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

Classification of NuWays AG to DEMIRE AG

Company Name:	DEMIRE AG
ISIN:	DE000A0XFSF0
Reason for the research:	Update
Recommendation:	Buy
from:	07.11.2025
Target price:	EUR 1.00
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Q3 results broadly in line as outlook remains muted / Chg.

Yesterday, DEMIRE released Q3 results, which came in largely as expected on the top-line, but provided a beat on FFO. In detail: 

Q3 rental income declined 10% yoy to € 13.6m (eNuW: € 13.5m), reflecting the smaller asset base following several disposals as well as an inflated vacancy level of 17.4%. Positively, the company was able to stabilize and even slightly improve the NOI margin on a sequential basis (+1.2 pp vs H1), as it came in at 68.3%. In our view, this underlines effective cost control as well as the indexation impact, which partly offset the higher vacancy. 

Q3 FFO came in at € 3.4m, very much ahead of our estimated € 1.5m but still down 55% yoy. The sharp decline is mainly based on the lower rental income as well as increased interest payments following the refinancing of the corporate bond. Disciplined cost management on the other hand only partly offset those effects, resulting in a significantly reduced FFO margin of 24.8%.

Guidance confirmed. Following the results, management confirmed the FY25 outlook of € 52-54m sales and € 5-7m FFO. Our estimates are positioned 12% above the upper end of the  FFO range, considering the 9m FFO of € 8.3m, and even despite higher expected maintenance expenses in Q4, and slightly ahead of the rental income guidance, which would need additional disposals in our view.

Disposals postponed. Management confirmed last week’s ad-hoc that planned asset sales have been postponed into 2026, as current market bids remain below acceptable price levels. As a result, the company will not repay the mandatory € 50m of the corporate bond this year, thus triggering the 3% penalty fee (eNuW: € 7.4m), which is however only partially P&L relevant in FY25 and only cash relevant at maturity. Yet, management struck a slightly optimistic tone, that the situation might ease going forward in order to provide another penalty payment in FY26. 

Overall, while the situation for DEMIRE remains challenging amid constrained financial and operating flexibility due to obligations connected to the bond refinancing framework, the company is still able to post solid operational performances visible in the stable NOI margin and FFO profitability. Against this backdrop, shares continue to trade at a substantial discount to the NAV of € 1.80 per share, which we regard as unjustified even in this situation. We hence confirm BUY with a new PT of € 1.00 (old: € 1.20) based on our NAV model.
 

You can download the research here: demire-ag-2025-11-07-previewreview-en-c14bb
For additional information visit our website: https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: [email protected]
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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