Core Insights - DEMIRE Deutsche Mittelstand Real Estate AG reported an expected decline in earnings for the first nine months of 2025, primarily due to a targeted reduction in its real estate portfolio [1][5]. Financial Performance - Rental income decreased to EUR 41.4 million compared to EUR 50.6 million in the same period of 2024, reflecting a decline in profit from real estate rentals and write-downs on loans [2][6]. - Earnings before interest and taxes (EBIT) fell to EUR -28.1 million, worsening from EUR -13.8 million in 2024 [2][11]. - Funds from operations (FFO I) after tax, before minorities and interests on shareholder loans dropped to EUR 8.3 million from EUR 23.0 million in the previous year [3][11]. Portfolio and Market Performance - Despite a smaller portfolio, letting performance remained stable at 56,200 m², with 18% from new leases and 82% from contract extensions [4]. - The EPRA vacancy rate increased to 17.4% as of September 30, 2025, up from 15.1% at the end of 2024 [4][12]. - The market value of the DEMIRE portfolio decreased to approximately EUR 735.3 million from EUR 779.3 million [5][12]. Strategic Focus - The company is focusing on operational efficiency and asset management to ensure stable rental performance, while also implementing energy savings in its portfolio [5]. - The net asset value (NAV) per share fell to EUR 1.80 from EUR 2.45, reflecting the negative results for the period [5][12]. - The company confirmed its guidance for 2025, expecting rental income between EUR 52.0 million and EUR 54.0 million, and FFO I between EUR 5.0 million and EUR 7.0 million [6][8]. Liquidity and Debt Management - The average nominal cost of debt remained stable at 4.43% per annum, while net debt decreased to EUR 362.2 million from EUR 371.1 million [6][7]. - Cash and cash equivalents increased to EUR 49.8 million, driven by property sales [7].