EANS-Adhoc: Change in NAV as of 31.12.2009
ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement.
23.03.2010
AD HOC ANNOUNCEMENT PURSUANT TO § 15 WpHG
AIRE GmbH & Co. KGaA: Change in NAV as of 31.12.2009
Frankfurt am Main, March 23, 2010 - The unaudited net asset value
("NAV") of AIRE GmbH & Co. KGaA (the "Company") and its
consolidated subsidiaries (together the "Group") as of December 31,
2009 was EUR 16.71 per share, a decrease of EUR 2.54 per share,
or 13.2%, from the unaudited NAV per share of EUR 19.25 reported
as of November 30, 2009.The reduction in NAV is primarily the result of the Group´s determination to mark the remaining development projects in the Group´s portfolio to the current market value for the projects "as is", even if such projects are still under development. Generally, and under IAS 40, real estate development projects are reported at cost until sale or stabilization due to the fact that the market for projects under development is extremely limited and the clearing price for such projects is generally substantially less than the price for the same project once completed. Given the current dislocations in global real estate markets, however, including the difficulty of obtaining or extending financing and uncertainty as to pricing and the ability to find tenants, Group management has decided to report all development projects at the current liquidation value even if development on the project is continuing and the Group expects that the value of the completed project will be substantially higher than the current liquidation value. This change in reporting affects five development projects that had been held at cost: McCadden, Millenium Apartments, Sterling SDSU, America Center, and Pleasanton Land. In two cases (America Center and Pleasanton Land), the current liquidation value of the projects is less than the outstanding debt, resulting in a zero equity valuation. In the other three cases, the Group´s equity valuations are positive, but below cost. The Group and its advisor will continue to value all five projects on a quarterly basis and will increase valuations to the extent that continued development work and/or leasing efforts result in increased market values for the properties. In all five cases, market valuations as of December 31, 2009 were determined by independent valuation firms.
Following this change in reporting, all of the Group´s investments are reported at current fair market value.
During December, the Group sold its interest in the Loudoun County development project in Virginia, USA for TUSD 516, generating a realized loss of TUSD 1361.
The appraised valuation for the Company´s APP investment in Slovakia increased slightly to EUR 78.5 million from the 2008 valuation of EUR 77.8 million. The increased valuation reflects some stabilization in the Slovak industrial real estate market, but also successful efforts by the Group to extend current tenant leases and to maintain full occupancy at APP. In addition, the Company has had positive talks with the mortgage lender to APP regarding the loan to value covenant under APP´s mortgage loans. Any resolution to these discussions will be reported if and when it is formalized.
Contact: AIRE GmbH & Co. KGaA Andrew Fletcher Phone: +49 (0)69 9711 3225 E-Mail: andrew.fletcher@aig-ire.de
Share Data: WKN: 634421 ISIN: DE0006344211 Stockmarkets: official dealing/prime standard: Frankfurter Wertpapierbörse free trade: Berliner Wertpapierbörse, Baden-Württembergische Wertpapierbörse, Bayerische Börse, Bremer Wertpapierbörse (BWB)
end of announcement euro adhoc
Further inquiry note:
AIRE GmbH & Co. KGaA
Nicole Gauchat
Telefon: +49(0)69 97 11 32 25
E-Mail: nicole.gauchat@aig-ire.de
Branche: Financial & Business Services
ISIN: DE0006344211
WKN: 634421
Index: CDAX, Classic All Share, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade