Corporate News

09/04/2010 | Corporate News

Fair Value REIT-AG plans conversion to € 2 nominal share value

  • 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 € 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 € 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.

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A REIT – Higher Return for Investors

REIT stands for Real Estate Investment Trust. The assets of these listed companies in Germany consist mainly of real estate and investments in other real estate companies.


At the international level, REITs have been established for many years. On 1 January 2007, they were introduced in Germany as well.


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Fair Value REIT-AG