Carbon footprint reduced significantly: DEMIRE publishes EPRA Sustainability Report for the year 2022

Langen, Germany, 29 June 2023. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) managed to achieve significant improvements in its key sustainability indicators during 2022, as documented in the company’s Sustainability Report 22/23 prepared in accordance with the Sustainability Best Practices Recommendations (sBPR) of the European Public Real Estate Association (EPRA). In addition to the carbon dioxide (CO₂) emissions of its real estate portfolio holdings, DEMIRE’s own corporate carbon footprint was also taken into account for the first time. The report has been verified by an auditor.

On a like-for-like basis,¹ DEMIRE was able to reduce the combined Scope 1 and Scope 2 total emissions² for its real estate portfolio holdings compared to the prior year by 14.0%. This was largely the result of energy savings achieved together with tenants in response to the impact of the Ukraine war. An improvement was likewise achieved for the company’s own premises (-2.6%). Overall, DEMIRE’s own CO₂ emissions fell to 97.4 tons, a reduction of 5.3% compared to the prior year, through a combination of specific actions including the purchase of hybrid and electric vehicles and changes to the company’s travel policy. All of the company’s own emissions were fully offset via Atmosfair, an independent German non-profit organization which arranges carbon offsets. The company’s ESG metrics relating to social and governance criteria remained largely unchanged.

DEMIRE’s sustainability efforts are aimed at attaining the goals of the Paris climate agreement, which strives to limit global warming to 1.5°C or at worst 2°C. DEMIRE has established concrete goals and assigned responsibilities through an ESG action plan. A cross-departmental working group chaired and led by the Executive Board will anchor sustainability aspects in all business processes. The company is currently working on further improving the needed database. As part of these efforts, DEMIRE has designed a “green lease” that will form the basis of new leases under its real estate portfolio holdings. The company’s goal is to encourage tenants to actively participate in the resource conservation targets of each property, so that the property is able to meet these ambitious sustainability goals over its entire life cycle.

“Our second sustainability report shows that we have achieved improvements in the relevant ESG indicators,” explains Tim Brückner, Chief Financial Officer of DEMIRE. “Of course, we are also well aware that we are far from perfect and that we must, in particular, further develop our portfolio. Our belief is that carbon compensation models are only partially effective, and this is why we are concentrating on improving our data quality and implementing an action plan. Our goal as a company is to achieve true carbon neutrality in the future – without resorting to carbon offsets or credits.”

End of press release

Explanatory notes

¹  Like-for-like (LfL) performance indicators make it easier to compare portfolio consumption data because they are based on a constant portfolio and are unaffected by fluctuations in portfolio composition.

²   Combined Scope 1 and Scope 2 emissions per square metre (EPRA code: GHG-Int).

 Scope 1 emissions (EPRA code: GHG-Dir-Abs) are direct greenhouse gas emissions from our company vehicles and from natural gas heating of our business premises.

 Scope 2 emissions (EPRA code: GHG-Indir-Abs) are indirect emissions resulting from electricity consumption in the common areas of our multi-tenant property holdings under our control as well as electricity and heating consumption in our corporate offices.

 Scope 3 emissions include indirect emissions resulting from business travel, employee commuting, construction activities and energy consumption in tenant-controlled areas.

The complete DEMIRE Sustainability Report (in English translation) may be found here.

About DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial real estate in mid-sized cities and up-and-coming locations bordering metropolitan areas across Germany. The Company's particular strength lies in realising the potential of the properties at these locations while focusing on a range of properties that appeals to both regional and international tenants. As of 31 March 2023, DEMIRE's portfolio comprises 62 assets with a lettable space of approx. 0.9 million sqm. Including the proportionately acquired Cielo property in Frankfurt/Main, the market value amounts to approximately EUR 1.6 billion.

The portfolio's focus is on office properties with a blend of retail, hotel and logistics properties resulting in a return / risk structure that is appropriate for the commercial real estate segment. The Company places importance on long-term contracts with solvent tenants and the realisation of the properties' potential. DEMIRE anticipates continued stable and sustainable rental income along with solid value appreciation.

DEMIRE aims to expand its portfolio significantly in the medium term. The company focuses on assets contributing strongly to the FFO and properties with the potential for additional value creation. Properties that are not in line with this strategy will be sold. DEMIRE is being further developed operationally and procedurally with numerous measures. The company plans to enhance its operating performance through cost discipline as well as an active asset and portfolio management approach.

DEMIRE Deutsche Mittelstand Real Estate AG AG (ISIN: DE000A0XFSF0) shares are listed in the Regulated Market (Prime Standard segment) of the Frankfurt Stock Exchange.”