After the IPO the company started out with an unusually high equity ratio of 70%, measured against the balance sheet total. As of the balance sheet date the loan-to-value ratio was about 40%; the gearing was negative because the liquid funds exceeded the financial liabilities. The strategic target ratio is about 40% equity to about 60% debt. In order to reach this target in the next 12 to 15 months, greater use of outside capital is to be made to fund the earmarked investments of about € 1 bn.
The financing policy is pursuing clearly and precisely defined goals:
- Minimization of costs of capital, to be achieved with an ideal mix of own and borrowed capital
- Borrowing from different banks and with varied maturities
- Amortization matched to the cash flows generated by the properties
- Financing in USD for properties with USD-based rental income (natural hedge)
- Active management of financial risks, in particular interest rate, currency, liquidity and credit risks