 | 56.4 |
| Weighted average number of shares outstanding (in thousands) | 107,777 | 105,686 | – 2,091 | – 1.9 |
| Earnings per share (diluted) (EUR) | 0.10 | 0.16 | 0.06 | 55.7 |
| Weighted average number of shares outstanding (diluted) (in thousands) | 108,287 | 106,196 | – 2,091 | – 1.9 |
*Other adjustments include:
— One-time refinancing costs and effective interest payments (EUR 1.1 million; previous year: EUR 1.4 million)
— One-time transaction, legal and consulting fees (EUR –0.1 million; previous year: EUR 0.2 million
— One-time administrative costs (EUR 1.0 million; previous year: EUR 1.4 million)
— Non-period expenses/income (EUR 0.1 million; previous year: EUR 0.4 million)
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| Overview | 12 |
| Economic report | 15 |
| Opportunities and risks | 22 |
| Subsequent events and | |
| related parties | 22 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
The basic Net Asset Value went down from EUR 558.0 million as at 31 December 2020 to EUR 505.5 million as at 30 June 2021 due to the dividend payment. The positive result for the period had an offsetting effect. On a diluted basis, NAV amounted to EUR 5.45 per share on the reporting date (31 December 2020: EUR 5.91 per share) when the shares bought back in July 2020 and January 2021 are taken into account.
| in EUR thousand | 31/12/2020 | 30/06/2021 | Change | in % |
|---|---|---|---|---|
| Net asset value (NAV) | 557,956 | 505,522 | – 52,434 | – 10.4 |
| Deferred taxes | 72,122 | 74,402 | 2,280 | 3.1 |
| Goodwill resulting from deferred taxes | – 4,738 | – 4,738 | 0 | 0.0 |
| NAV (basic) | 625,340 | 575,186 | –50,154 | –8.7 |
| Number of shares issued (in thousands) (basic) | 105,772 | 105,513 | – 260 | – 0.2 |
| NAV per share (basic) (EUR) | 5.91 | 5.45 | – 0.46 | – 8.4 |
| Effect of the conversion of convertible bonds and other equity instruments | 510 | 510 | 0.000 | 0.0 |
| NAV (diluted) | 625,850 | 575,696 | – 50,154 | – 8.7 |
| Number of shares issued (in thousands) (diluted) | 106,282 | 106,023 | – 260 | – 0.2 |
| NAV per share (diluted) (EUR) | 5.89 | 5.43 | –0.46 | –8.4 |
The net loan-to-value ratio of the DEMIRE Group is defined as the ratio of net financial liabilities to the carrying amount of investment properties and assets held for sale. The net loan-to-value ratio went up to 52.7% as at 30 June 2021, compared to 50.0% at the end of 2020.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| Overview | 12 |
| Economic report | 15 |
| Opportunities and risks | 22 |
| Subsequent events and | |
| related parties | 22 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| in EUR thousand | 31/12/2020 | 30/06/2021 |
|---|---|---|
| Financial liabilities | 829,712 | 873,285 |
| Cash and cash equivalents | 101,620 | 121,135 |
| Net financial debt | 728,092 | 752,150 |
| Fair value of investment properties and non-current assets held for sale |
1,457,291 | 1,428,447 |
| Net LTV in % | 50.0 | 52.7 |
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. A description of the covenants to be reported on are listed in the offering prospectus for the 2019/2024 corporate bond.
| BOND COVENANTS 30/06/2021 | |||
|---|---|---|---|
| NET LTV | NET SECURED LTV |
ICR | |
| Covenant | max. 60% | max. 40% | min. 2.00 |
| Value | 51.1% | 10.4% | 4.04 |
As at 30 June 2021, DEMIRE had complied with all covenants for the 2019/2024 corporate bond. In addition, the planning for 2021 and beyond assumes that the covenants will also be complied with at all times in the future.
With regard to the opportunities and risks of future business development, reference is made to the disclosures in the report on opportunities and risks contained in the consolidated financial statements as at 31 December 2020. There were no material changes to the Group's risk structure in the first six months of 2021. No major changes in the opportunity and risk situation are expected in the next six months.
The 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.
Disclosures on related party transactions and events after the reporting date are provided in chapters G. 1 and G. 6, respectively, of the notes to the consolidated financial statements.
Frankfurt am Main, 12 August 2021
DEMIRE Deutsche Mittelstand Real Estate AG
Ingo Hartlief (FRICS) Tim Brückner (CEO) (CFO)
| Consolidated statement of income | 24 |
|---|---|
| Consolidated statement of comprehensive income |
25 |
| Consolidated balance sheet | 26 |
| Consolidated statement of cash flows | 28 |
| Consolidated statement of changes | |
| in equity | 30 |
| Notes to the consolidated financial | |
| statements | 32 |
24
For the reporting period from 1 January to 30 June 2021
| DEMIRE AT A GLANCE | 4 | ||||||
|---|---|---|---|---|---|---|---|
| INTERIM STATEMENT | 11 | in EUR thousand | Note | 01/01/2020 – 30/06/2020 |
01/01/2021 – 30/06/2021 |
01/04/2020 – 30/06/2020 |
01/04/2021 – 30/06/2021 |
| Rental income | 43,843 | 42,024 | 21,796 | 20,876 | |||
| INTERIM CONSOLIDATED | Income from utility and service charges | 12,386 | 12,173 | 3,928 | 4,601 | ||
| FINANCIAL STATEMENTS | 23 | Operating expenses to generate rental income | – 23,250 | – 20,012 | – 10,043 | – 9,021 | |
| Consolidated statement | Profit/loss from the rental of real estate | 32,979 | 34,185 | 15,681 | 16,456 | ||
| of income | 24 | Income from the sale of real estate and real estate companies | 33,340 | 37,500 | 27,682 | 37,500 | |
| Consolidated statement of | Expenses related to the sale of real estate and real estate companies | – 35,159 | – 36,761 | – 28,468 | – 36,678 | ||
| comprehensive income | 25 | Profit/loss from the sale of real estate and real estate companies | –1,819 | 739 | –786 | 822 | |
| Consolidated balance sheet | 26 | Profit/loss from fair value adjustments in investment properties | 0 | 1,764 | 0 | – 81 | |
| Consolidated statement of | Impairment of receivables | – 3,747 | – 670 | – 3,137 | – 282 | ||
| cash flows | 28 | Other operating income | 965 | 374 | 663 | 197 | |
| Consolidated statement of | General administrative expenses | – 5,654 | – 5,727 | – 2,871 | – 3,165 | ||
| Other operating expenses | – 880 | – 1,131 | – 578 | – 990 | |||
| changes in equity | 30 | Earnings before interest and taxes | D 1 | 21,845 | 29,534 | 8,973 | 12,957 |
| Notes to the consolidated | Financial income | 466 | 490 | 258 | 281 | ||
| financial statements | 32 | Financial expenses | – 9,129 | – 8,925 | – 4,443 | – 4,587 | |
| Minority interests | – 1,263 | – 2,326 | – 850 | – 1,189 | |||
| FURTHER INFORMATION | 41 | Financial result | D 2 | –9,926 | –10,761 | –5,035 | –5,495 |
| Earnings before taxes | 11,918 | 18,773 | 3,937 | 7,462 | |||
| Current income taxes | – 1,477 | – 946 | – 682 | – 450 | |||
| Deferred taxes | – 1,181 | – 2,280 | – 839 | – 874 | |||
| Net profit/loss for the period | 9,260 | 15,547 | 2,416 | 6,138 | |||
| Thereof attributable to: | |||||||
| Non-controlling interests | 985 | 1,512 | 309 | 839 | |||
| Parent company shareholders | 8,275 | 14,036 | 2,106 | 5,300 | |||
| Earnings per share (basic/diluted) | D 3 | 0.08 | 0.13 | – | – |
| FOREWORD BY THE EXECUTIVE BOARD DEMIRE AT A GLANCE INTERIM STATEMENT INTERIM CONSOLIDATED FINANCIAL STATEMENTS Consolidated statement of income Consolidated statement of comprehensive income Consolidated balance sheet Consolidated statement of cash flows Consolidated statement of changes in equity Notes to the consolidated financial statements |
|
|---|---|
| 2 | |
| 4 | |
| 11 | |
| 23 | |
| 24 | |
| 25 | |
| 26 | |
| 28 | |
| 30 | |
| 32 | |
| FURTHER INFORMATION | 41 |
For the reporting period from 1 January to 30 June 2021
| in EUR thousand | 01/01/2020 – 30/06/2020 |
01/01/2021 – 30/06/2021 |
01/04/2020 – 30/06/2020 |
01/04/2021 – 30/06/2021 |
|---|---|---|---|---|
| Net profit/loss for the period | 9,260 | 15,547 | 2,416 | 6,138 |
| Other comprehensive income | 0 | 0 | 0 | 0 |
| Total comprehensive income | 9,260 | 15,547 | 2,416 | 6,138 |
| Thereof attributable to: | ||||
| Non-controlling interests | 985 | 1,512 | 309 | 839 |
| Parent company shareholders | 8,275 | 14,036 | 2,106 | 5,300 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| Consolidated statement | |
| of income | 24 |
| Consolidated statement of | |
| comprehensive income | 25 |
| Consolidated balance sheet | 26 |
| Consolidated statement of | |
| cash flows | 28 |
| Consolidated statement of | |
| changes in equity | 30 |
| Notes to the consolidated | |
| financial statements | 32 |
| FURTHER INFORMATION | 41 |
| in EUR thousand ASSETS Non-current assets Intangible assets Property, plant and equipment Investment property |
Note | 31/12/2020 | |
|---|---|---|---|
| 30/06/2021 | |||
| 6,880 | 6,880 | ||
| 303 | 294 | ||
| E 1 | 1,426,291 | 1,408,257 | |
| Other assets | 17,651 | 44,410 | |
| Total non-current assets | 1,451,125 | 1,459,841 | |
| Current assets | |||
| Trade accounts receivable | 7,346 | 9,027 | |
| Other receivables | 26,730 | 17,146 | |
| Tax refund claims | 7,490 | 8,285 | |
| Cash and cash equivalents | 101,620 | 121,135 | |
| Total current assets | E 2 | 143,186 | 155,593 |
| Non-current assets held for sale |
TOTAL ASSETS 1,625,311 1,635,624
as at 30 June 2021
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| Consolidated statement | |
| of income | 24 |
| Consolidated statement of | |
| comprehensive income | 25 |
| Consolidated balance sheet | 26 |
| Consolidated statement of | |
| cash flows | 28 |
| Consolidated statement of | |
| changes in equity | 30 |
| Notes to the consolidated | |
| financial statements | 32 |
| FURTHER INFORMATION | 41 |
as at 30 June 2021
| EQUITY AND LIABILITIES | |||
|---|---|---|---|
| in EUR thousand | Note | 31/12/2020 | 30/06/2021 |
| EQUITY AND LIABILITIES | |||
| EQUITY | |||
| Subscribed capital | 105,772 | 105,513 | |
| Reserves | 452,184 | 400,010 | |
| Equity attributable to parent company shareholders | 557,956 | 505,523 | |
| Non-controlling interests | 40,085 | 41,012 | |
| TOTAL EQUITY | E 3 | 598,041 | 546,535 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Deferred tax liabilities | 72,122 | 74,402 | |
| Minority interests | 78,881 | 78,946 | |
| Financial liabilities | E 4 | 817,342 | 858,071 |
| Lease liabilities | 18,355 | 18,064 | |
| Other liabilities | 535 | 389 | |
| Total non-current liabilities | 987,235 | 1,029,872 | |
| Current liabilities | |||
| Provisions | 2,995 | 2,935 | |
| Trade payables | 10,681 | 7,787 | |
| Other liabilities | 9,558 | 27,767 | |
| Tax liabilities | 4,060 | 4,999 | |
| Financial liabilities | E 4 | 12,370 | 15,214 |
| Lease liabilities | 371 | 515 | |
| Total current liabilities | 40,035 | 59,217 | |
| Total liabilities | 1,027,270 | 1,089,089 | |
| TOTAL EQUITY AND LIABILITIES | 1,625,311 | 1,635,624 |
27
For the reporting period from 1 January to 30 June 2021
| EXECUTIVE BOARD | 2 | |||
|---|---|---|---|---|
| DEMIRE AT A GLANCE | 4 | |||
| INTERIM STATEMENT | 11 | in EUR thousand | 01/01/2020 – 30/06/2020 |
01/01/2021 – 30/06/2021 |
| INTERIM CONSOLIDATED | Group profit/loss before taxes | 11,918 | 18,773 | |
| Financial expenses | 9,129 | 8,925 | ||
| FINANCIAL STATEMENTS | 23 | Financial income | – 466 | – 490 |
| Consolidated statement | Minority interests | 1,263 | 2,326 | |
| of income | 24 | Change in trade accounts receivable | – 4,678 | – 2,351 |
| Consolidated statement of | Change in other receivables and other assets | – 106 | 9,757 | |
| comprehensive income | 25 | Change in provisions | – 595 | – 60 |
| Consolidated balance sheet | 26 | Change in trade payables and other liabilities | 4,878 | – 2,730 |
| Consolidated statement of | Profit/loss from fair value adjustments in investment properties | 0 | – 1,764 | |
| cash flows | 28 | Profit/loss from the sale of real estate and real estate companies | 1,819 | – 739 |
| Consolidated statement of | Interest proceeds | 99 | 2 | |
| changes in equity | 30 | Income taxes paid | – 833 | – 802 |
| Change in reserves | 0 | 127 | ||
| Notes to the consolidated | Depreciation and amortisation and impairment | 3,866 | 923 | |
| financial statements | 32 | Distributions to minority shareholders/dividends | – 2,797 | – 67,433 |
| Other non-cash items | 230 | – 140 | ||
| FURTHER INFORMATION | 41 | Cash flow from operating activities | 23,728 | –35,676 |
| Payments for the acquisition of/investments in investment properties, incl. prepayments, refurbishment measures and prepayments for property, plant and equipment |
– 58,891 | – 7,504 | ||
| Payments for the acquisition of interests in fully consolidated companies, less net cash equivalents acquired | – 65 | 0 | ||
| Payments for investments in companies accounted for using the equity method | 0 | – 25,873 | ||
| Proceeds from the sale of real estate | 46,248 | 55,509 | ||
| Cash flow from investing activities | –12,707 | 22,132 |
For the reporting period from 1 January to 30 June 2021
| in EUR thousand | 01/01/2020 – 30/06/2020 |
01/01/2021 – 30/06/2021 |
|---|---|---|
| Payments for borrowing costs | 0 | – 450 |
| Proceeds from borrowings | 0 | 47,700 |
| Interest paid on financial liabilities | – 7,902 | – 7,798 |
| Payments for the purchase of additional shares in a subsidiary | – 54 | – 314 |
| Payments for the redemption of financial liabilities | – 24,198 | – 4,901 |
| Buyback of treasury shares | 0 | – 1,178 |
| Cash flow from financing activities | –32,154 | 33,059 |
| Net change in cash and cash equivalents | –21,133 | 19,514 |
| Cash and cash equivalents at the start of the period | 102,139 | 101,620 |
| Cash and cash equivalents at the end of the period | 81,006 | 121,135 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| Consolidated statement | |
| of income | 24 |
| Consolidated statement of | |
| comprehensive income | 25 |
| Consolidated balance sheet | 26 |
| Consolidated statement of | |
| cash flows | 28 |
| Consolidated statement of | |
| changes in equity | 30 |
| Notes to the consolidated | |
| financial statements | 32 |
| FURTHER INFORMATION | 41 |
29
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| Consolidated statement | |
| of income | 24 |
| Consolidated statement of | |
| comprehensive income | 25 |
| Consolidated balance sheet | 26 |
| Consolidated statement of | |
| cash flows | 28 |
| Consolidated statement of | |
| changes in equity | 30 |
| Notes to the consolidated | |
| financial statements | 32 |
| FURTHER INFORMATION | 41 |
For the reporting period from 1 January to 30 June 2021
| Share capital | Reserves | ||||||
|---|---|---|---|---|---|---|---|
| in EUR thousand | Subscribed capital | Capital reserves | Retained earnings incl. Group profit/loss |
Equity attributable to parent company share holders |
Non-controlling interests |
TOTAL EQUITY | |
| 01/01/2021 | 105,772 | 88,404 | 363,780 | 557,956 | 40,085 | 598,041 | |
| Net profit/loss for the period | 0 | 0 | 14,036 | 14,036 | 1,512 | 15,548 | |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total comprehensive income | 0 | 0 | 14,036 | 14,036 | 1,512 | 15,548 | |
| Stock option programme | 0 | 0 | 0 | 0 | 0 | 0 | |
| Dividend payments/distributions | 0 | 0 | – 65,418 | – 65,418 | – 577 | – 65,995 | |
| Increase in shareholdings in subsidiaries | 0 | 0 | 0 | 0 | 0 | 0 | |
| Acquisition of treasury shares | – 260 | – 919 | 0 | – 1,179 | 0 | – 1,179 | |
| Other changes | 0 | 0 | 127 | 127 | – 9 | 118 | |
| 30/06/2021 | 105,513 | 87,485 | 312,525 | 505,523 | 41,012 | 546,535 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| Consolidated statement | |
| of income | 24 |
| Consolidated statement of | |
| comprehensive income | 25 |
| Consolidated balance sheet | 26 |
| Consolidated statement of | |
| cash flows | 28 |
| Consolidated statement of | |
| changes in equity | 30 |
| Notes to the consolidated | |
| financial statements | 32 |
For the reporting period from 1 January to 30 June 2020
| Share capital | Reserves | ||||||
|---|---|---|---|---|---|---|---|
| Retained earnings | Equity attributable to parent company share |
Non-controlling | |||||
| in EUR thousand | Subscribed capital | Capital reserves | incl. Group profit/loss | holders | interests | TOTAL EQUITY | |
| 01/01/2020 | 107,777 | 129,852 | 375,722 | 613,351 | 47,431 | 660,783 | |
| Net profit/loss for the period | 0 | 0 | 8,275 | 8,275 | 985 | 9,260 | |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total comprehensive income | 0 | 0 | 8,275 | 8,275 | 985 | 9,260 | |
| Dividend payments/distributions | 0 | 0 | 0 | 0 | – 737 | – 737 | |
| Other changes | 0 | – 22 | – 209 | – 231 | 143 | – 88 | |
| 30/06/2020 | 107,777 | 129,830 | 383,788 | 621,395 | 47,822 | 669,217 | |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| Consolidated statement | |
| of income | 24 |
| Consolidated statement of | |
| comprehensive income | 25 |
| Consolidated balance sheet | 26 |
| Consolidated statement of | |
| cash flows | 28 |
| Consolidated statement of | |
| changes in equity | 30 |
| Notes to the consolidated | |
| financial statements | 32 |
| FURTHER INFORMATION | 41 |
For the reporting period from 1 January to 30 June 2021
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 30 June 2021 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 30 June 2021 were prepared in accordance with the requirements of IAS 34 "Interim Financial Reporting" (hereafter "IAS 34"). This report has not been audited or subjected to audit review, 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 Section315e 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 2021 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. They 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 30 June 2021 should therefore be viewed in conjunction with the consolidated financial statements prepared as at 31 December 2020.
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 12 August 2021.
The joint venture "JV Theodor-Heuss-Allee-GmbH", Frankfurt am Main, Germany, was formed in the reporting period. The Group holds a 49.5% stake in the joint venture and reports this interest using the equity method.
The accounting policies applied to the interim consolidated financial statements presented are the same as those applied to the consolidated financial statements as at 31 December 2020. There were no material changes in estimates compared to those in the consolidated financial statements as at 31 December 2020.
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.
1. Earnings before interest and taxes
| in EUR thousand | 01/01/2020 – 30/06/2020 |
01/01/2021 – 30/06/2021 |
|---|---|---|
| Net rent | 43,843 | 42,024 |
| Income from utility and service charges | 12,386 | 12,173 |
| Rental revenue from real estate | 56,230 | 54,197 |
| Allocable operating expenses to generate rental income | – 15,565 | – 16,704 |
| Non-allocable operating expenses to generate rental income | – 7,685 | – 3,308 |
| Operating expenses to generate rental income |
– 23,250 | –20,012 |
| Profit/loss from the rental of real estate | 32,979 | 34,185 |
| FOREWORD BY THE | ||
|---|---|---|
| EXECUTIVE BOARD | 2 | |
| DEMIRE AT A GLANCE | 4 | |
| INTERIM STATEMENT | 11 | |
| INTERIM CONSOLIDATED | ||
| FINANCIAL STATEMENTS | 23 | |
| Consolidated statement | ||
| of income | 24 | |
| Consolidated statement of | ||
| comprehensive income | 25 | |
| Consolidated balance sheet | 26 | |
| Consolidated statement of | ||
| cash flows | 28 | |
| Consolidated statement of | ||
| changes in equity | 30 | |
| Notes to the consolidated | ||
| financial statements | 32 | |
| FURTHER INFORMATION | 41 |
Rental revenue in the interim reporting period resulted exclusively from the rental of commercial real estate and is free from seasonal effects.
Due to contractual provisions regarding rent obligations during a coronavirus lockdown, the rent obligations for one retail property tenant were reduced by EUR 173 thousand for the duration of the lockdown in the first half of 2021.
The downturn in operating expenses was largely driven by decreased maintenance costs totalling EUR 1,456 thousand (H1 2020: EUR 2,921 thousand) and lower non-capitalised expenses for tenant improvements of EUR 110 thousand (H1 2020: EUR 2,483 thousand).
Of the operating expenses, an amount of EUR 16,704 thousand (H1 2020: EUR 15,565 thousand) is generally allocable and can be charged on to tenants.
The Group generated a profit of EUR 739 thousand from the sale of real estate as at 30 June 2021 (H1 2020: EUR –1,819 thousand). This is largely due to the sale of a property in Cologne.
The year-on-year loss from the sale of real estate resulted, above all, from selling expenses that were incurred in connection with the sale of the property in Eisenhüttenstadt.
As in the comparable prior-year period, no revaluation of investment properties was performed as at the 30 June 2021 reporting date. Profit/loss from adjustments to the fair value of investment properties amounted to EUR 1,764 thousand (H1 2020: EUR 0 thousand) and was mainly 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 670 thousand in the reporting period (H1 2020: EUR 3,747 thousand). EUR 454 thousand relates to tenants of hotels that are either insolvent or threatened with insolvency as a result of the pandemic. In the first half of 2020, the impairments related mainly to two retail property tenants who were subject to protective shield proceedings or insolvency proceedings.
2. Financial result
| in EUR thousand | 01/01/2020 – 30/06/2020 |
01/01/2021 – 30/06/2021 |
|---|---|---|
| Financial income | 466 | 490 |
| Financial expenses | – 9,129 | – 8,925 |
| Minority interests | – 1,263 | – 2,326 |
| Financial result | – 9,926 | –10,761 |
The downturn in financial expenses is largely due to lower interest rates related to refinancing measures in the 2020 financial year.
The interests of minority shareholders totalling EUR 2,326 thousand (H1 2020: EUR 1,263 thousand) relate to the share of profits of minority shareholders in Fair Value REIT-AG's subsidiaries, which are carried as liabilities in accordance with IAS 32. The year-on-year increase is largely due to lower selling expenses.
| 01/01/2020 – 30/06/2020 |
01/01/2021 – 30/06/2021 |
|
|---|---|---|
| Net profit/loss for the period (in EUR thousand) | 9,260 | 15,547 |
| Profit/loss for the period less non-controlling interests | 8,275 | 14,036 |
| Number of shares (in thousands) | ||
| Number of shares outstanding as at the reporting date | 107,772 | 105,513 |
| Weighted average number of shares outstanding | 107,772 | 105,686 |
| Impact of conversion of convertible bonds and exercise under the 2015 Stock Option Programme |
510 | 510 |
| Weighted average number of shares (diluted) | 108,282 | 106,196 |
| Earnings per share (in EUR) | ||
| Earnings per share (basic) | 0.08 | 0.13 |
| Earnings per share (diluted) | 0.08 | 0.13 |
In the first quarter of 2021, DEMIRE AG bought back 259,729 shares for a price of EUR 4.39 per share (seeSection E 3).
As at 30 June 2021, the Company had potential ordinary shares outstanding from the 2015 Stock Option Programme entitling the owners to subscribe to 510,000 shares.
Earnings per share went up compared to the same period of the previous year, mainly due to the sale and valuation effects of the properties in Cologne and Ansbach and a downturn in impairment losses.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| Consolidated statement | |
| of income | 24 |
| Consolidated statement of | |
| comprehensive income | 25 |
| Consolidated balance sheet | 26 |
| Consolidated statement of | |
| cash flows | 28 |
| Consolidated statement of | |
| changes in equity | 30 |
| Notes to the consolidated | |
| financial statements | 32 |
| FURTHER INFORMATION | 41 |
1. Investment properties and non-current assets
held for sale
Investment properties are measured at fair value. They developed as follows during the interim reporting period:
The additions to investment properties consisted primarily of ongoing investments which were capitalised. Disposals of EUR 5,730 thousand were made during the reporting period. EUR 5,580 thousand of this was attributed to a property in Cologne in particular.
Reclassifications to non-current assets held for sale in the amount of EUR 18,235 thousand pertain to commercial real estate in Ansbach, Garbsen and Barmstedt. The transfer of benefits and obligations took place for the commercial property in Bremen in the first half of 2021. This property was classified as an asset held for sale with a value of EUR 31,000 thousand as at 31 December 2020. An advance payment of EUR 18,000 thousand had been made for the office complex in Ansbach as at 30 June 2021. This advance payment is recognised in other current liabilities. The transfer of benefits and obligations took place in July 2021.
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 30 June 2021 reporting date.
in EUR thousand Office Retail Logistics Other 2021 Fair value as at 1 January 2021 902,811 376,511 76,000 70,970 1,426,291 Additions of properties 3,950 1,292 236 453 5,930 Disposals of properties 0 – 150 0 – 5,580 – 5,730 Reclassifications to non-current assets held for sale – 18,235 0 0 0 – 18,235 Fair value as at 30 June 2021 888,525 377,653 76,236 65,843 1,408,257
The increase in other assets of EUR 25,350 thousand is largely due to a loan granted by DEMIRE AG to the joint venture formed during the period under review for the acquisition of the Cielo office property at Theodor-Heuss-Allee in Frankfurt am Main.
3. Equity
On 8 December 2020, the Company announced that it intended to buy back up to 1,000,000 shares at a price of EUR 4.39 per share, as part of another public share buy-back offer. As at the expiration of the acceptance period on 4 January 2021, DEMIRE AG had bought back a total of 259,729 shares for a total price of EUR 1,140 thousand. The resulting transaction costs of EUR 38 thousand are recognised under capital reserves. This resulted in an increase in treasury shares as at 30 June 2021 to a total of 2,264,728 shares (31 December 2020: 2,004,999 shares). Subscribed capital amounted to EUR 107,777 thousand (31 December 2020: EUR 107,777 thousand). This was EUR 105,513 thousand after the deduction of treasury shares (31 December 2020: EUR 105,772 thousand).
Following the proposal of the Executive Board and Supervisory Board, the Annual General Meeting of 28 April 2021 resolved to distribute a dividend of EUR 0.62 (previous year: EUR 0.54) per dividend-bearing share and to carry forward the Company's remaining accumulated profit as at 31 December 2020. The distribution amount came to EUR 65,418 thousand (previous year: EUR 57,117 thousand). EUR 950 thousand (previous year: EUR 459 thousand) will be carried forward.
4. Financial liabilities
Financial liabilities consisted of the following:
| FINANCIAL LIABILITIES | ||
|---|---|---|
| in EUR thousand | 31/12/2020 | 30/06/2021 |
| 2019/2024 corporate bond | 592,005 | 593,013 |
| Other financial liabilities | 237,708 | 280,273 |
| Total | 829,712 | 873,285 |
The following table shows the nominal value of financial liabilities:
| in EUR thousand | 31/12/2020 | 30/06/2021 |
|---|---|---|
| 2019/2024 corporate bond | 600,000 | 600,000 |
| Other financial liabilities | 238,770 | 281,697 |
| Total | 838,770 | 881,697 |
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 1.25% p.a. as at 30 June 2021 (31 December 2020: 1.31% p.a.). The average nominal interest rate on financial debt across all financial liabilities amounted to 1.68% p.a. as at 30 June 2021 (31 December 2020: 1.71% p.a.).
The change in other financial liabilities in the interim reporting period is due to ongoing repayments and a new loan with a volume of EUR 45,000 thousand, in particular.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| Consolidated statement | |
| of income | 24 |
| Consolidated statement of | |
| comprehensive income | 25 |
| Consolidated balance sheet | 26 |
| Consolidated statement of | |
| cash flows | 28 |
| Consolidated statement of | |
| changes in equity | 30 |
| Notes to the consolidated | |
| financial statements | 32 |
| FURTHER INFORMATION | 41 |
| in EUR thousand | Core portfolio |
Fair Value REIT | Corporate functions/ others |
Group |
|---|---|---|---|---|
| Total revenue | 73,617 | 18,080 | 0 | 91,697 |
| Segment revenue | 75,479 | 18,330 | 26 | 93,835 |
| Segment expenses | –48,541 | –10,840 | –4,921 | –64,301 |
| EBIT | 26,938 | 7,491 | –4,895 | 29,534 |
| Net profit/loss for the period | 17,411 | 4,218 | –6,081 | 15,547 |
| SEGMENT ASSETS 30/06/2021 |
1,206,632 | 333,016 | 95,977 | 1,635,624 |
| Thereof tax assets | 3,408 | 0 | 4,877 | 8,285 |
| Thereof additions to investment properties |
4,079 | 1,851 | 0 | 5,930 |
| Thereof non-current assets held for sale |
18,650 | 1,540 | 0 | 20,190 |
| SEGMENT LIABILITIES 30/06/2021 |
896,810 | 183,194 | 9,085 | 1,089,089 |
| Thereof non-current financial liabilities |
780,822 | 77,249 | 0 | 858,071 |
| Thereof lease liabilities | 18,535 | 0 | 44 | 18,579 |
| Thereof current financial liabilities |
12,499 | 2,715 | 0 | 15,214 |
| Thereof tax liabilities | 1,947 | 0 | 3,052 | 4,999 |
| 01/01/2020–30/06/2020 | ||||
|---|---|---|---|---|
| in EUR thousand | Core portfolio |
Fair Value REIT | Corporate functions/ others |
Group |
| Total revenue | 48,813 | 40,756 | 0 | 89,569 |
| Segment revenue | 49,061 | 40,938 | 535 | 90,534 |
| Segment expenses | –28,315 | –36,309 | –4,065 | –68,689 |
| EBIT | 20,746 | 4,628 | –3,529 | 21,845 |
| Net profit/loss for the period | 11,996 | 2,110 | –4,846 | 9,260 |
| SEGMENT ASSETS 31/12/2020 |
1,223,493 | 328,550 | 73,268 | 1,625,311 |
| Thereof tax assets | 3,410 | 0 | 4,080 | 7,490 |
| Thereof additions to investment properties |
55,799 | 649 | 0 | 56,448 |
| Thereof non-current assets held for sale |
31,000 | 0 | 0 | 31,000 |
| SEGMENT LIABILITIES 31/12/2020 |
836,652 | 181,806 | 8,812 | 1,027,270 |
| Thereof non-current financial liabilities |
741,489 | 75,853 | 0 | 817,342 |
| Thereof lease liabilities | 18,715 | 0 | 10 | 18,726 |
| Thereof current financial liabilities |
9,659 | 2,711 | 0 | 12,370 |
| Thereof tax liabilities | 2,059 | 0 | 2,001 | 4,060 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| Consolidated statement | |
| of income | 24 |
| Consolidated statement of | |
| comprehensive income | 25 |
| Consolidated balance sheet | 26 |
| Consolidated statement of | |
| cash flows | 28 |
| Consolidated statement of | |
| changes in equity | 30 |
| Notes to the consolidated | |
| financial statements | 32 |
| FURTHER INFORMATION | 41 |
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 7,099 thousand (H1 2020: EUR 8,613 thousand) during the reporting period.
There has been one change to the related party disclosures as compared to 31 December 2020. The purchasing company "JV Theodor-Heuss-Allee-GmbH", Frankfurt am Main, was founded in the first half of 2021. The Chairman of the Supervisory Board holds a minority interest in this purchasing company. As at the reporting date, this company had signed a purchase agreement but has yet to finalise a property purchase. No assets were provided to or by the Chairman of the Supervisory Board during the period under review. 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 DEMIRE AG also issued a loan to this company in the amount of EUR 25,347 thousand. Interest income from this loan comes to EUR 74 thousand as at 30 June 2021.
The carrying amounts of the following financial instruments carried at cost or amortised cost do not correspond to their fair values:
| 31/12/2020 | 30/06/2021 | |||
|---|---|---|---|---|
| in EUR thousand | Carrying amount under IFRS 9 |
Fair value | Carrying amount under IFRS 9 |
FAIR VALUE |
| Bonds | 592,005 | 588,174 | 593,013 | 587,172 |
| Other financial liabilities |
237,708 | 241,400 | 280,273 | 279,396 |
With regard to the risks of future business development, reference is made to the disclosures in the risk report contained in theconsolidated financial statements as at 31 December 2020. There were no significant changes in the Group's risk structure in the reporting period from 1 January to 30 June 2021. The risk of loss of rent will depend on the duration and extent of the pandemic. It should be expected that some of the tenants will not be able to meet their payment obligations in full or in part, due to insolvency and the state-mandated shutdowns during the COVID-19 pandemic. As a result, there may be a higher level of bad debt losses in the current financial year.
For a general overview of the risks, please refer to the report on opportunities and risks.
| FOREWORD BY THE | 4. Other notes | |
|---|---|---|
| EXECUTIVE BOARD | 2 | |
| DEMIRE AT A GLANCE | 4 | |
| INTERIM STATEMENT | 11 | |
| INTERIM CONSOLIDATED | ||
| FINANCIAL STATEMENTS | 23 | |
| Consolidated statement | ||
| of income | 24 | |
| Consolidated statement of | ||
| comprehensive income | 25 | by two new hotel tenants. |
| Consolidated balance sheet | 26 | |
| Consolidated statement of | ||
| cash flows | 28 | |
| Consolidated statement of | ||
| changes in equity | 30 | |
| Notes to the consolidated | ||
| financial statements | 32 | |
| FURTHER INFORMATION | 41 | |
As at the reporting date, there were financial obligations in the amount of EUR 60,000 thousand 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 55,798 thousand as at 30 June 2021 (H1 2020: EUR 17,543 thousand). EUR 28,013 thousand of this amount is attributable to project development for the Leipzig LogPark property, EUR 9,171 thousand to fire protection measures to be carried out in Eschborn over a period of five years, and EUR 10,683 thousand to renovations by two new hotel tenants.
Purchase order commitments for maintenance and modernisation, as well as modification and expansion measures, totalled EUR 7,464 thousand as at the interim reporting date (H1 2020: EUR 6,840 thousand).
As at 30 June 2021, unused credit lines in the amount of EUR 11,000 thousand (31 December 2020: 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 reporting period 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 reporting period, performance-based remuneration of EUR 444 thousand (H1 2020: EUR 166 thousand), fixed remuneration of EUR 349 thousand (H1 2020: EUR 352 thousand) and share-based payments of EUR 75 thousand (H1 2020: EUR 77 thousand) were recognised for DEMIRE AG's Executive Board.
There were no loans or advances granted to Executive Board members, and no contingencies were assumed for their benefit.
6. Events occurring after the interim reporting date of 30 June 2021
After being announced in March 2021, the purchase of the Cielo office property in Frankfurt am Main was finalised on schedule on 2 July 2021. Further information on these projects can be found in the 2020 Annual Report. In connection with this, the operating equipment of the property at Theodor-Heuss-Allee 100, Frankfurt, was also acquired on 2 July 2021. DEMIRE Betriebsvorrichtungen Nr. 2 GmbH acquired 100% of the shares in Cielo BVO GmbH from RFR Holding GmbH and RFR Finance GmbH & Co.KG.
A mortgage loan of EUR 22,000 thousand was paid out on 7 July 2021.
Frankfurt am Main, 12 August 2021
DEMIRE Deutsche Mittelstand Real Estate AG
Ingo Hartlief (FRICS) Tim Brückner (CEO) (CFP)
| Declaration by the executive directors | 42 |
|---|---|
| EPRA disclosures | 43 |
| Imprint | 52 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| Declaration by the | |
| executive directors | 42 |
| EPRA disclosures | 43 |
| Imprint | 52 |
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, 12 August 2021
DEMIRE Deutsche Mittelstand Real Estate AG
Ingo Hartlief (FRICS) Tim Brückner
(CEO) (CFO)
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| Declaration by the | |
| executive directors | 42 |
| EPRA disclosures | 43 |
| Imprint | 52 |
DEMIRE AG supplements its reporting in accordance with International Financial Reporting Standards (IFRS) with the best practice recommendations of the European Public Real Estate Association (EPRA).
We report on the following key figures: EPRA Net Reinstatement Value (EPRA NRV), EPRA net tangible assets (EPRA NTA), EPRA Net Disposals Value (EPRA NDV), EPRA Net Initial Yield (EPRA NIY or "topped up" NIY), EPRA cost ratio and EPRA earnings. We also supplement the key figures with a breakdown of capital expenditure and a detailed overview of like-for-like rental development in the DEMIRE portfolio.
| in EUR thousand | 31/12/2020 | 30/06/2021 |
|---|---|---|
| EPRA Net Asset Value (EPRA NAV) | 625,850 | 575,696 |
| EPRA Triple Net Asset Value (EPRA NNNAV) | 556,457 | 505,453 |
| EPRA Net Reinstatement Value (EPRA NRV) | 733,339 | 681,750 |
| EPRA Net Tangible Assets (EPRA NTA) | 591,041 | 539,323 |
| EPRA Net Disposal Value (EPRA NDV) | 556,074 | 505,071 |
| EPRA net initial yield (in %) | 4.9 | 4.90 |
| EPRA "topped up" net initial yield (in %) | 5.0 | 4.90 |
| EPRA vacancy rate (in %) | 6.9 | 10.2 |
| H1 2020 | H1 2021 |
|---|---|
| 27,847 | 15,435 |
| 36.6 | 34.7 |
| 32.7 | 34.7 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| Declaration by the | |
| executive directors | 42 |
| EPRA disclosures | 43 |
| Imprint | 52 |
The EPRA Net Asset Value (EPRA NAV) indicates the intrinsic value of a real estate company. The value is calculated on the basis of Group equity (before minorities) adjusted for effects arising from exercising options, convertible bonds and other equity rights, as well as for the market values of derivative financial instruments and deferred taxes, i.e. adjusted for items that have no influence on the long-term development of the Group.
| EPRA NET ASSET VALUE (EPRA NAV) | ||||
|---|---|---|---|---|
| 31/12/2020 | 30/06/2021 | Change | in % | |
| in EUR thousand Net asset value (NAV) in the reporting period |
557,956 | 505,522 | – 52,434 | – 9.4 |
| Market value of derivative financial instruments |
0 | 0 | 0 | 0.0 |
| Deferred taxes | 72,122 | 74,402 | 2,280 | 3.2 |
| Goodwill resulting from deferred taxes |
– 4,738 | – 4,738 | 0 | 0.0 |
| EPRA NAV (basic) | 625,340 | 575,186 | – 50,154 | – 8.0 |
| Number of shares outstanding (basic) (in thousands) |
105,772 | 105,513 | – 260 | – 0.2 |
| EPRA NAV per share (basic) (in EUR) | 5.91 | 5.45 | –0.46 | –7.8 |
| Effect of the conversion of convertible bonds and other equity instruments |
510 | 510 | 0 | 0.0 |
Number of shares outstanding
EPRA NAV per share
EPRA NAV (diluted) 625,850 575,696 – 50,154 – 8.0
(basic) (in thousands) 106,282 106,023 – 260 – 0.2
(diluted) (in EUR) 5.89 5.43 –0.46 –7.8
| in EUR thousand | 31/12/2020 | 30/06/2021 | Change | in % |
|---|---|---|---|---|
| Net asset value (NAV) | 557,956 | 505,522 | – 52,434 | – 9.4 |
| Market value of derivative financial instruments |
0 | 0 | 0 | 0.0 |
| Deferred taxes | 72,122 | 74,402 | 2,280 | 3.2 |
| Goodwill resulting from deferred taxes |
– 4,738 | – 4,738 | 0 | 0.0 |
| EPRA NAV (basic) | 625,340 | 575,186 | –50,145 | –8.0 |
| Number of shares outstanding (basic) (in thousands) |
105,772 | 105,513 | – 260 | – 0.2 |
| EPRA NAV per share (basic) (EUR) | 5.91 | 5.45 | – 0.46 | – 7.8 |
| Effect of the conversion of convertible bonds and other equity instruments |
510 | 510 | 0 | 0.0 |
| EPRA NAV (diluted) | 625,850 | 575,696 | – 50,154 | – 8.0 |
| Number of shares outstanding (diluted) (in thousands) |
106,282 | 106,023 | – 260 | – 0.2 |
| EPRA NAV per share (diluted) (EUR) | 5.89 | 5.43 | –0.46 | –7.8 |
| Market value of derivative financial instruments |
0 | 0 | 0 | 0.0 |
| Fair value adjustments in liabilities (bonds) |
3,831 | 5,841 | 2,010 | 52.5 |
| Deferred taxes | – 73,224 | – 76,083 | – 2,859 | 3.9 |
| EPRA NNNAV (diluted) | 556,457 | 505,453 | –51,003 | –9.2 |
| EPRA NNNAV per share (diluted) (EUR) |
5.24 | 4.77 | –0.47 | –8.9 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| Declaration by the | |
| executive directors | 42 |
| EPRA disclosures | 43 |
| Imprint | 52 |
The KPI EPRA Net Tangible Assets (EPRA NTA) represents the intrinsic value of a company adjusted for deferred taxes in relation to fair value movements on investment properties, the fair value of financial instruments and all intangible assets.
The KPI EPRA Net Disposal Value (EPRA NDV) represents the intrinsic value of a company adjusted for all deferred taxes in relation to fair value movements, goodwill reported on the balance sheet and changes in the market value of fixed interest rate liabilities.
The KPI EPRA Net Reinstatement Value (EPRA NRV) represents the intrinsic value of a company adjusted for fair value movements and the fair value of financial instruments.
| in EUR thousand | 31/12/2020 | 30/06/2021 | ||||
|---|---|---|---|---|---|---|
| EPRA NRV |
EPRA NTA |
EPRA NDV |
EPRA NRV |
EPRA NTA |
EPRA NDV |
|
| IFRS shareholders equity | 557,956 | 557,956 | 557,956 | 505,522 | 505,522 | 505,522 |
| Plus: | ||||||
| I) Hybrid financial instruments |
2,173 | 2,173 | 2,173 | 2,173 | 2,173 | 2,173 |
| NAV (diluted) | 560,129 | 560,129 | 560,129 | 507,695 | 507,695 | 507,695 |
| Plus:* | ||||||
| II. a) Revaluation of IP (when applying the IAS 40 cost option) |
0 | 0 | 0 | 0 | 0 | 0 |
| II. b) Revaluation of IPUC (when applying the IAS 40 cost option) |
0 | 0 | 0 | 0 | 0 | 0 |
| II. c) Revaluation of other assets |
0 | 0 | 0 | 0 | 0 | 0 |
| III.) Revaluation of leases held as finance leases |
0 | 0 | 0 | 0 | 0 | 0 |
| IV.) Revaluation of real estate inventory |
0 | 0 | 0 | 0 | 0 | 0 |
| NAV at market value (diluted) |
560,129 | 560,129 | 560,129 | 507,695 | 507,695 | 507,695 |
*Plus= assets (+) liabilities (-), whether on or off the balance sheet
FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 4 INTERIM STATEMENT 11 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 23 FURTHER INFORMATION 41 Declaration by the executive directors 42 EPRA disclosures 43 Imprint 52
| in EUR thousand | 31/12/2020 | 30/06/2021 | ||||
|---|---|---|---|---|---|---|
| EPRA NRV |
EPRA NTA |
EPRA NDV |
EPRA NRV |
EPRA NTA |
EPRA NDV |
|
| Less:** | ||||||
| V) Deferred taxes on valuation gains of investment properties |
75,584 | 37,792 | x | 77,016 | 38,508 | x |
| VI) Market value of derivative financial instruments |
0 | 0 | x | 0 | 0 | x |
| VII) Goodwill as a result of deferred taxes |
– 4,738 | – 4,738 | – 4,738 | – 4,738 | – 4,738 | – 4,738 |
| VIII. a) Goodwill in accord ance with IFRS |
x | – 2,045 | – 2,045 | x | – 2,045 | – 2,045 |
| VIII. b) Intangible assets in accordance with IFRS |
x | – 97 | x | x | – 97 | x |
| Plus:* | ||||||
| IX) Market value of fixed interest liabilities (bonds) |
x | x | 2,728 | x | x | 4,160 |
| X) Revaluation of intangible assets at fair value (optional) |
0 | x | x | 0 | x | x |
| XI) Land transfer tax/ acquisition costs |
102,364 | 0 | x | 101,777 | 0 | x |
| Deferred taxes | ||||||
| NAV | 733,339 | 591,041 | 556,074 | 681,750 | 539,323 | 505,071 |
| Number of shares (fully diluted) |
106,282 | 106,282 | 106,282 | 106,023 | 106,023 | 106,023 |
| NAV per share (in EUR) | 6.90 | 5.56 | 5.23 | 6.43 | 5.09 | 4.76 |
* Plus= assets (+) liabilities (-), whether on or off the balance sheet
** Less= assets (-) liabilities (+) (part of balance sheet)
The KPI EPRA Net Initial Yield (EPRA NIY) is calculated as the annualised rental income divided by the fair value of the completed property portfolio, plus any anticipated ancillary acquisition costs for an investor.
The EPRA Net Initial Yield compares the annualised rental income (excluding non-allocable property expenses) with the market value of the property portfolio as at the balance sheet date. The "topped up" calculation includes hypothetical rents for expiring rent-free periods.
| in EUR thousand | 31/12/2020 | 30/06/2021 | Change | in % |
|---|---|---|---|---|
| Investment property | 1,426,291 | 1,408,257 | – 18,034 | – 1.3 |
| Shares in companies accounted for using the equity method |
596 | 503 | – 92 | – 15.5 |
| Real estate held for sale | 31,000 | 20,190 | – 10,810 | – 34.9 |
| Real estate portfolio (net) | 1,457,887 | 1,428,950 | –28,936 | –2.0 |
| Estimated ancillary acquisition costs |
72,984 | 71,448 | – 1,536 | – 2.1 |
| Real estate portfolio (gross) | 1,530,871 | 1,500,398 | –30,473 | –2.0 |
| Annualised cash rental income | 85,171 | 82,737 | – 2,434 | – 2.9 |
| Non-allocable real estate operating costs |
– 9,705 | – 9,491 | 214 | – 2.2 |
| Annualised net cash rental income | 75,466 | 73,247 | –2,219 | –2.9 |
| Rent-free periods | 462 | 342 | – 120 | – 26.0 |
| Annualised "topped up" net rental income |
75,928 | 73,589 | –2,339 | –3.1 |
| EPRA net initial yield | 4.9 | 4.9 | 0 bp | – |
| EPRA "topped up" net initial yield | 5.0 | 4.9 | –10 bp | –2.0 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| Declaration by the | |
| executive directors | 42 |
| EPRA disclosures | 43 |
| Imprint | 52 |
EPRA earnings represents the net income generated from core operational activities. This figure is adjusted in particular for measurement effects, deferred taxes and profits or losses on disposal recognised in net income.
| in EUR thousand | H1 2020 | H1 2021 | Change | in % |
|---|---|---|---|---|
| Net profit/loss for the period | 9,259 | 15,547 | 6,288 | 67.9 |
| Profit/loss from fair value adjustments in investment properties |
0 | – 1,764 | – 1,764 | – |
| Profit/loss from the sale of real estate and real estate companies |
1,819 | – 739 | – 2,558 | – |
| Profit/loss from companies accounted for using the equity method |
0 | 0 | 0 | |
| Profit/loss from the sale of real estate inventory |
0 | 0 | 0 | 0 |
| Taxes on sales earnings | – 3 | – 5 | – 1 | 29.9 |
| Impairment of goodwill | 0 | 0 | 0 | 0 |
| Valuation result of financial instruments | 0 | 0 | 0 | 0 |
| Acquisition costs for share deals and for shares in non-controlling joint ventures |
0 | 0 | 0 | 0 |
| Deferred taxes on EPRA adjustments | 1,181 | 2,280 | 1,099 | 93.1 |
| Non-controlling interests | – 813 | 116 | 929 | – |
| EPRA earnings | 11,442 | 15,435 | 3,993 | 34.9 |
| Number of shares outstanding (basic) | 107,772 | 105,513 | – 2,260 | – 2.1 |
| EPRA earnings per share (EPS basic) | 0.11 | 0.15 | 0.04 | 37.8 |
| Number of shares outstanding (diluted) | 108,282 | 106,023 | – 2,260 | – 2.1 |
| EPRA earnings per share (EPS diluted) | 0.11 | 0.15 | 0.04 | 37.8 |
As a ratio of EPRA costs to gross rental income, the EPRA cost ratio provides a statement on the cost efficiency of a real estate company – once including and once excluding direct vacancy costs.
| EPRA COST RATIOS | ||||
|---|---|---|---|---|
| in EUR thousand | 30/06/2020 | 30/06/2021 | Change | in % |
| Administrative and operational costs according to IFRS |
17,349 | 14,645 | –2,705 | –15.6 |
| General and administrative expenses |
5,632 | 5,696 | 64 | 1.1 |
| Other operating expenses | 853 | 1,110 | 256 | 30.0 |
| Operating expenses to generate rental income |
23,250 | 20,012 | – 3,238 | – 13.9 |
| Income from utility and service charges |
– 12,386 | – 12,173 | 213 | – 1.7 |
| Amortisation and depreciation | 49 | 52 | 3 | 7.1 |
| EPRA costs (incl. vacancy costs) | 17,398 | 14,697 | –2,701 | –15.5 |
| Direct vacancy costs | – 1,685 | – 1,578 | 107 | – 6.3 |
| EPRA costs (excl. vacancy costs) | 15,713 | 13,119 | –2,594 | –16.5 |
| Rental income | 43,843 | 42,024 | – 1,819 | – 4.1 |
| EPRA cost ratio (incl. vacancy costs) (in %) |
39.7 | 35.0 | –4.7pp | –11.8 |
| EPRA cost ratio (excl. vacancy costs) (in %) |
35.8 | 31.2 | –4.6pp | –12.8 |
A hotel property in Frankfurt was acquired in the first half of 2020. No properties were acquired in the first half of 2021.
The investments in the existing portfolio and "Other" mainly relate to valueenhancing conversion and expansion measures on various properties in our portfolios.
Demire AG had no interests in joint ventures in the first half of 2020. Demire AG acquired interests in a joint venture just before the end of the first half of 2021. This joint venture did not hold any real estate in the first half of 2021, however.
| in EUR thousand | H1 2020 | H1 2021 |
|---|---|---|
| Acquisitions | 43,069 | 0 |
| Development portfolio* | 0 | 0 |
| Existing portfolio | 1,991 | 5,296 |
| Other** | 1,191 | 1,089 |
* DEMIRE AG does not engage in real estate development
** Rent incentives
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| Declaration by the | |
| executive directors | 42 |
| EPRA disclosures | 43 |
| Imprint | 52 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| Declaration by the | |
| executive directors | 42 |
| EPRA disclosures | 43 |
| Imprint | 52 |
The EPRA vacancy rate is the ratio of market rent for vacant space to the market rent for the total space in the portfolio (as at the balance sheet date).
| EPRA VACANCY RATE* | ||||
|---|---|---|---|---|
| in EUR thousand | ||||
| 31/12/2020 | 30/06/2021 | Change | ||
| Estimated market rent vacancy | 6,609,917 | 9,608,459 | 2,998,542 | |
| Estimated market rent total portfolio | 95,769,298 | 94,055,174 | – 1,714,124 | in % 45.4 – 1.8 |
*Excl. real estate held for sale
The rise in the EPRA vacancy rate as at 30 June 2021 compared to 31 December 2020 is mainly due to a retail property in Trier being temporarily vacant for the first time.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 2 |
| DEMIRE AT A GLANCE | 4 |
| INTERIM STATEMENT | 11 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 23 |
| FURTHER INFORMATION | 41 |
| Declaration by the | |
| executive directors | 42 |
| EPRA disclosures | 43 |
| Imprint | 52 |
In a comparison of the periods, the organic component of the change in rental income from letting activities becomes particularly clear. Changes from portfolio additions and disposals are therefore not included. In a comparison of the periods, the organic component of the change in rental income from letting activities becomes particularly clear.
| 30/06/2021 | Total portfolio | Like-for-like portfolio | |||||
|---|---|---|---|---|---|---|---|
| in EUR thousand | 30/06/2020 | 30/06/2021 | in EUR million | in % | |||
| Annualised | Annualised | Annualised | L-f-L | L-f-L | |||
| Market value | contractual rents | Market value | contractual rents | contractual rents | development | development | |
| Office | 902.8 | 51.8 | 902.8 | 51.0 | 51.8 | 0.8 | 1.5 |
| Retail | 360.7 | 23.2 | 360.7 | 25.4 | 23.2 | – 2.2 | – 8.5 |
| Logistics&Others | 141.4 | 8.1 | 141.4 | 8.4 | 8.1 | – 0.3 | – 3.6 |
| Total | 1,404.9 | 83.1 | 1,404.9 | 84.8 | 83.1 | –1.7 | –2.0 |
| 31/12/2020 | Total portfolio | Like-for-like portfolio | |||||
|---|---|---|---|---|---|---|---|
| in EUR thousand | 31/12/2019 | 31/12/2020 | in EUR million | in % | |||
| Market value | Annualised contractual rents |
Market value | Annualised contractual rents |
Annualised contractual rents |
L-f-L development |
L-f-L development |
|
| Office | 968.3 | 54.8 | 968.3 | 55.9 | 54.8 | – 1.1 | 1.9 |
| Retail | 376.9 | 25.4 | 302.7 | 19.9 | 20.0 | 0.2 | 0.8 |
| Logistics&Others | 158.3 | 8.7 | 110.3 | 6.4 | 6.4 | 0.5 | 7.5 |
| Total | 1,503.5 | 89.0 | 1,381.3 | 82.2 | 82.2 | 0.4 | –0.5 |
| IMPRINT |
|---|
| COMPANY CONTACT |
| FOREWORD BY THE | COMPANY CONTACT | |
|---|---|---|
| EXECUTIVE BOARD | 2 | DEMIRE Deutsche Mittelstand Real Estate AG |
| Robert-Bosch-Straße 11 | ||
| DEMIRE AT A GLANCE | 4 | 63225 Langen |
| Germany | ||
| INTERIM STATEMENT | 11 | T + 49 (0) 6103 – 372 49 – 0 |
| F + 49 (0) 6103 – 372 49 – 11 |
||
| INTERIM CONSOLIDATED | [email protected] | |
| FINANCIAL STATEMENTS | 23 | www.demire.ag |
FURTHER INFORMATION 41 Declaration by the executive directors 42 EPRA disclosures 43
Imprint 52
The Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG
Berichtsmanufaktur, Hamburg
Publication date 12 August 2021
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