Publication of an Insider Information according to Article 17 of Regulation (EU) No. 596/2014
- Creation of a dividend payment reserve of another EUR 0.30 per share
- Creation of a tenant social fund with allocation of another EUR 0.10 per share
- Postponement of the General Meeting
Eschborn, 22 April 2020, 20:30 CET/CEST – Noratis AG (ISIN: DE000A2E4MK4, WKN: A2E4MK, „Noratis“) plans, after a fiscal year 2019 concluded as forecasted, to pay a dividend of EUR 0.80 per share entitled to dividend payments. A corresponding proposal will be made by the Management and the Supervisory Board at the ordinary General Meeting. Moreover, a dividend payment reserve, which can be used in the short to medium term, is to be created, to which EUR 0.30 per share are to be allocated. Another EUR 0.10 per share are allocated to a social fund through which tenants can be supported. The mentioned components hence total EUR 1.20 per share. The ordinary General Meeting for fiscal 2019, which was scheduled to take place on 25 June, is postponed due to the coronavirus crisis.
Explanatory Part
Noratis AG has concluded the 2019 fiscal year, as forecasted, on the level of the previous years, in accordance with audited German GAAP (HGB) numbers. The company, which is a leading portfolio developer of residential properties in Germany, generated earnings before interest and taxes (EBIT) of EUR 15.8 million (2018: EUR 15.6 million). The EBT amounted to EUR 12.1 million (2018: EUR 12.8 million) and the consolidated net income reached EUR 8.6 million (2018: EUR 9.3 million). In line with the dividend policy of the company, half of the German GAAP profit is to be paid as a dividend. The resulting amount corresponds to the planned use of funds of EUR 1.20 per share entitled to dividend payments. In fiscal 2019 Noratis acquired 955 units, and 339 units were sold. In this way it was possible to continue to clearly extend the real estate portfolio in accordance with the strategy to 2,407 units at a total of 18 locations all over Germany.
During the past year sales revenues rose to EUR 75.9 million (2018: EUR 56.1 million). They break down into the revenues from the sold properties as well as the rental income of the real estate portfolio. In the wake of the investment of the Merz Group in Noratis AG (cf. Ad hoc of 20.3.2020), the company plans to significantly expand the real estate portfolio in 2020 and the following years and increase the share of rental income in its sales revenues. For this reason, less properties are to be sold on a short-term basis. Noratis, therefore, assumes that, as reported, a result according to German GAAP, which will be significantly below the previous years, will probably be achieved in fiscal 2020. The sale of optimised properties will, however, continue to remain an essential earnings pillar in future, too.
Against the backdrop of the restrictions involved in the COVID-19 pandemic, the Management Board has, moreover, decided to postpone the ordinary General Meeting of the company, which was scheduled to take place on 25 June 2020. The Management Board currently examines the possibilities available for the further approach, in order to take all interests into due account in the current situation and, more particularly, to protect the health of the shareholders as well as the persons involved in the General Meeting in the best possible way. It is, more particularly, considered to make use of the statutory provisions governing the conduct of a virtual general meeting which have recently been enacted by the legislator. At any rate, the goal continues to be to organise the ordinary General Meeting 2020 in a timely manner.
Igor Christian Bugarski, CEO of Noratis AG: “With the proposed use of the funds we want to high-light the attractiveness of Noratis AG as dividend-bearing stock, on the one hand, but also be able to flexibly respond to the further development in the corona crisis. In addition, we always focus on the interests of all stakeholders in the business development. With the allocation of an amount to the social fund, we, therefore, want to also make a contribution to our tenants who are particularly affected by the current crisis. We constantly analyse the current economic situation and have adapted our business processes accordingly, by postponing, for instance, appointments which are not necessary and switching to working from the home office. So far, we have noticed only a moderate impact on our business.”
The 2019 Annual Report will probably be published on 30 April 2020 in the Investor Relations section of the website www.noratis.de.
