EANS-News: Fair Value REIT-AG grows consolidated net income in first nine months
of 2011 and raises full-year forecast
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Earnings Forecast/9-month report
Subtitle: IFRS consolidated net income up by 10% to EUR 4.5 million (previous
year: EUR 4.1 million) / Adjusted consolidated net income (EPRA earnings) at EUR
4.2 million, slightly ahead of previous year's EUR 4.1 million / FY 2011
consolidated net income forecast upgraded to EUR 5.6 million (+12%)
Munich (euro adhoc) - November 15, 2011 - Fair Value REIT-AG generated around
EUR 4.5 million of consolidated net income in the first nine months of the
current financial year, thereby exceeding the previous year's figure of EUR 4.1
million by 10%. The rise compared to the previous year is primarily the result
of an earnings-effective market value increase in cash flow hedges in the
associated companies. Consolidated earnings adjusted for market value changes
(EPRA earnings) amounted to around EUR 4.2 million, and were therefore slightly
higher than the previous-year mark of approximately EUR 4.1 million.
Operating earnings (EBIT) of EUR 4.2 million were in line with expectations and
were 21% lower than the previous year's figure of around EUR 5.3 million, mainly
because of expenses related to re-letting. In contrast, the results of the
associated companies rose substantially, up by EUR 1.1 million, or 33%, to EUR
4.5 million. Of the increase in earnings from participations, around 40% is due
to lower interest expenses, including after the successful refinancing of
mortgage loans in the second quarter of 2011, and around 60% is attributable to
an improvement in the valuation of interest-rate hedges.
The group's equity amounted to EUR 77.6 million on the balance sheet date
(December 31, 2010: EUR 74.6 million). The balance sheet net asset value (NAV)
per share in circulation increased by 4% to EUR 8.32 as a consequence (December
31, 2010: EUR 8.00). Taking into account the minority holdings in the
subsidiaries, the equity ratio as defined in Section 15 of the German REIT Act
(REITG) increased to 50.7% of immovable assets (December 31, 2010: 49.6%).
Frank Schaich, the company's CEO, commented on further reasons for the Fair
Value Group's positive business trend, and the upgrade to the forecast: "The
rental ratio for our proportional overall portfolio at 94.4% represents a slight
increase on the previous year's level of 93.6%. In terms of costs, we achieved
significant savings on interest expenses and on rental-related costs. These are
the main factors that prompted us to boost our earnings expectations for the
2011 financial year. Instead of consolidated net income of previously EUR 5.0
million (EUR 0.54 per share), we now anticipate EUR 5.6 million, or EUR 0.60 per
share."
The Management Board is still aiming to distribute a dividend of at least EUR
0.10 per share for 2011, although the requisite German commercial law results
and liquidity inflows for this have not yet been secured.
The interim report for the first nine months of 2011, which will be available in
the course of today on the company's website at www.fvreit.de within the
Investor Relations area, provides a full overview of current business trends.
Selected financial indicators of Fair Value REIT-AG
Jan - Sept 2011 Jan - Sept 2010
Rental revenues 7,845 TEUR 8,930 TEUR
EBIT 4,212 TEUR 5,324 TEUR
IFRS consolidated net income 4,518 TEUR 4,080 TEUR
IFRS EPS 0.48 EUR 0.44 EUR
Adjusted consolidated income 4,183 TEUR 4,108 TEUR
(EPRA-Earnings)
EPRA EPS 0.45 EUR 0.44 EUR
Sept 30, 2011 Dec 31, 2010
Balance sheet NAV per share 8.32 EUR 8.00 EUR
EPRA-NAV per share 9.24 EUR 8.93 EUR
Equity ratio under 50.7% 49.6%
§ 15 of the REIT Act
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 September 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 September 30,
2011).
As of September 30, 2011, Fair Value's share on the total portfolio amounted to
around EUR 223.9 million. This represented an occupancy rate of 94.4% of the
achievable rents at full occupancy of EUR 19.6 million per annum. As of
September 30, 2011, the weighted remaining term of the leases was 5.6 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