Fair Value REIT-AG

EANS-News: Fair Value REIT-AG achieves a significant increase in earnings in the 2010 financial year and exceeds forecast

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Financial Figures/Balance Sheet

München (euro adhoc) - - Consolidated net income increased by EUR 4.8 million to EUR 1.9 million according to preliminary figures (previous year: consolidated net loss of EUR 2.9 million) - REIT equity ratio increased to 49.4% (previous year: 45.5%) - Goal of making a dividend payment for 2010 of 0,10 EUR per share achieved

Munich, February 22, 2011 - According to preliminary figures, Fair Value REIT-AG has achieved revenues of EUR 14.4 million for the 2010 financial year compared with EUR 12.2 million in the previous year. This corresponds to growth of around 18%. At the same time, the Group was able to increase its net rental result to EUR 9.5 million compared with EUR 8.5 million in the previous year. The positive development in these key figures was mainly due to revenues achieved by the IC13 subsidiary being recorded in the results for the first time, rather than in the income from participations as was the case in the previous year.

At EUR 2.7 million, the operating result was around EUR 3.5 million higher than the previous year´s figure of EUR -0.8 million. To a small extent, this increase results from the recording of the revenues of the aforementioned subsidiary for the first time. However, the rise in the operating result is primarily due to a significantly improved valuation result in the market valuation of real estate compared with the previous year.

There has also been a significant increase in the results from associated companies which contributed EUR 3.6 million towards the success of Fair Value REIT-AG in 2010 compared with EUR 1.4 million in the previous year. This increase was also due to a significantly improved valuation result for the real estate portfolio.

In the reporting period, Fair Value REIT-AG achieved an operating cash flow (so-called "Funds from Operations", FFO) of EUR 4.7 million or EUR 0.50 per share. Consequently, this figure has increased by 62% in comparison with the previous year (2009: EUR 2.9 million). The forecast for FFO, which was increased to EUR 3.3 million (EUR 0.35 per share) in November 2010, has thus also been significantly exceeded. This increase results from higher cash inflows from associated companies.

Consequently, the company significantly improved the consolidated net income by EUR 4.8 million to EUR 1.9 million during the reporting period (previous year: consolidated net loss of EUR 2.9 million). The earnings per share increased by EUR 0.50, to EUR 0.20 from EUR -0.31 in the previous year.

The real estate valuation result on the balance sheet date showed that the valuation loss had been halved, to 2% of the proportionate values for the previous year (previous year: 4%).

The consolidated net income adjusted for changes in market value and other one-off effects (in accordance with EPRA), at EUR 5.6 million, was significantly higher than the forecast for the EPRA consolidated net income which had been increased to EUR 5.1 million in November 2010. This is mainly due to savings made in maintenance and rental costs which led to an improved net rental result in the Group. For the same reasons, the income from associated companies was also much higher than forecast. The adjusted consolidated net income, which was slightly lower in comparison with the previous year´s value of EUR 6.0 million, results from the disposal of real estate sold in the previous year.

On the balance sheet date, according to preliminary figures, the consolidated equity totalled EUR 74.2 million (31 December 2009: EUR 72.7 million). Consequently, the balance sheet net asset value increased from EUR 7.78 per share in circulation to EUR 7.96 per share. With the inclusion of minority interests in subsidiaries, the equity ratio in accordance with Section 15 REITG increased to 49.4% of the immovable assets (31 December 2009: 45.5%).

Frank Schaich, CEO of Fair Value REIT-AG, explains the positive business development of the Group as follows: "The cost savings achieved and the significantly improved real estate valuation result compared with the previous year have contributed to the pleasing increase in the IFRS consolidated net income. With regard to the 2010 non-consolidated financial statements drawn up in accordance with German commercial law, we have also achieved a balance sheet profit which will enable us to pay out the targeted dividend of EUR 0.10 per share in 2011."

Fair Value REIT-AG will publish the final results for the 2010 financial year on 31 March 2011 at www.fvreit.de in the Investor Relations section.

Selected preliminary key financial indicators for Fair Value REIT-AG:

2010            2009
FFO                                             EUR 4.7 million EUR 2.9 million
FFO per share in circulation                    EUR 0.50        EUR 0.32
Adjusted consolidated net profit (EPRA-Earnings)EUR 5.6 million EUR 6.0 million
EPRA EPS                                        EUR 0.60        EUR 0.65
Consolidated net income (IFRS)                  EUR 1.9 million EUR -2.9 million
EPS (IFRS)                                      EUR 0.20        EUR -0.31

                                                Dec 31, 2010    Dec 31, 2009
Balance sheet NAV per share                     EUR 7.96        EUR 7.78
Equity ratio according to Section 15 REITG      49.4%           45.5% 
end of announcement                               euro adhoc
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Contact:

Fair Value REIT-AG
Frank Schaich
Tel. +49 (0)89-9292815-10
Fax. +49 (0)89-9292815-15
e-mail: schaich@fvreit.de

Branche: Real Estate
ISIN: DE000A0MW975
WKN: A0MW97
Index: CDAX, Classic All Share, Prime All Share, RX REIT All Share
Index, RX REIT Index
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade



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