Corporate | 7 November 2013 07:20
Fair Value REIT-AG / Key word(s): Quarter Results/Forecast
07.11.2013 / 07:20
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- IFRS consolidated net income of EUR 5.30 million (previous year: EUR
3.68 million)
- Adjusted consolidated net income in accordance with EPRA / FFO at EUR
3.98 million (-5%)
- REIT equity ratio increases to 55.8%
- Dividend forecast doubled to EUR 0.24 per share
Munich, November 7, 2013 - Fair Value REIT-AG Group has recorded pleasingly
positive development over the first nine months of 2013. Consolidated net
income for the first three quarters came in at EUR 5.30 million, or EUR
0.57 per share, representing an increase of 40% over the previous year
figure of EUR 3.68 million. However, the previous year figure was impacted
by valuation expenses totalling around EUR 1.0 million during the year,
while positive market value changes to interest rate hedges of around the
same amount influenced the figure in the current reporting period.
The Fair Value Group's operating result, adjusted for extraordinary effects
(EPRA earnings or FFO) totalled EUR 3.98 million in the first nine months
of 2013, some 5% lower than in the previous year period (EUR 4.19 million)
due to the properties sold in the interim. This represents EPRA-earnings or
FFO of EUR 0.43 per share (previous year period: EUR 0.45 per share).
Net sales in the first three quarters of 2013 amounted to a total of EUR
9.40 million and were therefore down EUR 0.53 million or 5.4% on the
corresponding previous year period. This fall is attributable to the
reduction in rental income and ancillary income due to the sale of
properties. During the period under review, the proportionate occupancy
rate of the real estate managed by the Group and its associated companies
increased from 94.4% back to the long-term average of 95.0%. The average
time to maturity of the lease agreements totalled 5.5 years as of the
reporting date on September 30, 2013, close to the 5.7 years reported at
the end of the previous year.
Due to increased letting-related reconstruction costs, net rental income in
the first three quarters of 2013 fell by EUR 1.14 million or 17.8% to EUR
5.25 million (previous year period: EUR 6.39 million). However, the
operating result fell by only EUR 0.07 million or 1.8% to EUR 3.82 million,
which is attributable to the higher other operating income and
substantially higher sale and valuation result.
The fall in net rental income was also more than offset by a substantial
reduction in net interest expenses. This also led to higher income from
equity-accounted participations. Income from participations at associated
companies totalled EUR 4.99 million and was therefore 24.5% up on the first
nine months of the previous year (EUR 4.01 million) due to income from the
valuation of interest rate hedges. Net interest expenses in the Group fell
by 21.8% in the reporting period to EUR 2.78 million, with this figure
totalling EUR 3.56 million in the previous year period.
As of September 30, 2013, Group equity totalled EUR 84.02 million. As a
result, the balance sheet net asset value per share in circulation
increased by 8.2% to EUR 9.01 per share in the first nine months of the
year (December 31, 2012: EUR 8.33). The equity ratio pursuant to section 15
of the German REIT Act increased to 55.8% of immovable assets (December 31,
2012: 52.6%).
Frank Schaich, CEO of Fair Value REIT-AG, comments on the business
development over the first nine months: 'The pleasing development over the
first three quarters of 2013 reinforces our positive estimates for the full
year 2013 and also for 2014. Given the property sales to date and future
changes to assets in participations, the proportionate rental income will
be reduced by more than 20% from 2014. However, the resultant lower
proceeds will already be offset by future savings in net interest expenses.
That is why we are reiterating our FFO forecasts for 2013 and 2014, and
continue to anticipate adjusted consolidated net income (FFO) of EUR 5.3
million, or EUR 0.57 per share, for 2013 as a whole, as well as adjusted
consolidated net income of EUR 5.6 million, or EUR 0.60 per share, for
2014. As already announced, we have been able to double our forecast for
the dividend from the previous EUR 0.12 per share to EUR 0.24 per share on
the back of the pleasing business development. This represents a likely
dividend increase for the financial years 2013 and 2014 from the previous
roughly 20% of FFO to around 40% of FFO per share.'
The Interim Report 1st to 3rd Quarter 2013 is now available in the
Financial Reports section of www.fvreit.de.
Selected financial indicators of Fair Value REIT-AG
1/1 - 9/30/ 1/1 - 9/30/
2013 20121)
Rental revenues EUR 7.739 EUR 8.183
million million
Operating result (EBIT) EUR 3.824 EUR 3.892
million million
Results from equity-accounted investments EUR 4.992 EUR 4.010
million million
IFRS-Consolidated net income EUR 5.298 EUR 3.679
million million
IFRS-EPS 0.57 EUR 0.39 EUR
Adjusted consolidated income (EPRA-Earnings)/ EUR 3.976 EUR 4.187
FFO million million
EPRA-EPS 0.43 EUR 0.45 EUR
September 30, December 31,
2013 20122)
Net asset value per share 9.01 EUR 8.33 EUR
EPRA-NAV per share 9.63 EUR 9.28 EUR
Equity ratio within the meaning of section 15 55.8% 52.6%
of the REIT act
1) 1st to 3rd Quarter 2012 adjusted - accrual of a rent repayment received
(Explanation see Note 10, Interim Report 1st to 3rd Quarter 2013)
2) Financial year 2012 adjusted in line with IAS 8 - amendment of an error
relating to minority interests (Explanation see Note 2, Interim Report 1st
to 3rd Quarter 2013)
Contact
Fair Value REIT-AG
Frank Schaich
Tel. +49 (0) 89-9292815-10
Fax. +49 (0) 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 retail and office properties in
German regional centres. Because of its REIT status, Fair Value is exempt
from corporation and trade tax. In addition to investing in real estate
directly, Fair Value also acquires participations in real estate
partnerships.
Through direct investments and subsidiaries, Fair Value Group manages a
portfolio of 38 commercial properties with a total leasable floor space of
around 154,000 square metres and a market value of around EUR 125 million
as of September 30, 2013. Fair Value's share of these investments amounted
to around EUR 90 million on the same date.
In addition, Fair Value REIT-AG holds minority interests in six closed-end
real estate partnerships with holdings in 22 commercial properties with a
total leasable floor space of around 257,000 square metres. As of December
31, 2012, the total market value of these properties was around EUR 333
million (Fair Value's share of this amounted to around EUR 121 million on
September 30, 2013).
As of September 30, 2013, Fair Value's share of the total portfolio
amounted to around EUR 211 million. This portfolio had an occupancy rate of
95.0% of the achievable rents at full occupancy of EUR 18.9 million per
annum. As of September 30, 2013, the weighted remaining term of the leases
was 5.5 years. Around 43% of the potential rent relates to retail floor
space, 42% to office space and 15% to other types of use.
End of Corporate News
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Language: English
Company: Fair Value REIT-AG
Leopoldstraße 244
80807 München
Germany
Phone: +49 (0)89 9292 815-01
Fax: +49 (0)89 9292 815-15
E-mail: info@fvreit.de
Internet: www.fvreit.de
ISIN: DE000A0MW975
WKN: A0MW97
Indices: RX REIT All Share Index, RX REIT Index
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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