DGAP-News

DEMIRE AG reports EBIT of EUR 16.1 million for the first half of 2015

DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s):
Real Estate/Half Year Results
DEMIRE AG reports EBIT of EUR 16.1 million for the first half of 2015

28.08.2015 / 23:46

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DEMIRE AG reports EBIT of EUR 16.1 million for the first half of 2015

- Rental income becomes key earnings contributor

- Cash flow from operating activities: EUR 5.8 million (previous year:
EUR -5.0 million)

- Equity ratio improves to 20.4 % with a further significant improvement
targeted in the medium term

- NAV increases to EUR 94.2 million, NAV per share at EUR 4.23 (Q1 2015:
EUR 3.55)

Frankfurt/Main, August 28, 2015 - In the first half of 2015, DEMIRE
Deutsche Mittelstand Real Estate AG ("DEMIRE", ISIN DE000A0XFSF0) generated
earnings before interest and taxes (EBIT) of EUR 16.1 million after EUR 0.2
million in the previous year's comparable period. Rental income from the
German commercial real estate portfolio, which was expanded further in the
first half of 2015, was the chief contributor. The profit/loss from the
rental of real estate climbed to EUR 11.2 million (previous year: EUR 0.9
million). After financing and other expenses as well as one-off expenses
for the expansion of the portfolio, DEMIRE reached the break-even level for
net profit/loss for the period.

DEMIRE's cash flow from operating activities improved sharply to EUR 5.8
million in the first half of 2015 (first half of 2014: EUR -5.0 million).

The total assets of the real estate group increased 15.1 % to EUR 429.7
million in comparison to the end of 2014 and liabilities rose 10.7 % to EUR
341.9 million. Equity amounted to EUR 87.7 million as of June 30, 2015,
after a reported EUR 54.6 million on December 31, 2014. The equity ratio
improved to 20.4 % as of the reporting date (December 31, 2014: 14.6 %).
Over the medium term, the Company is aiming for a significant improvement
in equity ratio.

The EPRA-NAV increased by roughly 32.7 % from EUR 71.0 million as of March
31, 2015, to EUR 94.2 million as of June 30, 2015. NAV per share rose
accordingly during the same period by EUR 0.68 from EUR 3.55 to EUR 4.23.

By the end of July 2015, DEMIRE's real estate holdings had more than
doubled in comparison to the end of 2014 and therefore already exceeded the
Company's targets by mid-year. The Company, which is listed in the General
Standard of the Frankfurt Stock Exchange, currently has total rental space
of over 810,000 m² and annual net rent excluding utilities of EUR 52.3