HALF-YEAR FINANCIAL REPORT 1 JANUARY - 30 JUNE

DEMIRE

HALF-YEAR FINANCIAL REPORT 1 JANUARY - 30 JUNE 2023

HIGHLIGHTS H1 2023

KEY EARNINGS FIGURES

KEY FINANCIAL INDICATORS

PORTFOLIO DEVELOPMENT

19.3

52.9

1.2

4.6

in EUR million

in %

FFO I (after taxes,

NET LOAN-TO-VALUE1

before minority interests),

(NET LTV),

compared to EUR 20.8 million

compared to 54.0%

in H1 2022

as at year-end 2022

in EUR billion

in years

PORTFOLIO VALUE,

WALT,

compared to EUR 1.3 billion ­

compared to 4.8 years

at year-end 2022

as at year-end 2022

40.8 1.74 79.0 9.6

in EUR million

in % p.a.

RENTAL INCOME,

AVERAGE NOMINAL

compared to EUR 39.5 million

INTEREST COSTS,

in H1 2022

compared to 1.67% p.a.

as at year-end 2022

in EUR million

in %

ANNUALISED

EPRA VACANCY RATE 2,

RENTAL INCOME,

compared to 9.5%

compared to EUR 85.1 million

as at year-end 2022

as at year-end 2022

  1. According to the definition of bond 2019/2024
  2. Excl. properties classified as a project development

4.43

5.6

18,200

in EUR

in %

in m 2

NET ASSET VALUE

LIKE-FOR-LIKE INCREASE

LETTING PERFORMANCE,

(PER SHARE, BASIC),

of annualised contractual rent

compared to 144,900 m ²

compared to EUR 4.99

compared to 0.9%

in H1 2022

as at year-end 2022

in H1 2022

DEMIRE

HALF-YEAR FINANCIAL REPORT1 1 JANUARY - 30 JUNE 2023

Key for navigating the interim report:

Reference to table of contents

Reference to another page in the interim report

Reference to websites

CONTENTS

FOREWORD BY THE EXECUTIVE BOARD

2

DEMIRE AT A GLANCE

3

Key Group figures

4

Portfolio highlights

5

DEMIRE on the capital market

6

INTERIM GROUP MANAGEMENT REPORT

10

Overview

11

Economic report

13

Opportunities and risks

21

Subsequent events and

related party transactions

21

INTERIM CONSOLIDATED FINANCIAL

STATEMENTS

22

Consolidated profit and loss statement

23

Consolidated statement of

comprehensive income

24

Consolidated balance sheet

25

Consolidated statement of cash flows

27

Consolidated statement of changes in equity

29

Notes to the consolidated financial statements

30

FURTHER INFORMATION

41

Declaration by the executive directors

42

EPRA disclosures

43

Imprint

56

DEMIRE

HALF-YEAR FINANCIAL REPORT2 1 JANUARY - 30 JUNE 2023

FOREWORD BY THE EXECUTIVE BOARD

FOREWORD BY THE

EXECUTIVE BOARD

2

DEMIRE AT A GLANCE

3

INTERIM GROUP

MANAGEMENT REPORT

10

INTERIM CONSOLIDATED

FINANCIAL STATEMENTS

22

FURTHER INFORMATION

41

Dear Shareholders, dear Readers,

In the first half of 2023, the situation on the commercial property market in Germany, which had been tense in the previous year, deteriorated further. The general economic conditions remained challenging, with the ongoing uncertainty about future economic developments having a strong impact on market activity. High inflation and higher interest rates had a negative impact on transaction dynamics. In all asset classes, there were significant slumps in transaction volumes, combined with significant price reductions.

In spite of these challenging circumstances, DEMIRE managed to achieve solid results in the first half of 2023. Rental income rose 3.4% to EUR 40.8 million. FFO I before taxes is slightly positive, but a higher current income tax expense results in FFO I after taxes and before minority interests of EUR 19.3 million, which is 7.4% lower than in the previous period.

Due to current developments on the property market, our property portfolio was revalued on 30 June. Despite its good operating performance and rising property cash flows, DEMIRE was not completely able to buck the general market trend. With a reduction of 5.9% compared to the end of 2022, the value correction was within the usual market range.

DEMIRE's refinancing strategy for the bond, which is set to expire in October 2024, provides for the creation of additional liquidity. At the end of the first half of the year, our liquidity more than doubled compared to the end of the year, reaching EUR 123 million, while at the same time net financial liabilities fell by EUR 45.6 million.

Following the receipt of the purchase price for a property in Ludwigsburg in the first quarter, a large-volume office property in Ulm was sold in May. On the other hand, the contract for the sale of our logistics property in Leipzig, which was notarised in December 2022, was not fulfilled. After the reporting date, the buyer withdrew from the contract in early July. We are currently examining legal steps; but at the same time, we are optimistic that this property will be sold in the second half of the year. At the end of the first half of the year, the volume of properties for sale on our statement of financial position had increased to around EUR 282 million in total.

In June, we published our second sustainability report. In this externally validated report, we fully recorded our own emissions for the first time. As well as further reducing our own emissions and improving the quality of data collection, we are now focussing on reducing emissions from our property portfolio. In close cooperation with our tenants, we will collect additional relevant consumption data in the future and together achieve further reductions in consumption and emissions. DEMIRE is expressly committed to meeting the climate goals of the Federal Govern- ment, and will gradually implement the specified climate path in its portfolio.

Given the result in the first half of 2023, which was solid as expected, the Executive Board can confirm the forecast for the 2023 financial year: rental income will be between EUR 74.5 million and EUR 76.5 million (2022: EUR 81.1 million), and FFO I (after taxes, before minority interests) is expected to be between EUR 33 million and EUR 35 million (2022: EUR 41.8 million).

Frankfurt am Main, 3 September 2023

Prof. Dr Alexander Goepfert

Tim Brückner

Ralf Bongers

(CEO)

(CFO)

(Member of the

Executive Board)

MECKENHEIM

DEMIRE

AT A GLANCE

Key Group figures

4

Portfolio highlights

5

DEMIRE on the capital market

6

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DEMIRE Deutsche Mittelstand Real Estate AG published this content on 20 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 September 2023 07:10:10 UTC.