DGAP-News: Fair Value REIT-AG plans conversion to EUR 2 nominal share value
(firmenpresse) - Fair Value REIT-AG / AGM/EGM/Capital Reorganisation
09.04.2010 07:30
Dissemination of a Corporate News, transmitted by
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The issuer / publisher is solely responsible for the content of this announcement.
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- Move increases flexibility for possible future capital market
transactions
Munich, Germany, April 9, 2010 - At the Annual General Meeting of Fair
Value REIT-AG, to be held in Munich on May 17, 2010, the company's
Management and Supervisory Boards will be proposing to shareholders a
change in theoretical interest of each share in the share capital to EUR 2.
This move aims to provide the company with the flexibility that will enable
it to carry out possible capital market transactions in the future in a
favourable market environment while granting subscription rights to
existing shareholders on attractive terms.
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 EUR 5 to EUR 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 EUR 5. A 'below par value' issue is not permitted in accordance
with§ 9 AktG (German Law on Stock Corporations). With a par value of EUR 2
we will also continue to be above the minimum nominal share capital of EUR
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.
Company profile
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 EUR 479 million as of December 31,
2009 (Fair Value's share of this portfolio totaled around EUR 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 EUR 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 EUR 236 million. At this point in time,
the proportionate portfolio was 95.5% let in terms of the achievable annual
rent of EUR 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.
Contact
Investor&Media Relations
cometis AG
Dirk Stauer
Phone: +49(0)611 - 205855-22
Fax: +49(0)611 - 205855-66
E-mail: stauer(at)cometis.de
09.04.2010 07:30 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Fair Value REIT-AG
Leopoldstraße 244
80807 München
Deutschland
Phone: +49 (0)89 9292 815-01
Fax: +49 (0)89 9292 815-15
E-mail: info(at)fvreit.de
Internet: www.fvreit.de
ISIN: DE000A0MW975
WKN: A0MW97
Indices: RX REIT All Share Index, RX REIT Index
Listed:Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in München, Stuttgart
End of News DGAP News-Service
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Datum: 09.04.2010 - 07:30 Uhr
Sprache: Deutsch
News-ID 18757
Anzahl Zeichen: 0
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Kategorie:
Business News
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