DGAP-News: Prime Office REIT-AG: hedging foreign currency risk - Strategy implemented to mitigate risk arising from loans denominated in Swiss francs
(firmenpresse) - DGAP-News: Prime Office REIT-AG / Key word(s): Miscellaneous
Prime Office REIT-AG: hedging foreign currency risk - Strategy
implemented to mitigate risk arising from loans denominated in Swiss
francs
26.09.2011 / 10:28
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- Risks arising from exchange rate fluctuations were eliminated
- Purchase of approx. 59.9 million Euros in Swiss francs
Munich, September 26, 2011. Prime Office REIT-AG (symbol: PMO, ISIN
DE000PRME012), a leading property firm focused on investments and
management of prime office properties in Germany, has taken advantage of
the current market situation to hedge its foreign currency risk arising
from a property financing transaction denominated in Swiss francs. To this
end, the company purchased about 59.9 million Euros (EUR) in Swiss francs
(CHF) at an average exchange rate of approx. EUR 1.21, corresponding to the
nominal value of the loan in Swiss francs. The property financing
transaction not underpinned by a currency hedge dates back to a closed-end
fund holding launched in 2003 that contributed its real estate assets to
Prime Office in 2007.
In taking this measure, the company consistently implements its strategy of
risk mitigation. Accordingly, the company's earnings qualifying for a
dividend under German GAAP (Commercial Code - HGB) will no longer be
impacted by the volatility of the exchange rate. Further loans denominated
in foreign currency without a currency hedge in place do not exist.
End of Corporate News
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26.09.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Prime Office REIT-AG
Hopfenstraße 4
80335 München
Germany
Phone: +49 (0)89 7104090 40
Fax: +49 (0)89 7104090 99
E-mail: richard.berg(at)prime-office.ag
Internet: www.prime-office.ag
ISIN: DE000PRME012
WKN: PRME01
Listed: Regulierter Markt in Frankfurt (Prime Standard), München,
Stuttgart; Freiverkehr in Berlin, Düsseldorf
End of News DGAP News-Service
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140302 26.09.2011
Themen in dieser Pressemitteilung:
prime-office-reit
ag-hedging-foreign-currency-risk
strategy-implemented-to-mitigate-risk-arising-from-loans-denominated-in-swiss-francs
Unternehmensinformation / Kurzprofil:
Datum: 26.09.2011 - 10:28 Uhr
Sprache: Deutsch
News-ID 69171
Anzahl Zeichen: 2851
contact information:
Kategorie:
Business News
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