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12.08.2010 – 07:31

Fair Value REIT-AG

EANS-News: Fair Value REIT-AG closes the first half year successfully and confirms the full-year forecast for 2010

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Financial Figures/Balance Sheet/Company Information/6-month report

München (euro adhoc) - - IFRS consolidated net income improves from EUR 1.7 million to EUR 2.3 million - Equity ratio in accordance with Section 15 REITG increased to 47.9% - Full-year forecast for 2010 is confirmed

Munich, August 12, 2010 - Fair Value REIT-AG today publishes its half-year figures for 2010, which have developed according to plan. These show that the Group achieved revenues of EUR 7.0 million against EUR 5.7 million in the same period of the previous year. This increase is due to the full consolidation of a subsidiary (IC 13) for the first time which was included in income from participations in the previous year because of the lower shareholding at the time. On a like-for-like basis, i.e. without this subsidiary, the revenues were around the same level as in the previous year.

The net rental result in the Group amounted to EUR 4.5 million against EUR 4.0 million in the previous year. The operating profit at EUR 3.4 million was around EUR 0.7 million higher than in the previous year. The positive changes in these key indicators in comparison to the previous year also resulted primarily from the inclusion of revenues from the subsidiary IC 13 for the first time. A positive contribution was, however, also made by the further significant reduction of 26% in the parent company´s general administrative expenses.

On a like-for-like basis, i.e. adjusted for the subsidiary IC 13, there would be an operating profit of EUR 2.3 million against EUR 2.6 million in the previous year. The difference from the previous year´s figure arises in this context mainly from conversion and renovation costs associated with new or continuation lettings.

The consolidated net income was EUR 2.3 million against EUR 1.7 million in the previous year. This represents a profit of EUR 0.25 per share (previous year: EUR 0.18). The difference from the previous year primarily results from lower real estate valuation losses. The adjusted consolidated net income (EPRA earnings) without changes in the market value of real estate and interest rate hedges was, at EUR 2.6 million or EUR 0.28 per share on June 30, 2010, slightly below the previous year´s figure of EUR 2.8 million or EUR 0.30 per share due to the aforementioned letting-related costs.

In the first half of the current financial year, Fair Value REIT-AG achieved an operating cash flow (so-called "Funds from Operations", FFO) of EUR 2.3 million (previous year: EUR 2.1 million) or EUR 0.25 per share (previous year: EUR 0.22). In addition to the aforementioned change in status of the subsidiary, this increase also largely resulted from the reduced administrative expenses at Group level.

On the balance sheet date, the Company´s equity totalled EUR 73.1 million (December 31, 2009: EUR 72.7 million). Consequently, the balance sheet net asset value increased slightly from EUR 7.78 per share in circulation to EUR 7.84. By including the minority interests, the equity ratio increased in accordance with Section 15 REITG to 47.9% of the immovable assets (December 31, 2009: 45.5%). The EPRA NAV, which reflects the equity relating to the real estate business, improved from EUR 8.72 to EUR 9.01 per share.

Frank Schaich, the company´s Chief Executive Officer, is satisfied with how the Fair Value Group´s business has developed: "In the first half year, we have already achieved 60% of the revenue expected for 2010 as a whole. In addition, after the balance sheet date the occupancy rate attributable to Fair Value will increase from 94.1% on June 30, 2010 to 95.3% again as a result of lease agreements which have already been concluded."

Overall, the results are therefore in accordance with the expected distribution in the course of the year. The Management Board, therefore, confirms the 2010 full-year forecast for the adjusted IFRS consolidated net income (EPRA earnings) of EUR 4.2 million or EUR 0.45 per share. In addition, in 2010 the Management Board is still aiming for a net income under commercial law that will permit a dividend of EUR 0.10 per share in 2011. This is based on revenue still to be achieved from participations, especially after real estate sales within the scope of the company´s targeted portfolio optimisation.

The interim report for the first half of 2010 is available from today at in the Investor Relations section.

Selected key financial indicators for Fair Value REIT-AG

Jan 1 - Jun 30,    Jan 1 -  Jun 30,
                                                   2010               2009
Consolidated net income                 EUR 2.3 million    EUR 1.7 million
EPS                                            EUR 0.25           EUR 0.18
Adjusted consolidated net income (EPRA- EUR 2.6 million    EUR 2.8 million
EPRA EPS                                       EUR 0.28           EUR 0.30
FFO                                     EUR 2.3 million    EUR 2.1 million
FFO per share in circulation                   EUR 0.25           EUR 0.22

                                           Jun 30, 2010       Dec 31, 2009
Balance sheet NAV per share                    EUR 7.84           EUR 7.78
EPRA-NAV per share                             EUR 9.01           EUR 8.72 

Company profile

Munich-based Fair Value REIT-AG focuses on the acquisition, leasing, property management and sale of commercial properties in Germany. Its investment activities focus primarily on offices, logistics and retail properties in German regional centers. As a REIT-AG, Fair Value is not subject to corporation or trade tax. Fair Value's USP is that - in addition to investing directly in real estate - it also acquires interests in closed-end real estate funds.

Fair Value currently participates in 13 closed-end real estate funds in a highly diversified portfolio of 44 properties with a total rental area of 401,000 m² and a market value of around EUR 471 million as of December 31, 2009 (Fair Value's share of this portfolio totaled around EUR 186.1 million on June 30, 2010).

Fair Value further directly owns a portfolio of 32 commercial properties in Schleswig-Holstein. These have a rental area of around 43,000 m² and are mostly used as bank branches. These properties had a total market value of around EUR 45.5 million as of December 31, 2009.

On June 30, 2010, the proportion of the entire portfolio due to Fair Value had a market value of around EUR 231.6 million. As of June 30, 2010, this proportionate portfolio was 94.1% let in terms of the achievable annual rent of EUR 20.2 million. The rental agreements had a weighted remaining term of 6.2 years on June 30, 2010. Around 44% of the potential rent stems from retail facilities, 41% from offices, 9% is from logistics facilities and 6% from other facilities.

end of announcement                               euro adhoc

Further inquiry note:


Investor & Media Relations
cometis AG
Ulrich Wiehle / Tobias Eberle
Phone: +49(0)611 - 205855-25
Fax: +49(0)611 - 205855-66

Branche: Real Estate
ISIN: DE000A0MW975
Index: CDAX, Classic All Share, Prime All Share, RX REIT All Share
Index, RX REIT Index
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade

Original content of: Fair Value REIT-AG, transmitted by news aktuell