Corporate News

Godewind Immobilien AG resolves share buyback programm

• Repurchase of up to 1.5 million shares resolved
• Share buyback period from of 14 December, 2018 to March 29, 2019
• Acquisition via Frankfurt Stock Exchange (XETRA)

Frankfurt, 13 December 2018. The Management Board of Godewind Immobilien AG, Frankfurt am Main (ISIN DE000A2G8XX3) (“Company or Godewind“), today resolved with the approval of the Supervisory Board to launch and implement a share buyback programme under which up to 1,500,000 shares of the Company (equivalent to approximately 1.38% of the share capital) are to be repurchased. The maximum volume of the share buyback programme (acquisition costs excluding ancillary acquisition costs) is EUR 5.25 million. The shares are to be repurchased exclusively via the stock exchange in electronic trading on the Frankfurt Stock Exchange (XETRA trading).

With the share buyback programme the Company is making full use of the authorization granted by the ordinary shareholders’ meeting on 20 February, 2018, according to which up to a total of 10% of the Company’s share capital existing at the time the resolution was adopted may be acquired until 19 February, 2023. In the case of an acquisition via the stock exchange, the purchase price per share (excluding ancillary acquisition costs) may not exceed or fall short of the price of a share of the Company in XETRA trading (or a comparable successor system) determined by the opening auction on the trading day by more than 10%. To date, no use has been made of this authorization and the Company currently holds no treasury shares.

The repurchased shares may be used for any purpose permitted under the authorization granted by the shareholders’ meeting on 20 February, 2018, including (a) the sale of the shares under exclusion of shareholders’ subscription rights against cash payment, provided that the price at which the shares are sold is not significantly lower than the stock exchange price of the Company’s shares in XETRA trading (or a comparable successor system), and (b) against non-cash contributions; the shares may also be redeemed.

The buyback will take place within a period of 13 December, 2018 (first possible acquisition day) until 29 March, 2019 (last possible acquisition day) at the latest.

Building up a sound and profitable portfolio with a strong dedication to shareholder value
Through the capital increase in connection with Godewind’s IPO back in April this year, the company raised EUR 375 million at EUR 4.00 per share. Since the IPO Godewind has been constantly evaluating acquisition opportunities and thus acquired commercial real estate assets for a gross purchasing price of around EUR 560 million over the past 2 months. Fully leveraged with an LTV of up to 55% the remaing volume available for acquisitions amounts to around EUR 200 million. On back of generally weaker maket conditions and outflows, Godewind shares are trading at around EUR 2.80 per share (or market cap of around EUR 305 million). This translates into a significant discount to enterprise value. On back of this fact Godewind believes it is prudent to use up to EUR 5.25 million of its cash to buy-back Godwind stock.

Outlook: further acquisitions in the pipeline
With the help of the envisaged financing and following the recent acquisitions Godewind plans to continue to rapidly expand the commercial portfolio. – Current negotiations with potential sellers are expected to be finalized within the next months.

Stavros Efremidis, CEO of Godewind, said:
“We will continue to relentlessly drive operating cash flow, while at the same time investing back into our company to provide future growth. The buyback complements our commitment to continuous shareholder return. Simultanously we will continue to convert our asset pipeline into concrete commercial real estate-transactions.”

About Godewind
Based in Frankfurt, Godewind Immobilien AG is a real estate company specialising in German mixed-use portfolios. The company focuses on building up an attractive portfolio of commercial properties, with an emphasis on office buildings. As an active portfolio and asset manager, Godewind strives for sustainable increases in earnings and income, which are supplemented by the regular realisation of added value potential. Currently Godewind has accumulated an office portfolio of around EUR 560 million. In the medium term, the aim is to build a commercial real estate portfolio of around three billion euros with the help of the company’s wide-ranging network and by means of value-added acquisitions.

Based on its internal portfolio and asset management, Godewind will manage commercial properties cost-effectively, enter into long-term tenancy agreements and thus increase its enterprise value. The company has tax loss carry-forwards for corporation and trade tax, as well as a tax-free capital reserve. The shares in Godewind are traded in the Prime Standard segment on the Frankfurt Stock Exchange (FWB).

For more information, please visit https://www.covivio-office-ag.com

Investor Relations contact
Gunnar Janssen
Godewind Immobilien AG
Tel.: +49 69 2713 973 213
Email: g.janssen@godewind-ag.com

Press contact
Jan Hutterer
Kirchhoff Consult AG
Tel.: +49 (0)40 6091 8665
Email: godewind-ag@kirchhoff.de

Disclaimer:
These materials are for informational purposes only and are not intended to constitute, and should not be construed as, an offer to sell or subscribe for, or the announcement of a forthcoming offer to sell or subscribe for, or a solicitation of any offer to buy or subscribe for, or the announcement of a forthcoming solicitation of any offer to buy or subscribe for, ordinary shares in the share capital of Godewind Immobilien AG (the “Company”) and such shares (the “Shares”) in the United States or in any other jurisdiction.