Original-Research: DEMIRE AG - from NuWays AG Classification of NuWays AG to DEMIRE AG Company Name: DEMIRE AG ISIN: DE000A0XFSF0 Reason for the research: Update Recommendation: Halten Target price: EUR 1.20 Target price on sight of: 12 Monaten Last rating change: Analyst: Philipp Sennewald Annual report postponed due to prolonged bond negotiations Yesterday, DEMIRE announced the postponement of the publication of the 2023 annual report due to the ongoing negotiations with the bondholders regarding the restructuring of the company's corporate bond.
19.04.2024 - 09:01:38Original-Research: DEMIRE AG (von NuWays AG): Halten
Original-Research: DEMIRE AG - from NuWays AG Classification of NuWays AG to DEMIRE AG Company Name: DEMIRE AG ISIN: DE000A0XFSF0 Reason for the research: Update Recommendation: Halten Target price: EUR 1.20 Target price on sight of: 12 Monaten Last rating change: Analyst: Philipp Sennewald Annual report postponed due to prolonged bond negotiations Yesterday, DEMIRE announced the postponement of the publication of the 2023 annual report due to the ongoing negotiations with the bondholders regarding the restructuring of the company's corporate bond. The company recently confirmed the restructuring negotiations, which likely include an extension as well as an increased coupon (see our last update). The bond's current maturity is on October 15th 2024 (EUR 499m outstanding nominal amount). The publication of the annual report was originally scheduled for 25 April. Now, management aims to provide the capital market with the audited figures in the course of May. In this context, the company also published preliminary FY '23 figures. FY rental income looks set to decline by 3.2% yoy to EUR 78.5m (eNuW: EUR 79.4m), mainly due to property sales throughout the year, which overcompensated for CPI linked organic rent increases. Accordingly, FFO is seen to come in at EUR 36.7m, down 12.0% yoy. The sharper decline compared to rental income can be mainly explained by increased FFO-relevant income taxes. With this, the company reached its guidance regarding rental income (EUR 78-80m) as well as FFO (EUR 35-37m). Mind you, the company increased the guidance twice during the year following lower than expected property disposals. The preliminary FY '23 EBIT came in at EUR -187.9m, which compares to EUR -72.9m in the previous year. The steep decline is mainly explained by the devaluation of the property portfolio as well as the recognition of provisions for some properties. In total, the portfolio was impaired by 13.2% on a like-for-like basis. On a different note, the supervisory board of DEMIRE recently appointed a new CEO, as Mr. Frank Nickel succeeds Mr. Alexander Goepfert. Nickel, who joined DEMIRE in September 2023 as a Senior Advisor, provides extensive industry experience, including positions as CEO of CA Immo as well as CEO Germany of Cushman & Wakefield. The stock remains a HOLD with an unchanged PT of EUR 1.20 given the prevailing uncertainty. You can download the research here: http://www.more-ir.de/d/29467.pdf For additional information visit our website 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 ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++ -------------------transmitted by EQS Group AG.------------------- The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.
