EANS-News: Fair Value REIT-AG increases consolidated net income in the first
half of 2011 and confirms forecast for full year
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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6-month report
Subtitle: IFRS consolidated net income up by 38% to 3.2 million (previous
year: 2.3 million) / Adjusted consolidated net income (EPRA-Earnings) at 2.9
million, an increase of 9% on previous year figure of 2.6 million / Forecast
for full year 2011 and 2012 confirmed
Munich (euro adhoc) - August 11, 2011 - In the first half of the year Fair Value
REIT-AG has generated consolidated net income of around EUR 3.2 million and
thereby exceeded the previous year's mark of around EUR 2.3 million by 38% or
EUR 0.9 million. The gains compared to the previous year are primarily the
result of an income effective market value increase of cash flow hedges in the
associated companies. Consolidated earnings adjusted for market value changes
(EPRA-Earnings) amounted to around EUR 2.9 million, and were therefore 9% higher
than the previous year mark of approx. EUR 2.6 million.
The operating income (EBIT) of EUR 2.9 million was in line with expectations and
came in at 13% lower than the previous year´s figure of around EUR 3.4 million,
mainly due to re-letting related expenses. In contrast, the results of the
associated companies rose substantially, up by EUR 1.0 million to EUR 3.1
million. Of this increase, 20% was attributable to reduced interest expenses and
80% to an improved valuation of interest rate hedges, as recorded in the
respective profit and loss statements.
On the balance sheet date, the group´s equity capital amounted to EUR 77.9
million (December 31, 2010: EUR 74.6 million). The balance sheet net asset value
(NAV) per share in circulation therefore increased by 4% to EUR 8.35 (December
31, 2010: EUR 8.00). Taking the minority holdings in the subsidiaries into
account, the equity ratio as defined in section 15 REITG (German REIT act) was
up to 50.9% of immovable assets (December 31, 2010: 49.6%).
Frank Schaich, CEO of Fair Value REIT-AG, explains the group's gratifying
development: "The long-term nature of our lease agreements allows us to plan our
income with confidence. This was boosted further by successes in the rental
business and the follow-up financing and refinancing of financial liabilities
within the group and at associated companies."
The Management Board confirms the forecast, which was last increased as part of
the Q1 2011 financial report, for adjusted consolidated net income of EUR 5.0
million (EUR 0.54 per share) for the full year 2011. Also, the forecast of an
adjusted consolidated net income of EUR 5.7 million (EUR 0.61 per share) for
fiscal year 2012 is being confirmed.
As of today, the report for the first half of 2011 is available at www.fvreit.de
in the Investor Relations area.
Selected financial indicators of Fair Value REIT-AG
January - June 2011 January - June 2010
Rental revenues 5,176 TEUR 6,046 TEUR
EBIT 2,945 TEUR 3,376 TEUR
IFRS consolidated net income 3,198 TEUR 2,313 TEUR
IFRS EPS 0.34 EUR 0.25 EUR
Adjusted consolidated income (EPRA-Earnings) 2,864 TEUR 2,629 TEUR
EPRA EPS 0.31 EUR 0.28 EUR
June 30, 2011 December 31. 2010
Balance sheet NAV per share 8.35 EUR 8.00 EUR
EPRA-NAV per share 9.11 EUR 8.93 EUR
Equity ratio under § 15 of the REIT Act: 50.9% 49.6%
Contact
Fair Value REIT-AG
Frank Schaich
Tel.: +49 89-9292815-10
Fax.: +49 89-9292815-15
E-Mail: schaich@fvreit.de
Corporate profile
Fair Value REIT-AG, based in Munich, focuses on the acquisition, leasing,
property management and sale of commercial properties in Germany. At the core of
its investment activities are office and retail properties in German regional
centres. Because of its REIT status, Fair Value is exempt from corporation and
trade tax. In addition to investing in properties directly, Fair Value also
invests in real estate funds.
Through direct investments and subsidiaries, the Fair Value Group manages a
portfolio of 51 commercial properties with a total leasable floor space of
around 163,000 square metres and a market value as of December 31, 2010 of
around EUR 129.8 million. (Fair Value's share on these investments amounted to
around EUR 93.8 million as of June 30, 2011).
In addition, Fair Value REIT-AG holds minority interests in six closed-end real
estate funds with holdings in 23 commercial properties and a total leasable
floor space of around 269 000 square metres. As of 31 December 2010, the total
market value of these properties was EUR 365.3 million. (Fair Value's share on
these investments amounted to around EUR 130.0 million as of June 30, 2011).
As of June 30, 2011, Fair Value's share on the total portfolio amounted to
around EUR 223.8 million. This represented an occupancy rate of 93.1% of the
achievable rents at full occupancy of EUR 19.5 million per annum. As of June 30,
2011, the weighted remaining term of the leases was 5.8 years. Around 44% of the
potential rent relate to retail floor space, 42% to office space and 14% to
other facilities.
Further inquiry note:
Fair Value REIT-AG
Frank Schaich
Tel.: 089-9292815-10
Fax: 089-9292815-15
E-Mail: schaich@fvreit.de
end of announcement euro adhoc
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company: Fair Value REIT-AG
Leopoldstraße 244
D-80807 München
phone: +49 (0) 89 9292815 01
FAX: +49 (0) 89 9292815 15
mail: info@fvreit.de
WWW: http://www.fvreit.de
sector: Real Estate
ISIN: DE000A0MW975
indexes: CDAX, Classic All Share, Prime All Share, RX REIT All Share Index,
RX REIT Index
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Stuttgart, Düsseldorf, München
language: English