Corporate | 6 November 2014 07:30


Fair Value REIT-AG records stable business development in the first nine months of 2014


Fair Value REIT-AG / Key word(s): Quarter Results

06.11.2014 / 07:30

Fair Value REIT-AG records stable business development in the first nine months of 2014

– FFO at EUR 3.7 million (previous year adjusted: EUR 4.0 million)

– NAV per share as of September 30, 2014 at EUR 8.77 (December 31, 2013: EUR 8.65)

– IFRS consolidated net income of EUR 3.4 million (previous year adjusted: EUR 5.3 million)

– REIT equity ratio increases to 51.2% (December 31, 2013: 46.9%)

– Dividend target of EUR 0.25 per share reiterated

Munich, November 6, 2014 – Fair Value REIT-AG (WKN A0MW97) has concluded the first nine months of 2014 with stable results. Adjusted consolidated net income (EPRA Earnings or FFO) totalled EUR 3.7 million or EUR 0.39 per share (previous year: EUR 4.0 million or EUR 0.43 per share).

The first-time adoption of the accounting standard IFRS 10 as of December 31, 2013 resulted in the full consolidation of all participations. As a result, the previous year comparison figures have been adjusted.

The rental income of the Group for the first nine months of 2014 amounted to a total of EUR 18.0 million and, on the back of property sales, was down on the corresponding previous year figure of EUR 22.1 million as expected. Net rental income of EUR 13.8 million was also lower than the previous year figure of EUR 17.0 million.

The operating result (EBIT) came in at EUR 11.8 million in the period under review, following EUR 14.8 million in the previous year. On the back of the termination of the last participation not fully consolidated as of December 31, 2013, no income from participations was recorded (previous year: EUR 2.1 million). The substantially lower net interest expenses of EUR 3.9 million compared to the previous year period (EUR 6.7 million) had a positive effect. This reduction resulted from repayments and improved financing conditions.

After the minority interests in the result (EUR 4.4 million, after EUR 6.7 million in the previous year), the Fair Value Group concluded the first nine months of 2014 with a consolidated IFRS net income of EUR 3.4 million. This result was down on the adjusted previous year figure of EUR 5.3 million due to property sales.

Group equity totalled EUR 81.8 million as of September 30, 2014, following EUR 80.7 million at the end of December 2013. In relation to shares in circulation, the balance sheet net asset value increased to EUR 8.77 per share (December 31, 2013: EUR 8.65). The equity ratio pursuant to Paragraph 15 of the German REIT Act rose significantly to 51.2% of immovable assets (December 31, 2013: 46.9%).

Frank Schaich, CEO of Fair Value REIT-AG, comments on business development to date: “We regard the results from the first nine months of 2014 as confirmation of our forecast. However, we are anticipating a sales-related decline in rental income, as well as an increase in maintenance and rental costs in the fourth quarter 2014. We are reiterating our dividend target for the financial year 2014 of EUR 0.25 per share, although we will likely only just reach our forecast of adjusted consolidated net income (FFO) for the full year 2014 of EUR 5.1 million or EUR 0.55 per share.”

The Interim Report 1 st to 3 rd Quarter 2014 is now available in the Financial Reports section of www.fvreit.de .

Selected financial key figures for Fair Value REIT-AG

1/1 – 9/30/2014 1/1 – 9/30/2013 *
Rental income EUR 17.961 million EUR 22.137 million
EBIT EUR 11.772 million EUR 14.781 million
Result including minority interest EUR 7.831 million EUR 10.348 million
Minority interests in the result EUR (4.386) million EUR (5.033) million
Consolidated net income (IFRS) EUR 3.445 million EUR 5.293 million
IFRS-EPS 0.37 EUR 0.57 EUR
Adjusted consolidated net income (EPRA-earnings)/FFO EUR 3.653 million EUR 3.968 million
EPRA-EPS 0.39 EUR 0.43 EUR
September 30, 2014 December 31, 2013
Net asset value per share 8.77 EUR 8.65 EUR
EPRA-NAV per share 8.87 EUR 8.86 EUR
Equity ratio within the meaning of section 15 of the REIT act 51.2 % 46.9 %

*Previous year period adjusted as part of the first-time adoption of IFRS 10

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.

As of September 30, 2014, Fair Value’s share of the total portfolio of 44 properties amounted to around EUR 289 million. This portfolio had an occupancy rate of 90.1% of the achievable rents at full occupancy of EUR 26.1 million per annum. As of September 30, 2014, the weighted remaining term of the leases was 4.9 years. Around 53% of the potential rent relates to retail floor space, 36% to office space and 11% to other types of use.




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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
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