DGAP-Ad-hoc: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Change in Forecast/Miscellaneous DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE significantly falls below FFO-forecast for 2016 and does not maintain FFO-forecast for 2017 13-Apr-2017 / 01:04 CET/CEST Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Publication of an Inside Information according to Article 17 MAR DEMIRE significantly falls below FFO-forecast for 2016 and does not maintain FFO-forecast for 2017 Langen, 13. April 2017 - In the course of finalizing the consolidated financial statements for the financial year 2016 it has become obvious today that the forecast of the funds from operations without sales ("FFO") will significantly be missed. Within the Half-Year Financial Report for the financial year 2016 the Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG ("DEMIRE") provided a FFO forecast for the financial year 2016 before minority interests in the amount of EUR 19.1 million and after minority interests in the amount of EUR 13.9 million and confirmed the forecast within the 3rd Quarter 2016 Interim Report. Contrary to the FFO forecast (without sales) for the financial year 2016 the FFO will come out in a range between EUR 7.0 and 8.0 million before minority interests and between EUR 2.0 and 3.0 million after minority interests. The aforementioned FFO-amounts would increase including contribution from sales by approx. EUR 5.0 million to EUR 12.0 to 13.0 million before minority interests and to EUR 7.0 to 8.0 million after minority interests. The main reason for the deviation from the forecast is that planned reductions of administrative costs, contrary to the expectations of the Executive Board, have not yet been realized. In addition, planned tax offsettings at the level of certain subsidiary companies against loss carried forwards of DEMIRE could not be implemented. Furthermore, unexpected costs occurred from tenant improvements, which however lead to a reduction of vacancies and to an increase of rental income. The Executive Board continues to assume stable rental income for the financial year 2017 and will after updating its business planning publish a new FFO guidance for the financial year 2017. Against this background the current FFO guidance as published last year (within the Half-Year Financial Report and the third interim report) is retracted. The Executive Board Contact information DEMIRE Deutsche Mittelstand Real Estate AG Robert-Bosch-Straße 11 D-63225 Langen Phone: +49 (0) 6103 - 372 49 - 0 Fax: +49 (0) 6103 - 372 49 - 11 [email protected] www.demire.ag Disclaimer The information in this release contains forward-looking statements that are subject to various risks and uncertainties. Such forward-looking statements are based on current forecasts, expectations and estimates of DEMIRE's Executive Board at the time of their publication. Such statements constitute neither promises nor guarantees and are subject to various known and unknown risks and uncertainties, some of which are beyond DEMIRE's influence. These risks and uncertainties may lead to actual results differing materially from statements that are mentioned herein. Notwithstanding legal requirements DEMIRE accepts no obligation to update or adjust the forward-looking statements contained in this release to reflect events or circumstances after the date of this release. --------------------------------------------------------------------------- 13-Apr-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: DEMIRE Deutsche Mittelstand Real Estate AG Robert-Bosch-Straße 11 im 'the eleven' 63225 Langen (Hessen) Germany Phone: +49 6103 37249-0 Fax: +49 6103 37249-11 E-mail: [email protected] Internet: www.demire.ag ISIN: DE000A0XFSF0 WKN: A0XFSF Listed: Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart, Tradegate Exchange End of Announcement DGAP News Service --------------------------------------------------------------------------- 564749 13-Apr-2017 CET/CEST