DEMIRE publishes EPRA Sustainability Report for 2023 – company's CO² emissions significantly lowered

Langen, 20 June 2024. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has reduced its corporate emissions by 39% since 2022. This is revealed in the company's third sustainability report, which was published today. "We are conscious of our responsibility to the coming generations and therefore fully committed to rigorously implementing the transformational steps required to achieve greater sustainability. The measures we have put in place are set out clearly in the published report. Besides measures within our portfolio, these also include internal company changes that enable every member of staff to make a direct contribution", says Tim Brückner, CFO of DEMIRE.

In 2023, DEMIRE intensified its focus on reducing the emissions produced by the company. These include, for example, those arising from utilisation of its own office space, staff commutes and business trips. With the support of all employees, the company succeeded in lowering its CO² emissions by 39% within a year, to a total of 59.5 t during the reporting year 2023. This was achieved in part by many of DEMIRE's employees switching over to the use of public transport, thanks to the company's introduction of a bus and rail ticket. A further key success factor was the consistent use of low-emission transportation for business trips, which resulted in a 59% reduction in CO² output, even though the distance travelled for business purposes increased by almost a quarter.

Thanks to adapted tenant behaviour and the initial positive effects of the ESG measures the company has introduced, DEMIRE's real estate portfolio demonstrates falling energy consumption rates for the reporting year 2023. Compared with the previous year, a reduction of 11.1% was registered. The total energy consumed was thus lowered to 113 kWh per square metre (previous year: 128 kWh/ per square metre). Against this, comparisons with the previous year show an increase in the water consumed (+21.3%) and the amount of waste produced (+2.4%) by our tenants. DEMIRE views this as being mainly due to the rebound in office space use, as well as increased retail footfall, following the Corona pandemic.

The decarbonisation of the portfolio has evolved to become an integral part of DEMIRE's operative asset management strategy. For example, DEMIRE was able to produce property-specific CO² balance sheets for the majority of properties based on their energy consumption data. Using energy audits, DEMIRE will examine the cost-efficiency of potential reductions in CO2 emissions, and set priorities to ensure that the greatest possible savings are achieved with the available funds. Further steps are already in planning, such as, for example, conversion of the metering systems to smart meters, as well as the gradual introduction of "Green Lease" clauses into the lease agreements. In addition, the company intends to press ahead with the installation of more EV charging stations and photovoltaic systems in its portfolio.

Tim Brückner, CFO of DEMIRE, says: "We, as DEMIRE, consider ourselves bound by the climate targets set down in the Paris Climate Treaty, and want to bring the carbon footprint of our portfolio into line with these savings targets in the long term. We are especially proud of the reductions we have achieved in our corporate emissions in such a short time, all thanks to the commitment of our DEMIRE team and the targeted measures we have implemented. We are fully aware, however, that the process of green transformation in existing buildings is a long-term mission."

DEMIRE's Sustainability Report for the past business year was drawn up in accordance with the standards set down by the European Public Real Estate Association – Sustainability Best Practices Recommendations (EPRA sBPR), and verified by an independent auditor.

End of Press Release

The full sustainability report can be found here: https://www.demire.ag/en/publications/


About DEMIRE Deutsche Mittelstand Real Estate AG

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 30 September 2023, DEMIRE's portfolio comprises 60 assets with a lettable space of approx. 0.861 million sqm. Including the proportionately acquired Cielo property in Frankfurt/Main, the market value amounts to approximately EUR 1.4 billion as of 30 September 2023.

The portfolio's focus is on office properties with a blend of retail and hotel 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.

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