New shareholder structure boosts the share price
The new structure of our main shareholders which took place in December 2014 led to a substantial rise in the share price. Obotritia Capital KGaA bought blocks of shares via three subsidiaries and currently holds around 25.1% of the voting rights in Fair Value REIT-AG. In Obotritia Capital KGaA, we have gained an anchor investor which supports our strategic aims.
FFO and dividend forecast for 2015
At the start of 2015 we issued a convertible bond with a volume of around €8.5 million which is listed in free market trading (Quotation Board) on the Frankfurt Stock Exchange. This capital measure provides us with further financial scope for accelerated growth. We are already successfully using the net in-flow of funds to extend participations at subsidiaries. In addition, we are planning to take over previously indirectly-held properties and add them to the directly-held portfolio. This leads to NAV accretion and increases the FFO return per share due to savings in fund costs.
Taking into account the net in-flow from the convertible bond, we are anticipating operating profits (FFO) for 2015 of between €4.7 million and €5.1 million. In relation to shares currently in circulation, this corresponds with a spread of between €0.50 and €0.55 per share. This results in a forecast FFO return of roughly 6.0% and 6.6% of the balance sheet NAV per share of €8.39 as of December 31, 2014.
We plan to distribute at least 50% of these profits as a dividend. This corresponds with a dividend of between €0.25 and €0.27 per share currently in circulation for 2015.
In the current market environment, we have identified good opportunities for investments in German commercial real estate which promise sustainable success. We would like to thank you for your trust and would warmly welcome your continued support on our growth track.