An important transformation is underway at Appenine, the share price has gone up

November 10, 2023
1:50 pm

Appeninn has convened an extraordinary general meeting in December with the aim of initiating its registration as a regulated real estate investment company, according to from a BSE bulletin.

The Extraordinary General Assembly will be held on 13 December at 14.00 is convened by Appeninn, at 1015 Budapest, Hattyú utca 14, VI. floor. The date of the General Meeting, which will be repeated if there is no quorum, will be 18 December 2023, starting at 14:00, with the same venue and agenda.

Agenda items for the General Assembly:

Decision to initiate the registration of the company as a regulated real estate investment company.
Decision on the amendment and codification of the statutes necessary for the company to operate as a regulated real estate investment company.
Decision to increase the annual fee of the statutory auditor of the company and its subsidiaries.

A regulated real estate investment trusts has existed in Hungary since 2011, and is the Hungarian equivalent of the form of enterprise known as REITs in North America and several European countries.

The SZIT identifies listed real estate companies that enjoy significant tax advantages, but in return must have an adequate public shareholding and pay out a large part of their profits as dividends.

The more important criteria for SZITs are:

Public stock exchange operation.
At least 25 per cent public ownership (no owner can have more than 5 per cent ownership).
At least HUF 5 billion of initial capital.
A defined scope of activities.
Payment of at least 90 percent of the profit as dividends.

The advantage of becoming an SZIT is in the tax area, these are:

As an SZIT, the company is exempt from corporate tax and business tax,
and a reduced rate of only 2% if you buy a property.

About what are the conditions for becoming an SZIT, we wrote in the article below:

Our related article

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Hungarian companies can come to the Budapest Stock Exchange one by one!

Among the companies listed on the Hungarian stock exchange, BIF, Graphisoft Park and SunDell Estate are all regulated real estate investment companies.

Appeninn's share price jumped 10 percent today after the news was published, with turnover above average.