DEMIRE Ousts CEO in Abrupt Shake-Up Amid German Real Estate Turmoil

LANGEN, Germany – January 19, 2026 – In a decisive move signaling intense pressure on the German real estate sector, DEMIRE Deutsche Mittelstand Real Estate AG announced today the immediate departure of its Chief Executive Officer, Frank Nickel. The company has appointed Dr. Dirk Rüffel as his successor, who will take the helm on February 1, 2026.

The announcement, classified as inside information, stated that Nickel and the Supervisory Board mutually agreed not to extend his contract, which was set to expire on March 31, 2026. His swift exit, effective immediately, is to allow him to “devote himself to other challenges in this difficult market environment,” a stark acknowledgment of the headwinds buffeting the industry.

A Tenure Defined by Refinancing and Headwinds

Frank Nickel’s tenure as CEO was relatively brief but consequential. Taking the top job in April 2024 after serving as a senior advisor since September 2022, he was tasked with guiding DEMIRE through a period of significant market volatility. His most notable achievement came in 2024 with the successful refinancing of a major corporate bond.

Under his leadership, the company managed to repay a portion of the bond below its nominal value, generating a one-time gain of approximately EUR 38 million. The remaining EUR 253 million was extended to 2027 at a fixed rate, a move that provided crucial breathing room. At the time, DEMIRE's Supervisory Board credited Nickel with significantly shaping the company during a challenging phase and driving the critical refinancing effort.

However, this success was set against a backdrop of persistent operational and financial challenges. In 2024, the company hit a major roadblock when it failed to secure a loan agreement with DZ HYP AG for its Limes portfolio, a setback that resulted in insolvency applications for four of its property-holding subsidiaries. This event underscored the tightening credit conditions plaguing the market.

The financial picture preceding and during his leadership was fraught with difficulty. Preliminary results for the 2023 financial year, when Nickel was a senior advisor, revealed a staggering decline in earnings before interest and taxes (EBIT) to EUR -187.9 million, largely due to a 13.2% market-related devaluation of its property portfolio. The trend of strain continued into 2025, with the third quarter showing a sharp 18% year-over-year drop in rental income to €41.4 million, a result that sent the company’s stock tumbling 3.85% upon its announcement.

The Broader Storm: Germany's Ailing Property Market

The phrase “difficult market environment” from DEMIRE’s press release is no mere corporate platitude. It is the reality for Germany’s entire commercial real estate sector, which is grappling with its most significant downturn in over a decade. The German economy itself has contracted for two consecutive years, creating a weak foundation for commercial activity.

A rapid series of interest rate hikes by the European Central Bank to combat inflation has dramatically altered the financial landscape. For real estate firms like DEMIRE, this has meant a painful double-edged sword: the cost of borrowing has soared, while higher interest rates have simultaneously driven down property valuations. The 13.2% portfolio impairment DEMIRE reported is a direct reflection of this market-wide repricing.

DEMIRE, which specializes in commercial properties for Germany’s small and medium-sized enterprises (the 'Mittelstand'), operates heavily in secondary locations outside of major metropolitan hubs. While this strategy was once seen as a resilient model, it is now being severely tested. As financing becomes more expensive and difficult to obtain, and with economic uncertainty weighing on tenants, the stability of rental income and asset values has come under intense scrutiny.

A New Captain for a Challenging Voyage

Into this turbulent environment steps Dr. Dirk Rüffel. His appointment as the new CEO marks a pivotal moment for DEMIRE. While the company has not yet released a detailed biography, Dr. Rüffel is known to have held functions at Argoneo Real Estate, which later became part of Bilfinger Real Estate. His experience will be immediately put to the test.

Investors and analysts will be keenly watching for his initial strategic direction. Key questions loom over the company: How will the new leadership stabilize declining rental income? What is the strategy for managing the company's portfolio and debt in a market where asset disposals are challenging? The deliberate postponement of property sales from 2025 to 2026, which led to an upward revision of the company's Funds From Operations (FFO I) guidance in December, highlights this dilemma. While it boosted the short-term forecast by retaining rent-generating assets, it also suggests an inability or unwillingness to sell into a buyer's market at acceptable prices.

Dr. Rüffel’s immediate priorities will likely involve a thorough review of the portfolio, shoring up tenant relationships, and communicating a clear and credible plan to navigate the persistent market downturn.

Investor Jitters and Analyst Scrutiny

The leadership change comes at a time of heightened investor anxiety and cautious analyst sentiment. The weak third-quarter 2025 results overshadowed any optimism from the revised full-year guidance. The market's negative reaction underscores a focus on core operational performance over financial maneuvering.

Recent analyst reports paint a picture of deep-seated concern. Throughout 2025, firms like Baader Helvea and NuWays maintained a wary outlook. Baader Helvea issued a “Reduce” recommendation, anticipating a significant slump in earnings and highlighting the need for further property disposals. NuWays, while noting a guidance hike in December, had previously described the company’s outlook as “muted” and forecasted “softer profitability” going forward.

This consensus points to a market that has already priced in significant challenges. The successful 2024 refinancing, while a crucial victory, is now viewed as a temporary reprieve rather than a permanent solution. The underlying issues of falling rental income and depressed asset values remain. Dr. Rüffel inherits a company that has stabilized its financing but must now prove its operational resilience. His first moves in the coming weeks will be critical in shaping the market's perception of DEMIRE's ability to weather the ongoing storm.