- Pressemitteilung BoxID 156268
Fair Value REIT-AG plans conversion to € 2 nominal share value
Move increases flexibility for possible future capital market transactions
The purpose of the proposed resolution is to partly allocate the existing share capital to the share premium. If the Annual General Meeting votes for the proposal, total equity (share capital including share premium) will remain the same overall, and the number of shares and thus the participations of individual shareholders will remain unchanged. However, due to the reduction in the share capital, the theoretical interest of each share in the share capital will be reduced from currently € 5 to € 2.
Chief Executive Officer Frank Schaich explains the background to the proposed move: "It would not be possible for Fair Value REIT-AG to carry out capital market transactions at the moment, as the company's shares are being traded below the theoretical interest of each share in the share capital of € 5. A 'below par value' issue is not permitted in accordance with § 9 AktG (German Law on Stock Corporations). With a par value of € 2 we will also continue to be above the minimum nominal share capital of € 15 million stipulated by the German REIT Law." The Managing Director sees the proposed reduction of the share capital as being an important step in the further development of the company. "Our primary goal is growth and this conversion will give us more room to manoeuvre on the capital markets. We don't consider size to be a self-fulfilling aim in itself, but wish to grow in order to further reduce operational costs per share and thereby achieve a sustainable increase in future dividend potential," adds Mr. Schaich.
The company has not yet made a final decision on when or whether to carry out any capital market transaction. The realization of such a measure would be publicised at the relevant time in accordance with legal requirements and, depending on its scale and actual form, would be submitted to shareholders for final approval.
Fair Value REIT-AG
Munich-based Fair Value REIT-AG focuses on the acquisition, leasing, property management and sale of commercial properties in Germany. Its investment activities focus primarily on offices, logistics and retail properties in German regional centers. As a REIT-AG, Fair Value is not subject to corporation or trade tax. Fair Value's USP is that - in addition to investing directly in real estate - it also acquires interests in closed-end real estate funds.
Fair Value currently participates in 13 closed-end real estate funds in a highly diversified portfolio of 48 properties with a total rental area of 414.220 m² and a market value of around € 479 million as of December 31, 2009 (Fair Value's share of this portfolio totaled around € 191 million).
Fair Value further directly owns a portfolio of 32 commercial properties in Schleswig-Holstein. These have a rental area of more than 42,948 m² and are mostly used as bank branches. These properties had a total market value of around € 45.5 million as of December 31, 2009.
On December 31, 2009, the proportion of the entire portfolio due to Fair Value had a market value of around € 236 million. At this point in time, the proportionate portfolio was 95.5% let in terms of the achievable annual rent of € 21 million. The rental agreements had a weighted remaining term of 6.3 years. Around 45% of the potential rent stems from retail facilities, 40% from offices, 8% is from logistics facilities and 6% from other facilities.rpo
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