DEMIRE: Extraordinary General Meeting 2017 – Optimisation of the Group’s structure to pave the way for significantly higher funds from operations
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): AGM/EGM
DEMIRE: Extraordinary General Meeting 2017 - Optimisation of the Group's structure to pave the way for significantly higher funds from operations
Langen, 15 November 2017 - The Extraordinary General Meeting of DEMIRE Deutsche Mittelstand Real Estate AG (WKN A0XFSF / ISIN DE000A0XFSF0) today approved all proposed agenda items with significant majorities. With 29.31 percent of the share capital present, the Extraordinary General Meeting took around 50 minutes and ended at 11:50 a.m. The Extraordinary General Meeting dealt with four agenda items, each of which required the approval of control and profit transfer agreements between DEMIRE Deutsche Mittelstand Real Estate AG and Group companies. The shareholders approved the agenda items with large majorities.
At the General Meeting, Markus Drews, Member of the DEMIRE Executive Board, explained the background to the conclusion of the aforementioned agreements: "DEMIRE Deutsche Mittelstand Real Estate AG has high tax loss carryforwards that it has been not yet been able to use optimally due to the company's lack of a tax-relevant relationship with its subsidiaries. The conclusion of the control and profit transfer agreements and the inflow of positive income from the subsidiaries will now enable these tax loss carryforwards to be utilised at the parent holding company level to reduce taxes."
This paves the way for a further improvement in overall profitability and higher funds from operations (FFO) starting in the 2018 financial year. Markus Drews added: "Tax optimisation represents another milestone in the implementation of DEMIRE 2.0. This shows that we are consistently implementing the measures planned, particularly in terms of optimising the Group's internal structures as part of our growth plan."
Under the name "DEMIRE 2.0", the company has defined concrete goals as well as an action plan for further growth in addition to cost optimisation, streamlining the Group's structure and reducing financing costs. A key element is to expand the current real estate portfolio from its current value of around EUR 1 billion to a total of approximately EUR 2 billion. One of the first measures carried out to optimise the financial structure was the placement of a rated, unsecured corporate bond in the amount of EUR 270 million and a coupon of 2.875% in July 2017. In September 2017, this bond was increased by a further EUR 130 million. A portion of the proceeds was used to pay off high-interest financial liabilities. Roughly EUR 35 million of the proceeds is intended to be used for further acquisitions.
Further details about the Extraordinary General Meeting are available on DEMIRE Deutsche Mittelstand Real Estate AG's website at https://www.demire.ag/en/investor-relations/agm/2017.
DEMIRE Deutsche Mittelstand Real Estate AG
Phone: +49 (0) 6103 - 372 49 - 0
Fax: +49 (0) 6103 - 372 49 - 11
About DEMIRE Deutsche Mittelstand Real Estate AG
DEMIRE - First in secondary locations
DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up-and-coming areas bordering metropolitan areas across Germany. As of 30 June 2017, DEMIRE held real estate with a market value of roughly EUR 1 billion. As of the reporting date, annualised contractual rents of approximately EUR 72 million had been firmly agreed upon for an average term of 4.9 years.
DEMIRE aims to maintain its corporate organisation as lean as possible, although it still believes that economies of scale and portfolio optimisation are best achieved by having its own in-house asset, property and facility management. This safeguards the company's business expertise and, equally important, allows the company to maintain direct contact with the customer.
DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard segment of the Deutsche Börse in Frankfurt.
|Company:||DEMIRE Deutsche Mittelstand Real Estate AG|
|Robert-Bosch-Straße 11 im 'the eleven'|
|63225 Langen (Hessen)|
|Phone:||+49 6103 37249-0|
|Fax:||+49 6103 37249-11|
|Listed:||Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|