NuWays AG Updates Recommendation on DEMIRE AG: BUY

NuWays AG has revised its outlook for DEMIRE AG, maintaining a BUY recommendation with a target price of EUR 1.00. The revised outlook follows DEMIRE's upgraded forecast for fiscal year 2025, driven by postponed asset disposals and improved cost management. These changes are expected to increase rental income and funds from operations (FFO).

DEMIRE projects rental income at the upper end of its range between €52-54 million, with a FFO I forecast increase to €9-11 million, marking a significant improvement from the prior guidance. The postponement of sales keeps rental income sustained, despite a higher vacancy rate. Management anticipates leasing improvements and selective capital expenditure to enhance future occupancy.

Despite challenges, DEMIRE's cash generation remains strong, aided by disciplined cost management. Shares are currently valued 75% below NAV, providing a compelling opportunity for investors focused on special situations.