Corporate | 13 May 2015 07:30

Fair Value REIT-AG records a substantial rise in consolidated net income and net asset value

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

2015-05-13 / 07:30

Fair Value REIT-AG records a substantial rise in consolidated net income and net asset value

– IFRS Group net profit of EUR 2.9 million in Q1 2015 (previous year: EUR 1.2 million)

– Net asset value per share rises to EUR 8.71 as of 31 March 2015 (31 December 2014: EUR 8.39)

– FFO at EUR 1.0 million in Q1 2015 (previous year: EUR 1.3 million)

– REIT equity ratio increases to 51.3% (31 December 2014: 49.2%)

– Capital increase successfully placed on the back of high demand

Munich, 13 May 2015 – Fair Value REIT-AG (WKN A0MW97) has made a successful start to the financial year 2015 and has substantially increased IFRS consolidated net income in the first quarter. During the reporting period, the framework was also created for the company to make rapid progress on the growth strategy adopted at the end of last year.

The rental income of the Group for the first three months of 2015 amounted to EUR 5.6 million and, after property sales, was down on the corresponding previous year figure of EUR 6.2 million by EUR 0.6 million or 10% as expected. Due to higher non recoverable property operating expenses, net rental income came in at EUR 3.9 million, which was EUR 0.9 million or 18% lower than in the corresponding quarter of the previous year (EUR 4.8 million).

Almost half of the funds from the convertible bond issued in January 2015 totalling around EUR 8.5 million were already invested in participations at subsidiaries in the first quarter 2015. The newly acquired assets generated an IFRS profit contribution of around EUR 1.9 million for the shareholders of Fair Value REIT-AG on their initial recognition. This corresponds with around 46% of the total investments made.

The substantially reduced interest expenses compared to the previous year period also had a positive impact, coming in at EUR 1.1 million, some 22% down on the previous year figure.

In the first quarter 2015, Fair Value REIT-AG therefore achieved IFRS Group net profit of EUR 2.9 million, which is around EUR 1.7 million higher than the previous year figure of EUR 1.2 million.

Group net profit adjusted for valuation effects (FFO – funds from operations) came in at EUR 1.0 million and was in line with the company’s planning for the first quarter of the current financial year. The decrease compared to the previous year figure of EUR 1.3 million largely resulted from the sales of non-strategic real estate made in the interim.

On the reporting date, Group equity was recorded at EUR 81.2 million after EUR 78.3 million as of 31 December 2014. As a result, the balance sheet net asset value increased by 4% from EUR 8.39 to EUR 8.71 per share in circulation on that date. The REIT equity ratio also rose by 4% from 49.2% of immovable assets at the end of the previous year to 51.3% on 31 March 2015.

At the start of May 2015, Fair Value REIT-AG made the most of the capital market environment and successfully carried out a cash capital increase with subscription rights for existing shareholders by completely utilising authorised capital 2014 with a view to financing its further growth plans.

At a price of EUR 7.90 per new share, around EUR 37 million gross was generated by the capital increase. With a subscription ratio of 42%, the capital increase was subject to great demand among existing shareholders. Meanwhile, 58% of the volume was placed with new shareholders from Germany and other European countries, further diversifying the shareholder base.

Frank Schaich, CEO of Fair Value REIT-AG, commented on business development in the first quarter and the capital increase: “The results of the first quarter 2015 confirm our planning; they therefore represent a solid starting point for further positive business development in 2015 and for implementing our growth strategy. We view the successful capital increase and the strong demand for newly issued shares in our company as a sign of the confidence in our business and our future plans. Investors are particularly attracted to our focus on retail and office real estate at secondary locations in Germany.”

The interim report for the first quarter 2015 is available for download from the financial reports section of www.fvreit.de from today.

Selected financial key figures for Fair Value REIT-AG

EUR thousand	– 31.3.2015	– 31.3.2014
Rental income	5,590	6,185
Net rental income	3,917	4,781
Operating result (EBIT)	5,016	4,040
IFRS-Net profit	2,863	1,174
IFRS-Result per share *	0.31 EUR	0.13 EUR
EPRA-Earnings / FFO	1,024	1,293
FFO per share *	0.11 EUR	0.14 EUR
EUR	31.03.2015	31.12.2014
Net asset value per share *	8.71 EUR	8.39 EUR
EPRA-NAV per share *	8.72 EUR	8.49 EUR
Equity ratio within the meaning of section 15 of the REIT Act	51.3 %	49.2 %

* based on 9,325,576 shares in circulation as of 31 March 2015

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 secondary locations as well as property participations with a unique focus on closed end funds.

As of 31 March 2015, Fair Value’s share of the total portfolio of 41 properties amounted to around EUR 269 million. This portfolio had an occupancy rate of 91.0% of potential rent on full occupancy of EUR 24.5 million per year. As of 31 March 2015 the weighted remaining term of the leases was 4.8 years. Around 54% of the potential rent relates to retail floor space, 38% to office space and 8% 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:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart

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356817  2015-05-13