Fair Value REIT-AG

EANS-News: Fair Value REIT-AG
Fair Value REIT-AG achieves substantial growth in earnings in 2011 according to preliminary figures and pays out dividend

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annual result/preliminary figures

München (euro adhoc) - Fair Value REIT-AG achieves substantial growth in
earnings in 2011 according to preliminary figures and pays out dividend 

* Consolidated net income up EUR 2.4 million to EUR 4.6 million (previous year:
EUR 2.2 million) 
* Funds from operations (FFO) total EUR 5.6 million as anticipated (previous
year: EUR 5.8 million)
* REIT equity ratio increases to 50.8% (previous year: 49.4%)
* Dividend of EUR 0.08 per share planned for 2011 

Munich, February 27, 2012 - According to preliminary figures, Fair Value REIT-AG
achieved net sales of EUR 13.3 million for the financial year 2011 in line with
its planning (previous year: EUR 14.4 million). Net rental income for the Group
therefore came in at EUR 8.7 million (previous year: EUR 9.5 million). 

The operating result (EBIT) rose by around EUR 3.8 million to EUR 6.7 million
and was therefore substantially up on the previous year figure of EUR 2.9
million. This rise in earnings was primarily due to the considerably improved
valuation result year-on-year as part of the market valuation of the Group's
real estate portfolio.

In contrast, income from participations at associated companies totalled EUR 3.3
million, around EUR 0.6 million down on the previous year figure of EUR 3.9
million. This was due to valuation losses of the real estate at these companies
following write-downs on some buildings with soon-to-expire lease agreements.

The valuation result of the real estate on the balance sheet date produced a net
growth in value of 2.6% for direct ownership, a growth of 1.1% at subsidiaries
and a proportionate valuation loss of 1.8% at the associated companies. Fair
Value's proportionate valuation result therefore totalled -0.2% (previous year:

During the reporting period, the Company was able to substantially boost its
consolidated net income by EUR 2.4 million to EUR 4.6 million (previous year:
EUR 2.2 million). Earnings per share were up EUR 0.26 to EUR 0.50 per share,
compared with EUR 0.24 per share in the previous year. 

Consolidated net income adjusted for changes in market value and other one-off
effects (in accordance with EPRA), which is also funds from operations (FFO),
totalled EUR 5.6 million or EUR 0.60 per share. This was in line with the
full-year forecast revised upwards in November 2011. 

The slight fall in EPRA earnings (FFO) compared to the previous year figure of
EUR 5.8 million came on the back of the disposal of real estate and individual
renewable agreements at lower market rents as well as the premature release from
a lease agreement following the receipt of a compensation payment.

On the balance sheet date, consolidated equity came in at EUR 76.8 million
(December 31, 2010: EUR 74.6 million) according to preliminary figures. As a
result, the balance sheet net asset value increased from EUR 8.00 to EUR 8.24
per share in circulation. Taking into consideration the minority interests in
subsidiaries, the equity ratio pursuant to § 15 of the REIT Act rose to 50.8% of
immovable assets (December 31, 2010: 49.6%). 

Retained earnings reported in the non-consolidated financial statements of Fair
Value REIT-AG under the German Commercial Code (HGB) reached EUR 0.8 million
(previous year: EUR 1.0 million). This was due to income from participations
falling short of expectations during the financial year 2011.

Frank Schaich, CEO of Fair Value REIT-AG, on the Group's positive business
development and its effect on the HGB non-consolidated financial statements:
"The markedly improved valuation result of our real estate compared to the
previous year played a substantial role in achieving the pleasing increase in
IFRS consolidated net income for 2011. This also had a positive effect on the
Company's non-consolidated financial statements. However, the HGB retained
earnings of EUR 0.8 million will only allow a dividend pay-out of presumably EUR
0.08 per share for 2011."

The final results for the financial year 2011 will be published by Fair Value
REIT-AG on March 29, 2012 in the Financial Reports section of

Selected financial indicators of Fair Value REIT-AG 

                                      2011                   2010

Consolidated net income      EUR 4.6 million          EUR 2.2 million
IFRS EPS                     EUR 0.50                 EUR 0.24

Adjusted consolidated 
net income (in accordance 
with EPRA) - FFO             EUR 5.6 million          EUR 5.8 million
EPRA EPS                     EUR 0.60                 EUR 0.62

                                 12/31/2011           12/31/2010
Balance sheet NAV
per share                          EUR 8.24               EUR 8.00
Equity ratio pursuant 
to § 15 of the REIT Act               50.8%                49.6%

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 real estate directly, Fair Value also
acquires participations in real estate partnerships. 

Through direct investments and subsidiaries, the Fair Value Group manages a
portfolio of 50 commercial properties with a total leasable floor space of
around 163,000 square metres and a market value of around E 130 million as of
December 31, 2011. Fair Value's share of these investments amounted to around E
95 million on the same date.

In addition, Fair Value REIT-AG holds minority interests in six closed-end real
estate partnerships with holdings in 23 commercial properties with a total
leasable floor space of around 269,000 square metres. As of December 31, 2011,
the total market value of these properties was around E 358 million. (Fair
Value's share of this amounted to around E 128 million on the same date). 

As of December 31, 2011, Fair Value's share of the total portfolio amounted to
around E 222 million. This represented an occupancy rate of 93.8% of the
achievable rents at full occupancy of E 19.7 million per annum. As of December
31, 2011, the weighted remaining term of the leases was 6.0 years. Around 44% of
the potential rent relates to retail floor space, 42% to office space and 14% to
other facilities.

Further inquiry note:

{Fair}[HYPERLINK: mailto:Fair] Value REIT-AG
Frank Schaich
Tel. +49 (0)89-9292815-10
Fax +49 (0)89-9292815-15
E-mail: schaich@fvreit.de

end of announcement                               euro adhoc 

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: free trade: Berlin, München, Düsseldorf, Stuttgart, regulated
             dealing/prime standard: Frankfurt 
language:   English

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