DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): 9-month figures/Interim Report DEMIRE Deutsche Mittelstand Real Estate AG: Corporate News on Interim Statement as of September 30, 2016 30.11.2016 / 06:56 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Corporate News on Interim Statement as of September 30, 2016 - Net profit for the period increases considerably to EUR 6.5 million - FFO before minority interests reaches EUR 11.0 million - Cost of debt reduced to 4.4 % p.a. - LTV falls to 64.8 % - Forecast for 2016 and 2017 confirmed Frankfurt/Main, November 30, 2016 - DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) today published its interim statement for the first nine months of 2016. Rental income grew from EUR 21.9 million in the prior year period to EUR 56.7 million as a result of the real estate acquisitions concluded in 2015 and early 2016. Net profit rose from EUR 2.6 million to EUR 6.5 million, the net profit attributable to parent company shareholders climbed to EUR 4.1 million (reference period 2015: EUR 1.6 million). The adjusted profit for the period (FFO) before minority interests amounted to EUR 11.0 million in the first nine months of 2016. Basic EPRA NAV rose from EUR 264.3 million as of June 30, 2016 to EUR 269.2 million as of September 30, 2016. Basic EPRA NAV per share amounted to EUR 4.96 as a result of the higher number of shares outstanding following the cash capital increase in August 2016. The EPRA vacancy rate of the real estate portfolio amounted to 10.5 % as of September 30, 2016 and thus already reached de facto the target planned for the year-end. As of December 31, 2015, the EPRA vacancy rate had amounted to 12.8 % and was thus improved considerably by roughly 18 %. DEMIRE Group's loan-to-value (LTV) dropped to 64.8 % of the real estate portfolio from 66.1 % as of mid-year 2016 as a result of the full repayment of the high-interest HFS bond. The Company continues to target an LTV of 60 % by the end of 2016. The DEMIRE Group's average cost of debt were further reduced to 4.4 % p.a. and has reached the target range of 4.0 % to 4.5 % p.a. forecasted for the end of 2016. DEMIRE works intensively on undertaking additional refinancing measures in order to further reduce the average cost of debt, which will have a positive impact on the important key performance indicator funds from operations (FFO). DEMIRE is on a good way to achieve both its medium and long term strategic and economic goals as planned. CEO Prof. Andreas Steyer in his comments on the results said: "DEMIRE's in-house asset, property and facility management, which steadily expanded in 2016, pave the way for further economies of scale and portfolio optimisation in the years ahead. This will allow us to realise further profitable growth of our business through strategic investments in real estate in secondary locations in Germany". As a result, DEMIRE confirms its full-year 2016 forecast for FFO of EUR 19.1 million before minority interests and EUR 13.9 million after minority interests. For the 2017 fiscal year, DEMIRE strives in an unchanged way for FFO before minority interests of EUR 25 million and of EUR 18 million after minority interests. The Interim Statement as of September 30, 2016 is available on the Company website at www.demire.ag under the Investor Relations section: http:// www.demire.ag/en/investor-relations/reports-results/2016 Highlights of the DEMIRE Group's Key Financial Figures (EURk)

Consolidated income         01/01/2016 -30/09/2016           01/01/2015 -
statement                                                      30/09/2015
Rental income                               56,671                 21,908
Profit/loss from the                        43,291                 17,032
rental of real estate
EBIT                                        41,259                 26,451
Financial result                           -35,431                -20,639
EBT                                          5,828                  5,812
Net profit/loss for the                      6,527                  2,617
period
Net profit/loss for the                0.08 / 0.08            0.07 / 0.06
period per share (basic/
diluted) in EUR
FFO after minority                           6.016                    n/a
interests

Consolidated balance sheet              30/09/2016             31/12/2015
Total assets                             1,059,086              1,032,945
Investment properties                      960,624                915,089
Non-current assets held                     20,590                 13,005
for sale
Total core portfolio                       981,214                928,094

Financial liabilities                      663,648                655,239
Cash and cash equivalents                   28,145                 28,467
Net financial debt                         635,503                626,772
in % of core portfolio                        64.8                   67.5
(LTV)

Equity in consolidated                     288,008                264,902
balance sheet
Equity ratio in %                             27.2                   25.6

Basic/diluted EPRA NAV           269,153 / 282,791      256,267 / 271,585
Number of shares                     54.25 / 64.04          49.29 / 63.95
outstanding in million
(basic/diluted)
Basic/diluted EPRA NAV in              4.96 / 4.42            5.20 / 4.25
EUR per share

Contact information DEMIRE Deutsche Mittelstand Real Estate AG Lyoner Straße 32 60528 Frankfurt am Main Phone: +49 (0) 69-719 189 79 0 Fax: +49 (0) 69-719 189 79 11 Email: [email protected] Web: www.demire.ag _______________________________________ About DEMIRE - First in secondary locations DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up and coming areas bordering German metropolitan areas. As at September 30, 2016, DEMIRE held real estate consisting of 178 properties with a market value of EUR 981 million. As at the reporting date, contractual rents had been firmly agreed upon in the amount of EUR 74.4 million (at an occupancy rate of 87.3 % of the potential rents of EUR 85.2 million) for a term of 5.2 years. DEMIRE aims to maintain its corporate organisation as lean as possible, although it still believes that economies of scale and portfolio optimisation are best achieved by having its own in-house asset, property and facility management. This safeguards the Company's business expertise and, equally important, allows the Company to maintain direct contact with the customer. DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard segment of the Deutsche Börse in Frankfurt. --------------------------------------------------------------------------- 30.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. 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 Lyoner Straße 32 60528 Frankfurt am Main Germany Phone: +49 (0)69 / 719 189 79 0 Fax: +49 (0)69 / 719 189 79 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 News DGAP News Service --------------------------------------------------------------------------- 525329 30.11.2016