Distribution of special dividends at the initiative of the majority shareholder

In a letter dated November 3, 2021, the majority shareholder SOF-11 Klimt CAI S.à r.l requested the convocation of an extraordinary general meeting to resolve on the distribution of special dividends totaling €5.00 per issued share. The special dividends are to be paid to all shareholders in two tranches of €2.50 per share in December 2021 and March 2022. After consultation with the Supervisory Board, the Management Board of CA Immo will convene such a general meeting as proposed, which is expected to be held virtually on November 30, 2021.

From today's perspective, the special distributions requested by the majority shareholder will not affect CA Immo's business model as a leading investor, manager, and developer of high-quality, modern offices in Central European gateway cities with Germany as anchor market. CA Immo has achieved significant value creation in recent years, while at the same time improving the underlying quality, location, age, and resilience of the portfolio. Since the beginning of the 2018 business year, gross sales proceeds totaling around €1 billion have been generated as part of the strategic capital rotation program. The vast majority of these transactions were concluded at prices significantly above the book values of the properties sold.

All these activities are reflected in a 5-year total shareholder return CAGR (Compound Annual Growth Rate) of around 20% and an average annual return on equity of around 13% (2016-2020). As a result of these many years of positive business development, CA Immo currently has a robust balance sheet and a high cash position, combined with a low level of debt. Therefore, CA Immo currently expects to be able to continue to keep the leverage ratio within the defined strategic target corridor, even though the special dividend proposed by SOF-11 Klimt CAI S.à r.l will be resolved and paid out in full to all shareholders.

In this context, the Management Board currently intends to maintain the previous dividend policy and to continue the active capital rotation to secure and increase the attractiveness and sustainability of the real estate portfolio.