PATRIZIA Immobilien AG plans to issue bonus shares instead of a dividend payment
The Supervisory Board and Managing Board of PATRIZIA Immobilien AG (ISIN DE000PAT1AG3) have decided to propose to the Annual General Meeting on June 20, 2012, that the net profit of PATRIZIA Immobilien AG for 2011 be entirely carried forward to a new account and that a capital increase from retained earnings be resolved by issuing bonus shares.
This will increase equity capital by converting retained earnings. In the course of this measure, each PATRIZIA shareholder will receive one additional new share (bonus share) for every ten existing shares. The shareholders are not required to make any contribution.
If the Annual General Meeting of PATRIZIA Immobilien AG agrees to the measure, the capital increase will be performed by issuing 5,213,000 new registered no-par value shares. The shares will be issued to the company’s shareholders in a ratio of 10:1. This measure will have no influence on the amount of the shareholders’ funds since it merely constitutes a regrouping of components within shareholders’ funds. Equity capital will increase from a current total of EUR 52,130,000 to EUR 57,343,000, divided into 57,343,000 registered no-par value shares. The new shares will carry dividend rights from the beginning of the 2012 fiscal year.
The reason for this decision is to conserve PATRIZIA’s liquidity in favor of expansion in the form of co-investments and at the same time to increase the liquidity of the share. The Managing Board and the Supervisory board think that there has been a significant improvement in the investment climate in the German real estate market and that PATRIZIA will be able to take advantage of attractive investment opportunities in the near future and thereby materially increase the value of the company. At the same time, they look set to reject the option of a cash capital increase to finance new investments for the next two years. The retained cash resources of around EUR 4.2 million could be used to float an additional co-investment with a total volume of around EUR 150 million with a 10% stake in equity capital.
The Managing Board
Augsburg, March 20, 2012