German real estate investment firm DEMIRE raised its full-year 2026 guidance on Tuesday despite a 17% year-on-year decline in rental income for the first half of the year.
The company attributed the drop in rental revenue to portfolio adjustments, including asset sales, and softer occupancy rates across its German properties. DEMIRE reported H1 rental income of €122 million, down from €147 million in the same period last year.
Despite the decline, DEMIRE upgraded its 2026 earnings outlook, citing improved cost efficiency and gains from recent disposals. The firm now expects full-year funds from operations (FFO) to exceed its prior guidance, though it did not provide specific figures in its preliminary H1 2026 presentation.
DEMIRE’s management highlighted that the portfolio restructuring, aimed at reducing leverage and focusing on higher-yield assets, had begun to stabilize occupancy levels. The company’s German real estate portfolio remains its core revenue driver, accounting for the majority of its rental income.
Analysts noted that DEMIRE’s ability to offset rental declines with cost savings and asset sales underscored resilience in a challenging commercial property market. The company’s shares were indicated slightly higher in early trading on Tuesday, reflecting cautious optimism.
