HIGHLIGHTS H1 2022

KEY EARNINGS FIGURES

20.8

in EUR million FFO I (after taxes, before minority interests), compared to EUR 19.4 million in H1 2021

39.5

in EUR million RENTAL INCOME, compared to EUR 42.0 million in H1 2021

KEY FINANCIAL INDICATORS PORTFOLIO DEVELOPMENT

in % NET LOAN-TO-VALUE RATIO (NET-LTV), compared to 49.7% at the end of 2021

1.67

in % p.a. AVERAGE NOMINAL INTEREST COSTS, almost unchanged compared to year-end 2021

5.79

in EUR NET ASSET VALUE (NAV PER SHARE, BASIC), compared to EUR 5.96 at year-end 2021

1.4

in EUR billion PORTFOLIO VALUE, unchanged compared to year-end 2021

80.6

in EUR million ANNUALISED CONTRACTUAL RENTS, compared to EUR 78.1 million at the end of 2021

144,882

in m2 LETTING PERFORMANCE, compared to 121,929 m2 in H1 2021

4.6

in years WALT, after 4.7 years at year-end 2021

9.5

in % EPRA VACANCY RATE1 , compared to 11.0% at the end of 2021

1 Excl. properties held for sale and classified as a project development

Key for navigating the interim report:

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interim report

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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 GROUP MANAGEMENT REPORT 11 Overview 12 Economic report 14 Opportunities and risks 22 Subsequent events and related party transactions 22 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 42 Declaration by the executive directors 43 EPRA disclosures 44 Imprint 57

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

FOREWORD BY THE EXECUTIVE BOARD

Dear Shareholders, dear Readers,

The economic environment in the first half of 2022 was characterised by an unusual combination of different challenges. In addition to the continuing effects of the COVID-19 pandemic, market uncertainty was heightened in particular by the war in Ukraine, which broke out on 24 February 2022 and is still ongoing. At the same time, the inflation rate rose significantly, driven in particular by increased energy prices, which provoked a monetary policy reaction on the part of the central banks that resulted in an increased interest rate.

Given this background, it is all the more pleasing that DEMIRE's business developed solidly in the first six months of 2022. The Group's key performance indicators are at the same level as the previous year or have improved. This stability was achieved despite eleven strategic property sales during 2021. The overall development of the company is thus in line with the company's planning and expectations. Overall, it has once again been shown that the consistent implementation of the "REALize Potential" strategy ensures a strong foundation for sustainable economic development, which also remains resilient in the face of challenges in the economic environment. Neither the coronavirus pandemic nor the war in Ukraine had any direct significant impact on the company's business performance during the period under review. DEMIRE's first sustainability report was published in June.

DEMIRE's key performance indicators in the first half of 2022 developed positively overall:

Despite the sales, rental income amounts to EUR 39.5 million, which is in line with expectations, compared to EUR 42.0 million in the same period of the previous year.
Profit from the rental of real estate developed accordingly and came to EUR 31.5 million, compared to EUR 34.2 million in the first half of 2021.
Funds from operations (FFO I, after taxes, before minority interests) increased 7.1% to EUR 20.8 million (first half of 2021: EUR 19.4 million).
With around 145,000 m², the best letting performance in a half-year period to date was achieved.
Like-for-like growth in annualised contractual rents was 0.9% compared to 30 June 2021.
The EPRA Vacancy Rate1 sank from 11.0% at the end of 2021 to 9.5%, the WALT remained virtually unchanged at 4.6 years (end of 2021: 4.7 years).
NAV per share (basic) went down from EUR 5.96 at year-end 2021 to EUR 5.79 after the dividend payment.
Net loan-to-value (Net-LTV) rose to 51.4%, also due to the dividend pay-out, while liquidity remained comfortable at EUR 93.5 million as of the reporting date.
The average nominal financing costs remained almost unchanged at an attractive 1.67% p.a., with no significant maturities until mid-2024.
Sale of a small property in Bremen above market value after the reporting date.

FOREWORD BY THE
EXECUTIVE BOARD	2

DEMIRE AT A GLANCE	4
INTERIM GROUP

MANAGEMENT REPORT	11
INTERIM CONSOLIDATED

FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

The expedited implementation of the "REALize Potential" strategy ensures a strong foundation for sustainable economic development, which also remains resilient in the face of challenges in the economic environment."

INGO HARTLIEF (FRICS), CEO

The overall economic situation continues to be dominated by uncertainties arising from the effects of the COVID-19 pandemic, the war in Ukraine, inflation, and interest rate policy. The resulting implications for the entire 2022 financial year can therefore not yet be forecast with sufficient certainty at the time of reporting. In light of this, the Executive Board decided, with the approval of the Supervisory Board, to expedite the implementation of the "REALize Potential" strategy after the end of the reporting period due to the changes in the market and capital market environment. The company also aims to build up sufficient liquidity reserves for refinancing purposes. Nevertheless, the Executive Board is able to confirm the forecast for the 2022 financial year based on the positive half-year result: rental income is expected to be between EUR 78.0 million and EUR 80.0 million (2021: EUR 82.3 million) and FFO I (after taxes, before minority interests) between EUR 38.5 million and EUR 40.5 million (2021: EUR 39.8 million).

Frankfurt am Main, 25 August 2022

Ingo Hartlief (FRICS) Tim Brückner (CEO) (CFO)

DEMIRE AT A GLANCE

Key Group figures	5
Portfolio highlights	6
DEMIRE on the capital market	7

KEY GROUP FIGURES

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 GROUP
MANAGEMENT REPORT	11
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

in EUR thousand	01/01/2021 – 30/06/2021	01/01/2022 – 30/06/2022
Key earnings figures
Rental income	42,024	39,508
Profit/loss from the rental of real estate	34,185	31,496
EBIT	29,534	26,404
Financial result	– 10,761	– 8,915
EBT	18,773	17,489
Net profit/loss for the period	15,547	13,998
Net profit/loss for the period attributable to parent company shareholders	14,036	12,890
Net profit/loss for the period per share (basic/diluted) (in EUR)	0.13/0.13	0.12/0.12
FFO I (after taxes, before minority interests)	19,411	20,799
FFO I per share (basic/diluted) (in EUR)	0.18/0.18	0.20/0.20

in EUR thousand	31/12/2021	30/06/2022
Key balance sheet figures
Total assets	1,705,594	1,688,343
Investment property	1,433,096	1,449,494
Non-current assets held for sale	0	0
Total core portfolio	1,433,096	1,449,494
Financial liabilities	914,986	910,233
Cash and cash equivalents	139,619	93,471
Net financial liabilities	775,367	816,762
Net loan-to-value (Net-LTV) (in %)	49.7	51.4
Equity according to consolidated balance sheet	592,362	572,533
Equity ratio (in %)	34.7	33.9
Net asset value (NAV) in the reporting period	549,023	528,799
NAV (basic/diluted)	628,976/629,487	610,810/611,320
Number of shares (basic/diluted) (in thousands)	105,513/106,023	105,513/106,023
NAV per share (basic/diluted) (in EUR)	5.96/5.94	5.79/5.77

31/12/2021		30/06/2022

Key portfolio indicators
Properties (number)	64	64
Market value (in EUR million)	1,412.5	1,412.5
Contractual rents (in EUR million)	78.1	80.6
Rental yield (in %)	5.5	5.7
EPRA Vacancy Rate1 (in %)	11.0	9.5
WALT (in years)	4.7	4.6

¹ Excl. properties held for sale and classified as a project development

PORTFOLIO HIGHLIGHTS

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 GROUP MANAGEMENT REPORT	11
INTERIM CONSOLIDATED FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

as at 30 June 2022

in EUR billion MARKET VALUE OF THE REAL ESTATE PORTFOLIO

1.4

Properties at 53 LOCATIONS in 13 federal states

80.6

in EUR million ANNUALISED CONTRACTUAL RENTS

59.7

in % OFFICE SHARE of the total portfolio by market value

8.2

in EUR/m² AVERAGE RENT across the portfolio

9.5

in % EPRA VACANCY RATE¹ across the portfolio

5.7

in % GROSS RENTAL YIELD

4.6

in years AVERAGE REMAINING LEASE TERM of rental contracts (WALT)

¹ Excl. properties held for sale and classified as a project development

DEMIRE ON THE CAPITAL MARKET

An overview of DEMIRE shares

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.

DEMIRE key share data

Development of the stock market and DEMIRE shares

The development of the stock market year 2022 so far was marked in particular by the negative effects of the war in Ukraine, the expected interest rate turnaround and the rapid inflation in the energy and food sectors. Primarily driven by these factors, the DAX has fallen by 19.5% and the DEMIRE share by 27.0% since the beginning of the year. The prices of European real estate shares, as summarised in the EPRA Developed Europe Index, fell by 32.6%.

Share	31/12/2021	30/06/2022
ISIN	DE000A0XFSF0	DE000A0XFSF0
Symbol/ticker	DMRE	DMRE
Stock exchange	Frankfurt Stock Exchange (FSE); XETRA Open markets in Stuttgart, Berlin, Düsseldorf	Frankfurt Stock Exchange (FSE); XETRA Open markets in Stuttgart, Berlin, Düsseldorf
Market segment	Regulated market (Prime Standard)	Regulated market (Prime Standard)
Designated sponsors	BaaderBank, Pareto Securities AS	BaaderBank, Pareto Securities AS
Share capital (in EUR)	107,777,324	107,777,324
Number of shares	107,777,324	107,777,324
Closing price 31 December 2021/30 June 2022 (XETRA) (in EUR)	4.30	3.14
Avg. daily trading volume 1 January to 31 December 2021/ 1 January to 30 June 2022	13,565	9,620
Market capitalisation (in EUR)	463 million	338 million
Free float < 3%	7.15%	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 GROUP
MANAGEMENT REPORT	11
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

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 GROUP MANAGEMENT REPORT	11
INTERIM CONSOLIDATED FINANCIAL STATEMENTS	23

Dividend

In May 2022, DEMIRE disbursed a dividend of EUR 0.31 per share to its shareholders for the 2021 financial year in accordance with the resolution of the Annual General Meeting. The dividend per share in the previous year was EUR 0.62. The dividend yield was thus significantly higher than that of other real estate stocks once again.

Development of the DEMIRE bond

Corresponding to what happened on the stock market, the bond market also developed negatively in the first half of 2022. DEMIRE's bond followed this trend and was trading at 83.69% on 30 June 2022, compared to 98.8% on 1 January 2022.

Rating

With the rating assessment, 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.

Moody's carried out its regular review of its rating assessments in April 2022. It initially led to a confirmation of the rating. In July 2022, the rating was adjusted to B1.

The detailed rating of the bond is available on DEMIRE's website.

2019/2024 CORPORATE BOND

Name	DEMIRE bond 2019/2024
Issuer	DEMIRE Deutsche Mittelstand Real Estate AG
Rating (30 June 2022)	Ba31 (Moody's)
Stock exchange listing/trading	Open market of the Luxembourg Stock Exchange (Euro MTF)
Applicable law	German law
ISIN code	DE000A2YPAK1
WKN	A2YPAK
Issue volume	EUR 600,000,000
Denomination	EUR 100,000
Coupon	1.875%
Interest payments	every 15 April and 15 October, starting on 15 April 2020
Maturity date	15 October 2024
Repayment	Non Call Life (including 3-month option for early repayment)
Distribution	Regulation S, excluding registration rights
Change of control	101% plus accrued and not yet paid interest
Closing price 30 June 2022	83.69%

DEMIRE RATING – AS AT 30JUNE 2022

		Company	Bonds
Rating agency	Rating	Outlook	Rating
Moody's	Ba31	stable2	Ba31

Annual General Meeting

On 18 May 2022, DEMIRE's Annual General Meeting once again took place virtually due to the special circumstances. All the agenda items proposed by the administration were resolved by a large majority, including the disbursement of a dividend for the financial year 2021.

¹ In July 2022, the rating was adjusted to B1

2 The outlook was adjusted to "negative" in July 2022

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 GROUP

MANAGEMENT REPORT	11

INTERIM CONSOLIDATED FINANCIAL STATEMENTS	23

Shareholder structure

The DEMIRE shareholder structure remained largely unchanged in the first half of 2022. 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.

¹ Including subsidiaries

² Acting in concert

Source: Notifications from WpHG (German Securities Trading Act) and own calculations

IR activities

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 2021 financial year, DEMIRE took part in various German and international equity and debt capital market conferences in the first half of 2022. 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 prospective 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.

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 GROUP
MANAGEMENT REPORT	11
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

Comprehensive informational documents are available to all investors, analysts and the media in the Investor Relations section of DEMIRE's website. 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.

Analyst coverage

DEMIRE's shares are currently covered and valued by three financial analysts.

ANALYST COVERAGE – AS AT JUNE 2022

Bank/broker	Analyst	Current rating	Current target price (in EUR)
Hauck & Aufhäuser	Philipp Sennewald	Buy	5.60
Pareto Securities	Dr Philipp Häßler	Hold	4.40
Baader Bank	Andre Remke	Reduce	4.20

INTERIM GROUP MANAGEMENT REPORT

for the reporting period from 1 January to 30 June 2022

Overview	12
Economic report	14
Opportunities and risks	22
Subsequent events and
related party transactions	22

FOREWORD BY THE EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP MANAGEMENT REPORT	11
Overview	12
Economic report	14
Opportunities and risks	22
Subsequent events and related party transactions	22
INTERIM CONSOLIDATED FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

OVERVIEW

BUSINESS PERFORMANCE

DEMIRE showed a solid performance in the first half of 2022. Despite strategic property sales in the previous year, the Group's key figures are in line with the previous year's level and in some cases even show an improvement. This was in line with the Company's plans and expectations. Neither the COVID-19 pandemic nor the war in Ukraine had any direct, significant impact on DEMIRE's business development during the period under review. The consistent implementation of the "REALize Potential" strategy in recent years has created a stable foundation for solid future development, which is also reflected in the first half of 2022.

Given the changes in the market and capital market environment, however, the Executive Board decided, with the approval of the Supervisory Board, to expedite the implementation of the "REALize Potential" strategy following the end of the reporting period. The company also aims to build up liquidity reserves for refinancing purposes.

DEMIRE's key performance indicators in the first half of 2022 developed positively overall:

Rental income totalled EUR 39.5 million (previous year: EUR 42.0 million) in line with expectations.
Profit from rental income developed similarly and amounted to EUR 31.5 million, compared to EUR 34.2 million in the same period of the previous year.
Funds from operations (FFO I, after taxes, before minority interests) increased 7.1% to EUR 20.8 million.
The rental performance of around 144,882 m² was a record for a half-year period.
Like-for-like growth in annualised contractual rents was 0.9% compared to 30 June 2021.
The EPRA Vacancy Rate1 fell to 9.5%; WALT remained essentially stable at 4.6 years.
NAV per share (basic) went down to EUR 5.79 compared to EUR 5.96 at year-end 2021 following the dividend payment.
The net loan-to-value ratio (LTV) also rose to 51.4% due to the dividend pay-out; liquidity as at the reporting date remained comfortable at EUR 93.5 million.
The average nominal financing costs were almost unchanged at an attractive 1.67% p.a.; there will be no significant maturities until mid-2024.
Sale of a small property in Bremen above market value after the reporting date.

PERFORMANCE IN LINE WITH FORECAST FOR 2022 FINANCIAL YEAR

The uncertainties and implications for the 2022 financial year resulting from the COVID-19 pandemic, the war in Ukraine, the increase in inflation and especially the rise in energy prices cannot yet be estimated with sufficient certainty at the half-year point. In light of this, the Executive Board decided, with the approval of the Supervisory Board, to expedite the implementation of the "REALize Potential" strategy to reduce complexities. The company now aims to build up sufficient liquidity reserves for refinancing purposes. Following the positive half-year figures for 2022, the Executive Board nevertheless confirmed the forecast for the 2022 financial year: rental income will be between EUR 78.0 million and EUR 80.0 million (2021: EUR 82.3 million) and FFO I (after taxes, before minority interests) is expected to be between EUR 38.5 million and EUR 40.5 million (2021: EUR 39.8 million).

¹ Excl. properties held for sale and classified as a project development

FOREWORD BY THE EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
Overview	12
Economic report	14
Opportunities and risks	22
Subsequent events and related party transactions	22
INTERIM CONSOLIDATED FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

REAL ESTATE PORTFOLIO

As of the reporting date the property portfolio comprises 64 properties, unchanged since the end of the previous year (31 December 2021: 64 properties). The lettable area of the buildings in the portfolio is 0.915 million m2 (31 December 2021: 0.913 million m2 ) and the total market value is approximately EUR 1.4 billion (31 December 2021: approximately EUR 1.4 billion). An external property valuation of the portfolio was last performed on 31 December 2021.

The EPRA Vacancy Rate1 improved by the reporting date of 30 June 2022 to 9.5%, following 11.0% on 31 December 2021. WALT was 4.6 years as at 30 June 2022, compared to 4.7 years as at year-end 2021. DEMIRE's letting performance reached a very strong 144,882 m² in the reporting period. New lettings contributed 28%, while prolongations made up 72%. The letting performance was driven in particular by the extension of the 56,000 m² lease agreement with the operator of the fashion wholesale trading platform IMOTEX in Neuss. In addition, large-scale rental agreements were concluded or extended with tenants in the "LogPark" in Leipzig.

TOP 10 TENANTS (AS AT 30 JUNE 2022)

No.	Tenant	Type of use	Contractual rents p.a.2 in EUR million	in % of total
1	GMG/Dt. Telekom	Office	11.3	14.0
2	Imotex	Retail	5.4	6.7
3	GALERIA Karstadt Kaufhof	Retail	3.7	4.6
4	Bima Bundesanstalt für Immobilien aufgaben	Office	2.1	2.6
5	Roomers	Hotel	1.9	2.3
6	momox GmbH	Logistics	1.8	2.2
7	Sparkasse Südholstein	Office	1.6	2.0
8	comdirect bank AG	Office	1.3	1.6
9	BWI GmbH	Office	1.2	1.4
10	Die Autobahn GmbH	Office	1.2	1.4
Total			31.4	39.0
Other			49.2	61.0
Total			80.6	100.0

² Based on annualised contractual rents, excluding ancillary costs

PORTFOLIO BY ASSET CLASS

	Number of properties	Market value in EUR million	Share by market value in %	Lettable space in thousand m2	Fair value per m2	Contractual rent in EUR million p.a.	Contractual rent per m²	Rental returns in %	EPRA Vacancy Rate1 in %	WALT in years
Office	42	843.7	59.7	518.7	1,629	48.8	9.1	5.8	11.9	3.7
Retail	17	357.1	25.3	220.1	1,623	23.6	9.4	6.6	3.2	5.3
Logistics&Other	5	211.6	15.0	176.0	1,202	8.2	4.4	3.9	12.9	8.5
Total – 30 June 2022	64	1,412.5	100.0	914.7	1,544	80.6	8.2	5.7	9.5	4.6
Total – 31 December 2021	64	1,412.5	100.0	912.7	1,548	78.1	8.0	5.5	11.0	4.7
Change (in %/pp)	–	–	–	+0.2	–0.2	+3.2	+2.1	+0.2	–1.5	–0.1

¹ Excl. properties held for sale and classified as a project development

ECONOMIC REPORT

Net assets, financial position and results of operations

RESULTS OF OPERATIONS

In the first half of 2022, the DEMIRE Group generated rental income totalling EUR 39.5 million (previous year: EUR 42.0 million). Rental income decreased by 6.0% compared to the same period of the previous year, primarily due to the sale of properties. The profit from the rental of real estate also fell slightly by 7.9% to EUR 31.5 million (previous year: EUR 34.2 million). The decrease was mainly due to lower rental income. As no properties were sold in the first half of 2022, the result from the sale of properties is EUR 0, while in the previous year the result was EUR 0.7 million. After the reporting date, a small property in Bremen was sold above market value. The result from the fair value adjustment of investment property also amounted to EUR 0 (previous year: EUR 1.8 million).

Impairment losses on receivables decreased sharply and amounted to EUR 0 million (net) in the first half of 2022, particularly as there were also derecognitions of receivables and reversals of impairment losses to a relevant extent. An expense of EUR 0.7 million was incurred in the same period of the previous year which was mainly attributable to tenants of hotels and retail properties that were either insolvent or threatened with insolvency as a result of the pandemic. This underscores DEMIRE's efficient tenant management and ability to successfully collect receivables. General administrative expenses were reduced again in the first half of 2022 and, at EUR 5.3 million, were 8.0% below the previous year's figure (EUR 5.7 million). Earnings before interest and taxes (EBIT) of EUR 26.4 million were 10.6% below the previous year's figure of EUR 29.5 million.

The financial result benefited from the income generated from the investment in the Cielo property. It amounted to EUR –8.9 million in the first half of 2022, compared to EUR –10.8 million in the same period of the previous year. Financial expenses increased slightly by 4.2% from EUR –8.9 million in the first six months of 2021 to EUR –9.4 million in the reporting period. The profit attributable to minority interests went up minimally to EUR –2.4 million (previous year: EUR –2.3 million). The average nominal interest rate on financial debt remains almost unchanged at 1.67% p.a.

Earnings before taxes (EBT) fell to EUR 17.5 million in the reporting period, compared to EUR 18.8 million in the previous year. The net result for the first half of 2022 was EUR 14.0 million, compared to EUR 15.5 million in the same period of the previous year.

2
4

11
12
14
22

22

23
42

FOREWORD BY THE EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
Overview	12
Economic report	14
Opportunities and risks	22
Subsequent events and related party transactions	22
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

CONSOLIDATED STATEMENT OF INCOME

(selected information in EUR thousand)	01/01/2021 – 30/06/2021	01/01/2022 – 30/06/2022	Change	in %
Rental income	42,024	39,508	–2,516	–6.0
Income from utility and service charges	12,173	18,320	6,147	50.5
Operating expenses to generate rental income	–20,012	–26,332	–6,320	31.6
Profit/loss from the rental of real estate	34,185	31,496	–2,689	–7.9
Income from the sale of real estate and real estate companies	37,500	0	–37,500	–100.0
Expenses related to the sale of real estate and real estate companies	–36,761	0	36,761	–100.0
Profit/loss from the sale of real estate and real estate companies	739	0	–739	–100.0
Profit/loss from fair value adjustments of investment properties	1,764	0	–1,764	–100.0
Impairment of receivables	–670	–17	653	–97.5
Other operating income	374	564	190	50.8
General administrative expenses	–5,727	–5,270	457	–8.0
Other operating expenses	–1,131	–369	761	–67.4
Earnings before interest and taxes	29,534	26,404	–3,131	–10.6
Financial result	–10,761	–8,915	1,846	–17.2
Earnings before taxes	18,773	17,489	–1,285	–6.8
Current income taxes	–946	–1,433	–487	51.5
Deferred taxes	–2,280	–2,058	222	–9.7
Net profit/loss for the period	15,547	13,998	–1,550	–10.0
of which attributable to parent company shareholders	14,036	12,890	–1,146	–8.2
Earnings per share (basic) (in EUR)	0.13	0.12	–0.01	–6.0
Weighted average number of shares outstanding (in thousands)	105,686	105,513	–173	–0.2
Earnings per share (diluted) (in EUR)	0.13	0.12	–0.01	–6.5
Weighted average number of shares issued (diluted) (in thousands)	106,196	106,023	–173	–0.2

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
Overview	12
Economic report	14
Opportunities and risks	22
Subsequent events and related party transactions	22
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

ASSETS

As at 30 June 2022, the total assets decreased by EUR 17.3 million to EUR 1,688.3 million compared to year-end 2021. This was mainly the result of the EUR 46.1 million reduction in cash and cash equivalents, which was significantly influenced by the dividend distribution.

The value of investment property as at 30 June 2022 was EUR 1,449.5 million, an increase of EUR 16.4 million compared to 31 December 2021. The drivers of this increase were capitalised building measures and other tenant incentives.

As in the comparative period, no assets are held for sale.

Group equity as at 30 June 2022 totalled EUR 572.5 million, compared with EUR 592.4 million as at 31 December 2021. The main reason for the decline was the dividend payment in May 2022, while the result for the period had an offsetting effect. The equity ratio came to 33.9% (31 December 2021: 34.7%). It should be noted that non-controlling minority interests reported in the Group's borrowed capital of around EUR 83.6 million (31 December 2021: EUR 82.9 million) are carried as non-current liabilities and not as equity in accordance with IFRS, solely as a result of the legal form of Fair Value REIT's fund participations as partnerships. The correspondingly adjusted Group equity totalled around EUR 656.2 million (31 December 2021: EUR 675.2 million).

Total financial liabilities as at 30 June 2022 amounted to EUR 885.8 million. These decreased by EUR 4.7 million compared to 31 December 2021, which corresponds to the running amortisation.

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
Overview	12
Economic report	14
Opportunities and risks	22
Subsequent events and
related party transactions	22
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

CONSOLIDATED BALANCE SHEET – ASSETS

Total assets	1,705,594	1,688,343	–17,250	–1.0
Assets held for sale	0	0	0	0
Total current assets	161,775	126,888	–34,887	–21.6
Total non-current assets	1,543,819	1,561,455	17,637	1.1
Assets
(selected information in EUR thousand)	31/12/2021	30/06/2022	Change	in %

CONSOLIDATED BALANCE SHEET – EQUITY AND LIABILITIES

(selected information in EUR thousand)	31/12/2021	30/06/2022	Change	in %
Equity and liabilities
Equity
Equity attributable to parent company shareholders	549,023	528,799	–20,224	–3.7
Non-controlling interests	43,339	43,734	395	0.9
Total equity	592,362	572,533	–19,829	–3.3
Liabilities
Total non-current liabilities	1,066,581	1,064,287	–2,293	–0.2
Total current liabilities	46,651	51,523	4,872	10.4
Total liabilities	1,113,232	1,115,810	2,579	0.2
Total equity and liabilities	1,705,594	1,688,343	–17,250	–1.0

FOREWORD BY THE EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
Overview	12
Economic report	14
Opportunities and risks	22
Subsequent events and related party transactions	22
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

FINANCIAL POSITION

Cash flow from operating activities amounted to EUR –13.6 million in the first six months of 2022 (previous year: EUR –35.7 million), mainly due to a lower dividend distribution compared to the same period of the previous year.

Cash flow from investing activities amounted to EUR –18.3 million in the reporting period, compared to EUR 22.7 million in the previous year. The majority of the EUR –18.3 million was due to investments in investment property. In the same period of the previous year, sales revenues of EUR 55.5 million were generated, which largely explains the difference.

Cash flow from financing activities came to EUR –14.3 million, compared to EUR 33.1 million in the same period of the previous year. Mortgage loans of EUR 47.7 million were disbursed in the same period of the previous year, while no loans were taken out in the first half of 2022.

Cash and cash equivalents amounted to EUR 93.5 million on 30 June 2022 (31 December 2021: EUR 139.6 million; 30 June 2021: EUR 121.1 million).

CONSOLIDATED STATEMENT OF CASH FLOWS

Net change in cash and cash equivalents Cash and cash equivalents at the end of the period	19,514 121,135	–46,148 93,471	37.4% –22.8%
Cash flow from financing activities	33,059	–14,256	> 100%
Cash flow from investing activities	22,132	–18,332	> 100%
Cash flow from operating activities	–35,676	–13,560	–62.0%
(selected information in EUR thousand)	01/01/2021 – 30/06/2021	01/01/2022 – 30/06/2022	Change

Funds from operations (FFO)

Funds from operations I (after taxes, before minority interests), the key operating performance indicator, increased by 7.1% to EUR 20.8 million in the first six months of 2022, compared to EUR 19.4 million in the same period of the prior year. On a diluted basis, FFO I per share came to EUR 0.20, compared to EUR 0.18 in the same period of the previous year.

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
Overview	12
Economic report	14
Opportunities and risks	22
Subsequent events and related party transactions	22
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

FFO CALCULATION
(selected information in EUR thousand)	01/01/2021 – 30/06/2021	01/01/2022 – 30/06/2022	Change	in %
Earnings before taxes	18,773	17,489	–1,284	–6.8
Minority interests	2,326	2,424	98	4.2
Earnings before taxes (EBT)	21,099	19,913	–1,186	–5.6
± Profit/loss from the sale of real estate	–739	0	739	–100.0
± Profit/loss from the valuation of investment properties	–1,764	0	1,764	–100.0
± Other adjustments1	1,983	1,600	–384	–19.3
FFO I before taxes	20,579	21,513	934	4.5
± (current) income taxes	–1,170	–714	456	–38.9
FFO I after taxes	19,409	20,799	1,390	7.2
of which attributable to parent company shareholders	15,659	17,178	1,519	9.7
of which attributable to non-controlling interests	3,752	3,621	–131	–3.5
± Profit/loss from the sale of real estate companies/real estate (after taxes)	743	0	–743	–100.0
FFO II after taxes	20,153	20,799	646	3.2
of which attributable to parent company shareholders	16,534	17,178	643	3.9
of which attributable to non-controlling interests	3,620	3,621	1	0.0
FFO I after taxes and minority interests	15,659	17,178	1,519	9.7
Earnings per share (basic) (in EUR)	0.15	0.16	0.01	9.9
Weighted average number of shares outstanding (in thousands)	105,686	105,513	–173	–0.2
Earnings per share (diluted) (in EUR)	0.15	0.16	0.01	9.9
Weighted average number of shares issued (diluted) (in thousands)	106,196	106,023	–173	–0.2
FFO II after taxes and minority interests	16,534	17,178	643	3.9
Earnings per share (basic) (in EUR)	0.16	0.16	0.01	4.1
Weighted average number of shares outstanding (in thousands)	105,686	105,513	–173	–0.2
Earnings per share (diluted) (in EUR)	0.16	0.16	0.01	4.1
Weighted average number of shares issued (diluted) (in thousands)	106,196	106,023	–173	–0.2

¹ Other adjustments include:

— One-time refinancing costs and effective interest payments (EUR 1.3 million; previous year: EUR 1.1 million)

— One-time transaction, legal and consulting fees (EUR 0.2 million; previous year: EUR 0.1 million)

— One-time administrative costs (EUR 0.2 million; previous year: EUR 1.0 million)

— Expenses/income not related to the accounting period (EUR 0.1 million; previous year: EUR 0.1 million)

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
Overview	12
Economic report	14
Opportunities and risks	22
Subsequent events and
related party transactions	22
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

Net asset value (NAV)

The basic net asset value went down from EUR 549.0 million as at 31 December 2021 to EUR 528.8 million as at 30 June 2022 due to the dividend payment. The positive result for the period had an offsetting effect. On an undiluted basis, the NAV as at the reporting date was EUR 5.77 per share (31 December 2021: EUR 5.94 per share).

NET ASSET VALUE (NAV)

in EUR thousand	31/12/2021	30/06/2022	Change	in %
Net asset value (NAV)	549,023	528,799	–20,224	–3.7
Deferred taxes	84,692	86,750	2,058	2.4
Goodwill resulting from deferred taxes	–4,738	–4,738	0	0.0
NAV (basic)	628,976	610,810	–18,166	–2.9
Number of outstanding shares (basic) (in thousands)	105,513	105,513	0	0.0
NAV per share (basic) (in EUR)	5.96	5.79	–0.17	–2.9
Effect of the conversion of convertible bonds and other equity instruments	510	510	0	0.0
NAV (diluted)	629,486	611,320	–18,166	–2.9
Number of outstanding shares (diluted) (in thousands)	106,023	106,023	0	0.0
NAV per share (diluted) (in EUR)	5.94	5.77	–0.17	–2.9

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
Overview	12
Economic report	14
Opportunities and risks	22
Subsequent events and
related party transactions	22
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

NET LOAN-TO-VALUE RATIO

The DEMIRE Group's net loan-to-value ratio as defined in the 2019/2024 bond prospectus is the ratio of net financial liabilities to the sum of all assets less intangible assets and cash and cash equivalents. The net loan-to-value ratio increased moderately to 51.4% compared to year-end 2021 (49.7%).

Net-LTV (in %)	49.7	51.4
Total assets less intangible assets and cash and cash equivalents	1,559,192	1,588,089
Cash and cash equivalents	–139,619	–93,471
Intangible assets	–6,783	–6,783
Total assets	1,705,594	1,688,343
Net financial debt	775,367	816,762
Cash and cash equivalents	139,619	93,471
Financial liabilities and lease liabilities	914,986	910,233
in EUR thousand	31/12/2021	30/06/2022

Covenants for the 2019/2024 corporate bond

Within the scope of issuing the 2019/2024 corporate bond, DEMIRE undertook to comply with and regularly report on various covenants. The definition of the covenants to be reported on is listed in the offering prospectus for the 2019/2024 corporate bond.

BOND COVENANTS 30/06/2022

	Net-LTV	NET SECURED LTV	ICR
Covenant	max. 60%	max. 40%	min. 2.00
Value	51.4%	12.3%	4.82

As at 30 June 2022, DEMIRE had complied with all covenants of the 2019/2024 corporate bond. In addition, the planning for 2022 and beyond assumes that the covenants will also be complied with at all times in the future.

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
Overview	12
Economic report	14
Opportunities and risks	22
Subsequent events and
related party transactions	22

INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42

Opportunities and risks

Please refer to the disclosures made in the opportunities and risks report included within the consolidated financial statements as at 31 December 2021 for information on the opportunities and risks of future business performance. In addition to the opportunities and risks recorded as at 31 December 2021, the first half of 2022 was largely dominated by high inflation, in particular the sharp rise in energy costs, higher interest rates and the war in Ukraine. All of these factors create a high degree of uncertainty and a clouding of prospects in the economic environment, but this has not yet had an impact on DEMIRE's key performance indicators. Both rental payments and funds from operations (after taxes, before minority interests) are in line with our expectations.

Nevertheless, DEMIRE's Executive Board is closely monitoring whether and how the economic environment is changing and may possibly have an impact on the performance of the portfolio, for example.

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 and related party transactions

Information on transactions with related parties and events after the balance sheet date can be found in chapter G. 1 and chapter G. 6 of the notes.

Frankfurt am Main, 25 August 2022

DEMIRE Deutsche Mittelstand Real Estate AG

Ingo Hartlief (FRICS) Tim Brückner (CEO) (CFO)

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

CONSOLIDATED STATEMENT OF INCOME

for the reporting period from 1 January to 30 June 2022

DEMIRE AT A GLANCE	4
		in EUR thousand	NOTE	01/01/2021 – 30/06/2021	01/01/2022 – 30/06/2022	01/04/2021 – 30/06/2021	01/04/2022 – 30/06/2022
INTERIM GROUP MANAGEMENT REPORT	11
		Rental income		42,024	39,508	20,876	20,168
INTERIM CONSOLIDATED		Income from utility and service charges		12,173	18,320	4,601	9,115
FINANCIAL STATEMENTS	23	Operating expenses to generate rental income		–20,012	–26,332	–9,021	–13,422
Consolidated statement		Profit/loss from the rental of real estate		34,185	31,496	16,456	15,861
of income	24	Income from the sale of real estate and real estate companies		37,500	0	37,500	0
Consolidated statement		Expenses related to the sale of real estate and real estate companies		–36,761	0	–36,678	51
of comprehensive income	25	Profit/loss from the sale of real estate and real estate companies		739	0	822	51
Consolidated balance sheet	26	Profit/loss from fair value adjustments of investment properties		1,764	0	–81	0
Consolidated statement		Impairment of receivables		–670	–17	–282	–166
of cash flows	28	Other operating income		374	564	197	111
Consolidated statement		General administrative expenses		–5,727	–5,270	–3,165	–2,530
of changes in equity	30	Other operating expenses		–1,131	–369	–990	2
Notes to the consolidated		Earnings before interest and taxes	D 1	29,534	26,404	12,957	13,329
financial statements	32	Financial income		490	2,131	281	1,074
FURTHER INFORMATION	42	Financial expenses		–8,925	–9,395	–4,587	–4,734
		Profit/loss from companies accounted for using the equity method		0	773	0	245
		Minority interests		–2,326	–2,424	–1,189	–1,191
		Financial result	D 2	–10,761	–8,915	–5,495	–4,606
		Earnings before taxes		18,773	17,489	7,462	8,723
		Current income taxes		–946	–1,433	–450	–686
		Deferred taxes		–2,280	–2,058	–874	–1,739
		Net profit/loss for the period		15,547	13,998	6,138	6,298
		Of which attributable to:
		Non-controlling interests		1,512	1,108	839	520
		Parent company shareholders		14,036	12,890	5,300	5,778
		Earnings per share (basic/diluted)	D 3	0.13	0.12	–	–

FOREWORD BY THE

EXECUTIVE BOARD 2

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP MANAGEMENT REPORT	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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the reporting period from 1 January to 30 June 2022

in EUR thousand	01/01/2021 – 30/06/2021	01/01/2022 – 30/06/2022	01/04/2021 – 30/06/2021	01/04/2022 – 30/06/2022
Net profit/loss for the period	15,547	13,998	6,138	6,298
Other comprehensive income	0	0	0	0
Total comprehensive income	15,547	13,998	6,138	6,298
Of which attributable to:
Non-controlling interests	1,512	1,108	839	520
Parent company shareholders	14,036	12,890	5,300	5,778

CONSOLIDATED BALANCE SHEET

FOREWORD BY THE
EXECUTIVE BOARD	2

DEMIRE AT A GLANCE	4

INTERIM GROUP
MANAGEMENT REPORT	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	42

as at 30 June 2022

in EUR thousand	NOTE	31/12/2021	30/06/2022
Assets
Non-current assets
Intangible assets		6,783	6,783
Property, plant and equipment		228	203
Investment property	E 1	1,433,096	1,449,494
Shares in companies accounted for using the equity method		1,025	1,708
Loans to companies accounted for using the equity method		26,505	25,205
Loans and financial assets		64,264	63,610
Other assets		11,917	14,452
Total non-current assets		1,543,819	1,561,455
Current assets
Trade accounts receivable		8,671	15,630
Financial assets		3,925	4,883
Other receivables		3,191	5,265
Tax refund claims		6,369	7,639
Cash and cash equivalents		139,619	93,471
Total current assets		161,775	126,888
Non-current assets held for sale		0	0

Total assets 1,705,594 1,688,343

CONSOLIDATED BALANCE SHEET

FOREWORD BY THE
EXECUTIVE BOARD	2

DEMIRE AT A GLANCE	4

INTERIM GROUP
MANAGEMENT REPORT	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	42

as at 30 June 2022

EQUITY AND LIABILITIES
in EUR thousand	NOTE	31/12/2021	30/06/2022
Equity and liabilities
Equity
Subscribed capital	E 2	105,513	105,513
Reserves		443,510	423,286
Equity attributable to parent company shareholders		549,023	528,799
Non-controlling interests		43,339	43,734
Total equity		592,362	572,533
Liabilities
Non-current liabilities
Deferred tax liabilities		84,692	86,750
Minority interests		82,882	83,629
Financial liabilities	E 3	874,417	869,610
Lease liabilities		24,285	24,162
Other liabilities		305	136
Total non-current liabilities		1,066,581	1,064,287
Current liabilities
Provisions		4,012	1,818
Trade payables		10,571	11,689
Other liabilities		7,114	11,939
Tax liabilities		8,670	9,616
Financial liabilities	E 3	16,097	16,179
Lease liabilities		187	282
Total current liabilities		46,651	51,523
Total liabilities		1,113,232	1,115,810
Total equity and liabilities		1,705,594	1,688,343

CONSOLIDATED STATEMENT OF CASH FLOWS

for the reporting period from 1 January to 30 June 2022

in EUR thousand	01/01/2021 – 30/06/2021	01/01/2022 – 30/06/2022
Group profit/loss before taxes	18,773	17,489
Financial expenses	8,925	9,395
Financial income	–490	–2,903
Minority interests	2,326	2,424
Change in trade accounts receivable	–2,351	–6,976
Change in other receivables and other assets	9,757	–2,847
Change in provisions	–60	–2,194
Change in trade payables and other liabilities	–2,730	6,256
Profit/loss from fair value adjustments of investment properties	–1,764	0
Profit/loss from the sale of real estate and real estate companies	–739	0
Interest proceeds from loans and receivables	2	2,163
Interest received from loans to companies accounted for using the equity method	0	516
Income taxes paid	–802	–2,009
Change in reserves	127	0
Depreciation and amortisation and impairment	923	554
Distributions to minority shareholders/dividends	–67,433	–35,428
Distributions from companies accounted for using the equity method	0	90
Other non-cash items	–140	–90
Cash flow from operating activities	–35,676	–13,560
Payments for the acquisition of/investments in investment properties, incl. prepayments, refurbishment measures and prepayments for property, plant and equipment	–7,504	–19,582
Payments for investments in companies accounted for using the equity method	–25,873	0
Proceeds from loans to companies accounted for using the equity method	0	1,300
Proceeds from the sale of real estate	55,509	–51
Cash flow from investing activities	22,132	–18,332

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	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 42

CONSOLIDATED STATEMENT OF CASH FLOWS

for the reporting period from 1 January to 30 June 2022

in EUR thousand	01/01/2021 – 30/06/2021	01/01/2022 – 30/06/2022
Payments for borrowing costs	–450	0
Proceeds from borrowings	47,700	0
Interest paid on financial liabilities	–7,798	–8,052
Payments for the purchase of additional shares in a subsidiary	–314	–67
Payment for the redemption of lease liabilities1	–194	–176
Payments for the redemption of financial liabilities1	–4,708	–5,961
Buyback of treasury shares	–1,178	0
Cash flow from financing activities	33,059	–14,256
Net change in cash and cash equivalents	19,514	–46,148
Cash and cash equivalents at the start of the period	101,620	139,619
Cash and cash equivalents at the end of the period	121,135	93,471

¹ The previous year's figures were adjusted based on reporting changes during the period under review

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	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	42

FOREWORD BY THE
EXECUTIVE BOARD	2

DEMIRE AT A GLANCE	4

INTERIM GROUP
MANAGEMENT REPORT	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	42

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the reporting period from 1 January to 30 June 2022

	Share capital		Reserves

			Retained earnings	Equity attributable to parent company		Total
in EUR thousand	Subscribed capital	Capital reserves	incl. Group profit/loss	shareholders	Non-controlling interests	equity
01/01/2022	105,513	88,366	355,144	549,023	43,339	592,362
Net profit/loss for the period	0	0	12,890	12,890	1,108	13,998
Other comprehensive income	0	0	0	0	0	0
Total comprehensive income	0	0	12,890	12,890	1,108	13,998
Stock option programme	0	0	0	0	0	0
Dividend payments/distributions	0	0	–32,709	–32,709	–830	–33,539
Increase in shareholdings in subsidiaries	0	0	0	0	0	0
Acquisition of treasury shares	0	0	0	0	0	0
Other changes	0	0	–406	–406	117	–289
30/06/2022	105,513	88,366	334,920	528,799	43,734	572,533

FOREWORD BY THE EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP MANAGEMENT REPORT	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

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the reporting period from 1 January to 30 June 2021

	Share capital		Reserves

			Retained earnings	Equity attributable to parent company		Total
in EUR thousand	Subscribed capital	Capital reserves	incl. Group profit/loss	shareholders	Non-controlling interests	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
Dividend payments/distributions	0	0	–65,418	–65,418	–577	–65,995
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

FURTHER INFORMATION 42

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP MANAGEMENT REPORT	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	42

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

for the reporting period from 1 January to 30 June 2022

A. General information

1. Basis of preparation

DEMIRE Deutsche Mittelstand Real Estate AG (hereafter "DEMIRE AG") is recorded in the commercial register in Frankfurt am Main, Germany, the location of the Company's headquarters, under the number HRB 89041. The Company's registered office is located in Frankfurt am Main, Germany, and the Company's business address is Robert-Bosch-Strasse 11, Langen, Germany.

The Company's shares are listed in the Prime Standard segment of the Frankfurt Stock Exchange. The subject of these condensed interim consolidated financial statements as at 30 June 2022 is DEMIRE AG and its subsidiaries (hereafter "DEMIRE").

DEMIRE AG 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 2022 were prepared in accordance with the requirements of IAS 34 Interim Financial Reporting (hereafter IAS 34). This report has not been audited and, for this reason, does not contain an auditor's opinion.

The condensed interim consolidated financial statements of DEMIRE AG were prepared in accordance with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB), as adopted by the European Union (EU), applying Section 315e of the German Commercial Code (HGB). All International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), interpretations of the IFRS Interpretations Committee (IFRS IC) – formerly the International Financial Reporting Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC) – that were mandatory for the 2022 financial year have been taken into consideration. Furthermore, all disclosure and explanation requirements under German law above and beyond the provisions of the IASB have been fulfilled.

Under IAS 34, the condensed interim consolidated financial statements shall represent an update of the last financial year's financial statements and, therefore, do not contain all of the information and disclosures required for consolidated financial statements but rather concentrate on new activities, events and circumstances so as not to repeat information that has already been reported. The condensed interim consolidated financial statements of DEMIRE AG as at 30 June 2022 should therefore be viewed in conjunction with the consolidated financial statements prepared as at 31 December 2021.

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 25 August 2022.

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	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	42

B. Scope and principles of consolidation

There were no changes in the scope of consolidation in the first half of 2022.

C. Accounting policies

The accounting policies applied to these interim consolidated financial statements are the same as those applied to the consolidated financial statements as at 31 December 2021. There were no material changes in estimates compared to those in the consolidated financial statements as at 31 December 2021.

The amendments to IAS 16, IFRS 3, IAS 37 and the annual improvements to the IFRS, 2018–2020 cycle, which are to be applied for the first time, have no impact on DEMIRE's consolidated financial statements.

D. Notes to the consolidated statement of income

1. Profit/loss from the rental of real estate

in EUR thousand	01/01/2021 – 30/06/2021	01/01/2022 – 30/06/2022
Net rent	42,024	39,508
Income from utility and service charges	12,173	18,320
Rental revenue from real estate	54,197	57,828
Allocable operating expenses to generate rental income	–16,704	–22,397
Non-allocable operating expenses to generate rental income	–3,308	–3,935
Operating expenses to generate rental income	–20,012	–26,332
Profit/loss from the rental of real estate	34,185	31,496

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	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	42

Rental revenue in the interim reporting period resulted exclusively from the rental of commercial real estate and is free from seasonal effects.

The decrease in the result from the rental of properties to EUR 31,496 thousand (H1 2021: EUR 34,185 thousand) is primarily the result of lower rental income of EUR 39,508 thousand (H1 2021: EUR 42,024 thousand) due to the disposal of properties sold in the 2021 financial year.

The increase in non-allocable operating expenses is due in particular to higher maintenance expenses of EUR 2,137 thousand (H1 2021: EUR 1,456 thousand).

Of the operating expenses, an amount of EUR 22,397 thousand (H1 2021: EUR 16,704 thousand) is generally allocable and can be charged to tenants. This increase is primarily the result of a large increase in energy costs and a one-time effect arising from the passing on of costs to a tenant. The increase in non-allocable expenses is also shown in the increase in income from the allocation of service charges.

The result from the sale of properties amounts to EUR 0 thousand as at 30 June 2022 (H1 2021: EUR 739 thousand). The positive result from the sale of properties in the same period of the previous year resulted mainly from the sale of a property in Cologne.

As in the comparable prior-year period, no revaluation of investment properties was performed as at the 30 June 2022 reporting date. Profit/loss from adjustments to the fair value of investment properties in the amount of EUR 1,764 thousand from the previous year related to changes in the value of a property in Ansbach, which was reclassified to non-current assets held for sale.

Impairments on receivables amounted to EUR 17 thousand in the reporting period (H1 2021: EUR 670 thousand). The decrease in the impairment loss is due to the netting of income from the reversal of impairment losses on receivables. Extensive risk provisions had previously been established in connection with the COVID-19 pandemic and the economic slowdown. Contrary to original expectations, however, it was also possible to recover already impaired receivables in 2022. At the same time, our tenant base is currently not affected by the situation in 2022 in such a way that extensive impairments would have been necessary in the first half of the year.

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	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	42

2. Financial result

	–2,326	–2,424
Profit/loss from companies accounted for using the equity method	0	773
Financial expenses	–8,925	–9,395
Financial income	490	2,131
in EUR thousand	01/01/2021 – 30/06/2021	01/01/2022 – 30/06/2022

Financial income in the amount of EUR 2,903 thousand (previous year: EUR 490 thousand) mainly resulted from interest income from the granting of loans to the joint venture JV Theodor-Heuss-Allee-GmbH, which was founded in the comparable period of the previous year, in the amount of EUR 25,100 thousand, as well as to the third party RFR Immobilien 5 GmbH in the amount of EUR 60,000 million. This is an affiliate of the joint venture partner RFR Immobilien 4 GmbH. The increase in financial expenses is largely due to taking out new loans in the 2021 financial year.

Profits from companies accounted for using the equity method in the amount of EUR 773 thousand (previous year: EUR 0 thousand) relate to the investment profits during the period under review in JV Theodor-Heuss-Allee GmbH, Frankfurt am Main.

The interests of minority shareholders totalling EUR 2,424 thousand (H1 2021: EUR 2,326 thousand) relate to the share of profits of minority shareholders in Fair Value REIT-AG's subsidiaries, which are recognised as third-party debt under IAS 32. The increase compared to the same period of the previous year is mainly due to the indexation of increased net rental income of these subsidiaries.

3. Earnings per share

01/01/2021 – 30/06/2021	01/01/2022 – 30/06/2022
15,547	13,998
14,036	12,890

105,513	105,513
105,686	105,513
510	510
106,196	106,023

0.13	0.12
0.13	0.12

As at 30 June 2022, the Company had potential ordinary shares outstanding from the 2015 Stock Option Programme entitling the owners to subscribe to 510,000 shares.

FOREWORD BY THE
EXECUTIVE BOARD	2

DEMIRE AT A GLANCE	4

INTERIM GROUP
MANAGEMENT REPORT	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	42

E. Notes to the consolidated balance sheet

1. Investment property

Investment properties are measured at fair value. The fair values during the interim reporting period developed as follows:

in EUR thousand	Office	Retail	Logistics	Other	2022
Fair value as at 1 January 2022	843,956	377,559	141,600	69,980	1,433,096
Additions of properties	4,118	2,168	8,225	1,887	16,398
Reclassifications to non-current assets held for sale	–	–	–	–	–
Fair value as at 30 June 2022	848,074	379,727	149,825	71,867	1,449,494

The additions to investment properties consisted primarily of construction activities which were capitalised. 2. Equity

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 2022 reporting date.

Subscribed capital amounted to EUR 107,777 thousand (31 December 2021: EUR 107,777 thousand). This was EUR 105,513 thousand after the deduction of treasury shares (31 December 2021: EUR 105,513 thousand). Following the proposal of the Executive Board and Supervisory Board, the Annual General Meeting of 18 May 2022 resolved to distribute a dividend of EUR 0.31 (previous year: EUR 0.62) per dividend-bearing share and to carry forward the Company's remaining accumulated profit as at 31 December 2021. The distribution amount came to EUR 32,709 thousand (previous year: EUR 65,418 thousand). EUR 204 thousand (previous year: EUR 950 thousand) will be carried forward.

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	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	42

3. Financial liabilities

The carrying amount of financial liabilities is composed as follows:

FINANCIAL LIABILITIES
in EUR thousand	31/12/2021	30/06/2022
2019/2024 corporate bond	594,047	595,078
Other financial liabilities	296,467	290,710
Total	890,514	885,788

The following table shows the nominal value of financial liabilities:

FINANCIAL LIABILITIES
in EUR thousand	31/12/2021	30/06/2022
2019/2024 corporate bond	600,000	600,000
Other financial liabilities	297,866	291,891
Total	897,866	891,891

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.

With the exception of the loan from IC Fonds & Co. Gewerbeobjekte Deutschland 15. KG, all of the Group's financial liabilities have fixed interest rates. The nominal interest rate of the corporate bond 2019/2024 is 1.875% p.a. Other financial liabilities mainly include financial liabilities to banks at a weighted average nominal interest rate of 1.37% p.a. as at 30 June 2022 (31 December 2021: 1.37% p.a.). The average nominal interest rate on debt across all financial liabilities was 1.67% p.a. as at 30 June 2022 (31 December 2021: 1.66% p.a.).

The change in other financial liabilities during the interim period under review is due to current repayments.

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	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	42

F. Condensed Group segment reporting

				01/01/2022 – 30/06/2022					01/01/2021 – 30/06/2021
in EUR thousand	Core Portfolio	Fair Value REIT	Corporate functions/ others	Group	in EUR thousand	Core Portfolio	Fair Value REIT	Corporate functions/ others	Group
Total revenue	45,385	12,442	0	57,828	Total revenue	73,617	18,080	0	91,697
Segment revenue	45,685	12,501	204	58,392	Segment revenue	75,479	18,330	26	93,835
Segment expenses	–22,315	–5,447	–4,224	–31,986	Segment expenses	–48,541	–10,840	–4,921	–64,301
EBIT	23,370	7,055	–4,021	26,404	EBIT	26,938	7,491	–4,895	29,534
Net profit/loss for the period	12,838	3,329	–2,170	13,998	Net profit/loss for the period	17,411	4,218	–6,081	15,547
Segment assets 30/06/2022	1,239,893	345,431	103,022	1,688,345	Segment assets 31/12/2021	1,262,560	342,850	100,184	1,705,594
of which tax refund claims	3,764	47	3,826	7,639	of which tax refund claims	3,718	47	2,602	6,369
of which additions to non-current assets	13,551	2,848	0	16,398	of which additions to non-current assets	22,679	5,829	0	28,508
of which non-current assets held for sale	0	0	0	0	of which non-current assets held for sale	0	0	0	0
Segment liabilities 30/06/2022	916,169	188,639	11,005	1,115,813	Segment liabilities 31/12/2021	914,657	187,043	11,531	1,113,232
of which non-current financial liabilities	795,189	74,420	0	869,610	of which non-current financial liabilities	798,534	75,883	0	874,417
of which lease liabilities	24,419	0	25	24,444	of which lease liabilities	24,448	0	25	24,472
of which current financial liabilities	13,376	2,803	0	16,179	of which current financial liabilities	13,350	2,747	0	16,097
of which tax liabilities	1,675	0	7,940	9,616	of which tax liabilities	1,892	0	6,777	8,670

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	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	42

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". There is a lease agreement between the two segments for office space in Langen. The resulting income in the reporting period amounts to EUR 95 thousand (H1 2021: EUR 91 thousand). At the same time, a sublease agreement has existed between the two segments for part of the abovementioned office space in Langen since 15 April 2022. For the reporting period, an expense of EUR 6 thousand (H1 2021: EUR 0 thousand) arose from this contract.

More than 10% of total revenue was generated from one customer in the "Core Portfolio" segment, corresponding to a total of EUR 6,256 thousand (first half of 2021: EUR 7,099 thousand) during the reporting period.

G. Other disclosures

1. Related party disclosures

DEMIRE AG has a loan receivable in the amount of EUR 25,326 thousand (including interest receivable) from the joint venture JV Theodor-Heuss-Allee-GmbH. Interest income from this loan comes to EUR 523 thousand as at 30 June 2022. In addition, an asset management agreement and an agency agreement exist between DEMIRE AG and the purchasing company JV Theodor-Heuss-Allee-GmbH, resulting in receivables of EUR 70 thousand and income of EUR 37 thousand as at 30 June 2022.

In the year under review, DEMIRE received a distribution from G+Q Effizienz GmbH in the amount of EUR 90 thousand (previous year: EUR 79 thousand) and from DEMIRE Assekuranzmakler GmbH & Co. KG in the amount of EUR 0 thousand (previous year: EUR 92 thousand).

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.

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	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	42

2. Financial instruments

The carrying amounts of the following financial instruments carried at cost or amortised cost do not correspond to their fair values:

		31/12/2021	30/06/2022
in EUR thousand	Carrying amount under IFRS 9	Fair value	Carrying amount under IFRS 9	Fair value
Loans to companies accounted for using the equity method	26,505	26,457	25,205	20,258
Loans and financial assets	68,189	68,022	63,610	52,752

		31/12/2021		30/06/2022
in EUR thousand	Carrying amount under IFRS 9	Fair value	Carrying amount under IFRS 9	Fair value

Bonds	594,047	592,848	595,078	499,218

3. Risk report

Please refer to the disclosures made in the opportunities and risks report included within the consolidated financial statements as at 31 December 2021 for information on the opportunities and risks of future business performance. In addition to the opportunities and risks recorded as at 31 December 2021, the first half of 2022 was largely dominated by high inflation, in particular the sharp rise in energy costs, higher interest rates and the war in Ukraine. All of these factors create a high degree of uncertainty and a clouding of prospects in the economic environment, but this has not yet had a material impact on DEMIRE's key performance indicators. Both rental payments and funds from operations (after taxes, before minority interests) are in line with our expectations.

Nevertheless, DEMIRE's Executive Board is closely monitoring whether and how the economic environment is changing and may possibly have an impact on the performance of the portfolio, for example.

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.

4. Other notes

As at the reporting date, there were no financial obligations stemming from purchase agreements for properties and real estate companies which are not yet due.

Contractual obligations for modification and expansion measures as well as maintenance and modernisation obligations for the properties totalled EUR 18,935 thousand as at 30 June 2022 (H1 2021: EUR 55,798 thousand). These obligations are fixed in terms of their scope.

Purchase order commitments for maintenance and modernisation, as well as modification and expansion measures, totalled EUR 3,645 thousand as at the interim reporting date (H1 2021: EUR 7,464 thousand).

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	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	42

As at 30 June 2022, unused credit lines in the amount of EUR 6,000 thousand (31 December 2021: EUR 5,000 thousand) were available.

There was a provision for the former Executive Board member Mr Ralf Kind, which included the disputed remaining remuneration (all salary components including virtual stock option programmes 2017 and 2018). As the parties reached a settlement in this regard, an amount of EUR 1,700 thousand was paid out to Mr Kind in the reporting period, thus ending the proceedings.

5. Governing bodies and employees

In accordance with DEMIRE AG's Articles of Association, the Executive Board is responsible for managing business activities.

The following were members of the Executive Board during the interim period under review and comparable prior-year period:

Mr Ingo Hartlief (Chairman of the Executive Board since 20 December 2018)

Mr Tim Brückner (Chief Financial Officer since 1 February 2019)

For the interim reporting period, performance-based remuneration of EUR 298 thousand (H1 2021: EUR 444 thousand), fixed remuneration of EUR 366 thousand (H1 2021: EUR 349 thousand) and share-based payments of EUR –109 thousand (H1 2021: EUR 75 thousand) were recognised for DEMIRE AG's Executive Board. No loans or advances were granted to the members of the Executive Board, nor were any contingent liabilities in favour of the members of the Executive Board entered into either.

6. Events after the interim reporting date of 30 June 2022

In July 2022, the property in Bremen (Walter-Gerdes-Straße) was sold for EUR 3,490 thousand, accompanied by a reduction in the carrying amount of EUR 3,288 thousand. The transfer of ownership, benefits and obligations is set to take place in September 2022. Furthermore, no events occurred that are of particular significance for DEMIRE's net assets, financial position and results of operations.

Frankfurt am Main, 25 August 2022

DEMIRE Deutsche Mittelstand Real Estate AG

Ingo Hartlief (FRICS) Tim Brückner (CEO) (CFO)

FURTHER INFORMATION

Declaration by the executive directors	43
EPRA disclosures	44
Imprint	57

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42
Declaration by the
executive directors	43
EPRA disclosures	44
Imprint	57

DECLARATION BY THE EXECUTIVE DIRECTORS

As members of the Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG, we hereby affirm that, to the best of our knowledge, the consolidated financial statements give a true and fair view of the Group's net assets, financial position and results of operations in accordance with the applicable accounting principles and that the Group management report gives a true and fair view of the development and performance of the business, including the business results and the position of the Group, together with a description of the principal opportunities and risks associated with the Group's expected development.

Frankfurt am Main, 25 August 2022

DEMIRE Deutsche Mittelstand Real Estate AG

Ingo Hartlief (FRICS) Tim Brückner (CEO) (CFO)

EPRA DISCLOSURES

General overview

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 Loan-to-Value (EPRA LTV), EPRA Cost Ratios 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.

OVERVIEW OF EPRA KEY FIGURES

in EUR thousand	31/12/2021	30/06/2022
EPRA Net Asset Value (EPRA NAV)	629,487	611,320
EPRA Triple Net Asset Value (EPRA NNNAV)	545,649	592,842
EPRA Net Reinstatement Value (EPRA NRV)	740,668	712,707
EPRA Net Tangible Assets (EPRA NTA)	590,970	561,877
EPRA Net Disposal Value (EPRA NDV)	545,266	590,287
EPRA Net Initial Yield (in %)	4.6	4.6
EPRA "Topped-Up" Net Initial Yield (in %)	4.6	4.7
EPRA Vacancy Rate1 (in %)	11.0	9.5
EPRA Loan-to-Value (EPRA LTV) (in %)	61.3	62.8

¹ Excl. properties held for sale and classified as a project development

in EUR thousand	2021	H1 2022
EPRA Earnings	29,421	15,198
EPRA Cost Ratio including direct vacancy costs (in %)	34.5	34.6
EPRA Cost Ratio excluding direct vacancy costs (in %)	29.7	30.6

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42
Declaration by the
executive directors	43
EPRA disclosures	44
Imprint	57

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11

INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42
Declaration by the
executive directors	43
EPRA disclosures	44
Imprint	57

EPRA NAV and EPRA NNNAV

The EPRA Net Asset Value (EPRA NAV) indicates the intrinsic value of a real estate company. The value is calculated on the basis of the Group equity (before minority interests) adjusted for effects from the exercise of options, convertible bonds and other rights to equity as well as 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)
in EUR thousand		31/12/2021 30/06/2022	Change	in %
Net asset value (NAV) in the reporting period	549,023	528,799	–20,224	–3.7
Market value of derivative financial instruments	0	0	0	0.0
Deferred taxes	84,692	86,750	2,058	2.4
Goodwill resulting from deferred taxes	–4,738	–4,738	0	0.0
EPRA NAV (basic)	628,977	610,810	–18,166	–2.9
Number of shares outstanding (basic) (in thousands)	105,513	105,513	0	0.0
EPRA NAV per share (basic) (in EUR)	5.96	5.79	–0.17	–2.9
Effect of the conversion of convertible bonds and other equity instruments	510	510	0	0.0
EPRA NAV (diluted)	629,487	611,320	–18,166	–2.9
Number of shares outstanding (diluted) (in thousands)	106,023	106,023	0	0.0
EPRA NAV per share (basic) (in EUR)	5.94	5.77	–0.17	–2.9

EPRA NET ASSET VALUE (NAV/EPRA NNNAV)

in EUR thousand		31/12/2021 30/06/2022	Change	in %
Net asset value (NAV)	549,023	528,799	–20,224	–3.7
Market value of derivative financial instruments	0	0	0	0.0
Deferred taxes	84,692	86,750	2,058	2.4
Goodwill resulting from deferred taxes	–4,738	–4,738	0	0.0
EPRA NAV (basic)	628,977	610,810	–18,166	–2.9
Number of shares outstanding (basic) (in thousands)	105,513	105,513	0	0.0
EPRA NAV per share (basic) (in EUR)	5.96	5.79	–0.17	–2.9
Effect of the conversion of convertible bonds and other equity instruments	510	510	0	0.0
EPRA NAV (diluted)	629,487	611,320	–18,166	–2.9
Number of shares outstanding (diluted) (in thousands)	106,023	106,023	0	0.0
EPRA NAV per share (basic) (in EUR)	5.94	5.77	–0.17	–2.9
Market value of derivative financial instruments	0	0	0	0.0
Fair value adjustments in liabilities (bonds)	1,199	95,860	94,661	7,895.0
Deferred taxes	–85,037	–114,338	–29,302	34.5
EPRA NNNAV (diluted)	545,649	592,842	47,193	8.6
EPRA NNNAV per share (basic) (in EUR)	5.15	5.59	0.44	8.6

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42
Declaration by the
executive directors	43
EPRA disclosures	44
Imprint	57

EPRA NRV, EPRA NTA, EPRA NDV

The EPRA Net Tangible Assets (EPRA NTA) indicator represents the intrinsic value of a company adjusted by the pro-rata deferred taxes on fair-value adjustments of investment properties, the fair value of financial instruments and all intangible assets.

The EPRA Net Disposal Value (EPRA NDV) indicator represents the intrinsic value of a company adjusted by the full deferred taxes on fair-value adjustments, the recognised goodwill and the market value adjustment of fixed-interest liabilities.

The EPRA Net Reinstatement Value (EPRA NRV) indicator represents the intrinsic value of a company adjusted for fair-value adjustments and the fair value of financial instruments.

NEW REPORTING STANDARD (EPRA NAV)

in EUR thousand			31/12/2021			30/06/2022
	EPRA NRV	EPRA NTA		EPRA NDV EPRA NRV	EPRA NTA	EPRA NDV
IFRS shareholders' equity	549,023	549,023	549,023	528,799	528,799	528,799
Plus:
I) Hybrid financial instruments	2,173	2,173	2,173	0	0	0
NAV (diluted)	551,196	551,196		551,196 528,799	528,799	528,799
Plus:1
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)	551,196	551,196		551,196 528,799	528,799	528,799

¹ Plus = assets (+) liabilities (–), whether on or off the balance sheet

in EUR thousand	31/12/2021			30/06/2022
	EPRA NRV	EPRA NTA		EPRA NDV EPRA NRV	EPRA NTA	EPRA NDV
Less: 2
V) Deferred taxes on valuation gains from investment properties	93,116	46,558	–	95,382	47,691	–
VI) Market value of derivative financial instruments	0	0	–	– 7,830	– 7,830	–
VII) Goodwill as a result of deferred taxes	– 4,738	– 4,738	– 4,738	– 4,738	– 4,738	– 4,738
VIII. a) Goodwill according to IFRS balance sheet	–	– 2,045	– 2,045	–	– 2,045	– 2,045
VIII. b) Intangible assets according to IFRS balance sheet	–	0	–	–	0	–
Plus: 1
IX) Market value of fixed interest liabilities (bonds)	–	–	854	–	–	68,272
X) Revaluation of intangible assets at fair value (optional)	0	–	–	0	–	–
XI) Land transfer tax/ acquisition costs	101,094	0	–	101,094	0	–
NAV	740,668	590,970		545,266 712,707	561,877	590,287
Number of shares (fully diluted)	106,023	106,023	106,023	106,023	106,023	106,023
NAV per share (in EUR)	6.99	5.57	5.14	6.72	5.30	5.57

¹ Plus = assets (+) liabilities (–), whether on or off the balance sheet

² Less = assets (–); liabilities (+) (part of balance sheet)

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11

INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42
Declaration by the
executive directors	43
EPRA disclosures	44
Imprint	57

EPRA Net Initial Yield

The EPRA Net Initial Yield (EPRA NIY) indicator is the annualised contractual rent in relation to the fair value of the completed property portfolio plus an investor's estimated ancillary acquisition costs.

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.

EPRA NET INITIAL YIELD/TOPPED-UP (EPRA NIY)

in EUR thousand		31/12/2021 30/06/2022	Change	in %
Investment property	1,433,096	1,449,494	16,398	1.1
Shares in companies accounted for using the equity method	1,025	1,708	683	114.6
Real estate held for sale	0	0	0	0.0
Real estate portfolio (net)	1,434,121	1,451,202	17,081	1.2
Estimated ancillary acquisition costs	71,706	72,616	910	1.2
Real estate portfolio (gross)	1,505,828	1,523,818	17,990	1.2
Annualised cash rental income	77,688	79,241	1,553	1.8
Non-allocable real estate operating costs	–9,110	–8,509	601	–6.2
Annualised net cash rental income	68,578	70,732	2,154	2.9
Rent-free periods	400	1,352	952	206.1
Annualised "topped-up" net rental income	68,978	72,084	3,106	4.1
EPRA Net Initial Yield (in %)	4.6	4.6	0bp	0.0
EPRA "Topped-Up" Net Initial Yield (in %)	4.6	4.7	10bp	2.0

FOREWORD BY THE
EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP
MANAGEMENT REPORT	11
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42
Declaration by the
executive directors	43
EPRA disclosures	44
Imprint	57

EPRA Earnings

The EPRA Earnings reflect the recurring earnings from the core operating business. The EPRA Earnings are adjusted in particular for valuation effects, deferred taxes and the sales earnings from the consolidated result.

EPRA EARNINGS

in EUR thousand	H1 2021	H1 2022	Change	in %
Net profit/loss for the period	15,547	13,998	–1,549	–10.0
Profit/loss from fair value adjustments of investment properties	–1,764	0	1,764	–100.0
Profit/loss from the sale of real estate and real estate companies	–739	0	739	–100.0
Profit/loss from companies accounted for using the equity method	0	–773	–773	–
Profit/loss from the sale of real estate inventory	0	0	0	0.0
Taxes on sales earnings	–5	0	5	–100.0
Goodwill impairment	0	0	0	0.0
Valuation result of financial instruments	0	0	0	0.0
Acquisition costs for share deals and for shares in non-controlling joint ventures	0	0	0	0.0
Deferred taxes	2,280	2,058	–222	–9.7
Non-controlling interests	116	–86	–202	–174.1
EPRA Earnings	15,435	15,198	–237	–1.5
Number of outstanding shares (basic) (in thousands)	105,513	105,513	0	0.0
EPRA Earnings Per Share (EPS basic)	0.15	0.14	–0.01	–6.7
Number of shares outstanding (diluted) (in thousands)	106,023	106,023	0	0.0
EPRA Earnings Per Share (EPS diluted)	0.15	0.14	–0.01	–6.7

2
4

11

23
42

43
44
57

EPRA Cost Ratio

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 RATIO

in EUR thousand	H1 2021	H1 2022	Change	in %
Administrative and operational costs according to IFRS	14,645	13,651	–994	–6.8
General administrative expenses	5,696	5,241	–455	–8.0
Other operating expenses	1,110	349	–761	–68.6
Operating expenses to generate rental income	20,012	26,332	6,320	31.6
Income from utility and service charges	–12,173	–18,320	–6,147	50.5
Amortisation and depreciation	52	48	–4	–7.7
EPRA costs (including vacancy costs)	14,697	13,651	–1,046	–7.1
Direct vacancy costs	–1,578	–1,572	6	–0.4
EPRA costs (excluding vacancy costs)	13,119	12,079	–1,040	–7.9
Rental income	42,024	39,508	–2,516	–6.0
EPRA Cost Ratio (including vacancy costs) (in %)	35.0	34.6	–0.4	–1.1
EPRA Cost Ratio (excluding vacancy costs) (in %)	31.2	30.6	–0.6	–1.9

FOREWORD BY THE
EXECUTIVE BOARD	2

DEMIRE AT A GLANCE	4

INTERIM GROUP
MANAGEMENT REPORT	11

INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	23

FURTHER INFORMATION	42
Declaration by the

executive directors	43
EPRA disclosures	44
Imprint	57

EPRA Capital Expenditure

There were no acquisitions in the Core Portfolio or the joint venture in the first half of 2021 or the first half of 2022.

The investments under "Core Portfolio" and "Other" mainly relate to valueenhancing conversion and expansion measures at various properties in our portfolios.

in EUR thousand		H1 2021		H1 2022
	DEMIRE portfolio	Joint venture	Total	DEMIRE portfolio	Joint venture	Total
Acquisitions	0	0	0	0	0	0
Development portfolio1	0	0	0	0	0	0
Core Portfolio	5,296	0	5,296	15,502	45	15,547
Others2	1,089	0	1,089	896	0	896

EPRA Vacancy Rate

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 RATE1

in EUR thousand		31/12/2021 30/06/2022	Change	in %
Estimated market rent for vacancies	9,760,590	8,498,284	–1,262,306	–12.9
Estimated market rent for total portfolio	89,018,442	88,996,371	–22,071	0.0
EPRA Vacancy Rate (in %)	11.0	9.5	–1.5	–12.9

¹ Excl. properties held for sale and classified as a project development

The reduction of the EPRA Vacancy Rate as at 30 June 2022 over the end of 2021 was primarily due to a reduction of vacancies at the properties in Leipzig ("Log-Park"), Kassel and Bad Vilbel.

¹ DEMIRE AG does not engage in real estate development

² Rent incentives and agent's commission

FOREWORD BY THE EXECUTIVE BOARD	2
DEMIRE AT A GLANCE	4
INTERIM GROUP MANAGEMENT REPORT	11
INTERIM CONSOLIDATED FINANCIAL STATEMENTS	23
FURTHER INFORMATION	42
Declaration by the executive directors	43
EPRA disclosures	44
Imprint	57

EPRA like-for-like rental growth

Like-for-like rental income is rental income from properties in a portfolio that have been held continuously within two comparison periods. 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.

LIKE-FOR-LIKE GROWTH 30 JUNE 2022

		Total portfolio				Like-for-like portfolio
				30/06/2021	30/06/2022	in EUR million	in %
in EUR thousand	Market value	Annualised contractual rents	Market value	Annualised contractual rents	Annualised contractual rents	LFL growth	LFL growth
Office	843.7	48.8	843.7	48.6	48.8	0.2	0.5
Retail	357.1	23.6	357.1	23.3	23.6	0.3	1.4
Logistics&Other	211.6	8.2	211.6	8.1	8.2	0.1	1.9
Total	1.412.5	80.6	1412.5	79.9	80.6	0.7	0.9

LIKE-FOR-LIKE GROWTH 30 JUNE 2021

		Total portfolio					Like-for-like portfolio
				30/06/2020	30/06/2021	in EUR million	in %
in EUR thousand	Market value	Annualised contractual rents	Market value	Annualised contractual rents	Annualised contractual rents	LFL growth	LFL growth
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&Other	141.6	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

EPRA Loan-to-Value

The EPRA Loan-to-Value (EPRA LTV) is the ratio of net financial liabilities to the value of the assets, as defined by EPRA.

EPRA LOAN-TO-VALUE (EPRA LTV) 30/06/2022

	Proportionate consolidation
in EUR thousand	Group EPRA LTV before proportionate consolidation	Share of joint ventures	Share of material associates	Non-controlling interests (NCI)	Combined
Net debt
Include:
Borrowings from financial institutions	290,711	80,629	0	–12,085	359,254
Commercial paper	0	0	0	0	0
Hybrids (including convertibles, preference shares, debt, options, perpetuals)	0	0	0	0	0
Bond loans	595,078	0	0	0	595,078
Foreign currency derivates (futures, swaps, options and forwards)	0	0	0	0	0
Net payables	98,523	59,041	0	0	157,564
Owner-occupied property (debt)	0	0	0	0	0
Current accounts (Equity characteristic)	0	0	0	0	0
Exclude:
Cash and cash equivalents	–93,471	–740	0	3,254	–90,956
Net debt (a)	890,841	138,931	0	–8,831	1,020,941

		Proportionate consolidation
in EUR thousand	Group EPRA LTV before proportionate consolidation	Share of joint ventures	Share of material associates	Non-controlling interests (NCI)	Combined
Investment property portfolio and other eligible assets
Owner-occupied property	0	0	0	0	0
Investment properties at fair value	1,449,494	136,337	0	–46,504	1,539,327
Properties held for sale	0	0	0	0	0
Properties under development	0	0	0	0	0
Intangibles	0	0	0	0	0
Net receivables	0	0	0	–1,588	–1,588
Financial assets	88,815	0	0	0	88,815
Loans to companies accounted for using the equity method	25,205	0	0	0	0
Loans and financial assets	63,610	0	0	0	0
Total property portfolio and other eligible assets (b)	1,538,309	136,337	0	–48,091	1,626,555
LTV (a/b) (in %)	57.9	101.9	–	18.4	62.8

in EUR thousand		Proportionate consolidation
	Group EPRA LTV before proportionate consolidation	Share of joint ventures	Share of material associates	Non-controlling interests (NCI)	Combined
Net debt
Include:
Borrowings from financial institutions	297,548	82,194	0	–12,025	367,718
Commercial paper	0	0	0	0	0
Hybrids (including convertibles, preference shares, debt, options, perpetuals)	0	0	0	0	0
Bond loans	592,966	0	0	0	592,966
Foreign currency derivates (futures, swaps, options and forwards)	0	0	0	0	0
Net payables	105,763	59,184	0	0	164,947
Owner-occupied property (debt)	0	0	0	0	0
Current accounts (Equity characteristic)	0	0	0	0	0
Exclude:
Cash and cash equivalents	–139,619	–903	0	4,497	–136,025
Net debt (a)	856,658	140,475	0	–7,527	989,606

		Proportionate consolidation
in EUR thousand	Group EPRA LTV before proportionate consolidation	Share of joint ventures	Share of material associates	Non-controlling interests (NCI)	Combined
Investment property portfolio and other eligible assets
Owner-occupied property	0	0	0	0	0
Investment properties at fair value	1,433,096	136,315	0	–44,775	1,524,636
Properties held for sale	0	0	0	0	0
Properties under development	0	0	0	0	0
Intangibles	0	0	0	0	0
Net receivables	0	0	0	–1,066	–1,066
Financial assets	90,769	0	0	0	90,769
Loans to companies accounted for using the equity method	26,505	0	0	0	0
Loans and financial assets	64,264	0	0	0	0
Total property portfolio and other eligible assets (b)	1,523,865	136,315	0	–45,840	1,614,340
LTV (a/b) (in %)	56.2	103.1	–	16.4	61.3

FOREWORD BY THE EXECUTIVE BOARD DEMIRE AT A GLANCE INTERIM GROUP INTERIM CONSOLIDATED Declaration by the EPRA disclosures 44 Imprint 57

IMPRINT

COMPANY CONTACT

EXECUTIVE BOARD	2	DEMIRE Deutsche Mittelstand Real Estate AG
DEMIRE AT A GLANCE	4	Robert-Bosch-Straße 11 63225 Langen
INTERIM GROUP MANAGEMENT REPORT	11	Germany T + 49 (0) 6103 – 372 49 – 0
INTERIM CONSOLIDATED FINANCIAL STATEMENTS	23	F + 49 (0) 6103 – 372 49 – 11 [email protected]
FURTHER INFORMATION	42	www.demire.ag
Declaration by the executive directors	43

PUBLISHER

The Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG

CONCEPT AND LAYOUT

Berichtsmanufaktur, Hamburg

Publication date: 25 August 2022

AI Terminal

DEMIRE Deutsche Mittelstand Real Estate AG

96_10-q_2022-08-30_bbb0d40d-a146-4042-9a99-223056205013.pdf

HIGHLIGHTS H1 2022

4.6

CONTENTS

FOREWORD BY THE EXECUTIVE BOARD

Dear Shareholders, dear Readers,

DEMIRE AT A GLANCE

KEY GROUP FIGURES

PORTFOLIO HIGHLIGHTS

DEMIRE ON THE CAPITAL MARKET

An overview of DEMIRE shares

Development of the stock market and DEMIRE shares

Dividend

Development of the DEMIRE bond

Rating

2019/2024 CORPORATE BOND

DEMIRE RATING – AS AT 30JUNE 2022

Annual General Meeting

Shareholder structure

IR activities

ANALYST COVERAGE – AS AT JUNE 2022

INTERIM GROUP MANAGEMENT REPORT

OVERVIEW

BUSINESS PERFORMANCE

PERFORMANCE IN LINE WITH FORECAST FOR 2022 FINANCIAL YEAR

REAL ESTATE PORTFOLIO

TOP 10 TENANTS (AS AT 30 JUNE 2022)

PORTFOLIO BY ASSET CLASS

ECONOMIC REPORT

RESULTS OF OPERATIONS

CONSOLIDATED STATEMENT OF INCOME

ASSETS

CONSOLIDATED BALANCE SHEET – ASSETS

CONSOLIDATED BALANCE SHEET – EQUITY AND LIABILITIES

FINANCIAL POSITION

CONSOLIDATED STATEMENT OF CASH FLOWS

Funds from operations (FFO)

Net asset value (NAV)

NET ASSET VALUE (NAV)

NET LOAN-TO-VALUE RATIO

Covenants for the 2019/2024 corporate bond

BOND COVENANTS 30/06/2022

Opportunities and risks

Subsequent events and related party transactions

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF INCOME

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET

CONSOLIDATED STATEMENT OF CASH FLOWS

CONSOLIDATED STATEMENT OF CASH FLOWS

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

A. General information

1. Basis of preparation

B. Scope and principles of consolidation

C. Accounting policies

D. Notes to the consolidated statement of income

2. Financial result

3. Earnings per share

E. Notes to the consolidated balance sheet

3. Financial liabilities

F. Condensed Group segment reporting

G. Other disclosures

2. Financial instruments

3. Risk report

4. Other notes

FURTHER INFORMATION

DECLARATION BY THE EXECUTIVE DIRECTORS

EPRA DISCLOSURES

General overview

OVERVIEW OF EPRA KEY FIGURES

EPRA NAV and EPRA NNNAV

EPRA NET ASSET VALUE (NAV/EPRA NNNAV)

EPRA NRV, EPRA NTA, EPRA NDV

NEW REPORTING STANDARD (EPRA NAV)

EPRA Net Initial Yield