Original-Research: DEMIRE AG (von NuWays AG): Halten

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Original-Research: DEMIRE AG - from NuWays AG

Classification of NuWays AG to DEMIRE AG

Company Name: DEMIRE AG

ISIN: DE000A0XFSF0

Reason for the research: Update

Recommendation: Halten

Target price: EUR 1.20

Target price on sight of: 12 Monaten

Last rating change:

Analyst: Philipp Sennewald

Annual report postponed due to prolonged bond negotiations

Yesterday, DEMIRE announced the postponement of the publication of the 2023

annual report due to the ongoing negotiations with the bondholders

regarding the restructuring of the company's corporate bond. The company

recently confirmed the restructuring negotiations, which likely include an

extension as well as an increased coupon (see our last update). The bond's

current maturity is on October 15th 2024 (EUR 499m outstanding nominal

amount). The publication of the annual report was originally scheduled for

25 April. Now, management aims to provide the capital market with the

audited figures in the course of May.

In this context, the company also published preliminary FY '23 figures. FY

rental income looks set to decline by 3.2% yoy to EUR 78.5m (eNuW: EUR 79.4m),

mainly due to property sales throughout the year, which overcompensated for

CPI linked organic rent increases. Accordingly, FFO is seen to come in at EUR

36.7m, down 12.0% yoy. The sharper decline compared to rental income can be

mainly explained by increased FFO-relevant income taxes.

With this, the company reached its guidance regarding rental income (EUR

78-80m) as well as FFO (EUR 35-37m). Mind you, the company increased the

guidance twice during the year following lower than expected property

disposals.

The preliminary FY '23 EBIT came in at EUR -187.9m, which compares to EUR

-72.9m in the previous year. The steep decline is mainly explained by the

devaluation of the property portfolio as well as the recognition of

provisions for some properties. In total, the portfolio was impaired by

13.2% on a like-for-like basis.

On a different note, the supervisory board of DEMIRE recently appointed a

new CEO, as Mr. Frank Nickel succeeds Mr. Alexander Goepfert. Nickel, who

joined DEMIRE in September 2023 as a Senior Advisor, provides extensive

industry experience, including positions as CEO of CA Immo as well as CEO

Germany of Cushman & Wakefield.

The stock remains a HOLD with an unchanged PT of EUR 1.20 given the

prevailing uncertainty.

You can download the research here:

http://www.more-ir.de/d/29467.pdf

For additional information visit our website

www.nuways-ag.com/research.

Contact for questions

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.

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The issuer is solely responsible for the content of this research.

The result of this research does not constitute investment advice

or an invitation to conclude certain stock exchange transactions.

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