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
Target price:	EUR 0.8
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Guidance up, but the reason is not positive; chg.
DMRE Q2 results arrived slightly ahead of estimates. Notably, management raised the FY outlook, however not for operational reasons but for postponed disposal progress. In detail:
Q2 rental income declined 16.9% yoy to € 11.5m (eNuW: € 11.0m), driven by disposals (eNuW: c. € 1.6m impact) and a 4.2pp yoy vacancy increase to 21.5% (eNuW: € 0.7m). Sequentially, however, the decline was a mere 1.1%, as the Neumünster vacancy had already weighed on Q1, while new leases in Bonn and Celle started to contribute.
FFO in the second quarter arrived at € 1.7m (eNuW: € 0.9m) after € 0.3m in Q1, as maintenance costs and the amortisation of rental incentives both came in below plan. The beat was broad-based on the cost side: operating expenses to generate rental income fell 18.8% yoy to € 5.6m and G&A also declined 7.3% to € 2.5m.
Guidance hike on the back of slowing property disposals. Management now guides for FY26 rental income of € 42.5–44.5m (old: € 41.5–43.5m) and FFO I of € 0.5–2.5m (old: € –1.0 to 1.0m). The upgrade is timing-driven rather than operational, and is largely reflecting postponed disposals. Notably, annualised Q2 rents of € 45.8m are broadly in line with the € 46.0m of annualised contractual rent at the reporting date, implying that Q2 reflects almost the full rent-roll. Although management reiterated during the CC, that three further disposals are set to complete in H2, we still regard the new guidance as to 'conservative' as we expect less asset disposals as planned, visible in our new estimates of € 45.2m rental income and € 2.8m FFO.
That said, the equity story now rests on the shareholder process. Apollo and Wecken have initiated a structured process to explore a sale of their stake (~91%). In our view this dominates the fundamental outlook: an acquirer crossing 30% would trigger a mandatory offer setting a floor for the free float. Moreover, a share deal may trigger the 101% change-of-control put on the € 247m 2019/2027 notes, which is currently deeply in the money. Yet, the latter also implies that the credit market currently does not regard this as a near-term trigger.
All in all, shares remain deeply discounted, currently trading 74% below the company's NAV. Timing and outcome of the process are inherently uncertain, but we regard the discount as more than compensating. We thus continue to recommend BUY, especially for investors focused on special situations, and keep our PT unchanged at € 0.80 based on our NAV model.
You can download the research here: demire-ag-2026-08-14-previewreview-en-4c9cb
For additional information visit our website: https://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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Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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