EANS-News: Fair Value REIT-AG Fair Value REIT-AG exceeds FFO-target in the
first half year and increases earnings forecast for 2012
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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6-month report/Earnings Forecast
München (euro adhoc) - * Occupancy rate increases to 95.0%, rental income up by
7.3%
* IFRS consolidated net income of EUR 2.1 million (previous year: EUR 3.2
million)
* Adjusted consolidated net income in accordance with EPRA / FFO on par with
previous year at EUR 2.9 million
* REIT equity ratio increases to 52.2%
Munich, August 9, 2012 - Fair Value REIT-AG achieved total revenues of EUR 6.6
million in the first half of 2012. This exceeded the corresponding previous year
figure by EUR 0.2 million or 3.8%. The rise came on the back of rental income
which rose by 7.3% to EUR 5.6 million and lower income from operating and
incidental costs. The occupancy rate of the properties held by the Group and its
participations increased proportionate to Fair Value from 93.8% to 95.0% and
therefore returned to its long-term average as of June 30, 2012. The remaining
terms of the lease agreements averaged 5.7 years as of the reporting date.
Net rental result for the first half year came in at EUR 4.3 million. The
decrease of around EUR 0.1 million or 2% compared to the first half of 2011 is
attributable to a rise in expenses for investment properties totalling EUR 0.3
million. This resulted equally from rental-related renovation costs as well as
on-going maintenance expenses. On the back of sales and valuation expenses of
EUR 1.0 million (previous year: EUR 0.3 million), the operating result for the
first six months was EUR 2.1 million, EUR 0.8 million or 27% down on the
corresponding period in the previous year (EUR 2.9 million).
Earnings from the equity-accounted associated companies fell by EUR 0.5 million
or 16% to EUR 2.6 million. The change was exclusively attributable to the market
value changes to interest rate hedges recorded in the income statement, which
resulted in a liquidity-neutral positive contribution to earnings totalling EUR
0.1 million (previous year period: EUR 0.6 million).
Overall, Fair Value REIT-AG generated consolidated net income according to IFRS
of EUR 2.1 million, or EUR 0.22 per share, in the first six months of 2012. The
decrease compared to the previous year period (EUR 3.2 million or EUR 0.34) was
largely attributable to the higher earnings contribution from the market
valuation of interest rate hedges in the first half of 2011. In addition to that
capitalised and amortised renovation costs and the valuation loss on a sold
property had an impact on the net income.
The consolidated net income of the Fair Value Group adjusted for changes in
market value and sales expenses (EPRA earnings or FFO) came in at EUR 2.9
million in the first half of 2012 or EUR 0.31 per share. This was therefore on
par with the previous year and higher than expected for the reporting period.
Group equity as of June 30, 2012, totalled EUR 79.3 million and was therefore 2%
up on the mark from December 31, 2011 (EUR 77.5 million). This meant that the
balance sheet net asset value per share in circulation totalled EUR 8.51 per
share in the first six months of the year (December 31, 2011: EUR 8.31). The
equity ratio pursuant to Paragraph 15 of the German REIT Act increased to 52.2%
of immovable assets (December 31, 2011: 51.0%).
Frank Schaich, CEO of Fair Value REIT-AG, provides an outlook on future
development: "Funds from operations in the first half of the year exceeded our
target and we are confident that the positive development can be sustained in
the second half of the year. We are therefore now anticipating adjusted
consolidated net income of EUR 5.2 million for the full year 2012, instead of
the previously forecast EUR 4.8 million. This represents EPRA earnings per share
of EUR 0.56. In the coming months, already concluded new lease agreements will
have a positive impact on the Group figures, as will the recently finalised
property sales. In addition, we would like to make the most of the current
strong demand for real estate, which has been additionally stimulated by low
interest rates, for further sales from our property portfolio held directly or
by associated companies."
The Semi-Annual Report 2012 is now available in the Financial Reports section of
{www.fvreit.de}[HYPERLINK:
file:///\\Dc-fairvalue\Server\Presse-Marketing\Pressemitteilungen\2010\Corporate%20News\www.fvreit.de].
Selected financial indicators of Fair Value REIT-AG
1/1 - 6/30/2012 1/1 - 6/30/2011
Rental revenues EUR 5.555 million EUR 5.176 million
EBIT EUR 2.147 million EUR 2.945 million
Result from
equity-accounted
investments EUR 2.584 million EUR 3.066 million
IFRS-Consolidated
net income EUR 2.058 million EUR 3.198 million
IFRS-EPS EUR 0.22 EUR 0.34
Adjusted
consolidated income
(EPRA-Earnings)/FFO EUR 2.882 million EUR 2.864 million
EPRA EPS EUR 0.31 EUR 0.31
June 30, 2012 December 31, 2011
Net asset value
per share EUR 8.51 EUR 8.31
EPRA-NAV per share EUR 9.53 EUR 9.27
Equity ratio within
the meaning
of section 15
of the REIT act 52.2% 51.0%
Contact
{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
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, Fair Value Group manages a
portfolio of 48 commercial properties with a total leasable floor space of
around 161,000 square metres and a market value of around EUR 128 million as of
June 30, 2012. Fair Value's share of these investments amounted to around EUR 93
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 EUR 358 million. (Fair
Value's share of this amounted to around EUR 128 million on June 30, 2012).
As of June 30, 2012, Fair Value's share of the total portfolio amounted to
around EUR 221 million. This portfolio had an occupancy rate of 95.0% of the
achievable rents at full occupancy of EUR 19.5 million per annum. As of June 30,
2012, the weighted remaining term of the leases was 5.7 years. Around 44% of the
potential rent relates to retail floor space, 42% to office space and 14% to
other types of use.
Further inquiry note:
{Fair}[HYPERLINK: mailto:Fair] Value REIT-AG
Frank Schaich
Tel. 089-9292815-10
Fax. 089-9292815-15
e-mail: schaich@fvreit.de
end of announcement euro adhoc
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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