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DEMIRE Deutsche Mittelstand Real Estate AG
Quarterly Report • May 18, 2021
96_10-q_2021-05-18_2b01cfae-6acf-4768-9fac-146c8bb067cd.pdf
Quarterly Report
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1 JANUARY INTERIM STATEMENT – 31 MARCH 2021
HIGHLIGHTS Q1 2021
KEY EARNINGS FIGURES
10.8
EUR million FFO I (after taxes, before minority interests), compared to EUR 9.6 million in Q1 2020
21.1
EUR million RENTAL INCOME, compared to EUR 22.0 million in Q1 2020
KEY FINANCIAL INDICATORS PORTFOLIO DEVELOPMENT
49.5
per cent NET LOAN-TO-VALUE RATIO (NET LTV), compared to 50.0% at year-end 2020
1.69
in per cent p. a. AVERAGE NOMINAL INTEREST COSTS – declined 2 basis points compared to year-end 2020
6.01
in EUR NET ASSET VALUE (NAV PER SHARE, BASIC), compared to EUR 5.91 at year-end 2020
1.4
in EUR billion PORTFOLIO VALUE UNCHANGED compared to year-end 2020
85.4
EUR million ANNUALISED RENTAL INCOME, compared to EUR 85.6 million at year-end 2020
23,265
in m2 LETTING PERFORMANCE (previous year: 47,200m²) – above long-term average of 80,000 m² on pro rata basis
4.8
in years WALT, on a par with year-end 2020
7.8
per cent EPRA VACANCY RATE*, compared to 6.9% at year-end 2020
* Excluding assets held for sale
CONTENTS
Key for navigating the interim statement:
Reference to table of contents
Reference to another page in the interim statement
Reference to websites
4 FOREWORD BY THE EXECUTIVE BOARD
7 INTERIM GROUP MANAGEMENT REPORT
17 INTERIM CONSOLIDATED FINANCIAL STATEMENTS
- 18 Consolidated statement of income
- 19 Consolidated statement of comprehensive income
- 20 Consolidated balance sheet
- 22 Consolidated statement of cash flows
- 24 Consolidated statement of changes in equity
- 26 Notes to the consolidated financial statements
- 36 IMPRINT
3
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
IMPRINT 36
FOREWORD BY THE EXECUTIVE BOARD
Dear Shareholders, Ladies and Gentlemen,
DEMIRE reached new heights last year despite the economic uncertainty of 2020, and has made a solid start to the current financial year. As expected, the company performed well in the first three months of 2021 in spite of the ongoing uncertainty and restrictions related to the coronavirus pandemic. The foundation for our consistent performance remains our diverse portfolio and active asset management approach. Here is an overview of our key figures:
- Rental income came to EUR 21.1 million (previous year: EUR 22.0 million)
- due to property sales. This was in line with our expectations.
- Funds from operations (FFO I, after taxes, before minorities) increased from EUR 9.6 million to EUR 10.8 million.
- Letting performance made a strong start to the year and exceeded 23,000 m².
- The EPRA vacancy rate (excluding assets held for sale) remained satisfactory at 7.8%; WALT remained stable at 4.8 years.
- Around 5.5% of rents are currently outstanding since the beginning of the pandemic as a result of coronavirus.
- NAV per share (basic) came to EUR 6.01, a 10-cent increase on the end of the year 2020.
- The net loan-to-value ratio (LTV) was 49.5%, 0.5 percentage points lower than the figure as at the reporting date. Liquidity came to EUR 155.2 million, giving DEMIRE a significant amount of headroom.
Despite our pleasing performance in the first quarter of 2021, markets remain uncertain and it is still unclear precisely what the ramifications of the pandemic will be for the real estate sector. However, we remain optimistic due to the vaccination drive and the gradual improvement in infection rates. Property prices remain robust.
DEMIRE is well-positioned for the future, even if lockdown restrictions are extended. This was demonstrated by the virtual Annual General Meeting which DEMIRE held at the end of April. The shareholders confirmed the strategy of the Executive Board and approved a dividend of EUR 0.62 by an overwhelming majority. DEMIRE will continue its successful long-term strategy. We remain 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.
It was our effective growth strategy that put us in a position to sign an agreement to purchase the attractive Cielo office property in Frankfurt. We expect the sale to be finalised at some point towards the middle of the year. Thanks to successful repositioning, we sold a property in Ansbach for well over its market value, with completion due in June.
We are cautiously optimistic about the coming months in light of the acquisition of Cielo, our solid performance in the first quarter and positive events after the reporting date. As before, DEMIRE's declared objective is to increase the value of the portfolio this year through active portfolio management.
Frankfurt am Main, 12 May 2021
Ingo Hartlief (FRICS) Tim Brückner (CEO) (CFO)
DEMIRE AT A GLANCE
Key Group Figures
| DEMIRE AT A GLANCE | 5 | |
|---|---|---|
| Key Group Figures | 5 | |
| Portfolio Highlights | 6 | |
| INTERIM GROUP | ||
| MANAGEMENT REPORT | 7 | |
| INTERIM CONSOLIDATED | ||
| FINANCIAL STATEMENTS | 17 | |
| IMPRINT | 36 | |
| in EUR thousand | 01/01/2020 – 31/03/2020 |
01/01/2021 – 31/03/2021 |
|---|---|---|
| KEY EARNINGS FIGURES | ||
| Rental income | 22,047 | 21,148 |
| Profit/loss from the rental of real estate | 17,298 | 17,729 |
| EBIT | 12,871 | 16,577 |
| Financial result | – 4,891 | – 5,266 |
| EBT | 7,980 | 11,311 |
| Net profit/loss for the period | 6,844 | 9,409 |
| Net profit/loss for the period attributable to parent company shareholders |
6,169 | 8,736 |
| Net profit/loss for the period per share (basic/diluted) (in EUR) |
0.06/0.06 | 0.08/0.08 |
| FFO I (after taxes, before minority interests) | 9,627 | 10,778 |
| FFO I per share (basic/diluted) (in EUR) | 0.09/0.09 | 0.10/0.10 |
| in EUR thousands | 31/12/2020 | 31/03/2021 | |
|---|---|---|---|
| KEY BALANCE SHEET FIGURES | |||
| Total assets | 1,625,311 | 1,685,495 | |
| Investment property | 1,426,291 | 1,413,155 | |
| Non-current assets held for sale | 31,000 | 49,000 | |
| Total real estate portfolio | 1,457,291 | 1,462,155 | |
| Financial liabilities | 829,712 | 878,460 | |
| Cash and cash equivalents | 101,620 | 155,243 | |
| Net financial liabilities | 728,092 | 723,217 | |
| Net loan-to-value (net LTV) (in %) | 50.0 | 49.5 | |
| Equity according to Group balance sheet | 598,041 | 606,263 | |
| Equity ratio (in %) | 36.8 | 36.0 | |
| Net asset value (NAV) in the reporting period | 557,956 | 565,532 | |
| NAV (basic/diluted) | 625,340/625,850 | 634,321/634,831 | |
| Number of shares in thousands (basic/diluted) | 105,772/106,282 | 105,513/106,023 | |
| NAV per share (basic/diluted) (in EUR) | 5.91/5.89 | 6.01/5.99 |
| 31/12/2020 | 31/03/2021 | |
|---|---|---|
| KEY PORTFOLIO INDICATORS | ||
| Properties (number of) | 75 | 75 |
| Market value (in EUR million) | 1,441.5 | 1,441.5 |
| Contractual rents (in EUR million) | 85.6 | 85.4 |
| Rental yield (in %) | 5.9 | 5.9 |
| EPRA vacancy rate* (in %) | 6.9 | 7.8 |
| WALT (in years) | 4.8 | 4.8 |
* Excluding assets held for sale
| FOREWORD BY THE | ||
|---|---|---|
| EXECUTIVE BOARD | 4 | |
| DEMIRE AT A GLANCE | 5 | |
| Key Group Figures | 5 | |
| Portfolio Highlights | 6 | 1.4 |
| INTERIM GROUP | ||
| MANAGEMENT REPORT | 7 | |
| INTERIM CONSOLIDATED | (in EUR billion) | |
| FINANCIAL STATEMENTS | 17 | |
| IMPRINT | 36 | 75 |
Portfolio Highlights
for the reporting period from 1 January to 31 March 2021
Assets at 59 LOCATIONS in 15 federal states 7.8 EPRA VACANCY RATE* across the portfolio (in %) 1.4 MARKET VALUE OF THE REAL ESTATE PORTFOLIO (in EUR billion) 8.00 AVERAGE RENT across the portfolio (in EUR/m²) 85.4 ANNUALISED CONTRACTUAL RENTS (in EUR million) 5.9 GROSS RENTAL YIELD (in %) 64.8 4.8
OFFICE SHARE of the total portfolio by market value (in %)
AVERAGE REMAINING TERM of lease agreements (WALT) (in %)
* Excluding assets held for sale
6
INTERIM GROUP MANAGEMENT REPORT
for the reporting period from 1 January to 31 March 2021
Overview
Business performance
DEMIRE performed well in the first three months of 2021. Despite the coronavirus pandemic, all of the Group's key indicators remained consistent year-on-year or saw a slight increase in line with the plans and expectations of the Executive Board. The effects of the pandemic on DEMIRE's business remain tolerable and manageable. The consistent implementation of the "REALize Potential" strategy, earnings contributed by acquisitions and the sale of a number of small non-strategic properties in the most recent financial year provide a stable foundation for solid growth in 2021 and beyond. These measures will also help to effectively limit the negative impact of the pandemic on DEMIRE's business in 2021.
- DEMIRE's key indicators improved overall in the first three months of 2021:
- Rental income totalled EUR 21.1 million (previous year: EUR 22.0 million) in line with expectations.
- Funds from operations (FFO I, after taxes, before minority interests) increased 12.0% to EUR 10.8 million.
- Letting performance was strong once again in the first three months of 2021 and exceeded 23,000 m².
- The EPRA vacancy rate (excluding assets held for sale) remained satisfactory at 7.8%; WALT remained stable at 4.8 years.
- NAV per share (basic) went up to EUR 6.01, an improvement of 10 cents compared to the end of 2020.
- Net loan-to-value (LTV) fell to 49.5%. Liquidity as at the reporting date was comfortable at EUR 155.2 million.
- Average nominal financing costs saw another slight decrease to 1.69%, with no significant maturities arising before 2024.
Impact of COVID-19 on business development
DEMIRE continued to perform well in the first quarter, despite a new coronavirus lockdown coming into effect in December 2020. As before, this was due to the diversified portfolio and other factors.
DEMIRE is continuing the programme of measures adopted by the Executive Board back in March 2020 immediately after the beginning of the pandemic, including measures to improve efficiency and safeguard liquidity. Liquidity as at the reporting date was comfortable at EUR 155.2 million. DEMIRE currently has enough liquidity to cover both the dividend payment in May 2021 and the purchase of the Cielo office property. DEMIRE is well-positioned to take advantage of any growth opportunities that arise in this special situation and to further increase the value of the portfolio through active portfolio management.
Around EUR 1.8 million in rent is outstanding for the first three months of 2021. This is equivalent to 2.2% of the annual rents expected for 2021 and 8.5% of the rent expected for the first quarter of 2021. Around EUR 2.2 million in rent is outstanding for the first four months of 2021, i.e. until the end of April. This is equivalent to 2.7% of the annual rents expected for 2021 and 7.9% of the rent expected for the first four months of 2021.
EUR 3.4 million or 4.6% of rents for 2020 were still outstanding as at the reporting date. EUR 0.6 million of the rents outstanding for 2020 have been paid so far in 2021. As before, all unpaid rents are recognised as a receivable.
INTERIM GROUP
INTERIM CONSOLIDATED FINANCIAL STATEMENTS 17
MANAGEMENT REPORT 7 Overview 7 Economic report 9 Opportunities and risks 16 Subsequent events 16
IMPRINT 36
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| Overview | 7 |
| Economic report | 9 |
| Opportunities and risks | 16 |
| Subsequent events | 16 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| IMPRINT | 36 |
Performance in line with forecast for 2021 financial year
Based on DEMIRE's performance in the first quarter of 2021 and the expectation that the lockdown in Germany will come to an end in summer as more of the population becomes vaccinated, the Executive Board remains committed to its forecast that rental income will be between EUR 80 million and EUR 82 million (2020: EUR 87.5 million) in the 2021 financial year. The Executive Board expects FFO I (after taxes, before minority interests) of between EUR 34.5 million and EUR 36.5 million (2020: EUR 39.2 million).
Real estate portfolio
There were no changes in the portfolio as at the reporting date 31 March 2021 compared to the end of 2020. The portfolio consists of 75 commercial properties with lettable floor space of around 1.0 million m² and a total market value of around EUR 1.4 billion. This includes five properties for which sales contracts have been concluded. Ownership of these properties will be transferred in 2021. An external property valuation of the portfolio was last performed on 31 December 2020.
The EPRA vacancy rate (excluding assets held for sale) of the portfolio as at 31 March 2021 improved to 7.8% compared to 6.9% as at 31 December 2020. The WALT amounted to 4.8 years as at 31 March 2021 and remained constant compared to the end of 2020. In the reporting period, DEMIRE's letting performance reached roughly 23,000 m². New lettings contributed around 44.0% of letting performance and follow-on lettings made up around 56.0%.
Active portfolio management and the successful repositioning of a number of properties reduced DEMIRE's dependency on GMG/Deutsche Telekom and diversified its tenant base. GMG now accounts for 14.2% of contractual rents, less than half the 30.4% as at the end of 2018.
TOP 10 TENANTS (AS AT 31 MARCH 2021)
| Contractual | ||||
|---|---|---|---|---|
| No. | Tenant | Type of use | rents p.a.* in EUR million |
as % of total |
| 1 | GMG/Dt. Telekom | Office | 12.1 | 14.2 |
| 2 | Imotex | Retail | 5.4 | 6.3 |
| GALERIA Karstadt | ||||
| 3 | Kaufhof | Retail | 3.7 | 4.3 |
| Bima Bundesanstalt für Immobilien |
||||
| 4 | aufgaben | Office | 2.0 | 2.4 |
| 5 | Momox GmbH | Logistics | 1.8 | 2.2 |
| 6 | Roomers | Hotel | 1.8 | 2.2 |
| 7 | Sparkasse Südholstein |
Office | 1.7 | 2.0 |
| 8 | ThyssenKrupp | Office | 1.7 | 2.0 |
| 9 | comdirect bank AG | Office | 1.2 | 1.4 |
| 10 | Barmer | Office | 1.2 | 1.3 |
| Total | 32.8 | 38.4 | ||
| Other | 52.6 | 61.6 | ||
| Total | 85.4 | 100.0 |
*Based on annualised contractual rents, excluding ancillary costs
FOREWORD BY THE EXECUTIVE BOARD 4 DEMIRE AT A GLANCE 5 INTERIM GROUP MANAGEMENT REPORT 7 Overview 7 Economic report 9 Opportunities and risks 16 Subsequent events 16 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 17 IMPRINT 36
PORTFOLIO BY ASSET CATEGORY
| Number of properties |
Market value in EUR million |
Share by market 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 Retail |
52 17 |
933.8 360.7 |
64.8 25.0 |
583.5 220.1 |
1.600.2 1.639.2 |
53.7 23.2 |
8.77 9.06 |
5.7 6.4 |
10.0 2.3 |
4.0 6.2 |
| Logistics&Others | 6 | 147.0 | 10.2 | 185.6 | 792.0 | 8.6 | 4.30 | 5.9 | 9.8 | 6.3 |
| Total 31/03/2021 | 75 | 1,441.5 | 100.0 | 989.2 | 1,457.2 | 85.4 | 8.00 | 5.9 | 7.8 | 4.8 |
| 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) | – | – | – | – | – | – 0.2% | – | – | + 0.9 PP | – |
* Excluding assets held for sale
Economic report
Net assets, financial position and results of operations
RESULTS OF OPERATIONS
In the first three months of 2021, the DEMIRE Group generated rental income totalling EUR 21.1 million (previous year: EUR 22.0 million). This 4.1% decrease year-onyear was due to the sale of properties. Profit/loss from the rental of real estate went up 2.5% to EUR 17.7 million (previous year: EUR 17.3 million). This was due to a better net balance of utility and service charges. Property sales had an offsetting effect. No sales proceeds were recorded (previous year: EUR 5.7 million). Profit/loss from the sale of real estate came to EUR – 0.1 million, primarily due to legal and consulting fees related to the sale of a property in Ansbach which has not been finalised (previous year: EUR – 1.0 million). This property is being sold for a premium on the carrying amount as at 31 December 2020. The carrying amount is included in profit/loss from fair value adjustments in investment properties, which came to EUR 1.8 million (previous year: EUR 0.0 million).
Impairments of receivables fell to EUR –0.4 million (previous year: EUR –0.6 million), and were largely related to two tenants of hotels that are either insolvent or threatened with insolvency as a result of the pandemic. General administrative expenses in the first three months of 2021 declined to EUR 2.6 million (previous year: EUR 2.8 million). Earnings before interest and taxes (EBIT) amounted to EUR 16.6 million, a 28.8% increase on the previous year's figure of EUR 12.9 million.
The refinancing activities in 2019 and 2020 continued to have a positive impact on the financial result in the first quarter of 2021. Minority interests had a negative effect. The financial result declined to EUR – 5.3 million in the first three months of 2021 compared to EUR – 4.9 million in the same period of the previous year. Financial expenses fell from EUR – 4.7 million in the first three months of 2020 to EUR – 4.3 million in the reporting period, a downturn of 7.4%. The profit attributable to minority interests went up to EUR – 1.1 million (previous year: EUR – 0.4 million). The average nominal interest rate on financial debt as at 31 March 2021 improved by 2 basis points compared to the end of 2020 to a nominal 1.69% p.a.
9
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| Overview | 7 |
| Economic report | 9 |
| Opportunities and risks | 16 |
| Subsequent events | 16 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| IMPRINT | 36 |
Earnings before taxes (EBT) went up to EUR 11.3 million in the reporting period, compared to EUR 8.0 million in the previous year. The profit for the period for the first three months of 2021 was EUR 9.4 million, compared to EUR 6.8 million in the same period of the previous year.
CONSOLIDATED STATEMENT OF INCOME
| (Selected information in EUR thousand) | 01/01/2020 – 31/03/2020 |
01/01/2021 – 31/03/2021 |
Change | in % |
|---|---|---|---|---|
| Rental income | 22,047 | 21,148 | – 899 | – 4.1 |
| Income from utility and service charges | 8,458 | 7,572 | – 886 | – 10.5 |
| Operating expenses to generate rental income | – 13,207 | – 10,991 | 2,216 | – 16.8 |
| Profit/loss from the rental of real estate | 17,298 | 17,729 | 431 | 2.5 |
| Income from the sale of real estate and real estate companies | 5,658 | 0 | – 5,658 | – |
| Expenses related to the sale of real estate and real estate companies | – 6,691 | – 83 | 6,608 | – 98.8 |
| Profit/loss from the sale of real estate and real estate companies | –1,033 | –83 | 950 | –92.0 |
| Profit/loss from fair value adjustments in investment properties | 0 | 1,845 | 1,845 | – |
| Impairment of receivables | – 610 | – 388 | 222 | – 36.4 |
| Other operating income | 302 | 177 | – 125 | – 41.4 |
| General administrative expenses | – 2,784 | – 2,562 | 222 | – 8.0 |
| Other operating expenses | – 302 | – 141 | 161 | – 53.3 |
| Earnings before interest and taxes | 12,871 | 16,577 | 3,706 | 28.8 |
| Financial result | – 4,891 | – 5,266 | – 375 | 7.7 |
| Profit/loss before taxes | 7,980 | 11,311 | 3,331 | 41.7 |
| Current incomes taxes | – 795 | – 496 | 299 | – 37.6 |
| Deferred taxes | – 341 | – 1,406 | – 1,065 | > 100 |
| Net profit/loss for the period | 6,844 | 9,409 | 2,565 | 37.5 |
| Thereof attributable to parent company shareholders | 6,169 | 8,736 | 2,567 | 41.6 |
| Basic earnings per share (EUR) | 0.06 | 0.08 | – 0.03 | 45.6 |
| Weighted average number of shares outstanding (in thousands) | 107,777 | 105,599 | – 2,179 | – 2.0 |
| Diluted earnings per share (EUR) | 0.06 | 0.08 | 0.02 | 41.4 |
| Weighted average number of shares outstanding, diluted (in thousands) | 108,287 | 106,109 | – 2,179 | – 2.0 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| Overview | 7 |
| Economic report | 9 |
| Opportunities and risks | 16 |
| Subsequent events | 16 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| IMPRINT | 36 |
NET ASSETS
As at 31 March 2021, total assets went up by EUR 60.2 million compared to the end of 2020 to approximately EUR 1,685.5 million. This was mainly driven by a EUR 53.6 million increase in cash and cash equivalents due to a new loan. The value of investment property amounted to EUR 1,413.2 million as at 31 March, representing an increase of EUR 13.1 million compared to the value as at 31 December 2020. This corresponds to the carrying amount of a property which was transferred to noncurrent assets held for sale following the conclusion of a sales contract. The capitalisation of capex totalling EUR 3.0 million had an offsetting effect. Non-current assets held for sale then went up from EUR 31.0 million as at 31 December 2020 to EUR 49.0 million due to the addition of a EUR 18.0 million sales price agreed in a signed sales contract.
Group equity as at 31 March 2021 totalled EUR 606.3 million. This was higher than the EUR 589.0 million figure as at 31 December 2020 due to the profit for the period. The equity ratio improved to 36.0% (31 December 2020: 36.8%). It should be noted that non-controlling minority interests of around EUR 80.0 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 686.2 million (31 December 2020: EUR 676.9 million).
Total financial liabilities as at 31 March 2021 amounted to EUR 878.5 million. The increase of EUR 48.7 million compared to 31 December 2020 was caused by a new mortgage loan. Planned repayments had an offsetting effect.
FOREWORD BY THE EXECUTIVE BOARD 4 DEMIRE AT A GLANCE 5 INTERIM GROUP MANAGEMENT REPORT 7 Overview 7 Economic report 9 Opportunities and risks 16 Subsequent events 16 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 17
| (selected information in EUR thousand) | 31/12/2020 | 31/03/2021 | Change | in % |
|---|---|---|---|---|
| ASSETS | ||||
| Total non-current assets | 1,451,125 | 1,446,371 | – 4,754 | – 0.3 |
| Total current assets | 143,186 | 190,124 | 46,938 | 32.8 |
| Assets held for sale | 31,000 | 49,000 | 18,000 | 58.1 |
| Total assets | 1,625,311 | 1,685,495 | 60,184 | 3.7 |
IMPRINT 36
CONSOLIDATED BALANCE SHEET – EQUITY AND LIABILITIES
CONSOLIDATED BALANCE SHEET – ASSETS
| (selected information in EUR thousand) | 31/12/2020 | 31/03/2021 | Change | in % |
|---|---|---|---|---|
| EQUITY AND LIABILITIES | ||||
| EQUITY | ||||
| Equity attributable to parent company shareholders | 557,956 | 565,533 | 7,577 | 1.4 |
| Non-controlling interests | 40,085 | 40,730 | 645 | 1.6 |
| Total equity | 598,041 | 606,263 | 8,222 | 1.4 |
| LIABILITIES | ||||
| Total non-current liabilities | 987,235 | 1,032,568 | 45,333 | 4.6 |
| Total current liabilities | 40,035 | 46,664 | 6,629 | 16.6 |
| Total liabilities | 1,027,270 | 1,079,232 | 51,962 | 5.1 |
| Total equity and liabilities | 1,625,311 | 1,685,495 | 60,184 | 3.7 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| Overview | 7 |
| Economic report | 9 |
| Opportunities and risks | 16 |
| Subsequent events | 16 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| IMPRINT | 36 |
FINANCIAL POSITION
Cash flow from operating activities came to EUR 21.9 million (previous year: EUR 13.0 million) in the first three months of 2020, of which EUR 11.5 million is attributable to a settlement repaid by the bank during the reporting period.
Cash flow from investing activities in the reporting period amounted to EUR – 11.4 million, compared to EUR – 6.4 million in the same prior-year period. This includes a EUR 7.7 million advance payment for the Cielo office properties. In the same prior-year period, one property was purchased, and three properties were sold. Cash flow from financing activities factors came to EUR 43.1 million, compared to EUR – 23.2 million in the same prior-year period. Mortgage loans totalling EUR 47.7 million were paid out in the reporting period. Repayments came to EUR 2.0 million. Treasury shares were repurchased for EUR 1.2 million. A loan of
Cash and cash equivalents amounted to EUR 155.2 million on 31 March 2021
EUR 21.9 million was repaid as planned in the previous year.
CONSOLIDATED STATEMENT OF CASH FLOWS
(31 December 2020: EUR 102.1 million).
| 01/01/2020 | 01/01/2021 | ||
|---|---|---|---|
| (selected information in EUR thousand) | – 31/03/2020 | – 31/03/2021 |
Change |
| Cash flow from operating activities | 12,985 | 21,933 | 8,948 |
| Cash flow from investing activities | – 6,410 | – 11,440 | – 5,030 |
| Cash flow from financing activities | – 23,234 | 43,129 | 66,363 |
| Net change in cash and cash equivalents | –16,659 | 53,622 | 70,281 |
| Cash and cash equivalents | |||
| at the end of the period | 85,479 | 155,243 | 69,764 |
Funds From Operations (FFO)
Funds from Operations I (after taxes, before minority interests), the key operating performance indicator, increased by 12.0% to EUR 10.8 million in the first three months of 2021, compared to EUR 9.6 million in the same period of the prior year. On a diluted basis, this corresponds to an FFO I per share of EUR 0.10, compared to EUR 0.09 in the same period of the prior year.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| Overview | 7 |
| Economic report | 9 |
| Opportunities and risks | 16 |
| Subsequent events | 16 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| IMPRINT | 36 |
| (selected information in EUR thousand) | 01/01/2020 – 31/03/2020 |
01/01/2021 – 31/03/2021 |
Change | in % |
|---|---|---|---|---|
| Profit/loss before taxes | 7,981 | 11,311 | 3,330 | 41.7 |
| Interests of minority shareholders | 413 | 1,137 | 724 | > 100 |
| Earnings before taxes (EBT) | 8,394 | 12,448 | 4,054 | 48.3 |
| ± Profit/loss from the sale of real estate | 1,033 | 83 | – 950 | – 92.0 |
| ± Profit/loss from fair value adjustment in investment properties | 0 | – 1,845 | – 1,845 | – |
| ± Other adjustments* | 996 | 490 | – 506 | – 50.8 |
| FFO I before taxes | 10,422 | 11,175 | 753 | 7.2 |
| ± (Current) income taxes | – 795 | – 398 | 397 | – 50.0 |
| FFO I after taxes | 9,627 | 10,778 | 1,151 | 12.0 |
| Thereof attributable to parent company shareholders | 8,537 | 9,058 | 521 | 6.1 |
| Thereof attributable to non-controlling interests | 1,090 | 1,720 | 630 | 57.8 |
| ± Profit/loss from the sale of real estate companies/real estate (after taxes) | – 1,033 | – 83 | 950 | – 92.0 |
| FFO II after taxes | 7,800 | 10,695 | 2,895 | 37.1 |
| Thereof attributable to parent company shareholders | 6,314 | 8,971 | 2,657 | 42.1 |
| Thereof attributable to non-controlling interests | 1,486 | 1,724 | 238 | 16.1 |
| FFO I after taxes and minorities | ||||
| Basic earnings per share (EUR) | 0.08 | 0.09 | 0.01 | 8.3 |
| Weighted average number of shares outstanding (in thousands) | 107,777 | 105,599 | – 2,178 | – 2.0 |
| Diluted earnings per share (EUR) | 0.08 | 0.09 | 0.01 | 8.3 |
| Weighted average number of shares outstanding, diluted (in thousands) | 108,287 | 106,109 | – 2,178 | – 2.0 |
| FFO II after taxes and minority interests | ||||
| Basic earnings per share (EUR) | 0.06 | 0.08 | 0.02 | 33.3 |
| Weighted average number of shares outstanding (in thousands) | 107,777 | 105,599 | – 2,178 | – 2.0 |
| Diluted earnings per share (EUR) | 0.06 | 0.08 | 0.02 | 33.3 |
| Weighted average number of shares outstanding, diluted (in thousands) | 108,287 | 106,109 | – 2,178 | – 2.0 |
*Other adjustments include:
— One-time refinancing costs and effective interest payments (EUR 0.6 million, previous year: EUR 0.7 million)
— One-time transaction, legal and consulting fees (EUR 0.1 million, previous year: EUR 0.2 million)
— One-time administrative costs (EUR – 0.2 million, previous year: EUR 0.2 million)
— Non-period expenses/income (EUR 0.0 million, previous year: EUR – 0.1 million)
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| Overview | 7 |
| Economic report | 9 |
| Opportunities and risks | 16 |
| Subsequent events | 16 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| IMPRINT | 36 |
Net Asset Value (NAV)
The basic net asset value went up from EUR 558.0 million as at 31 December 2020 to EUR 565.5 million as at 31 March 2021, largely due to the positive result for the period. On a diluted basis, basic NAV amounted to EUR 6.01 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.
NET ASSET VALUE (NAV)
| in EUR thousand | 31/12/2020 | 31.03.2021 | Change | in % |
|---|---|---|---|---|
| Net asset value (NAV) | 557,956 | 565,532 | 7,576 | 1.4 |
| Deferred taxes | 72,122 | 73,527 | 1,406 | 1.9 |
| Goodwill resulting from deferred taxes | – 4,738 | – 4,738 | 0 | 0.0 |
| NAV (basic) | 625,340 | 634,321 | 8,982 | 1.4 |
| Number of shares outstanding (basic) (in thousands) | 105,772 | 105,513 | – 260 | – 0.2 |
| NAV per share (basic) (EUR) | 5.91 | 6.01 | 0.10 | 1.7 |
| Effect of the conversion of convertible bonds and other equity instruments | 510 | 510 | 0.000 | 0.0 |
| NAV (diluted) | 625,850 | 634,831 | 8,982 | 1.4 |
| Number of shares outstanding (diluted) (in thousands) | 106,282 | 106,023 | – 260 | – 0.2 |
| NAV per share (diluted) (EUR) | 5.89 | 5.99 | 0.10 | 1.7 |
NET LOAN-TO-VALUE RATIO
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 fell to 49.5% as at 31 March 2021 from 50.0% at the end of 2020.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| Overview | 7 |
| Economic report | 9 |
| Opportunities and risks | 16 |
| Subsequent events | 16 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| IMPRINT | 36 |
NET-LOAN-TO-VALUE (NET LTV)
| Net LTV in % | 50.0 | 49.5 |
|---|---|---|
| Fair value of investment properties and non-current assets held for sale |
1,457,291 | 1,462,155 |
| Net financial debt | 728,092 | 723,217 |
| Cash and cash equivalents | 101,620 | 155,243 |
| Financial liabilities | 829,712 | 878,460 |
| in EUR thousand | 31/12/2020 | 31/03/2021 |
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 31 MARCH 2021 | |
|---|---|
| NET LTV | SECURED LTV | ICR | |
|---|---|---|---|
| Covenant | max. 60% | max. 40% | min. 1.75* |
| Value | 48.7% | 8.2% | 3.89 |
*as from 31 March 2021: min. 2.00
As at 31 March 2021, DEMIRE had complied with all covenants of 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.
Opportunities and risks
With regard to the risks of future business development, reference is made to the disclosures in the risk report 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 three months of 2021.
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.
Subsequent events
No significant events occurred after the reporting date.
Frankfurt am Main, 12 May 2021
DEMIRE Deutsche Mittelstand Real Estate AG
Ingo Hartlief (FRICS) Tim Brückner
(CEO) (CFO)
16
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
| Consolidated statement of income | 18 |
|---|---|
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
| Consolidated statement of cash flows | 22 |
| Consolidated statement of | |
| changes in equity | 24 |
| Notes to the consolidated | |
| financial statements | 26 |
CONSOLIDATED STATEMENT OF INCOME
| in EUR thousands | NOTE | 01/01/2020 – 31/03/2020 |
01/01/2021 – 31/03/2021 |
|---|---|---|---|
| Rental income | 22,047 | ||
| Income from utility and service charges | 8,458 | ||
| Operating expenses to generate rental income | – 13,207 | ||
| Profit/loss from the rental of real estate | 17,298 | ||
| Income from the sale of real estate and real estate companies | 5,658 | ||
| Expenses relating to the sale of real estate and real estate companies | – 6,691 | ||
| Profit/loss from the sale of real estate and real estate companies | –1,033 | ||
| Profit/loss from fair value adjustments in investment properties | 0 | ||
| Impairment of receivables | – 610 | ||
| Other operating income | 302 | ||
| General and administrative expenses | – 2,784 | ||
| Other operating expenses | – 302 | ||
| Earnings before interest and taxes | D 1 | 12,872 | |
| Financial income | 208 | ||
| Financial expenses | – 4,686 | ||
| Interests of minority shareholders | – 413 | ||
| Financial result | D 2 | –4,891 | |
| Earnings before taxes | 7,981 | ||
| Current income taxes | – 795 | ||
| Deferred taxes | – 341 | ||
| Net profit/loss for the period | 6,844 | ||
| Thereof attributable to: | |||
| Non-controlling interests | 676 | ||
| Parent company shareholders | 6,169 | ||
| Basic/diluted earnings per share | D 3 | 0.06 | |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| Consolidated statement of | |
| income | 18 |
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
| Consolidated statement of | |
| cash flows | 22 |
| Consolidated statement of | |
| changes in equity | 24 |
| Notes to the consolidated | |
| financial statements | 26 |
| IMPRINT | 36 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| in EUR thousands | 01/01/2020 – 31/03/2020 |
01/01/2021 – 31/03/2021 |
|---|---|---|
| Net profit/loss for the period | 6,844 | 9,409 |
| Other comprehensive income | 0 | 0 |
| Total comprehensive income | 6,844 | 9,409 |
| Thereof attributable to: | ||
| Non-controlling interests | 676 | 673 |
| Parent company shareholders | 6,169 | 8,736 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| Consolidated statement of | |
| income | 18 |
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
| Consolidated statement of | |
| cash flows | 22 |
| Consolidated statement of | |
| changes in equity | 24 |
| Notes to the consolidated | |
| financial statements | 26 |
| IMPRINT | 36 |
CONSOLIDATED BALANCE SHEET
for the reporting period from 1 January to 31 March 2021
| EXECUTIVE BOARD | 4 | ||||
|---|---|---|---|---|---|
| DEMIRE AT A GLANCE | 5 | ASSETS | |||
| in EUR thousands | NOTE | 31/12/2020 | 31/03/2021 | ||
| INTERIM GROUP | |||||
| MANAGEMENT REPORT | 7 | ASSETS | |||
| Non-current assets | |||||
| INTERIM CONSOLIDATED | Intangible assets | 6,880 | 6,880 | ||
| Property, plant and equipment | 303 | 310 | |||
| FINANCIAL STATEMENTS | 17 | Investment property | E 1 | 1,426,291 | 1,413,155 |
| Consolidated statement of | Other assets | 17,651 | 26,026 | ||
| income | 18 | Total non-current assets | 1,451,125 | 1,446,371 | |
| Consolidated statement of | Current assets | ||||
| comprehensive income | 19 | Trade accounts receivable | 7,346 | 9,207 | |
| Consolidated balance sheet | 20 | Other receivables | 26,730 | 18,246 | |
| Consolidated statement of | Tax refund claims | 7,490 | 7,428 | ||
| cash flows | 22 | Cash and cash equivalents | 101,620 | 155,243 | |
| Consolidated statement of | Total current assets | 143,186 | 190,124 | ||
| changes in equity | 24 | Non-current assets held for sale | 31,000 | 49,000 | |
| Notes to the consolidated | |||||
| financial statements | 26 | ||||
| IMPRINT | 36 | ||||
TOTAL ASSETS 1,625,311 1,685,495
CONSOLIDATED BALANCE SHEET
| TOTAL LIABILITIES | 1,027,270 | 1,079,232 | |
|---|---|---|---|
| Total current liabilities | 40,035 | 46,664 | |
| Lease liabilities | 371 | ||
| Financial liabilities | E 3 | 12,370 | 18,008 |
| Tax liabilities | 4,060 | 4,591 | |
| Other liabilities | 9,558 | 12,905 | |
| Trade payables | 10,681 | 7,837 | |
| Provisions | 2,995 | 2,836 | |
| Current liabilities | |||
| Total non-current liabilities | 987,235 | 1,032,568 | |
| Other liabilities | 535 | ||
| Lease liabilities | 18,355 | 18,175 | |
| Financial liabilities | E 3 | 817,342 | 860,452 |
| Minority interests | 78,881 | 79,952 | |
| Deferred tax liabilities | 72,122 | 73,527 | |
| Non-current liabilities | |||
| LIABILITIES | |||
| TOTAL EQUITY | 598,041 | 606,263 | |
| Non-controlling interests | 40,085 | 40,730 | |
| Equity attributable to parent company shareholders | 557,956 | 565,533 | |
| Reserves | 452,184 | 460,020 | |
| Subscribed capital | 105,772 | 105,513 | |
| EQUITY | |||
| EQUITY AND LIABILITIES | |||
| in EUR thousands | NOTE | 31/12/2020 | 31/03/2021 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| Consolidated statement of | |
| income | 18 |
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
| Consolidated statement of | |
| cash flows | 22 |
| Consolidated statement of | |
| changes in equity | 24 |
| Notes to the consolidated | |
| financial statements | 26 |
| IMPRINT | 36 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| EXECUTIVE BOARD | 4 | |||
|---|---|---|---|---|
| DEMIRE AT A GLANCE | 5 | |||
| INTERIM GROUP | in EUR thousands | 01/01/2020 – 31/03/2020 |
01/01/2021 – 31/03/2021 |
|
| MANAGEMENT REPORT | 7 | Group profit/loss before taxes | 7,981 | 11,311 |
| Financial expenses | 4,686 | 4,338 | ||
| INTERIM CONSOLIDATED | Financial income | – 208 | – 209 | |
| FINANCIAL STATEMENTS | 17 | Interests of minority shareholders | 413 | 1,137 |
| Consolidated statement of | Change in trade accounts receivable | – 4,176 | – 2,249 | |
| income | 18 | Change in other receivables and other assets | – 2,551 | 8,366 |
| Consolidated statement of | Change in provisions | 59 | – 159 | |
| comprehensive income | 19 | Change in trade payables and other liabilities | 5,231 | 624 |
| Consolidated balance sheet | 20 | Profit/loss from fair value adjustments in investment properties | 0 | – 1,845 |
| Profit/loss from the sale of real estate and real estate companies | 1,033 | 83 | ||
| Consolidated statement of | Income tax payments | – 97 | – 27 | |
| cash flows | 22 | Change in reserves | 0 | 19 |
| Consolidated statement of | Depreciation and amortisation and impairment | 657 | 508 | |
| changes in equity | 24 | Other non-cash items | – 43 | 36 |
| Notes to the consolidated | Cash flow from operating activities | 12,985 | 21,933 | |
| financial statements | 26 | Payments for the acquisition of/investments in investment properties, incl. prepayments, refurbishment measures and prepayments for property, plant and equipment |
– 52,412 | – 3,641 |
| Payments for the acquisition of interests in fully consolidated companies, less net cash equivalents acquired | – 65 | 0 | ||
| IMPRINT | 36 | Payments for investments in companies accounted for using the equity method | 0 | – 7,716 |
| Proceeds from the sale of real estate | 46,067 | – 83 | ||
| Cash flow from investing activities | –6,410 | –11,440 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| in EUR thousands | 01/01/2020 – 31/03/2020 |
01/01/2021 – 31/03/2021 |
|---|---|---|
| Payments for borrowing costs | 0 | – 450 |
| Proceeds from borrowings | 0 | 47,700 |
| Interest paid on financial liabilities | – 1,301 | – 945 |
| Payments for the purchase of additional shares in a subsidiary | – 25 | – 43 |
| Payments for the redemption of financial liabilities | – 21,908 | – 1,955 |
| Buyback of treasury shares | 0 | – 1,178 |
| Cash flow from financing activities | –23,234 | 43,129 |
| Net change in cash and cash equivalents | –16,659 | 53,622 |
| Cash and cash equivalents at the start of the period | 102,139 | 101,620 |
| Cash and cash equivalents at the end of the period | 85,479 | 155,243 |
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| Consolidated statement of | |
| income | 18 |
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
| Consolidated statement of | |
| cash flows | 22 |
| Consolidated statement of | |
| changes in equity | 24 |
| Notes to the consolidated | |
| financial statements | 26 |
| IMPRINT | 36 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the reporting period from 1 January to 31 March 2021
| MANAGEMENT REPORT | 7 | |||||||
|---|---|---|---|---|---|---|---|---|
| Share capital | Reserves | |||||||
| INTERIM CONSOLIDATED | ||||||||
| FINANCIAL STATEMENTS | 17 | Retained | Equity attributable | TOTAL | ||||
| Consolidated statement of | in EUR thousands | Subscribed capital | Capital reserves | earnings incl. group profit/loss |
to parent company shareholders |
Non-controlling interests |
EQUITY | |
| income | 18 | |||||||
| Consolidated statement of | 01/01/2021 | 105,772 | 88,404 | 363,780 | 557,956 | 40,085 | 598,041 | |
| comprehensive income | 19 | Net profit/loss for the period | 0 | 0 | 8,736 | 8,736 | 673 | 9,409 |
| Consolidated balance sheet | 20 | Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 |
| Consolidated statement of | Total comprehensive income | 0 | 0 | 8,736 | 8,736 | 673 | 9,409 | |
| cash flows | 22 | Stock option programme | 0 | 0 | 0 | 0 | 0 | 0 |
| Consolidated statement of | Dividend payments/distributions | 0 | 0 | 0 | 0 | 0 | 0 | |
| changes in equity | 24 | Increase in shareholdings in subsidiaries | 0 | 0 | 0 | 0 | 0 | 0 |
| Notes to the consolidated | Acquisition of treasury shares | – 260 | – 919 | 0 | – 1,179 | 0 | – 1,179 | |
| financial statements | 26 | Other changes | 0 | 0 | 19 | 19 | – 29 | – 10 |
| 31/03/2021 | 105,513 | 87,485 | 372,535 | 565,533 | 40,730 | 606,263 | ||
IMPRINT 36
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the reporting period from 1 January to 31 March 2020
| INTERIM GROUP | ||||||||
|---|---|---|---|---|---|---|---|---|
| MANAGEMENT REPORT | 7 | |||||||
| Share capital | Reserves | |||||||
| INTERIM CONSOLIDATED | ||||||||
| FINANCIAL STATEMENTS | 17 | Retained earnings incl. group |
Equity attributable to parent company |
Non-controlling | TOTAL | |||
| Consolidated statement of | in EUR thousands | Subscribed capital | Capital reserves | profit/loss | shareholders | interests | EQUITY | |
| income | 18 | |||||||
| Consolidated statement of | 01/01/2020 | 107,777 | 129,852 | 375,722 | 613,351 | 47,431 | 660,783 | |
| comprehensive income | 19 | Net profit/loss for the period | 0 | 0 | 6,169 | 6,169 | 676 | 6,844 |
| Consolidated balance sheet | 20 | Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 |
| Consolidated statement of | Total comprehensive income | 0 | 0 | 6,169 | 6,169 | 676 | 6,844 | |
| cash flows | 22 | Stock option programme | 0 | 0 | 0 | 0 | 0 | 0 |
| Consolidated statement of | Dividend payments/distributions | 0 | 0 | 0 | 0 | 0 | 0 | |
| changes in equity | 24 | Increase in shareholdings in subsidiaries | 0 | 0 | 0 | 0 | 0 | 0 |
| Notes to the consolidated | Other changes | 0 | 0 | – 456 | – 456 | – 102 | – 558 | |
| financial statements | 26 | 31/03/2020 | 107,777 | 129,852 | 381,435 | 619,064 | 48,006 | 667,069 |
IMPRINT 36
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM CONSOLIDATED | |
|---|---|
| FINANCIAL STATEMENTS | 17 |
| Consolidated statement of | |
| income | 18 |
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
comprehensive income 19 Consolidated balance sheet 20 Consolidated statement of cash flows 22 Consolidated statement of changes in equity 24 Notes to the consolidated financial statements 26
IMPRINT 36
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the reporting period from 1 January to 31 March 2021
A. General information
1. Basis of preparation
DEMIRE Deutsche Mittelstand Real Estate AG ("DEMIRE AG") is recorded in the commercial register in Frankfurt am Main, Germany, the location of the Company's headquarters, under the number HRB 89041. The Company's registered office is located in Frankfurt am Main, Germany, and the Company's business address is Robert-Bosch-Straße 11, Langen, Germany.
The Company's shares are listed in the Prime Standard segment of the Frankfurt Stock Exchange. The subject of these condensed interim consolidated financial statements as at 31 March 2021 is DEMIRE AG and its subsidiaries ("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 either directly or indirectly held by DEMIRE (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 1 January through 31 March 2021 were prepared in accordance with the requirements of IAS 34 "Interim Financial Reporting" ("IAS 34"). This report has not been audited and, for this reason, does not contain an auditor's opinion.
The condensed interim consolidated financial statements of DEMIRE AG were prepared in accordance with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB), as applicable in the European Union (EU), pursuant to 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 and, therefore, do not contain all of the information and disclosures required for consolidated financial statements but rather concentrate on new activities, events and circumstances so as not to repeat information that has already been reported. The condensed interim consolidated financial statements of DEMIRE AG as at 31 March 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 thousands). 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 May 2021.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| Consolidated statement of | |
| income | 18 |
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
| Consolidated statement of | |
| cash flows | 22 |
| Consolidated statement of | |
| changes in equity | 24 |
| Notes to the consolidated | |
| financial statements | 26 |
| IMPRINT | 36 |
B. Scope and principles of consolidation
There were no changes to the scope of consolidation in the first quarter of 2021.
C. Accounting policies
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.
D. Notes to the consolidated statement of income
1. Earnings before interest and taxes
| in EUR thousands | 01/01/2020 – 31/03/2020 |
01/01/2021 – 31/03/2021 |
|---|---|---|
| Net rent | 22,047 | 21,148 |
| Income from utility and service charges | 8,458 | 7,572 |
| Rental revenue from real estate | 30,506 | 28,720 |
| Allocable operating expenses to generate rental income | – 9,602 | – 9,647 |
| Non-allocable operating expenses to generate rental income | – 3,605 | – 1,344 |
| Operating expenses to generate rental income | –13,207 | –10,991 |
| Profit/loss from the rental of real estate | 17,298 | 17,729 |
| FOREWORD BY THE | ||
|---|---|---|
| EXECUTIVE BOARD | 4 | |
| DEMIRE AT A GLANCE | 5 | |
| INTERIM GROUP | ||
| MANAGEMENT REPORT | 7 | |
| INTERIM CONSOLIDATED | ||
| FINANCIAL STATEMENTS | 17 | |
| Consolidated statement of | ||
| income | 18 | |
| Consolidated statement of | ||
| comprehensive income | 19 | |
| Consolidated balance sheet | 20 | |
| Consolidated statement of | ||
| cash flows | 22 | |
| Consolidated statement of | ||
| changes in equity | 24 | |
| Notes to the consolidated | ||
| financial statements | 26 | |
| IMPRINT | 36 | |
Rental revenue in the interim reporting period resulted exclusively from the rental of commercial real estate and is free from seasonal effects.
The increase in profit/loss from the rental of real estate to EUR 17,729 thousand (Q1 2020: EUR 17,298 thousand) is due to a downturn in non-allocable operating expenses to generate rental income, which more than compensated for the decline in rental revenue from real estate.
The decline in rental revenue from real estate is primarily due to the disposal of properties sold in the 2020 financial year.
Due to contractual provisions regarding rent obligations during the coronavirus lockdown, the rent obligations for one retail property tenant were reduced by EUR 258 thousand for the duration of the lockdown in the first quarter of 2021.
The downturn in operating expenses was largely driven by decreased maintenance costs totalling EUR 487 thousand (Q1 2020: EUR 1,807 thousand) and lower non-capitalised expenses for tenant improvements of EUR 52 thousand (Q1 2020: EUR 1,126 thousand).
Of the operating expenses, an amount of EUR 9,647 thousand (Q1 2020: EUR 9,602 thousand) is generally allocable and can be charged on to tenants.
The Group generated a loss of EUR -83 thousand from the sale of real estate as at 31 March 2021 (Q1 2020: EUR -1,033 thousand) due to the costs to sell.
The year-on-year loss from the sale of real estate resulted, above all, from selling expenses of EUR 823 thousand that were incurred in connection with the sale of the property in Eisenhüttenstadt in the first quarter of 2020.
As in the comparable prior-year period, no revaluation of investment properties was performed as at the 31 March 2021 reporting date. Profit/loss from adjustments to the fair value of investment properties amounted to EUR 1,845 thousand (Q1 2020: EUR 0 thousand) and were 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 388 thousand in the reporting period (Q1 2020: EUR 610 thousand). EUR 322 thousand of this amount relates to tenants of hotels that are either insolvent or threatened with insolvency as a result of the pandemic. In the first quarter of 2020, impairment of receivables related mainly to two retail property tenants who were subject to protective shield proceedings or insolvency proceedings.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| Consolidated statement of | |
| income | 18 |
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
| Consolidated statement of | |
| cash flows | 22 |
| Consolidated statement of | |
| changes in equity | 24 |
| Notes to the consolidated | |
| financial statements | 26 |
| IMPRINT | 36 |
2. Financial result
| 01/01/2020 | 01/01/2021 | |
|---|---|---|
| in EUR thousands | – 31/03/2020 | – 31/03/2021 |
| Financial income | 208 | 209 |
| Financial expenses | – 4,686 | – 4,338 |
| Interests of minority shareholders | – 413 | – 1,137 |
| Financial result | –4,891 | –5,266 |
The downturn in financial expenses is largely due to lower interest rates related to refinancing measures in the 2020 financial year.
The share of profit/loss of minority shareholders amounting to EUR 1,137 thousand (Q1 2020: EUR 413 thousand) relates to minority shareholders' profits in the Fair Value REIT-AG subsidiaries which are recorded as liabilities under IAS 32. The year-on-year increase is largely due to lower selling expenses and maintenance costs for these subsidiaries.
3. Earnings per share
| 01/01/2020 – 31/03/2020 |
01/01/2021 – 31/03/2021 |
|
|---|---|---|
| Net profit/loss for the period (in EUR thousands) | 6,844 | 9,409 |
| Profit/loss for the period less non-controlling interests | 6,169 | 8,736 |
| Number of shares (in thousand units) | ||
| Number of shares outstanding as at the reporting date | 107,777 | 105,513 |
| Weighted average number of shares outstanding | 107,777 | 105,599 |
| Impact of conversion of convertible bonds and exercise under the 2015 Stock Option Programme |
510 | 510 |
| Weighted average number of shares (diluted) | 108,287 | 106,109 |
| Earnings per share (in EUR) | ||
| Basic earnings per share | 0.06 | 0.08 |
| Diluted earnings per share | 0.06 | 0.08 |
In the first quarter of 2021, DEMIRE AG bought back 259,729 shares for a price of EUR 4.39 per share (see Section E 2).
As at 31 March 2021, the Company had potential ordinary shares outstanding from the 2015 Stock Option Programme entitling the owners to subscribe to 510,000 shares.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| Consolidated statement of | |
| income | 18 |
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
| Consolidated statement of | |
| cash flows | 22 |
| Consolidated statement of | |
| changes in equity | 24 |
| Notes to the consolidated | |
| financial statements | 26 |
| IMPRINT | 36 |
E. Notes to the consolidated balance sheet
1. Investment properties
Investment properties are measured at fair value. The fair values during the interim reporting period developed as follows:
| in EUR thousands | Office | Retail | Logistics | Other | 2021 |
|---|---|---|---|---|---|
| Fair value at the beginning of the financial year | 902,811 | 376,511 | 76,000 | 70,970 | 1,426,291 |
| Additions of properties | 2,645 | 232 | 142 | 0 | 3,019 |
| Reclassifications to non-current assets held for sale | – 16,155 | 0 | 0 | 0 | – 16,155 |
| Fair value at the end of the financial year | 889,301 | 376,743 | 76,142 | 70,970 | 1,413,155 |
The additions to investment properties consisted primarily of ongoing investments which were capitalised.
Reclassifications to non-current assets held for sale in the amount of EUR 16,155 thousand pertain to commercial real estate in Ansbach.
The fair value measurement of investment properties is allocated to Level 3 of the valuation hierarchy in accordance with IFRS 13 (measurement based on unobservable input factors). DEMIRE determines fair values within the framework of IAS 40 accounting. No revaluation of investment properties was performed as at the 31 March 2021 reporting date.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| Consolidated statement of | |
| income | 18 |
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
| Consolidated statement of | |
| cash flows | 22 |
| Consolidated statement of | |
| changes in equity | 24 |
| Notes to the consolidated | |
| financial statements | 26 |
| IMPRINT | 36 |
2. Equity
On 8 December 2020, the Company announced that it intended to buy back a total of 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 31 March 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) and EUR 105,513 thousand (31 December 2020: EUR 105,772 thousand).
3. Financial liabilities
Financial liabilities consisted of the following:
| FINANCIAL LIABILITIES | ||||
|---|---|---|---|---|
| in EUR thousands | 31/12/2020 | 31/03/2021 | ||
| 2019/2024 corporate bond | 592,005 | 592,510 | ||
| Other financial liabilities | 237,708 | 285,950 | ||
| Total | 829,712 | 878,460 |
The following table shows the nominal value of financial liabilities:
| FINANCIAL LIABILITIES | ||
|---|---|---|
| in EUR thousands | 31/12/2020 | 31/03/2021 |
| 2019/2024 corporate bond | 600,000 | 600,000 |
| Other financial liabilities | 238,770 | 287,429 |
| Total | 838,770 | 887,429 |
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%. Other financial liabilities mainly include bank liabilities with a weighted average nominal interest rate of 1.31% p.a. as at 31 March 2021 (31 December 2020: 1.31% p.a.). The average nominal interest rate on financial debt across all financial liabilities amounted to 1.69% p.a. as at 31 March 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 amounting to EUR 45,000 thousand.
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| Consolidated statement of | |
| income | 18 |
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
| Consolidated statement of | |
| cash flows | 22 |
| Consolidated statement of | |
| changes in equity | 24 |
| Notes to the consolidated | |
| financial statements | 26 |
| IMPRINT | 36 |
F. Condensed group segment reporting
1 JANUARY 2021 – 31 MARCH 2021
| in EUR thousands | Core portfolio |
Fair Value REIT | Corporate functions/ others |
Group |
|---|---|---|---|---|
| Total revenue | 22,686 | 6,033 | 0 | 28,720 |
| Segment revenue | 24,636 | 6,095 | 11 | 30,742 |
| Segment expenses | –9,429 | –2,989 | –1,747 | –14,165 |
| EBIT | 15,207 | 3,106 | –1,736 | 16,577 |
| Net profit/loss for the period | 10,298 | 1,133 | –2,021 | 9,409 |
| Segment assets 31/03/2021 |
1,249,213 | 334,078 | 102,204 | 1,685,495 |
| Thereof tax assets | 3,398 | 0 | 4,029 | 7,428 |
| Thereof additions to non-current assets |
2,647 | 372 | 0 | 3,019 |
| Thereof non-current assets held for sale |
49,000 | 0 | 0 | 49,000 |
| Segment liabilities 31/03/2021 |
884,629 | 185,663 | 8,940 | 1,079,232 |
| Thereof non-current financial liabilities |
782,363 | 78,090 | 0 | 860,452 |
| Thereof lease liabilities | 18,626 | 0 | 36 | 18,662 |
| Thereof current financial liabilities |
15,302 | 2,705 | 0 | 18,008 |
| Thereof tax liabilities | 2,059 | 0 | 2,532 | 4,591 |
| 1 JANUARY 2020 – 31 MARCH 2020 |
||||
|---|---|---|---|---|
| in EUR thousands | Core portfolio |
Fair Value REIT | Corporate functions/ others |
Group |
| Total revenue | 28,398 | 7,766 | 0 | 36,164 |
| Segment revenue | 28,640 | 7,811 | 15 | 36,465 |
| Segment expenses | –16,072 | –5,634 | –1,887 | –23,593 |
| EBIT | 12,568 | 2,177 | –1,873 | 12,872 |
| Net profit/loss for the period | 8,125 | 1,138 | –2,418 | 6,844 |
| 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 non-current assets |
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 | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| Consolidated statement of | |
| income | 18 |
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
| Consolidated statement of | |
| cash flows | 22 |
| Consolidated statement of | |
| changes in equity | 24 |
| Notes to the consolidated | |
| financial statements | 26 |
| IMPRINT | 36 |
The segmentation of the data in the financial statements is based on the internal alignment according to strategic business segments pursuant to IFRS 8. The segment information presented represents the information to be reported to the Executive Board.
The DEMIRE Group is divided into the two reportable business segments "Core Portfolio" and "Fair Value REIT".
More than 10% of total revenue was generated from one customer in the "Core Portfolio" segment, corresponding to a total of EUR 3,611 thousand (Q1 2020: EUR 5,464 thousand) during the reporting period.
G. Other disclosures
1. Related party disclosures
There has been one change to the related party disclosures as compared to 31 December 2020. In the first quarter of 2021, an acquisition vehicle was founded, in which the Chairman of the Supervisory Board holds a minority stake. As of the reporting date, this entity has not yet completed an acquisition, but has signed a purchase agreement. The Chairman of the Supervisory Board did not receive or pay in any assets during the reporting period. Additionally, there were no business transactions with members in key Company positions during the reporting period, except for the compensation of the Executive Board mentioned in Section G.5.
2. Financial instruments
The carrying amounts of the following financial instruments carried at cost or amortised cost do not correspond to their fair values:
| 31/12/2020 | 31/03/2021 | |||
|---|---|---|---|---|
| in EUR thousands | Carrying amount under IFRS 9 |
Fair Value | Carrying amount under IFRS 9 |
FAIR VALUE |
| Bonds | 592,005 | 588,174 | 592,510 | 581,508 |
| Other financial liabilities |
237,708 | 241,400 | 285,950 | 289,591 |
| FOREWORD BY THE | 3. Risk report | |
|---|---|---|
| EXECUTIVE BOARD | 4 | |
| DEMIRE AT A GLANCE | 5 | |
| INTERIM GROUP | ||
| MANAGEMENT REPORT | 7 | |
| INTERIM CONSOLIDATED | ||
| FINANCIAL STATEMENTS | 17 | |
| Consolidated statement of | ||
| income | 18 | |
| Consolidated statement of | opportunities. | |
| comprehensive income | 19 | |
| Consolidated balance sheet | 20 | |
| Consolidated statement of | ||
| cash flows | 22 | |
| Consolidated statement of | ||
| changes in equity | 24 | |
| Notes to the consolidated | ||
| financial statements | 26 | |
| IMPRINT | 36 | |
With regard to the risks to future business development, please refer to the disclosures made in the risk report in the consolidated 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 31 March 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. 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 risks and opportunities.
4. Other disclosures
Obligations from purchase agreements for properties or real estate owning companies amount to EUR 77,300 thousand as at 31 March 2021.
Contractual obligations for modification and expansion measures as well as maintenance and modernisation obligations for the properties totalled EUR 22,363 thousand (Q1 2020: EUR 24,005 thousand) as at 31 March 2021. These obligations are fixed in terms of their scope.
Purchase order commitments for maintenance and modernisation, as well as modification and expansion measures, totalled EUR 6,319 thousand as at the interim reporting date (Q1 2020: EUR 5,680 thousand).
As at 31 March 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 83 thousand (Q1 2020: EUR 90 thousand), fixed remuneration of EUR 175 thousand (Q1 2020: EUR 156 thousand) and share-based payments of EUR 38 thousand (Q1 2020: EUR 41 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 31 March 2021
No events occurred after the interim reporting date that are of particular significance for DEMIRE's net asset, financial position and results of operations.
Frankfurt am Main, 12 May 2021
Ingo Hartlief (FRICS) Tim Brückner
(CEO) (CFO)
| FOREWORD BY THE | |
|---|---|
| EXECUTIVE BOARD | 4 |
| DEMIRE AT A GLANCE | 5 |
| INTERIM GROUP | |
| MANAGEMENT REPORT | 7 |
| INTERIM CONSOLIDATED | |
| FINANCIAL STATEMENTS | 17 |
| Consolidated statement of | |
| income | 18 |
| Consolidated statement of | |
| comprehensive income | 19 |
| Consolidated balance sheet | 20 |
| Consolidated statement of | |
| cash flows | 22 |
| Consolidated statement of | |
| changes in equity | 24 |
| Notes to the consolidated | |
| financial statements | 26 |
| IMPRINT | 36 |
Declaration by the executive directors
As the Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG, we hereby confirm to the best of our knowledge and in accordance with the applicable reporting principles, that the consolidated financial statements give a true and fair view of the net assets, financial position, and results of operations of the Group, and that the Group management report includes a fair review of the development of the business, including the results and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group.
Frankfurt am Main, 12 May 2021
DEMIRE Deutsche Mittelstand Real Estate AG
Ingo Hartlief (FRICS) Tim Brückner (CEO) (CFO)
IMPRINT
COMPANY CONTACT
| EXECUTIVE BOARD | 4 | DEMIRE Deutsche Mittelstand Real Estate AG | |
|---|---|---|---|
| Robert-Bosch-Straße 11 | |||
| DEMIRE AT A GLANCE | 5 | 63225 Langen | |
| Germany | |||
| INTERIM GROUP | T + 49 (0) 6103 – 372 49 – 0 |
||
| MANAGEMENT REPORT | 7 | F + 49 (0) 6103 – 372 49 – 11 |
|
| [email protected] | |||
| INTERIM CONSOLIDATED | www.demire.ag | ||
| FINANCIAL STATEMENTS | 17 | ||
| IMPRINT | 36 |
PUBLISHER
The Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG
CONCEPT AND LAYOUT
Berichtsmanufaktur, Hamburg
Publication date 12 May 2021