Q2 2026 Demire Deutsche Mittelstand Real Estate AG Earnings Call

August 13, 2026

Speaker #1: Good morning, everyone, and welcome to the DEMIRE AG H1 2026 earnings call. My name is Maxi Gutmann from Noreis, and I'll be moderating today's call.

Moderator: Good morning, everyone, and welcome to the DEMIRE AG's H1 2026 earnings call. My name is Maxi Goodman from Loures, and I will be moderating today's call. We will begin with a presentation by the management, followed by a Q&A session. You can ask your question by clicking the raise hand icon. Once I grant you permission to speak, you will be able to ask your question live. I will briefly explain the procedure once the presentation has finished. With that, let's get started. Mr. Wölfel, the floor is yours.

Maxi Gutmann: Good morning, everyone, and welcome to the DEMIRE AG's H1 2026 earnings call. My name is Maxi Goodman from Loures, and I will be moderating today's call. We will begin with a presentation by the management, followed by a Q&A session. You can ask your question by clicking the raise hand icon. Once I grant you permission to speak, you will be able to ask your question live. I will briefly explain the procedure once the presentation has finished. With that, let's get started. Mr. Rüffel, the floor is yours.

Speaker #1: We'll begin with a presentation by the management, followed by a Q&A session. You can ask your question by clicking the raise hand icon, once I grant you permission to speak, you will be able to ask your question live.

Speaker #1: I'll briefly explain the procedure once the presentation is finished. And with that, let's get started. Mr. Griffith, the floor is yours.

Speaker #2: Ladies and gentlemen, good morning, everyone. Welcome to our results presentation for the first half of 2026. Thank you for dialing in. I trust you are all well. With me here are Tim Bruckner, DEMIRE's CEO, and Julius Stinau, our Head of Investor Relations.

Dirk Rüffel: Ladies and gentlemen, good morning, everyone. Welcome to our results presentation for the first half of 2026. Thank you for dialing in. Trust you are all well. With me here is Tim Brückner, DEMIRE's CFO, and Julius Stinauer, our Head of Investor Relations. Before we jump into the presentation and the details, let me start with a few general comments. Overall, the first six months were marked by the consistent execution of our strategic priorities, which are namely actively managing our portfolio, preserving operational stability, and further strengthening our financial position. This, as we all know, against the still very challenging economic background. Against this backdrop, we achieved important milestones during the first half of the year and continue to make solid progress in executing our strategy. Our results reflect both the ongoing transformation of the portfolio and the disciplined approach we have taken to capital allocation and asset management.

Speaker #2: Before we jump into the presentation and the details, let me start with a few general comments. Overall, the first six months were marked by the consistent execution of our strategic priorities, which are namely: actively managing our portfolio, preserving operational stability, and further strengthening our financial position.

Dirk Rüffel: Overall, the first six months were marked by the consistent execution of our strategic priorities, which are namely actively managing our portfolio, preserving operational stability, and further strengthening our financial position. This, as we all know, against the still very challenging economic background. Against this backdrop, we achieved important milestones during the first half of the year and continue to make solid progress in executing our strategy.

Speaker #2: This, as we all know, against the still-very-challenging economic background. Against this backdrop, we achieved important milestones during the first half of the year, and continue to make solid progress in executing our strategy.

Speaker #2: Our results reflect both the ongoing transformation of the portfolio and the disciplined approach we have taken to capital allocation and asset management. With that, let's jump straight into the key highlights and go to the executive summary.

Dirk Rüffel: Our results reflect both the ongoing transformation of the portfolio and the disciplined approach we have taken to capital allocation and asset management. With that, let's jump straight into the key highlights and go to the executive summary. Top left-hand side, operational performance basically reflects two opposing effects. Rental income declines compared to the previous year amounted to EUR 23 million, representing a decrease of around 17% year-on-year.

Dirk Rüffel: With that, let's jump straight into the key highlights and go to the executive summary. Top left-hand side, operational performance basically reflects two opposing effects. Rental income declines compared to the previous year amounted to EUR 23 million, representing a decrease of around 17% year-on-year. However, this is of course, a logical consequence of our asset disposal strategy to strengthen our balance sheet. As a result of the lower rental income you see on the right top-hand side, FFO I amounted to EUR 2 million compared to EUR 5 million in the prior year period. Looking at the transactions, that is the middle section. We successfully completed the sale of one asset in Flensburg and a small building on our own property, generating total proceeds of around EUR 17.5 million. In addition, we signed further transactions in June and July with expected proceeds of approximately EUR 40 million.

Speaker #2: Top left-hand side, operational performance: Basically reflects two opposing effects. Rental income declined compared to the previous year, amounting to €23 million, representing a decrease of around 17% year-on-year.

Speaker #2: However, this is, of course, a logical consequence of our asset disposal strategy to strengthen our balance sheet. As a result of the lower rental income, you see on the right, top-hand side, FFO 1 amounted to €2 million compared to €5 million in the prior-year period.

Dirk Rüffel: However, this is of course, a logical consequence of our asset disposal strategy to strengthen our balance sheet. As a result of the lower rental income you see on the right top-hand side, FFO I amounted to EUR 2 million compared to EUR 5 million in the prior year period. Looking at the transactions, that is the middle section. We successfully completed the sale of one asset in Flensburg and a small building on our own property, generating total proceeds of around EUR 17.5 million.

Speaker #2: Looking at the transactions—that's the middle section—we successfully completed the sale of one asset in Flensburg and a small building on our Bonn property, generating total proceeds of around €17.5 million.

Speaker #2: In addition, we signed further transactions in June and July with expected proceeds of approximately €14 million. Closing for these two assets, I think it was, is expected to happen in the third quarter of this year.

Dirk Rüffel: In addition, we signed further transactions in June and July with expected proceeds of approximately EUR 40 million. Closing for these two assets, I think it was, is expected to happen in Q3 of this year. On the right-hand side, in terms of processes beyond our operational activities, we also continue to advance important strategic initiatives. We are supporting the process initiated by our main shareholders regarding the potential sale of their shareholdings.

Dirk Rüffel: Closing for these two assets, I think it was, is expected to happen in Q3 of this year. On the right-hand side, in terms of processes beyond our operational activities, we also continue to advance important strategic initiatives. We are supporting the process initiated by our main shareholders regarding the potential sale of their shareholdings. At the same time, we further strengthened our ESG reporting by publishing our fifth A+ sustainability report. Finally, if you look at the updated guidance at the bottom of the page, given the visibility we have gained over the remainder of the year, we are updating the full year guidance. We now expect rental income to be between EUR 42.5 million and EUR 44.5 million, compared with the previous guidance of EUR 41.5 million to EUR 43.5 million.

Speaker #2: Then, on the right-hand side, in terms of processes, beyond our operational activities, we also continue to advance important strategic initiatives. We are supporting the process initiated by our main shareholders regarding the potential sale of their shareholdings.

Speaker #2: At the same time, we further strengthened our ESG reporting by publishing our April 5 sustainability report. And then finally, if you look at the updated guidance at the bottom of the page, given the visibility we have gained over the remainder of the year, we are updating the full-year guidance.

Dirk Rüffel: At the same time, we further strengthened our ESG reporting by publishing our fifth A+ sustainability report. Finally, if you look at the updated guidance at the bottom of the page, given the visibility we have gained over the remainder of the year, we are updating the full year guidance. We now expect rental income to be between EUR 42.5 million and EUR 44.5 million, compared with the previous guidance of EUR 41.5 million to EUR 43.5 million.

Speaker #2: We now expect rental income to be between €42.5 million and €44.5 million, compared with the previous guidance of €41.5 million to €43.5 million. At the same time, we are raising our FFO1 guidance to a range of €0.5 million to €2.5 million, compared with the previous expectation of around minus €1 million to plus €1 million.

Dirk Rüffel: At the same time, we are raising our FFO I guidance to a range of EUR 0.5 million to EUR 2.5 million, compared with the previous expectation of around -EUR 1 million to +EUR 1 million. I think that was the executive summary, and let's now talk about the portfolio performance. Page 7. As you can see on the left-hand side, annualized contractual rents stood at EUR 46 million at the end of H1, compared to EUR 56.4 million a year earlier. As explained before, this is mainly the result of the smaller asset base following the disposals over the last 12 months. In addition, a somewhat higher vacancy level also contributed to the decline. On the right-hand side, if you look at the letting performance, the same dynamic is visible.

Speaker #2: I think that was the executive summary, and let's now talk about the portfolio performance—page 7. As you can see, annualized contractual rents stood at €46 million at the end of the first half, compared to €56.4 million a year earlier.

Speaker #2: As explained before, this is mainly the result of the smaller asset base following the disposals over the last 12 months. In addition, a somewhat higher vacancy level also contributed to the decline.

Dirk Rüffel: In addition, a somewhat higher vacancy level also contributed to the decline. On the right-hand side, if you look at the letting performance, the same dynamic is visible. During H1, we signed leases covering around 18,000 square meters, compared with approximately 40,000 square meters in the prior year period. Again, this reduction, I think, has to be viewed in the context of our smaller portfolio. With fewer assets under management, potential for new lettings and lease prolongations is naturally declining.

Speaker #2: Then on the right-hand side, if you look at the letting performance, the same dynamic is visible. During the first half of the year, we signed leases covering around 18,000 square meters, compared with approximately 40,000 square meters in the prior year period.

Dirk Rüffel: During H1, we signed leases covering around 18,000 square meters, compared with approximately 40,000 square meters in the prior year period. Again, this reduction, I think, has to be viewed in the context of our smaller portfolio. With fewer assets under management, potential for new lettings and lease prolongations is naturally declining. Also, if you look at the 40,000 square meters in the previous year, this had the special effect of the conversion of the Neu lease included. I think on a like-for-like basis, the gap would definitely look smaller if you take that into consideration. If you jump to the next one, Julius. Key portfolio metrics, occupancy, and lease maturity, I would say, developed in line with the underlying changes in the portfolio.

Speaker #2: Again, this reduction, I think, has to be viewed in the context of our smaller portfolio, with fewer assets under management. The potential for new lettings and lease prolongations is naturally declining.

Speaker #2: Also, if you look at the 40,000 square meters in the previous year, this had a special effect of the conversion of the noise lease included, so I think on a like-for-like basis, the gap would definitely look smaller.

Dirk Rüffel: Also, if you look at the 40,000 square meters in the previous year, this had the special effect of the conversion of the Neu lease included. I think on a like-for-like basis, the gap would definitely look smaller if you take that into consideration. If you jump to the next one, Julius. Key portfolio metrics, occupancy, and lease maturity, I would say, developed in line with the underlying changes in the portfolio.

Speaker #2: If you take that into consideration, and if you jump to the next one, Julius—key portfolio metrics: occupancy and lease maturity—I would say developed in line with the underlying changes in the portfolio.

Speaker #2: Left-hand side, the EPRA vacancy rate increased from 16.4 at year-end to 21.5 at the end of the first half. This is largely caused by two effects.

Dirk Rüffel: Left-hand side, the FFO vacancy rate increased from 16.4% at year-end to 21.5% at the end of H1. This is largely caused by two effects. First, two properties became fully vacant at the beginning of the year, which was the properties in Schwerin and Neumünster. Second, we completed the disposal of the asset in Flensburg, and that asset has been, I think, almost fully let. Of course, the main priority, what I was just describing in terms of the two vacant properties, Schwerin, Neumünster, is to relet these two vacant assets, and I would say we have already some promising leads in this respect. On the right-hand side, at the same time, the weighted average lease term remained at a solid level and even improved slightly from 4.7 to 5 years.

Speaker #2: First, two properties became fully vacant at the beginning of the year: the properties in Schwerin and Neumünster. Second, we completed the disposal of the asset in Flensburg, and that asset has been, I think, almost fully let.

Speaker #2: Of course, the main priority what I was just describing in terms of the two vacant properties Schwerin and Neumünster is to relet these two vacant assets, and I would say we have already some promising leads in this respect.

Dirk Rüffel: Of course, the main priority, what I was just describing in terms of the two vacant properties, Schwerin, Neumünster, is to relet these two vacant assets, and I would say we have already some promising leads in this respect. On the right-hand side, at the same time, the weighted average lease term remained at a solid level and even improved slightly from 4.7 to 5 years.

Speaker #2: And then on the right-hand side, at the same time, the weighted average lease term remained at a solid level, and even improved slightly from 4.7 to 5 years.

Speaker #2: So overall, I would say that while the vacancy increased due to the points I just mentioned before, our lease maturity profile remained stable and appropriate for a portfolio with significant office weighting.

Dirk Rüffel: Overall, I would say while the vacancy increased due to the points I just mentioned before, our lease maturity profile remains stable and appropriate for a portfolio with significant office weighting. On that note, Tim, if we jump to the financial highlights.

Speaker #2: And on that note, Tim, if you could jump to the financial highlights.

Speaker #3: Of course. Thank you, Diego. I think we show in the first half of 2026 a pretty clean P&L. In the first half of 2025, if you look at it, we had significant valuation effects and impairment effects, mainly because of the, at the time, Lima situation.

Tim Brückner: Of course. Thanks, Dirk. I think we show in the H1 2026 a pretty clean P&L. In the H1 2025, if you look at it, we had significant valuation effects and impairment effects mainly because of the, at the time, Limes situation. That is now all gone. We, as Dirk said, show some declining rental income because of the before-mentioned disposals. At the same time, we do show now, and that I think was suggested in the previous calls, a slight improvement of our operating margin as seen in the profit loss from the rental of real estate. At least we moved up from about 67% to now 68%. There is still a long way to go, but I think the stabilization is good, and as Dirk said, there is some potential in the leading pipeline.

Speaker #3: That is now all gone, so we, as DX said, show some declining rental income because of the aforementioned disposals. But at the same time, we do show now—and that, I think, was suggested in the previous calls—a slight improvement of our operating margin, as seen in the profit/loss from the rental of real estate. At least we moved up from about 67% to now 68%.

Tim Brückner: At least we moved up from about 67% to now 68%. There is still a long way to go, but I think the stabilization is good, and as Dirk said, there is some potential in the leading pipeline. We are pretty positive that we are performing in line with our own expectations here. We had no relevant valuation effects. We had no relevant impairment effects in the H1 of this year. It is also due to the extension of the seller structure until the end of 2027. We show a pretty clean P&L with a positive EBIT of EUR 8 million.

Speaker #3: There is still a long way to go, but I think the stabilization is good, and as Dick said, there is some potential in the leasing pipeline.

Speaker #3: And we are pretty positive that we are performing in line with our own expectations here. We had no relevant valuation effects. We had no relevant impairment effects in the first half of this year. Also, due to the extension of the sell-off structure until the end of 2027, we show a pretty clean P&L with a positive EBIT of €8 million.

Tim Brückner: We are pretty positive that we are performing in line with our own expectations here. We had no relevant valuation effects. We had no relevant impairment effects in the H1 of this year. It is also due to the extension of the seller structure until the end of 2027. We show a pretty clean P&L with a positive EBIT of EUR 8 million. The financial expenses slightly increased because of the interest on the shareholder loan, and that in total then translates to the before-mentioned transfer operations of EUR 2 million, which is slightly ahead of our planning. That also caused the slight upward lift of the guidance. Let us have a brief look on the balance sheet. Obviously, there is also not much happening here. There is a small balance sheet contradiction due to the asset sales and the small negative result of the period.

Speaker #3: The financial expenses slightly increased because of the interest on the shareholder loan, and that in total then translates to the before-mentioned funds from operations of 2 million euro, which is slightly ahead of our planning.

Tim Brückner: The financial expenses slightly increased because of the interest on the shareholder loan, and that in total then translates to the before-mentioned transfer operations of EUR 2 million, which is slightly ahead of our planning. That also caused the slight upward lift of the guidance. Let us have a brief look on the balance sheet. Obviously, there is also not much happening here. There is a small balance sheet contradiction due to the asset sales and the small negative result of the period.

Speaker #3: And that also caused the slight upward lift of the guidance. Let us have a brief look on the balance sheets. Obviously, there's also not much happening here.

Speaker #3: There's a small balance sheet contradiction due to the asset sales and the small negative result of the period. As Dirk already said, we expect some closings of two transactions in the third quarter of this year, and this will then have a bit of an effect on the balance sheets, of course, as well, as there are some mortgage loans associated with them that will then be repaid.

Tim Brückner: As Dirk already said, we expect some closings of two transactions in the Q3 of this year. This will then have a bit of an effect on the balance sheet, of course, as well, as there are some mortgage loans associated with them that will then be repaid. We are in line with the disposals in our business plan. That will also help to cover our liquidity needs going forward for the next five months of this year and also 2027. It will, of course, also help to reach our repayments targets and refinancing targets going forward. One last slide on the financials. We saw a slight increase of the Net Loan-to-Value. We expect that to stabilize or be slightly reduced in the Q3 of the year.

Speaker #3: We are in line with the disposals in our business plan, and that will also help to cover our liquidity needs going forward for the next five months of this year, and also 2027.

Speaker #3: And it will, of course, also help to reach our repayment targets and refinancing targets going forward. One last slide on the financials. We saw a slight increase of the net LTV.

Tim Brückner: One last slide on the financials. We saw a slight increase of the Net Loan-to-Value. We expect that to stabilize or be slightly reduced in the Q3 of the year. We were also able to show a slight decrease on the average cost of debt as we renegotiated a loan with one bank that we partially repaid before, and we were able to reach lower interest expense here. I think in total, we show a very stable H1.

Speaker #3: We expect that to stabilize or be slightly reduced in the third quarter of the year, and we were also able to show a slight decrease in the average cost of debt as we renegotiated a loan with one bank that we had partially repaid before, and were able to reach a lower interest expense here.

Tim Brückner: We were also able to show a slight decrease on the average cost of debt as we renegotiated a loan with one bank that we partially repaid before, and we were able to reach lower interest expense here. I think in total, we show a very stable H1. There is some upward potential in lettings, and we are quite well on track with disposals, which I think is a pretty good result in the difficult current commercial real estate market.

Speaker #3: I think in total, we show a very stable first half. There's some upward potential in line with lettings, and we are quite well on track with disposals, which I think is a pretty good result in the difficult current commercial real estate market.

Tim Brückner: There is some upward potential in lettings, and we are quite well on track with disposals, which I think is a pretty good result in the difficult current commercial real estate market.

Speaker #2: Thanks, Tim. I think we can open the call for questions. I think Tim already summarized what the overall message is. I think one of the most important things is that we successfully executed the disposal strategy this year.

Dirk Rüffel: Thanks, Tim. I think we can open the call for questions. I think Tim already summarized what the overall message is. I think one of the most important things is that we successfully executed the disposal strategy this year with the expected closings in Q3 for two remaining deals. That obviously helps our balance sheet. I think that's the main message. Going forward, I would say the main focus is obviously on improving the occupancy level. The vacancy in the two assets obviously hurt us, but as I mentioned before, we have some, I would say, very promising leads, especially for one of the assets. So let's see how that turns out until the end of the year.

Speaker #2: With the expected closings in the third quarter for two remaining deals—and that obviously helps our balance sheet—I think that's the main message. Going forward, I would say the main focus is obviously on improving the occupancy level.

Speaker #2: The vacancy in the two assets obviously hurt us, but as I mentioned before, we have some, I would say, very promising leads, especially for one of the assets.

Speaker #2: So let's see how that turns out until the end of the year.

Speaker #1: Thank you very much, Mr. Bruckner, for the presentation. We will now open the Q&A session. As a quick reminder, you can ask your question by clicking the raise hand icon.

Moderator: Thank you very much, Mr. Ulfert and Mr. Brückner, for the presentation. We will now open the Q&A session. As a quick reminder, you can ask your question by clicking the raise hand icon. Once I grant you permission to speak, you'll be able to ask your question live. Let's start with the first question from Philipp Zinsli. You are stage now.

Maxi Gutmann: Thank you very much, Mr. Ulfert and Mr. Brückner, for the presentation. We will now open the Q&A session. As a quick reminder, you can ask your question by clicking the raise hand icon. Once I grant you permission to speak, you'll be able to ask your question live. Let's start with the first question from Philipp Zinsli. You are stage now.

Speaker #1: Once I grant you permission to speak, you'll be able to ask your question live. Let's start with the first question from Philip Zinnerwald.

Speaker #1: Go on, stage now.

Speaker #2: Perfect. First question is on the new guidance. The €40 million proceeds you mentioned—is this all that is embedded there, or are there further disposals embedded in the guidance?

Philipp Zinsli: Perfect. First question is on the new guidance, the EUR 40 million proceeds you mentioned. Is this all that is embedded there, or is there further disposals embedded in the guidance? Also, which vacancy level do you see towards year-end that brought you to this new guidance?

Philipp Sennewald: Perfect. First question is on the new guidance, the EUR 40 million proceeds you mentioned. Is this all that is embedded there, or is there further disposals embedded in the guidance? Also, which vacancy level do you see towards year-end that brought you to this new guidance?

Speaker #2: And also, which vacancy level do you see towards year-end that brought you to this new guidance?

Dirk Rüffel: Tim, do you want to cover the first one?

Speaker #3: Tim, do you want to cover the first one? Yeah. We have one further relevant disposal in our planning for the second half of this year, but we are currently evaluating the options, whether we refinance the asset or we sell it, and we don't expect a major impact on this disposal anyhow.

Tim Brückner: Yeah. We have one further relevant disposal in our planning for the H2 of this year, but we are currently evaluating the options, whether we refinance the asset or we sell it, and we do not expect a major impact on this disposal anyhow, at least not until year-end. In term of vacancy level, maybe back to you, Dirk.

Speaker #3: At least not until year-end. And in terms of vacancy level, maybe back to you, Dirk.

Speaker #2: Yeah, I think, I mean, looking at the upcoming renewals, I would say there is nothing major in terms of bad surprises to be expected until the end of the year.

Dirk Rüffel: Yeah. I think, looking at the upcoming

Dirk Rüffel: Yeah. I think, looking at the upcoming renewals, I would say there is nothing major in terms of bad surprises to be expected until the end of the year. We have a healthy lease pipeline, so I would not expect any bad surprises in the next 6 months.

Dirk Rüffel: renewals, I would say there is nothing major in terms of bad surprises to be expected until the end of the year. We have a healthy lease pipeline, so I would not expect any bad surprises in the next 6 months.

Speaker #2: We have a healthy lease pipeline, so I would not expect any bad surprises in the next six months.

Speaker #3: But also, I’m not hearing any improvement out of that.

Philipp Zinsli: But also no improvement, I am hearing out of that?

Philipp Sennewald: But also no improvement, I am hearing out of that?

Speaker #2: Well, no, I mentioned, I mean, as I said, we have a healthy leasing pipeline, I would say, right, with realistic, I would say, leases there.

Tim Brückner: Well, as I said, we have a healthy leasing pipeline, I would say. With realistic leases there that I would call it at an advanced stage. There are also some bigger leases there. Obviously, I cannot talk about it before they are signed, and we have to see whether the economics of those leases work. But the pipeline looks actually quite promising. So there might be an improvement until the end of the year.

Dirk Rüffel: Well, as I said, we have a healthy leasing pipeline, I would say. With realistic leases there that I would call it at an advanced stage. There are also some bigger leases there. Obviously, I cannot talk about it before they are signed, and we have to see whether the economics of those leases work. But the pipeline looks actually quite promising. So there might be an improvement until the end of the year.

Speaker #2: I would call it an advanced stage. There are also some bigger leases there. Obviously, I can't talk about it before they are signed, and we have to see whether the economics of those leases work.

Speaker #2: But the pipeline actually looks quite promising, so there might be an improvement by the end of the year.

Speaker #3: Okay, that's okay. That helps. Back on the signed disposals, what is the €40 million compared to the book value of that? Is it below book, or is it at book?

Philipp Zinsli: Okay. That helps. Back on the signed disposals. What is the EUR 40 million compared to the book value of that? Is it below book or is it at book?

Philipp Sennewald: Okay. That helps. Back on the signed disposals. What is the EUR 40 million compared to the book value of that? Is it below book or is it at book?

Speaker #2: It's pretty much in line with the book.

Tim Brückner: It is pretty much in line with book.

Speaker #3: Okay, that's good. And maybe you moved back one asset from asset held for sale to investment properties, around €27 million. What's the reasoning behind that?

Philipp Zinsli: Okay. That is good. And maybe you moved back one asset from asset held for sale to investment properties around EUR 27 million. What is the reasoning behind that, and do you still market that asset, and which asset is it?

Philipp Sennewald: Okay. That is good. And maybe you moved back one asset from asset held for sale to investment properties around EUR 27 million. What is the reasoning behind that, and do you still market that asset, and which asset is it?

Speaker #3: And do you still market that asset, and which asset is it?

Speaker #2: I think it's Leipzig, if I'm not mistaken. The reason why we took it out of the asset held for sale was the interest that was shown on the market, to be honest with you, was not very appealing to us.

Tim Brückner: I think it is Leipzig, if I am not mistaken. The reason why we took it out of the asset held for sale was the interest which was shown on the market, to be honest with you, was not very appealing to us.

Dirk Rüffel: I think it is Leipzig, if I am not mistaken. The reason why we took it out of the asset held for sale was the interest which was shown on the market, to be honest with you, was not very appealing to us. What we decided is basically we want to refill the top levels where the tenant moved out. We are now in talks with I think around three hotel operators to refill this space, and I think it will be very value accretive if we get this done before we put it on the market.

Speaker #2: And then what we decided is, basically, we want to refill the top levels where the tenant moved out. We are now in talks with, I think, around three hotel operators to refill this space, and I think it will be very value-accretive if we get this done before we put it on the market.

Tim Brückner: What we decided is basically we want to refill the top levels where the tenant moved out. We are now in talks with I think around three hotel operators to refill this space, and I think it will be very value accretive if we get this done before we put it on the market.

Speaker #3: Yeah, makes sense. All right, now one question. I saw on the cash flow statement that your income tax cash payments increased substantially compared to the previous year.

Philipp Zinsli: Yeah, makes sense. All right. The one question, I saw on the cash flow statement that your income tax cash payments increased substantially compared to previous year. What is behind that?

Philipp Sennewald: Yeah, makes sense. All right. The one question, I saw on the cash flow statement that your income tax cash payments increased substantially compared to previous year. What is behind that?

Speaker #3: What's behind that?

Speaker #2: Those were tax payments related to previous periods only.

Tim Brückner: Those were tax payments related to previous periods only.

Speaker #3: Okay.

Philipp Zinsli: Okay.

Philipp Sennewald: Okay.

Speaker #2: And it's just a change of tax liabilities to tax payments. It has nothing to do with the current profitability of the group, obviously. There are no relevant tax payments associated with the current P&L.

Tim Brückner: It is just a change of tax liabilities to tax payments. It has nothing to do with the current profitability of the group. Obviously, there is no relevant tax payments associated to the current P&L.

Speaker #3: Yeah, thought so. All right. And then maybe on the FFO guidance, the H2 implied H2 deterioration of FFO—is this simply reflecting the upcoming asset disposals, or is that also—you mentioned maintenance was below plan in H1?

Philipp Zinsli: Yeah, I thought so. All right. Then maybe on the EPRA guidance, the implied H2 deterioration of EPRA, is this simply reflecting the upcoming asset disposals, or is that also, you mentioned maintenance was below plan in H1, is that deferred to H2? Can you maybe give me a bit of granularity here?

Philipp Sennewald: Yeah, I thought so. All right. Then maybe on the EPRA guidance, the implied H2 deterioration of EPRA, is this simply reflecting the upcoming asset disposals, or is that also, you mentioned maintenance was below plan in H1, is that deferred to H2? Can you maybe give me a bit of granularity here?

Speaker #3: Is that deferred to H2? Can you maybe give me a bit more granularity here?

Speaker #2: The number is very small, so giving granularity on that level is quite difficult. But it's really related to the topic that you just mentioned.

Tim Brückner: The number is very small, so giving granularity on that level is quite difficult. But it is really related to the topic that you just mentioned. Yeah, it is maybe some lower spending in maintenance and it is slower rental income as a basis.

Speaker #2: Yes, it's maybe due to some lower spending in maintenance, and it's a lower rental income as a basis.

Speaker #3: Okay, all right. Perfect, guys. Thank you very much. I'm moving back now.

Philipp Zinsli: Okay. All right. Perfect, guys. Thank you very much. I am moving back now.

Philipp Sennewald: Okay. All right. Perfect, guys. Thank you very much. I am moving back now.

Speaker #2: I think we had one written question that I believe Dirk mostly answered. There were some disposals signed after the end of the period, and we expect closing in Q3.

Tim Brückner: I think we had one written question that I believe Dirk mostly answered. There were some disposals signed after the end of the period, and we expect the closing in Q3.

Speaker #1: Okay. Well, if there are no further questions, I think we can wrap up this call, honestly. Mr. Russell, would you like to share any final remarks before we close?

Moderator: Well, there are no further questions, I think. I think we can wrap up this call, honestly. Mr. Rüffel, would you like to share any final remarks before we close?

Maxi Gutmann: Well, there are no further questions, I think. I think we can wrap up this call, honestly. Mr. Rüffel, would you like to share any final remarks before we close?

Speaker #2: Look, other than thank you very much for joining us today, right? In the next call, we have for the Q3 results is on the 5th of November, and we obviously look very much forward speaking with you again.

Dirk Rüffel: Look, other than thank you very much for joining us today. I think the next call we have for the Q3 results is on 5 November, and we obviously look very much forward to speaking with you again. In the meantime, again, as always, if you have any follow-up questions, don't hesitate to reach out. We are more than happy to answer them.

Speaker #2: And in the meantime, again, as always, if you have any follow-up questions, don't hesitate to reach out. We are more than happy to answer them.

Moderator: Thank you very much, and have all a nice day. Bye.

Maxi Gutmann: Thank you very much, and have all a nice day. Bye.

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Q2 2026 Demire Deutsche Mittelstand Real Estate AG Earnings Call

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