DEMIRE’s 2019/2027 Bond Secures Initial ‘B’ Rating from Fitch
Langen, 18 June 2025. Fitch Ratings has recently awarded DEMIRE Deutsche Mittelstand Real Estate AG (‘DEMIRE’; ISIN: DE000A0XFSF0) an inaugural issuer rating of ‘CCC+’. Concurrently, the bond (ISIN: DE000A2YPAK1) received a ‘B’ rating from Fitch Ratings, attributed to its robust underlying collateral structure.
These ratings are based on an evaluation of DEMIRE’s commercial portfolio, valued at EUR 0.8 billion. Following a debt restructuring, backed by its primary shareholder in the latter half of 2024, DEMIRE is focused on decreasing its remaining bond obligations. The ‘B’ rated bond is set to mature by the close of 2027.
Fitch Ratings assessed DEMIRE’s loan-to-value at approximately 35% by the end of 2024, indicating the company’s commitment to enhancing its rental and overall financial stability. From the agency’s perspective, the implemented debt relief initiatives and the support from key shareholders are seen as pivotal to DEMIRE’s future financial rebound. This Fitch Ratings assessment is effective immediately and will undergo continuous monitoring, with an annual review schedule.
Tim Brückner, CFO of DEMIRE, commented: “With Fitch Ratings, another agency alongside Scope has assigned our bond a B rating. We are pleased about DEMIRE’s increasing transparency for our investors and are striving to further improve the rating wherever possible.”
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DEMIRE Deutsche Mittelstand Real Estate AG specializes in the acquisition and retention of commercial properties located in medium-sized cities and emerging peripheral areas across Germany’s metropolitan regions. Its core competency involves unlocking the real estate potential in these locations, cultivating an appealing portfolio for both international and regional tenants. As of March 31, 2025, DEMIRE’s real estate holdings comprised 49 properties, encompassing approximately 594,000 square metres of lettable area. Including its proportional stake in the Cielo property in Frankfurt/Main, the portfolio’s market value stood at approximately EUR 1.0 billion.
The portfolio, predominantly composed of office properties with a mix of retail and hotel assets, aligns suitably with the risk/return profiles typical of the commercial property sector. The Company prioritizes securing long-term agreements with financially sound tenants and capitalizing on potential, thereby anticipating consistent and sustainable rental income coupled with robust value appreciation. DEMIRE plans significant portfolio expansion over the medium term, concentrating on FFO-strong assets with growth potential. Simultaneously, properties not aligning with this strategic focus will be divested systematically. The company continues to evolve its operations and processes through various initiatives. Beyond stringent cost controls, operational performance is being enhanced via an active asset and portfolio management strategy.
DEMIRE Deutsche Mittelstand Real Estate AG’s shares (ISIN: DE000A0XFSF0) are traded on 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
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