DEMIRE AG (von NuWays AG): BUY

Original-Research: DEMIRE AG - from NuWays AG 08.05.2026 / 09:00 CET/CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group. 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. Classification of NuWays AG to DEMIRE AG

Company Name:	DEMIRE AG
ISIN:	DE000A0XFSF0
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 0.8
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Q1 in line with est. but vacancy increases further

Yesterday, DEMIRE published its Q1’26 results, coming in broadly in linw on both top-line and FFO. While the headline numbers held no surprises, vacancy remains a key operational concern.

Q1 rental income declined 17.3% yoy to € 11.6m (eNuW: € 11.4m), reflecting the smaller asset base following multiple disposals throughout FY25, as well as the impact of higher vacancy, which was only partly offset by rent indexation. Annualised contractual rents fell to € 45.7m (FY25: € 51.3m), driven by two asset disposals in Q1 as well as two assets becoming fully vacant.

As a result, the EPRA vacancy rate rose sharply to 21.0% (FY25: 16.4%). Re-letting in the current soft German office market remains challenging, and the letting volume of only ~2,700 sqm in Q1 (vs. 25,500 sqm a year ago) underlines the difficult demand environment, although the Q1’25 figure was inflated by two large one-off prolongations. Management expects larger lettings to materialise over the remainder of the year and appeared confidentappeared confident that it could quickly recover at least part of the rental income of the two fully vacant properties. Here, execution remains the most decisive factor. Positively, WALT improved 0.5 years to 5.2 years, mainly reflecting the conversion of a single-tenant master lease into individual rental contracts at one of DEMIRE's larger assets.