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DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG: Moody's confirms Ba2 rating for DEMIRE
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG /
Key word(s): Rating
Moody's confirms Ba2 rating for DEMIRE
"The confirmation of the rating by Moody's shows that our business model with a broadly diversified portfolio remains highly stable even in economically challenging times," explained Tim Brückner, CFO. In its assessment, Moody's points to the generally increased business risks due to the expected recession for Germany in 2020. The rating agency justifies DEMIRE's stable Ba2 rating with a reduced level of debt, positively developing portfolio ratios and the company's greater financial security. With the rating stance "stable outlook", Moody's underlines the assessment that, due to DEMIRE's good risk structure, the rating would not be affected even in an increasingly difficult market environment with possible declining rental income and property valuations.
Thanks to a well-structured refinancing strategy, DEMIRE was able to reduce the average nominal interest rate on debt in 2019 by about 120 basis points to 1.80 percent as of 31 March 2020. The net loan-to-value ratio (LTV) also fell to 45.4 percent at the end of March 2020. "In the medium term, DEMIRE continues to aim for an investment grade rating," concludes Tim Brückner.
DEMIRE - REALize Potential
The portfolio focus on office, retail and logistics
assets results in exactly the kind of risk/return
structure that DEMIRE considers appropriate for the
business line of commercial real estate. The Company
puts a premium on long-term contracts with solvent
tenants in anticipation of stable and sustainable
rental revenues. DEMIRE has set itself the goal to
keep optimising its corporate structure. To this end,
it pursues an active property management approach,
convinced that it is the best way to achieve
economies of scale and portfolio optimisations.
03.06.2020 Dissemination of a Corporate News,
transmitted by DGAP - a service of EQS Group AG.
|Company:||DEMIRE Deutsche Mittelstand Real Estate AG|
|Robert-Bosch-Straße 11 im 'the eleven'|
|63225 Langen (Hessen)|
|Phone:||+49 6103 37249-0|
|Fax:||+49 6103 37249-11|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange|
|EQS News ID:||1060907|
|End of News||DGAP News Service|
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