EQS-News: DEMIRE: Successful conclusion of the bond extension until the end of 2027 - Stock exchange trading of the bond resumed

DEMIRE: Successful conclusion of the bond extension until the end of 2027 - Stock exchange trading of the bond resumed

• Implementation of the new bond terms and conditions
• Repurchase and cancellation of bonds in the amount of approximately EUR 195.4 million of the aggregate outstanding principal amount so far
• Outstanding total nominal amount of the extended bond EUR 253,710,000

Langen, 11 November 2024. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) (‘DEMIRE’) has successfully amended the terms and maturity of its corporate bond (ISIN: DE000A2YPAK1) in a procedure under the German Bond Act (Schuldverschreibungsgesetz). At the beginning of September, bondholders representing more than 90% of the aggregate outstanding principal amount approved an amendment and extension of the bond without dissenting votes. The technical implementation of this resolution has now taken place, with the ‘Amendment Date’ as defined in the new bond terms and conditions being today, 8 November 2024. The bond is already tradable again on the Luxembourg Stock Exchange.

On 22 October 2024, 10% of the aggregate outstanding principal amount at this time (EUR 49.9 million) was repaid at par (plus accrued interest). Bonds with an aggregate outstanding principal amount of around EUR 4.6 million below par (plus accrued interest) were subsequently repurchased and cancelled as part of a tender offer process. Additional bonds with an aggregate outstanding principal amount of around EUR 190.8 million were also repurchased below par (plus accrued interest) and cancelled due to a backstop agreement. These repurchased bonds were also cancelled. It is also to be expected that further bonds reacquired or soon to be reacquired by DEMIRE on the basis of the backstop agreement with an aggregate outstanding principal amount of around EUR 1.3 million will be cancelled in due time. In total, bonds with an aggregate outstanding principal amount of around EUR 195.4 million have been cancelled in this way as of today. DEMIRE's free liquidity of around EUR 55.4 million and a shareholder loan of around EUR 92.9 million were used for the buyback of the cancelled bonds as of today.

The current aggregate outstanding principal amount of the extended bond, which now bears interest at 5%, is EUR 253,710,000.

Bondholders should note that the specified denomination per bond remains at EUR 100,000, while only EUR 90,000 thereof remain outstanding as principal amount following the partial redemption of 22 October 2024 of 10% of the then-outstanding principal amount and redemption by use of a pool factor in the systems of the clearing system.

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 30 September 2024, DEMIRE had a real estate portfolio of 54 properties with a lettable area of around 0.6 million 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, hotel and logistics 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 MRICS
Head of Investor Relations & Corporate Finance
DEMIRE Deutsche Mittelstand Real Estate AG
Telefon: +49 6103 372 4944
Email: stinauer@demire.ag