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With the successful transformation of alstia office REIT-AG – the first German REIT –Deutsche Börse has created an independent REIT segment for this securities class as planned, and started to calculate REIT indices. The alstria office REIT-AG is the first real estate company to position itself as a REIT and to be included in the REITs-segment.
With the segment Deutsche Börse raises the profile of REITs as an asset class in stock exchange trading. This enables investors and analysts to easily identify REITs for targeted investment in listed companies with REIT status, while offering a high degree of transparency. This means that the stock exchange operator will be providing a visible listing platform for REIT companies, increasing attention among investors and creating new business opportunities for intermediaries such as Deutsche Börse listing partners (investment banks, IR agencies, auditors and lawyers). As a result, Deutsche Börse is playing a role in establishing the new asset class in Germany.
As of Wednesday, Deutsche Börse will calculate two independent REIT indices on the basis of segment membership: the All Share index covers all REITs on the Prime Standard and General Standard, and is accessible for both German and foreign REITs. The REIT “RX” selection index contains the 20 largest and most liquid REITs from the Prime Standard, which will also include alstria office REIT-AG. The company is also included in the SDAX. Weighting is undertaken based on free float market capitalization. Product providers can create investment products based on this index, e.g. derivatives and index funds. Additionally, Deutsche Börse offers the RX Real Estate index which allows investors to track the performance of REITs and listed real estate companies.
“We are very enthusiastic to be the first company included in the Deutsche Börse REITs-Segment and are proud that our company is setting up the ground for this new asset class in Germany. We are now looking forward to further German REIT companies to join” said Olivier Elamine, Chief Executive Officer of alstria office REIT-AG.
Deutsche Börse believes that with this offering it is acting as a catalyst for REITs in Germany. “Our REIT segment is our way of actively supporting the positioning of this new asset class for all market participants in Germany,” said Frank Gerstenschläger, member of the executive committee of Deutsche Börse and responsible for the cash market.
