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alstria office REIT-AG: alstria's Green Dividend proposal approved by the shareholders meeting
alstria's Green Dividend proposal approved by the shareholders meeting
* 85.2% of alstria shareholders voted in favour of EUR 0.01 per share of Green Dividend.
* EUR 1.78 million of capital will be invested in renewable energy and carbon removal projects that will not meet the company's returns expectation, while a similar amount will be deducted from next year's dividend.
* The approval of the Green Dividend is the first example of a company proposing, and shareholders approving, an investment project that will not meet the company's return expectations but is effective in climate change mitigation.
Hamburg, May 6, 2021 - At today's Annual General Meeting, alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) proposed a Green Dividend to its shareholders, which was adopted by 85.2% of the votes.
The proceeds of the Green Dividend will be invested in the installation of additional solar power generation in alstria's portfolio (up to 900 kw peak) and into an external R&D project, focusing on carbon removal alternatives for the real estate industry (up to EUR 0.75 million). A similar amount will be deducted from next year's dividend (if any), which will be reduced by EUR 0.01 per share (a reduction of 1.9% based on the current dividend).
The amount of Green Dividend proposed by the company (EUR 0.01 per share or EUR 1.78 million) corresponds (1) to the theoretical value of the unpaid carbon that alstria used in its operation during the last reporting period (Scope 1, 2, and 3), as shown in the company's carbon profit and loss statement. (2)
This is the second time the company has asked its shareholders whether they approve spending corporate assets on environmental projects that will not meet the company's risk-return expectations, but instead will contribute to addressing the systemic risk of climate change.
"Today's vote is not about the amount that has been approved by our shareholders. We are aware that the EUR 1.78 million that we have proposed today as Green Dividend is a drop in the ocean. It is about the signal this gives", says Olivier Elamine, CEO of alstria. "For the first time, a company has asked its shareholders to disregard financial returns and look at an investment through the sole lens of climate change mitigation. What we are demonstrating today is that the conversation with shareholders should not be solely about what companies are doing but also about what they are not doing. Across the corporate board, climate change mitigation projects are dismissed as they do not match financial return criteria. Management alone cannot relax financial discipline, and neither should they. However, it can be done in agreement with the shareholders, as we have seen today", Olivier Elamine states.
1) 2020 carbon expenses amounted to EUR 2.3 million. EUR 1.78 million of Green Dividend is the closest dividend amount to this sum considering the number of shares outstanding.
For more information about the Green Dividend please visit: www.green-dividend.com
20095 Hamburg, Germany
Tel: +49 40 22 63 41 - 344
20095 Hamburg, Germany
Tel: +49 40 22 63 41 - 389
alstria office REIT AG is the leading real-estate operator focusing solely on German office property in selected German markets. Our strategy is based on the ownership and an active management of our properties throughout their entire life cycle, strong added-value services to our customers and deep knowledge of the markets in which we operate. alstria strives for sustainable long-term value creation while taking advantage of short-term arbitrage of inefficiencies in the real estate markets. As of March 31, 2021, the portfolio comprises 110 buildings with a lettable area of 1.4 million square meters and a total portfolio value of EUR 4.6 billion.
This release constitutes neither an offer to sell nor a solicitation of an offer to buy any shares. As far as this press release contains forward-looking statements with respect to the business, financial condition and results of operations of alstria office REIT-AG (alstria), these statements are based on current expectations or beliefs of alstria's management. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those reflected in such forward-looking statements. Apart from other factors not mentioned here, differences could occur as a result of changes in the overall economic situation and the competitive environment - especially in the core business segments and markets of alstria. Also, the development of the financial markets and changes in national as well as international provisions particularly in the field of tax legislation and financial reporting standards could have an effect. Terrorist attacks and their consequences could increase the likelihood and the extent of differences.
The current COVID-19 outbreak is creating substantial uncertainty in the marketplace. Although alstria has diligently reviewed the information contained in this release it is based on its own analysis and estimate, as well as available public sources and not on active discussion with tenants. As such the current liquidity risk of the tenants can materially differ from alstria's own estimate, and the actual impact of the COVID 19 outbreak may differ substantially from the current previsions.
alstria undertakes no obligation to publicly release any revisions or updates to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
alstria office REIT-AG
|alstria office REIT-AG
|+49 40 226341-344
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