DEMIRE Deutsche Mittelstand Real Estate : Quarterly financial report - DEMIRE DEUTSCHE MITTELSTAND REAL ESTATE AG - DE000A2YPAK1 Demire 5% 31/12/2027 Reg S

About this update from Demire Deutsche Mittelstand Real Estate Ag

INTERIM REPORT 1 JANUARY - 31 MARCH 2026 INTERIM REPORT 1 JANUARY - 31 MARCH 2026 HIGHLIGHTS 3M 2026 KEY EARNINGS FIGURES 11.6 KEY FINANCIAL INDICATORS 41.2 PORTFOLIO DEVELOPMENT 670 5.2 in EUR million RENTAL INCOME compared to EUR 14.0 million in 3M 2025 in % NET LOAN-TO-VALUE1 (NET LTV), compared to 41.8% at the end of 2025 in EUR million PORTFOLIO VALUE, compared to EUR 688 million as at year-end 2025 in years WALT compared to 4.7 years as at year-end 2025 0.3 4.74 45.7 21.0 in EUR million FFO I (after taxes, before minority interests and interest on shareholder loans), compared to EUR 2.1 million in 3M 2025 in % p. a. AVERAGE NOMINAL INTEREST COSTS,2 compared to 4.83% as at year-end 2025 in EUR million ANNUALISED RENTAL INCOME, compared to EUR 51.3 million as at year-end 2025 in % EPRA VACANCY RATE,3 compared to 16.4% as at year-end 2025 1.48 -5.2 2,700 1 According to the definition of the 2019/2027 bond 2 Excluding shareholder loans 3 Excluding project developments in EUR NET ASSET VALUE (PER SHARE, BASIC) compared to EUR 1.59 as at year-end 2025 in % LIKE-FOR-LIKE CHANGE in annualised contractual rent, compared to -6.9% in 3M 2025 in m 2 LETTING PERFORMANCE, compared to 25,500 m² in 3M 2025 ‌Key for navigating the interim report: CONTENTS Reference to table of contents Reference to another page in the interim report Reference to websites FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 Key Group figures 4 Portfolio highlights 5 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 19 Subsequent events 19 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 ‌FOREWORD BY THE EXECUTIVE BOARD‌ FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 IMPRINT 39 Dear Shareholders, dear Readers, The first quarter of the 2026 financial year was generally strong for DEMIRE, although the persistently weak economic environment had a moderately negative impact on our key performance indicators. In particular, rental income and funds from operations (FFO I) were down as expected. At an operational level, we faced noticeably tepid tenant demand in the reporting period, which is clearly reflected in a significant decline in letting performance. In addition, during the first quarter two properties that had already been sold -including a partial sale - were handed over to the new owners as planned. As expected, rental income totalled EUR 11.6 million following the aforementioned sales, down from EUR 14.0 million in the same period of the previous year. Funds from operations (FFO I after taxes, before minority interests and interest on shareholder loans) amounted to EUR 0.3 million, as planned, compared with EUR 2.1 million in the previous year. Letting performance amounted to approximately 2,700 m², which was significantly lower than the previous year's figure of approximately 25,500 m². The decrease in rental income and funds from operations is primarily attributable to the property sales carried out previously. In contrast, rent indexation had a positive effect, partially offsetting the decrease. Despite the ongoing challenging conditions in the commercial property lettings and transaction markets, we remain optimistic about the rest of the financial year. The results for the first three months are in line with our expectations and highlight DEMIRE's strong position. In light of this, we are in a position to confirm our forecast for the 2026 financial year following the conclusion of the first quarter. We expect rental income to be in the range of EUR 41.5 million to EUR 43.5 million (2025: EUR 53.5 million). We also expect funds from operations (FFO I after taxes, before minority interests and interest on shareholder loans) to be between EUR -1.0 million and EUR 1.0 million (2025: EUR 10.1 million). Frankfurt am Main, 6 May 2026 The EPRA vacancy rate (excluding project developments) rose to 21.0% (31 December 2025: 16.4%). At the same time, we were able to improve the WALT to 5.2 years compared with the end of 2025. NAV per share (basic) was slightly down at EUR 1.48, a decrease of EUR 0.11 compared to the end of 2025. The net loan-to-value ratio 1 (Net LTV) fell slightly to 41.2%, while liquidity remained virtually unchanged at EUR 53.7 million. Dr Dirk Rüffel (CEO) Tim Brückner (CFO) 1 According to the definition of the 2019/2027 bond ‌DEMIRE AT A GLANCE‌ Key Group figures 4 Portfolio highlights 5 FRANKFURT AM MAIN FOREWORD BY THE Key earnings figures Rental income 11,583 14,014 Profit/loss from the rental of real estate 7,561 9,034 EBIT 2,653 -3,388 Financial result -13,709 -12,562 EBT -11,056 -15,950 Net profit/loss for the period -8,641 -15,498 Net profit/loss for the period attributable to parent company shareholders -8,797 -15,490 Net profit/loss for the period per share (basic/diluted) (in EUR) -0.08/-0.08 -0.15/-0.15 FFO I (after taxes, before minorities and interests on shareholder loans) 298 2,079 FFO I per share (basic/diluted) (in EUR) 0.00/0.00 0.02/0.02 EXECUTIVE BOARD 2 KEY GROUP FIGURES DEMIRE AT A GLANCE 3 Key Group figures 4 Portfolio highlights 5 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 IMPRINT 39 in EUR thousand 01/01/2026 - 31/03/2026 01/01/2025 - 31/03/2025 in EUR thousand 31/03/2026 31/12/2025 in EUR thousand 31/03/2026 31/12/2025 Key portfolio indicators Properties (number) 42 43 Market value (in EUR million)¹ 670.2 688.3 Annualised contractual rents (in EUR million) 45.7 51.3 Rental yield 6.8% 7.5% EPRA vacancy rate 2 21.0% 16.4% WALT (in years) 5.2 4.7 1 The market value (in EUR million) represents the total fair value of DEMIRE's property portfolio as of the reporting date. In contrast to the balance sheet total of the "Total portfolio", no leaseholds or operating facilities are recognised. 2 Excluding project developments Key balance sheet figures Total assets 832,571 849,190 Investment property 593,381 591,946 Non-current assets held for sale 85,440 103,540 Total real estate portfolio 678,821 695,486 Financial and lease liabilities 505,749 511,063 Cash and cash equivalents 53,680 54,241 Net financial liabilities 452,069 456,822 Net loan-to-value¹ (Net LTV) (in %) 41.2% 41.8% Equity according to Group balance sheet 142,027 150,810 Equity ratio 17.1% 17.8% Net Asset Value (NAV) 120,367 129,148 NAV (basic/diluted) 156,470/156,470 168,105/168,105 Number of shares (basic/diluted) 105,513/105,513 105,513/105,513 EPRA NAV per share (basic/diluted) 1.48/1.48 1.59/1.59 ¹ According to the definition of the 2019/2027 bond as at 31 March 2026 FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 Key Group figures 4 Portfolio highlights 5 PORTFOLIO HIGHLIGHTS INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED in EUR million 670 9.97 MARKET VALUE OF THE PROPERTY PORTFOLIO in EUR/m² Schleswig-Holstein Mecklenburg-Western Pomerania Bremen Hamburg Lower Saxony Berlin Brandenburg Saxony-Anhalt North Rhine-Westphalia Saxony Thuringia Hesse Rhineland-Palatinate Office Retail Logistics and others Saarland Bavaria Corporate locations Baden-Wuerttemberg AVERAGE RENT across the portfolio FINANCIAL STATEMENTS 20 IMPRINT 39 42 21.0 ASSETS at 35 locations in 9 federal states in % EPRA VACANCY RATE1 across the portfolio 45.7 6.8 in EUR million ANNUALISED CONTRACTUAL RENTS in % GROSS RENTAL RETURNS -5.2 5.2 in % LIKE-FOR-LIKE CHANGE in annualised contractual rent in years WEIGHTED AVERAGE residual lease term (WALT) 1 Excluding project developments ‌KEMPTEN INTERIM GROUP MANAGEMENT REPORT for the reporting period from 1 January to 31 March 2026 Overview 7 Economic report 10 Opportunities and risks 19 Subsequent events 19 FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 19 Subsequent events 19 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 IMPRINT 39 OVERVIEW BUSINESS PERFORMANCE DEMIRE performed well in the first three months of 2026. The Group's rental income decreased, in particular due to property sales, and is therefore in line with expectations. The difficult economic environment is leading to rising vacancy rates and poor letting performance. The decrease in funds from operations (FFO I) is primarily due to a smaller portfolio base compared to the same period of the previous year. In summary, the business development is in line with the expectations and planning of the Executive Board. The company will continue to focus on reducing its debt ratio throughout the remainder of the 2026 financial year. This will be achieved by, among other things, focusing on the opportunistic sale of properties. Additional priorities include increasing letting performance and maintaining a high level of cost discipline. During the reporting period, the previously announced changes to the Executive Board's structure were put in motion as planned. The Executive Board was reduced from three to two members, and the responsibilities of the various departments were reorganised accordingly. Ralf Bongers, Head of Transactions, left the company upon the expiry of his contract. CEO Dr Dirk Rüffel will assume the role of Head of Transactions. These measures will lead to long-term savings in administrative costs, which are already having a positive impact on the cost base in the current financial year. DEMIRE's key indicators developed as follows in the first three months of 2026: Rental income totalled EUR 11.6 million (previous year: EUR 14.0 million), in line with expectations. Funds from operations (FFO I, after taxes, before minority interests and interest on shareholder loans) decreased, as planned, to EUR 0.3 million compared with EUR 2.1 million in the previous year. At around 2,700 m², letting performance is down significantly on the previous year's figure of around 25,500 m². Like-for-like rental growth amounted to -5.2%, compared to -6.9% in the prior-year period. The EPRA vacancy rate (excluding project developments) rose to 21.0% (31 December 2025: 16.4%). The WALT increased by 0.5 years compared to the end of 2025 to 5.2 years. NAV per share (basic) fell slightly to EUR 1.48, compared to EUR 1.59 at the end of 2025. Net loan-to-value¹ (net LTV) fell slightly to 41.2% (31 December 2025: 41.8%), with liquidity remaining around EUR 53.7 million as at the reporting date. The average nominal cost of funding 2 has fallen slightly to 4.74% per annum. According to the definition of the 2019/2027 bond Excluding shareholder loans FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 PERFORMANCE IN LINE WITH FORECAST FOR THE 2026 FINANCIAL YEAR In light of the development in the first quarter of 2026, the Executive Board can confirm the forecast for the 2026 financial year: rental income will be between EUR 41.5 million TOP TEN TENANTS (AS AT 31 MARCH 2026) Contractual INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 19 Subsequent events 19 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 IMPRINT 39 and EUR 43.5 million (2025: EUR 53.5 million). FFO I (after taxes, before minority interests and interest on shareholder loans) is expected to be between EUR -1.0 million and EUR 1.0 million (2025: EUR 10.1 million). PROPERTY PORTFOLIO Compared with the end of 2025, the portfolio decreased by one property following the handover of the property in Flensburg, which was sold in the fourth quarter of 2025. The partial sale of the property in Bonn is not taken into account in this analysis. One residential property was sold separately. As at the reporting date of 31 March 2026, the portfolio consists of 42 commercial properties with lettable floor space of around 512,370 m² and a total market value of around EUR 670.2 million. The last external property valuation of the entire portfolio was performed on 31 December 2025. The EPRA vacancy rate of the portfolio (excluding project developments) was 21.0% as at the reporting date of 31 March 2026, a slight increase of 4.7 percentage points compared with the level as at 31 December 2025. The increase is mainly due to higher vacancy rates in the properties in Schwerin and Leipzig. The WALT amounts to 5.2 years as at 31 March 2026, an increase of 0.5 years compared to the end of 2025. In the reporting period, DEMIRE achieved a letting performance of around 2,700 m² (previous year: 25,500 m²), of which around 75.7% was attributable to new lettings and around 24.3% to contract extensions. No. Tenant Type of use 1 GMG/Dt. Telekom Office 3.9 8.5 2 Bima Bundesanstalt für Immobilienaufgaben Office 2.6 5.7 3 Roomers Hotel 2.2 4.7 4 GALERIA Karstadt Kaufhof Retail 1.8 3.9 5 comdirect bank AG Office 1.4 3.0 6 BWI GmbH Office 1.3 2.8 7 CFH Penta Rostock GmbH Hotel 1.3 2.8 8 Stadt Leverkusen Office 1.2 2.6 9 toom Baumarkt GmbH Retail 1.1 2.5 10 Landesbetrieb Bau und Immobilien Office 1.1 2.4 Total Other Total 17.7 38.9 27.9 61.1 45.7 100.0 1 Based on annualised contractual rents, excluding ancillary costs rents p.a. 1 in EUR million in % of total FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 19 Subsequent events 19 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 IMPRINT 39 PORTFOLIO BY ASSET CLASS Number of properties Market value¹ in EUR million Share by market value in % Lettable space in thousand m 2 Market Contractual rent value/m 2 in EUR million p.a. Contractual rent per m² Rental returns in % EPRA vacancy rate 2 in % WALT in years Office 27 406.8 60.7 319.3 1,274 26.0 9.98 6.4 27.2 3.7 Retail 11 210.3 31.4 164.2 1,281 16.2 9.60 7.7 12.9 5.8 Other 4 53.1 7.9 28.8 1,842 3.5 11.94 6.6 10.4 13.8 Total 31 March 2026 42 670.2 100.0 512.4 1,308 45.7 9.97 6.8 21.0 5.2 Total 31 December 2025 43 688.3 100.0 536.8 1,282 51.3 9.80 7.5 16.4 4.7 Change (in %/pp) -1 -2.6% 0 -4.5% 2.0% -11.0% 1.7% -0.6 4.7 0.5 The market value (in EUR million) represents the total fair value of DEMIRE's property portfolio as of the reporting date. In contrast to the balance sheet total of the "Total portfolio", no leaseholds or operating facilities are recognised. Excluding project developments FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 19 Subsequent events 19 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 IMPRINT 39 ECONOMIC REPORT Results of operations, net assets and financial position RESULTS OF OPERATIONS In the first three months of 2026, the DEMIRE Group generated rental income totalling EUR 11.6 million (previous year: EUR 14.0 million). Rental income fell by 17.3% compared to the same period of the previous year, mainly due to property sales. This was offset by rent indexations. Profit/loss from the rental of real estate decreased by 16.3% to EUR 7.6 million (previous year: EUR 9.0 million). The result from the sale of real estate amounted to EUR -1.0 million (previous year: EUR -0.2 million). This is largely due to the costs associated with the sales in Flensburg and Bonn. As usual, no valuation of investment property was carried out in the first quarter of 2026 (EUR 0 million; previous year: EUR 1.9 million). Assets held for sale, in contrast, were written down slightly by EUR 0.6 million (previous year: EUR -10.8 million) based on current purchase offers. Impairments on financial and other receivables totalled EUR 0.4 million (previous year: EUR 1.0 million). General administrative expenses remained almost constant at around EUR 2.9 million in the first three months of 2026 (previous year: EUR 2.9 million). Other operating expenses fell slightly to EUR 0.2 million (previous year: EUR 0.4 million). Earnings before interest and taxes (EBIT) rose to EUR 2.7 million (previous year: EUR -3.4 million), primarily due to the lower devaluation of assets held for sale. The financial result amounted to EUR -13.7 million, compared to EUR -12.6 million in the prior-year period. This reflects higher financing costs associated with the shareholder loan. The average nominal interest rate on liabilities (excluding shareholder loans) as at 31 March 2026 fell slightly compared to the end of 2025 to a nominal 4.74% per annum (31 December 2025: 4.83% per annum). Earnings before taxes (EBT) improved to EUR -11.1 million in the reporting period, compared with EUR -16.0 million in the previous year. The net loss for the first three months of 2026 was EUR -8.6 million, compared with EUR -15.5 million in the same period last year. FOREWORD BY THE EXECUTIVE BOARD 2 CONSOLIDATED INCOME STATEMENT DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 19 Subsequent events 19 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 IMPRINT 39 (selected information in EUR thousand) Rental income Income from utility and service charges Operating expenses to generate rental income Impairment of trade receivables Profit/loss from the rental of real estate Income from the sale of real estate and real estate companies Expenses related to the sale of real estate and real estate companies Profit/loss from the sale of real estate and real estate companies Profit/loss from fair value adjustments of investment properties Result from the fair value adjustment of assets held for sale Impairment of receivables Other operating income General and administrative expenses Other operating expenses Earnings before interest and taxes Financial result Earnings before taxes Current income taxes Deferred taxes Net profit/loss for the period Thereof attributable to parent company shareholders Basic earnings per share (in EUR) Weighted average number of shares outstanding Diluted earnings per share (in EUR) Weighted average number of shares outstanding (diluted) 01/01/2026 - 31/03/2026 01/01/2025 11,583 14,014 -2,431 -17.3 4,189 4,726 -537 -11.4 -7,893 -9,232 1,339 -14.5 -318 -474 156 -32.9 7,561 9,034 -1,473 -16.3 17,655 4,780 12,875 >100 -18,666 -4,956 -13,710 >100 -1,011 -176 -835 >100 0 1,883 -1,883 -100.0 -600 -10,816 10,216 -94.5 -379 -997 618 -62.0 194 916 -722 -78.8 -2,921 -2,864 -57 2.0 -191 -368 177 -48.1 2,653 -3,388 6,041 >100 -13,709 -12,562 -1,147 9.1 -11,056 -15,950 4,894 -30.7 -439 -954 515 -54.0 2,854 1,406 1,448 >100 -8,641 -15,498 6,857 -44.2 -8,797 -15,490 6,693 -0 -0.08 -0.15 0.06 -43.5 105,513 105,513 -0 -0 -0.08 -0.15 0.06 -43.5 105,513 105,513 0 0 - 31/03/2025 Change in % FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 19 Subsequent events 19 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 IMPRINT 39 NET ASSETS As at 31 March 2026, total assets had decreased slightly by EUR 16.6 million compared with the end of 2025, to around EUR 832.6 million. The value of investment property amounted to EUR 593.4 million as at 31 March 2026 (31 December 2025: EUR 591.9 million). The slight increase compared with the figure at the end of 2025 is attributable to investments in the real estate portfolio that have increased its value. As at the reporting date, a total of five properties were held for sale. The value of assets held for sale fell to EUR 85.4 million (31 December 2025: EUR 103.5 million), primarily as a result the sale of the property in Flensburg, and is therefore a key factor in the decrease in total assets. Group equity as at 31 March 2026 totalled EUR 142.0 million, which was lower compared to 31 December 2025 (EUR 150.8 million) due to the negative result for the period. The equity ratio fell slightly to 17.1% (31 December 2025: 17.8%). It should be noted that the non-controlling interests of approximately EUR 69.3 million (31 December 2025: EUR 68.5 million) reported under non-controlling interests are classified as non-current liabilities rather than equity in accordance with IAS 32, solely due to the legal form of Fair Value REIT's fund investments, which are partnerships. The corresponding adjusted Group equity totalled EUR 211.3 million (31 December 2025: EUR 219.3 million). As at 31 March 2026, total liabilities amounted to EUR 690.5 million, having fallen slightly compared with 31 December 2025 (EUR 698.4 million), primarily due to the repayment of property loans as part of sales. FOREWORD BY THE EXECUTIVE BOARD 2 CONSOLIDATED BALANCE SHEET - ASSETS DEMIRE AT A GLANCE 3 (selected information in EUR thousand) 31/03/2026 31/12/2025 Change in % Assets Total non-current assets 677,516 676,052 1,464 0.2 Total current assets 69,615 69,598 17 0.0 Assets held for sale 85,440 103,540 -18,100 -17.5 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Total assets 832,571 849,190 -16,619 -2.0 Opportunities and risks 19 Subsequent events 19 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 CONSOLIDATED BALANCE SHEET - EQUITY AND LIABILITIES IMPRINT 39 (selected information in EUR thousand) 31/03/2026 31/12/2025 Change in % Equity and liabilities Equity Equity attributable to parent company shareholders 120,367 129,148 -8,781 -6.8 Non-controlling interests 21,660 21,662 -2 -0.0 Total equity 142,027 150,810 -8,783 -5.8 Liabilities Total non-current liabilities 581,538 573,380 8,158 1.4 Total current liabilities 109,006 125,000 -15,994 -12.8 Total liabilities 690,544 698,380 -7,836 -1.1 Total equity and liabilities 832,571 849,190 -16,619 -2.0 FOREWORD BY THE EXECUTIVE BOARD 2 FINANCIAL POSITION Cash flow from operating activities came to EUR 4.1 million (previous year: CONSOLIDATED STATEMENT OF CASH FLOWS DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 19 Subsequent events 19 INTERIM CONSOLIDATED EUR 4.1 million) in the first three months of 2026, reflecting the Company's operating result. 4,143 14,793 -19,497 Cash flow from investing activities amounted to EUR 14.8 million in the reporting period, compared with EUR 4.0 million in the previous year, and was primarily driven by proceeds from the sale of the properties in Flensburg and the partial sale in Bonn. Cash flow from financing activities amounted to EUR -19.5 million, compared to EUR -6.7 million in the same prior-year period. This increase is primarily attributable to the repayment of the loans used to finance the properties in Flensburg and Bonn (selected information in EUR thousand) Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Net change in cash and cash equivalents Cash and cash equivalents at the end of the period Funds from operations (FFO) 01/01/2026 - 31/03/2026 01/01/2025 - 31/03/2025 Change 4,097 45 3,999 10,795 -6,723 -12,774 -561 53,680 1,373 -1,934 46,189 7,491 FINANCIAL STATEMENTS 20 IMPRINT 39 following their sale. Cash and cash equivalents amounted to EUR 53.7 million on 31 March 2026 (31 March 2025: EUR 46.2 million). Funds from operations I (after taxes, before minority interests and interest on shareholder loans), the key operating performance indicator, fell to EUR 0.3 million in the first quarter of 2026, compared with EUR 2.1 million in the same period of the previous year. On a diluted basis, this corresponds to an FFO I per share of EUR 0.00, compared to EUR 0.02 in the same period of the previous year. FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP FFO CALCULATION 01/01/2026 01/01/2025 (selected information in EUR thousand) - 31/03/2026 - 31/03/2025 Change in % Earnings before taxes -11,056 -15,949 4,893 -30.7 MANAGEMENT REPORT 6 Minority interests 836 1,305 -469 -35.9 Overview 7 Earnings before taxes (EBT) -10,220 -14,644 4,424 -30.2 Economic report 10 ± Profit/loss from the sale of real estate 1,010 176 835 >100 Opportunities and risks 19 ± Profit/loss from the valuation of investment properties 600 8,933 -8,333 -93.3 Subsequent events 19 ± Other adjustments 1 3,887 3,731 156 4.2 FFO I before taxes -4,723 -1,805 -2,918 >100 INTERIM CONSOLIDATED ± (Current) income taxes -378 -672 294 -43.8 FINANCIAL STATEMENTS 20 FFO I after taxes -5,101 -2,477 -2,624 >100 Thereof attributable to parent company shareholders -6,093 -3,437 -2,656 77.3 IMPRINT 39 Thereof attributable to non-controlling interests 992 960 32 3.4 ± Interest expenses from shareholder loans (including effect on current income taxes) 5,399 4,556 843 18.5 FFO I after taxes, before minorities and interest on shareholder loans² 298 2,079 -1,782 -85.7 Thereof attributable to parent company shareholders -694 1,119 -1,814 >100 Thereof attributable to non-controlling interests 992 960 32 3.4 FFO I after taxes -5,101 -2,477 -2,624 >100 ± Profit/loss from the sale of real estate and real estate companies (after taxes) -1,011 -176 -835 >100 FFO II after taxes -6,112 -2,653 -3,459 >100 Thereof attributable to parent company shareholders -7,150 -3,623 -3,527 97.4 Thereof attributable to non-controlling interests 1,038 970 68 7.0 ± Interest expenses from shareholder loans (including effect on current income taxes) 5,399 4,556 843 18.5 FFO II after taxes, before minorities and interest on shareholder loans² -713 1,903 -2,617 >100 Thereof attributable to parent company shareholders -1,751 933 -2,685 >100 Thereof attributable to non-controlling interests 1,038 970 68 7.0 FFO I after taxes and minority interests -6,093 -3,437 -2,656 77.3 Basic earnings per share (in EUR) -0.06 -0.03 -0.03 77.3 Weighted average number of shares outstanding 105,513 105,513 0 0.0 Diluted earnings per share (in EUR) -0.06 -0.03 -0.03 77.3 Weighted average number of shares outstanding (diluted) 105,513 105,513 0 0.0 FFO II after taxes and minority interests -7,150 -3,623 -3,527 97.4 Basic earnings per share (in EUR) -0.07 -0.03 -0.03 97.4 Weighted average number of shares outstanding 105,513 105,513 0 0.0 FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 19 FFO CALCULATION (selected information in EUR thousand) Diluted earnings per share (in EUR) Weighted average number of shares outstanding (diluted) Other adjustments include: One-time refinancing costs and effective interest payments (EUR 2.8 million, previous year: EUR 3.2 million) One-time transaction, legal and consultancy fees (EUR 0.2 million, previous year: EUR 0.1 million) Non-period expenses/income (EUR -0.9 million, previous year: EUR -0.4 million) 01/01/2026 - 31/03/2026 01/01/2025 -0.07 -0.03 -0.03 97.4 105,513 105,513 0 0.0 - 31/03/2025 Change in % Subsequent events 19 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 IMPRINT 39 When calculating FFO I after tax but before interest on shareholder loans, it was assumed that the shareholder loan should be treated as equity. Accordingly, interest expenses were not taken into account here. To determine the potential tax burden resulting from the reduction in interest expenses, a simplified calculation was used to approximate this tax burden. A complex Group-wide calculation was not performed for reasons of cost and simplification. Net asset value (NAV) The basic net asset value fell to EUR 156.5 million as at 31 March 2026, largely due to the net loss for the period of EUR 168.1 million as at 31 December 2025. On a per-share basis, basic NAV amounted to EUR 1.48 per share on the reporting date (31 December 2025: EUR 1.59 per share). NET ASSET VALUE (NAV) 120,367 129,148 -8,781 -6.8 36,103 38,957 -2,854 -7.3 0 0 0 0.0 156,470 168,105 -11,635 -6.9 105,513 105,513 0 0.0 1.48 1.59 -0.11 -6.9 0 0 0 0.0 156,470 168,105 -11,635 -6.9 105,513 105,513 0 0.0 1.48 1.59 -0.11 -6.9 in EUR thousand 31/03/2026 31/12/2025 Change in % Net asset value (NAV) Deferred taxes Goodwill resulting from deferred taxes NAV (basic) Number of outstanding shares (basic) (in thousands) NAV per share (basic) (in EUR) Effect of the conversion of convertible bonds and other equity instruments NAV (diluted) Number of outstanding shares (diluted) (in thousands) NAV per share (diluted) (in EUR) FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 19 Subsequent events 19 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 IMPRINT 39 NET LOAN-TO-VALUE RATIO The DEMIRE Group's net loan-to-value ratio is defined in the 2019/2027 bond prospectus as the ratio of net financial liabilities excluding shareholder loans to the sum of all assets less intangible assets and cash and cash equivalents. The net debt ratio fell from 41.8% at the end of 2025 to 41.2% as at 31 March 2026. NET LOAN-TO VALUE (NET LTV) in EUR thousand 31/03/2026 31/12/2025 Financial liabilities and lease liabilities 374,470 386,539 Cash and cash equivalents 53,680 54,241 Net financial debt 320,790 332,298 Total assets 832,571 849,190 Intangible assets 0 0 Cash and cash equivalents -53,680 -54,241 Total assets less intangible assets and cash and cash equivalents 778,891 794,949 Net LTV (in %) 41.2 41.8 COVENANTS FOR THE 2019/2027 CORPORATE BOND Within the scope of issuing the 2019/2027 corporate bond, DEMIRE undertook to comply with and regularly report on various covenants. The definition of the covenants to be reported on is listed in the offering prospectus for the 2019/2027 corporate bond. As at the reporting date, five properties were held for sale. A letter of intent (LOI) has been issued for these properties. The weighted average lease term (WALT) of the 20 largest properties increased to 5.3 years as of 31 March 2026. A key factor in this increase was the new and extended leases in Rostock, as well as the transition of the leases in Neuss from a master lease to individual leases at the start of the year. As at 31 March 2026, DEMIRE had complied with all covenants of the 2019/2027 corporate bond. The planning for the 2026 financial year assumes that the covenants can be complied with. BOND COVENANTS 31/03/2026 NET LTV ICR Covenant max. 70% min. 1.50 Value 41.2% 2.00 FOREWORD BY THE Property Rostock (Kröpeliner Straße 26-28) 9.0 8.8 Bonn (Bonner Talweg 100/Reuterstraße) 3.9 4.1 Neuss (Breslauer Straße 8) 2.3 0.0 Bad Vilbel (Konrad-Adenauer-Allee 1-11) 5.1 5.2 Düsseldorf (Wiesenstraße 70) 2.9 3.0 Frankfurt (Gutleutstraße 85) 13.8 14.0 Leipzig (Gutenbergplatz 1 a-e) 2.4 1.6 Eschborn (Frankfurter Straße 29-35) 3.7 4.0 Lutherstadt Wittenberg (Lerchenbergstraße 112/113, Annendorfer Straße 15/16) 5.7 5.9 Zittau (Hochwaldstraße 20) 6.5 6.6 Langen (Robert-Bosch-Straße 11) 3.8 3.7 Quickborn (Pascalkehre 15/15a) 1.7 1.9 Meckenheim (Auf dem Steinbüchel 20) 4.8 5.0 Dresden (Königsbrücker Straße 121 a) 19.8 20.0 Stralsund (Tribseer Damm 76) 4.7 4.8 Dresden (Nossener Brücke 8-12) 2.6 2.8 Bayreuth (Nürnberger Straße 38) 2.2 1.9 Leverkusen (Goetheplatz 1-4) 3.7 4.0 Cologne (Colonia-Allee 11) 0.0 0.0 Leonberg (Neue Ramtelstraße 4) 3.2 2.9 Average 5.3 4.9 EXECUTIVE BOARD 2 WALT TOP 20 ASSETS DEMIRE AT A GLANCE 3 in years 31/03/2026 31/12/2025 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 19 Subsequent events 19 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 IMPRINT 39 FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 Overview 7 Economic report 10 Opportunities and risks 19 Subsequent events 19 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 IMPRINT 39 Opportunities and risks Please refer to the disclosures made in the opportunities and risks report included within the consolidated financial statements as at 31 December 2025 for information on the opportunities and risks of future business development. In addition to the opportunities and risks identified as at 31 December 2025, the first three months of 2026 were largely dominated by continued weak economic development and low revenue in the property transaction markets. These factors continue to create a high degree of uncertainty in the property market and lead to low demand for rental space, which is having a negative impact on DEMIRE's operating figures. However, both rental income and funds from operations (after taxes, before minority interests and interest on shareholder loans) are in line with our expectations. Nevertheless, DEMIRE's Executive Board is closely monitoring whether and how the economic environment is changing and whether this could have a negative impact on the performance of the portfolio and rental income. The risks are reviewed continuously and in a structured process. Subsequent events On 27 April 2026, DEMIRE's Supervisory Board resolved to extend the contract of CFO Tim Brückner ahead of schedule. The new contract runs until 30 June 2028. From today's perspective, this development has no material impact on the Group's net assets, financial position and results of operations. No further events that are of relevance to DEMIRE's net asset, financial position and results of operations have occurred since the interim reporting date. Frankfurt am Main, 6 May 2026 DEMIRE Deutsche Mittelstand Real Estate AG Dr Dirk Rüffel (CEO) Tim Brückner (CFO) ‌MECKENHEIM INTERIM CONSOLIDATED FINANCIAL STATEMENTS Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 CONSOLIDATED STATEMENT OF INCOME ‌for the reporting period from 1 January to 31 March 2026 FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 in EUR thousand NOTE 01/01/2026 - 31/03/2026 01/01/2025 - 31/03/2025 Rental income 11,583 14,014 Income from utility and service charges 4,189 4,726 Operating expenses to generate rental income -7,893 -9,232 Impairment of trade receivables -318 -474 Profit/loss from the rental of real estate 7,561 9,034 Income from the sale of real estate and real estate companies 17,655 4,780 Expenses related to the sale of real estate and real estate companies -18,666 -4,956 Profit/loss from the sale of real estate and real estate companies -1,011 -176 Profit/loss from fair value adjustments of investment properties 0 1,883 Result from fair value adjustment of assets held for sale -600 -10,816 Impairment of financial and other receivables -379 -997 Other operating income 194 916 General and administrative expenses -2,921 -2,864 Other operating expenses -191 -368 Earnings before interest and taxes D 1 2,653 -3,388 Financial income 1,149 1,827 Financial expenses -14,022 -13,084 Minority interests -836 -1,305 Financial result D 2 -13,709 -12,562 Earnings before taxes -11,056 -15,950 Current income taxes -439 -954 Deferred taxes 2,854 1,406 Net profit/loss for the period -8,641 -15,498 Thereof attributable to: Non-controlling interests 156 -7 Parent company shareholders -8,797 -15,490 Basic/diluted earnings per share (in EUR) D 3 -0.08 -0.15 FOREWORD BY THE EXECUTIVE BOARD 2 Net profit/loss for the period -8,641 -15,498 Other comprehensive income 0 0 Total comprehensive income -8,641 -15,498 Thereof attributable to: Non-controlling interests 156 -7 Parent company shareholders -8,797 -15,490 DEMIRE AT A GLANCE 3 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the reporting period from 1 January to 31 March 2026 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 in EUR thousand 01/01/2026 - 31/03/2026 01/01/2025 - 31/03/2025 FOREWORD BY THE‌ EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 ASSETS Assets Non-current assets Property, plant and equipment 80 88 Investment property E 1 593,381 591,946 Shares in companies accounted for using the equity method 260 260 Loans to companies accounted for using the equity method 22,259 22,259 Loans and financial assets 61,536 61,499 Other assets 0 0 Total non-current assets 677,516 676,052 Current assets Trade accounts receivable 9,066 10,373 Financial assets 1,566 1,043 Other assets 1,968 603 Tax refund claims 3,335 3,338 Cash and cash equivalents 53,680 54,241 Total current assets 69,615 69,598 Non-current assets held for sale 85,440 103,540 Total assets 832,571 849,190 in EUR thousand NOTE 31/03/2026 31/12/2025 FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 EQUITY AND LIABILITIES Equity and liabilities Equity Subscribed capital 105,513 105,513 Reserves E 2 14,854 23,635 Equity attributable to parent company shareholders 120,367 129,148 Non-controlling interests 21,660 21,662 Total equity 142,027 150,810 Liabilities Non-current liabilities Deferred tax liabilities 36,103 38,957 Minority interests 69,281 68,502 Financial liabilities E 3 439,387 429,121 Lease liabilities 8,067 8,100 Market values of options 28,700 28,700 Total non-current liabilities 581,538 573,380 Current liabilities Provisions 1,089 1,791 Trade payables 10,349 10,872 Other liabilities 11,215 10,141 Tax liabilities 28,058 28,354 Financial liabilities E 3 57,957 73,527 Lease liabilities 338 315 Total current liabilities 109,006 125,000 Total liabilities 690,544 698,380 Total equity and liabilities 832,571 849,190 in EUR thousand NOTE 31/03/2026 31/12/2025 FOREWORD BY THE‌ EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 in EUR thousand 01/01/2026 - 31/03/2026 01/01/2025 - 31/03/2025 Earnings before taxes -11,056 -15,950 Financial expenses 14,022 13,084 Financial income -1,149 -1,827 Minority interests 836 1,305 Change in trade accounts receivable 989 -1,468 Change in other receivables and other assets -1,532 -1,755 Change in provisions -962 -1,059 Change in trade payables and other liabilities 841 721 Profit/loss from fair value adjustments of investment properties 600 8,933 Profit/loss from the sale of real estate and real estate companies 1,010 176 Interest proceeds from loans and receivables 84 99 Interest received from loans to companies accounted for using the equity method 260 90 Income tax payments -750 109 Depreciation and amortisation and impairment 979 1,652 Distributions from companies accounted for using the equity method 0 64 Other non-cash items -30 -75 FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 in EUR thousand 01/01/2026 - 31/03/2026 01/01/2025 - 31/03/2025 Cash flow from operating activities 4,143 4,097 Payments for the acquisition of/investments in investment properties, incl. prepayments, refurbishment measures and prepayments for property, plant and equipment -1,733 -1,450 Proceeds from the sale of real estate 16,527 5,449 Cash flow from investing activities 14,793 3,999 Payments for borrowing costs 0 -5,217 Proceeds from borrowings 0 3,727 Interest paid on financial liabilities -1,649 -1,380 Payments for the purchase of additional shares in a subsidiary -38 0 Payments for the redemption of financial liabilities -17,800 -3,793 Payment for the redemption of lease liabilities -10 -60 Cash flow from financing activities -19,497 -6,723 Net change in cash and cash equivalents -561 1,373 Cash and cash equivalents at the start of the period 54,241 44,816 Cash and cash equivalents at the end of the period 53,680 46,189 FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the reporting period from 1 January to 31 March 2026 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 Share capital Reserves IMPRINT 39 Retained earnings Equity attributable to parent company Non-controlling Total in EUR thousand Subscribed capital Capital reserves incl. Group profit/loss shareholders interests equity 01/01/2025 105,513 89,767 22,825 218,105 23,818 241,923 Net profit/loss for the period 0 0 -15,490 -15,490 -7 -15,497 Total comprehensive income 0 0 -15,490 -15,490 -7 -15,497 Other changes 0 0 0 0 -196 -196 31/03/2025 105,513 89,767 7,335 202,616 23,615 226,230 FINANCIAL STATEMENTS 20 Share capital Reserves Retained earnings Equity attributable to parent company Non-controlling Total in EUR thousand Subscribed capital Capital reserves incl. Group profit/loss shareholders interests equity 01/01/2026 105,513 89,767 -66,132 129,148 21,662 150,810 Net profit/loss for the period 0 0 -8,797 -8,797 156 -8,641 Total comprehensive income 0 0 -8,797 -8,797 156 -8,641 Other changes 0 0 16 16 -158 -142 31/03/2026 105,513 89,767 -74,913 120,367 21,660 142,027 FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the reporting period from 1 January to 31 March 2026 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 A. General information 1. Basis of preparation DEMIRE Deutsche Mittelstand Real Estate AG (hereafter "DEMIRE AG") is recorded in the commercial register in Frankfurt am Main, Germany, the location of the Company's headquarters, under the number HRB 89041. The Company's registered office is located in Frankfurt am Main, Germany, and the Company's business address is Robert-Bosch-Straße 11, Langen, Germany. The Company's shares are listed in the Prime Standard segment of the Frankfurt Stock Exchange. The subject of these condensed interim consolidated financial statements as at 31 March 2026 is DEMIRE AG and its subsidiaries (hereafter "DEMIRE"). DEMIRE AG itself has not carried out any investments in real estate or real estate projects to date. Investments are generally processed through real estate companies. Interests in these property companies are held by DEMIRE AG either directly or indirectly (through intermediate holding companies). DEMIRE focuses on the German commercial real estate market, where it is an active investor and portfolio manager. DEMIRE itself carries out the acquisition, management and leasing of commercial properties. Value appreciation is to be achieved through active real estate management. This may also include the targeted sale of properties when they are no longer a strategic fit or have exhausted their potential for value appreciation. The condensed interim consolidated financial statements for the period from 1 January to 31 March 2026 were prepared in accordance with the requirements of IAS 34 Interim Financial Reporting (hereafter IAS 34). This report has not been audited or subjected to audit review, and for this reason does not contain an auditor's opinion. The condensed interim consolidated financial statements of DEMIRE AG were prepared in accordance with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB), as adopted by the European Union (EU), applying Section 315e of the German Commercial Code (HGB). All International Financial Reporting Standards (IFRS), International Accounting Standards (IAS) and interpretations of the IFRS Interpretations Committee (IFRS IC) -formerly the International Financial Reporting Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC) - that were mandatory for the 2025 financial year have been taken into consideration. Furthermore, all disclosure and explanation requirements under German law above and beyond the provisions of the IASB have been fulfilled. Under IAS 34, the condensed interim consolidated financial statements are intended to be an update of the most recent annual financial statements. They therefore do not contain all of the information and disclosures required for consolidated financial statements but rather concentrate on new activities, events and circumstances. The aim is to not repeat information that has already been reported. The condensed interim consolidated financial statements of DEMIRE AG as at 31 March 2026 should therefore be viewed in conjunction with the consolidated financial statements as at 31 December 2025. The euro (EUR) is the reporting currency of DEMIRE AG's condensed interim consolidated financial statements. Unless otherwise stated, all amounts are expressed in thousands of euros (EUR thousand). For computational reasons, rounding differences of one unit (EUR, %, etc.) may occur in the information presented in these financial statements. The consolidated statement of income has been prepared according to the cost-of-sales method. FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 B. Scope and principles of consolidation There were no changes to the scope of consolidation in the reporting period. INTERIM GROUP MANAGEMENT REPORT INTERIM CONSOLIDATED 6 C. Accounting policies The accounting policies applied to these interim consolidated financial statements FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 are the same as those applied to the consolidated financial statements as at 31 December 2025. There were no material changes in estimates compared to those in the consolidated financial statements as at 31 December 2025. The first-time application of the amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 has no impact on DEMIRE's consolidated financial statements. FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 D. Notes to the consolidated statement of income Earnings before interest and taxes Net rent 11,583 14,014 Income from utility and service charges 4,189 4,726 Rental revenue from real estate 15,772 18,740 Allocable operating expenses to generate rental income -6,189 -6,786 Non-allocable operating expenses to generate rental income -1,704 -2,446 Impairment of receivables -318 -474 Operating expenses to generate rental income -8,211 -9,706 Profit/loss from the rental of real estate 7,561 9,034 01/01/2026 01/01/2025 Of the operating expenses, an amount of EUR -6,189 thousand (Q1 2025: EUR -6,786 thousand) is generally allocable and can be charged on to tenants. The decrease is primarily due to the sale of properties in the previous financial year and the reporting period. The decline in allocable operating expenses is also reflected in lower income from ancillary cost allocations amounting to EUR 4,189 thousand (Q1 2025: EUR 4,726 thousand). INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated in EUR thousand - 31/03/2026 - 31/03/2025 Non-recoverable operating expenses amounting to EUR -1,704 thousand (Q1 2025: EUR -2,446 thousand) have also decreased due to the sale of properties during the previous financial year and the reporting period. The decrease in non-allocable operating expenses is largely due to lower maintenance costs of EUR -892 thousand (Q1 2025: EUR -1,190 thousand). The result from the sale of properties and real estate companies as at 31 March 2026 was EUR -1,011 thousand (Q1 2025: EUR -176 thousand) and includes the sale of the properties in Flensburg and Bonn, Reuterstraße 99 (partial sale of a residential building). financial statements 28 IMPRINT 39 Rental revenue in the interim reporting period resulted exclusively from the rental of commercial real estate and is free from seasonal effects. The decrease in income from the rental of real estate to EUR 7,561 thousand (Q1 2025: EUR 9,034 thousand) is due to lower rental income of EUR 11,583 thousand (Q1 2025: EUR 14,014), primarily due to the sale of the properties at the following addresses in the previous financial year: Dortmund, Aldinghofer Straße 13; Bad Kreuznach, Brückes 2-8; Hamburg, Kandinskyallee 14-28, Lichtenfels, Bamberger Straße 20, Freiburg, Berliner Allee 1, Goslar, Rosentorstraße 15, Querfurt, Vor dem Nebraer Tor 5, as well as the properties in Flensburg, Eckernförder Landstraße 65, and Bonn, Reuterstraße 99 (partial sale of residential building), which were sold in the current interim reporting period. No revaluation of investment properties was performed as at the 31 March 2026 reporting date. In addition, a property in Kempten, which was at an advanced stage of the sale process as at the balance sheet date, was classified as held for sale in accordance with IFRS 5 and revalued. This resulted in a valuation loss on the trading portfolio of EUR -600 thousand. Impairment losses on trade receivables amounted to EUR -318 thousand in the reporting period (Q1 2025: EUR -474 thousand) and, as in the comparative period, relate to various rent receivables from different tenants in DEMIRE's real estate portfolio. FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 Financial result 01/01/2026 01/01/2025 Deferred taxes Income from changes in deferred tax liabilities is mainly the result of the sale of the properties in Flensburg and Bonn amounting to EUR 1,391 thousand, the increase in INTERIM GROUP in EUR thousand - 31/03/2026 - 31/03/2025 deferred tax assets relating to tax loss carry-forwards amounting to EUR 1,347 thou- MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Financial income Financial expenses Minority interests Financial result 1,827 -13,709 1,149 -14,022 -836 -13,084 -1,305 -12,562 sand, and the recognition of effective interest expense for the 2019/2027 bond in the amount of EUR 780 thousand. In contrast, deferred tax liabilities increased by EUR -671 thousand due to straight-line depreciation of property, which led to a reduction in the tax carrying amounts. Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Financial income consists primarily of loans to RFR 5 Immobilien GmbH amounting 4. Earnings per share to EUR 757 thousand (Q1 2025: EUR 757 thousand) and to the joint venture JV Theodor-Heuss-Allee GmbH amounting to EUR 260 thousand (Q1 2025: Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 EUR 260 thousand). A significant component of financial expenses consists of interest on the 2019/2027 corporate bond amounting to EUR -5,747 thousand (Q1 2025: EUR -6,037 thousand) and from interest on shareholder loans amounting to EUR -6,755 thousand (Q1 2025: EUR -5,480 thousand). The interests of minority shareholders in the amount of EUR -836 thousand (Q1 2025: EUR -1,305 thousand) relate to shares of profit of minority shareholders of Fair Value REIT-AG's subsidiaries, which are managed in the form of partnerships and must be recognised as liabilities in accordance with IAS 32. Net profit/loss for the period (in EUR thousand) -8,641 -15,498 Profit/loss for the period less non-controlling interests -8,797 -15,490 Number of shares (in thousands) Number of shares outstanding as at the reporting date 105,513 105,513 Weighted average number of shares outstanding 105,513 105,513 Weighted average number of shares (diluted) 105,513 105,513 Earnings per share (in EUR) Basic/diluted earnings per share -0.08 -0.15 in EUR thousand 01/01/2026 - 31/03/2026 01/01/2025 - 31/03/2025 FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED E. Notes to the consolidated balance sheet Investment property and non-current assets held for sale Investment property is accounted for at fair value. This developed as follows during the interim reporting period: FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 in EUR thousand Office Retail Other Total 591,946 593,381 1,435 Fair value at the beginning of the 2026 financial year 349,076 217,872 24,998 Additions of properties 1,274 158 2 Fair value as at 31/03/2026 350,351 218,030 25,000 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 Additions to investment property amounting to EUR 1,435 thousand (Q1 2025: EUR 23,093 thousand) are primarily the result of recognised ongoing capital expenditure (CapEx) of EUR 1,406 thousand and the recognition and amortisation of rental incentives amounting to EUR 29 thousand. The fair value measurement of investment property is allocated to Level 3 of the valuation hierarchy in accordance with IFRS 13. DEMIRE determines the fair values within the framework of IAS 40 accounting. No revaluation of investment properties was performed as at the 31 March 2026 reporting date. Equity Subscribed capital amounted to EUR 107,777 thousand (31 December 2025: EUR 107,777 thousand). This was EUR 105,513 thousand after the deduction of treasury shares (31 December 2025: EUR 105,513 thousand). FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 3. Financial liabilities Financial liabilities consisted of the following: FINANCIAL LIABILITIES in EUR thousand 31/03/2026 31/12/2025 2019/2027 corporate bond 244,807 238,519 Shareholder loan 131,279 124,524 Other financial liabilities 121,258 139,605 Total 497,344 502,648 The following table shows the nominal value of financial liabilities: With the exception of the loan from DEMIRE AN BN R PM FR FL GmbH, all of the Group's borrowings bear fixed interest. The nominal interest rate of the 2019/2027 corporate bond is 5% per annum. The increase is due to the recognition of accrued interest as at the balance sheet date. Other financial liabilities mainly include bank liabilities with a weighted average nominal interest rate of 4.21% per annum as at 31 March 2026 (31 December 2025: 4.54% per annum). The average nominal interest rate on debt across all financial liabilities was 9.11% per annum as at 31 March 2025 (31 December 2025: 8.35% per annum). The change in other financial liabilities during the interim period under review is due to current repayments. Notes to the consolidated financial statements 28 IMPRINT 39 FINANCIAL LIABILITIES in EUR thousand 31/03/2026 31/12/2025 2019/2027 corporate bond 250,437 246,853 Shareholder loan 131,279 124,524 Other financial liabilities 120,299 137,906 Total 502,015 509,283 The difference between the carrying amounts of financial liabilities and their nominal values is due to the subsequent measurement of financial liabilities at amortised cost using the effective interest method in accordance with IFRS 9. FOREWORD BY THE EXECUTIVE BOARD 2 F. Condensed Group segment reporting DEMIRE AT A GLANCE 3 INTERIM GROUP 01/01/2026 - 31/03/2026 Corporate 01/01/2025 - 31/03/2025 Corporate MANAGEMENT REPORT 6 in EUR thousand Core Portfolio Fair Value REIT functions/ Total revenue 27,610 5,817 0 33,427 Segment revenue 27,739 5,849 33 33,621 Segment expenses -24,684 -2,806 -3,478 -30,968 EBIT 3,055 3,043 -3,445 2,653 Net profit/loss for the period 2,192 1,126 -11,959 -8,641 Segment assets 31/03/2026 462,187 280,349 90,035 832,571 Thereof tax assets 1,076 111 2,149 3,335 Thereof additions to non-current assets 1,291 144 0 1,435 Thereof non-current assets held for sale 81,240 4,200 0 85,440 Segment liabilities 31/03/2026 175,185 154,132 361,226 690,544 Thereof non-current financial liabilities 42,883 59,868 336,636 439,387 Thereof lease liabilities 8,364 0 41 8,405 Thereof current financial liabilities 51,598 6,360 0 57,957 Thereof tax liabilities 6,127 0 21,931 28,058 others Group in EUR thousand Core Portfolio Fair Value REIT functions/ others Group INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 Total revenue 17,419 6,101 0 23,520 Segment revenue 19,461 6,756 103 26,319 Segment expenses -22,733 -3,137 -3,837 -29,707 EBIT -3,272 3,618 -3,734 -3,388 Net profit/loss for the period -5,345 2,049 -12,202 -15,498 Segment assets 31/03/2025 566,279 285,517 90,907 942,704 1,262 231 0 1,493 78,400 0 0 78,400 233,949 158,511 324,014 716,474 Thereof tax assets 1,526 161 1,283 2,971 Thereof additions to non-current assets Thereof non-current assets held for sale Segment liabilities 31/03/2025 Thereof non-current financial liabilities 85,279 30,002 295,568 410,849 Thereof lease liabilities 27,226 0 27 27,253 Thereof current financial liabilities 50,380 36,390 0 86,770 Thereof tax liabilities 6,058 451 18,395 24,904 FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 The segmentation of the data in the financial statements is based on the internal alignment according to strategic business segments pursuant to IFRS 8. The segment information presented represents the information to be reported to the Executive Board. The DEMIRE Group is divided into the two reportable business segments Core Portfolio and Fair Value REIT. The joint venture JV Theodor-Heuss-Allee-GmbH, Frankfurt am Main, accounted for using the equity method, and the fully consolidated company Cielo BVO GmbH, Frankfurt am Main, were allocated to the Core Portfolio operating segment due to their similar commercial characteristics. More than 10% of total revenue was generated from one customer in the Core Portfolio segment. This amounted to a total of EUR 3,539 thousand in the reporting period. FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 G. Other disclosures Related party disclosures DEMIRE AG has a loan receivable in the amount of EUR 25,150 thousand from the joint venture JV Theodor-Heuss-Allee GmbH. The interest income from this loan in the reporting period amounted to EUR 260 thousand. In addition, DEMIRE AG Financial instruments The carrying amounts of the following financial instruments carried at cost or amortised cost do not correspond to their fair values: INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 and the purchasing company JV Theodor-Heuss-Allee GmbH have entered into an asset management agreement and an agency agreement, which generate income Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 of EUR 19 thousand. Following deconsolidation, business relationships with the Limes subsidiaries continue to exist in the form of investments, as there is neither control nor significant influence over their decision-making processes. The former intra-group loans and the associated interest receivables from these companies were written off in full as at 31 December 2025, meaning that no interest income was recognised in the reporting period. In addition, income from agency agreements amounted to EUR 150 thousand. Furthermore, there were no business transactions with members in key Company positions during the reporting period, except for the remuneration of the Executive Board mentioned in Section G. 5. 31/03/2026 31/12/2025 Carrying amount in EUR thousand under IFRS 9 Loans to companies accounted for using the equity method Loans and financial assets Fair value under IFRS 9 Fair value Carrying amount 22,259 24,171 62,543 60,514 21,968 56,996 22,259 63,102 31/03/2026 31/12/2025 Carrying in EUR thousand amount under IFRS 9 Fair value Carrying amount under IFRS 9 Fair value Bonds Shareholder loan Other financial liabilities 239,060 124,524 232,315 105,995 140,452 128,970 224,555 113,255 110,045 244,807 131,279 122,542 FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 IMPRINT 39 Risk report Please refer to the disclosures made in the risk reporting included in the consolidated financial statements as at 31 December 2025 for information on the risks of future business performance. In addition to the opportunities and risks recorded as at 31 December 2025, the current financial year was largely determined by the continued weak economic development. This results in a high degree of uncertainty for DEMIRE and a deterioration in the outlook for its operating environment. Both rental payments and funds from operations (after taxes, before minority interests), however, are in line with our expectations. Nevertheless, DEMIRE's Executive Board is closely monitoring whether and how the economic environment is changing and may possibly have an impact on the performance of the portfolio, for example. The risks are reviewed continuously and in a structured process. From today's perspective, no risks that could endanger the Company have been identified. Further explanations As at the reporting date, there were no financial obligations stemming from purchase agreements for properties and real estate companies which are not yet due. Contractual obligations for modification and expansion measures as well as maintenance and modernisation obligations for the properties totalled EUR 9,437 thousand as at 31 March 2026 (Q1 2025: EUR 17,330 thousand). Purchase order commitments for maintenance and modernisation, as well as modification and expansion measures, totalled EUR 5,189 thousand as at the interim reporting date (Q1 2025: EUR 7,284 thousand). As at 31 March 2026, unused credit lines in the amount of EUR 2,500 thousand (31 December 2025: EUR 2,500 thousand) were available. Governing bodies and employees In accordance with DEMIRE AG's Articles of Association, the Executive Board is responsible for managing business activities. The members of the Executive Board during the interim reporting period were: Dr Dirk Rüffel (CEO since 1 February 2026; contract term until 31 January 2027) Mr Frank Nickel (CEO from 3 April 2024; contract term until 19 January 2026) Mr Tim Brückner (CFO since 1 February 2019, contract term until 31 December 2026) Mr Ralf Bongers (Member of the Executive Board responsible for Transactions since 1 April 2023; contract term until 31 March 2026) For the interim reporting period, the Executive Board of DEMIRE AG received performance-related remuneration of EUR 162 thousand (Q1 2025: EUR 143 thousand), non-performance-related remuneration of EUR 351 thousand (Q1 2025: EUR 281 thousand) and share-based payments of EUR 73 thousand (Q1 2025: EUR 58 thousand). No loans or advances were granted to the members of the Executive Board, nor were any contingent liabilities in favour of the members of the Executive Board entered into. FOREWORD BY THE EXECUTIVE BOARD 2 DEMIRE AT A GLANCE 3 INTERIM GROUP MANAGEMENT REPORT 6 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated statement of income 21 Consolidated statement of comprehensive income 22 Consolidated balance sheet 23 Consolidated statement of cash flows 25 Consolidated statement of changes in equity 27 Notes to the consolidated financial statements 28 Events after the interim reporting date of 31 March 2026 On 27 April 2026, DEMIRE's Supervisory Board resolved to extend the contract of CFO Tim Brückner ahead of schedule. The new contract runs until 30 June 2028. From today's perspective, this development has no material impact on the Group's net assets, financial position and results of operations. No further events of material significance for DEMIRE's net assets, financial position and results of operations occurred after the reporting date. Frankfurt am Main, 6 May 2026 DEMIRE Deutsche Mittelstand Real Estate AG Declaration by the executive directors As members of the Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG, we hereby affirm that, to the best of our knowledge, the interim consolidated financial statements give a true and fair view of the Group's net assets, financial position and results of operations in accordance with the applicable accounting principles and that the Group management report gives a true and fair view of the development and performance of the business, including the business results and the position of the Group, together with a description of the principal opportunities and risks associated with the Group's expected development. Frankfurt am Main, 6 May 2026 DEMIRE Deutsche Mittelstand Real Estate AG IMPRINT 39 Dr Dirk Rüffel (CEO) Tim Brückner (CFO) Dr Dirk Rüffel (CEO) Tim Brückner (CFO) Attention : This is an excerpt of the original content. 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