DEMIRE bond 2019/2027: Initial rating B from Fitch
Langen, 18 June 2025. Fitch Ratings has assigned DEMIRE Deutsche Mittelstand Real Estate AG (‘DEMIRE’; ISIN: DE000A0XFSF0) an issuer rating of ‘CCC+’ for the first time. Fitch Ratings has granted the bond (ISIN: DE000A2YPAK1) a ‘B’ rating due to the underlying collateral structure.
The ratings reflect the assessment of DEMIRE’s EUR 0.8 billion commercial portfolio. Following a debt restructuring supported by the main shareholder in the second half of 2024, DEMIRE aims to further reduce its outstanding bond debt. The bond, which is rated ‘B’ by Fitch Ratings, matures at the end of 2027.
With a loan-to-value of around 35% at the end of 2024 as calculated by Fitch Ratings, DEMIRE’s focus is on strengthening its rental and financial stability. From the agency’s perspective, the debt relief measures initiated and the support of the main shareholders support DEMIRE’s future financial recovery. The rating from Fitch Ratings is effective immediately and will be monitored on an ongoing basis and reviewed once a year.
Tim Brückner, CFO of DEMIRE: “With Fitch Ratings, another rating agency besides Scope has given our bond a B rating. We are pleased about DEMIRE’s increasing transparency for our investors and are endeavouring to further improve the rating wherever possible.”
End of press release
About DEMIRE Deutsche Mittelstand Real Estate AG
DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial properties in medium-sized cities and up-and-coming peripheral locations in metropolitan areas throughout Germany. The company’s particular strength lies in realising real estate potential in these locations and focuses on an offering that is attractive to both international and regional tenants. As of 31 March 2025, DEMIRE had a real estate portfolio of 49 properties with a lettable area of around 594 thousand square metres. Taking into account the proportionately acquired Cielo property in Frankfurt/Main, the market value amounts to around EUR 1.0 billion.
The portfolio’s focus on office properties with an admixture of retail and hotel properties is appropriate for the risk/return structure of the commercial property segment. The Company attaches great importance to long-term contracts with solvent tenants and the realisation of potential and therefore continues to expect stable and sustainable rental income and solid value growth. DEMIRE’s portfolio is to be significantly expanded in the medium term. In expanding the portfolio, DEMIRE will focus on FFO-strong assets with potential, while properties that do not conform to the strategy will continue to be sold in a targeted manner. DEMIRE will continue to develop its operations and processes with numerous measures. In addition to cost discipline, operating performance is being improved through an active asset and portfolio management approach.
The shares of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) are listed in the Prime Standard of the German Stock Exchange in Frankfurt.
Contact:
Julius Stinauer
Head of Investor Relations & Corporate Finance
T: +49 6103 372 49 44
E: ir@demire.ag
