In the past fiscal year, we sold seven properties for a total sales price of €17.0 million. Three of these properties in Ahaus, Cologne and Pinneberg were sold for a total sales price of around €13.2 million and notarised before the end of the previous year. The other four properties, which were sold for a total sales price of €3.8 million, were smaller directly owned bank branch offices in Ellerbek, Leezen, Norderstedt and Quickborn, towns in North German Schleswig-Holstein. Before costs, these transactions generated weighted gains on disposal of around 6% of the IFRS carrying amount as of 31 December 2014.
The majority investment in the closed-end property fund BBV 08 in mid-2015 led to the consolidation of a further subsidiary. The company holds two commercial properties in Querfurt and Zittau as well as a nursing home in Radevormwald. At the time of acquisition, its portfolio was valued at around €36 million in total. In the course of acquisition accounting, a difference of €2.3 million was identified between the purchase price of the investment and the pro rata assets acquired. In March 2016, the subsidiary BBV 08 sold the nursing home in Radevormwald for €11.1 million, that is additional proceeds of €1.2 million or 12% compared to the carrying amount of €9.9 million at the acquisition date of the investment. This development in value is contained in the 2015 measurement gains and losses.
With the direct acquisition of an inner-city property in Chemnitz to round off existing investments at that location, we generated a measurement gain of €0.6 million or some 54% of the purchase price of €1.1 million.
In 2015, we acquired five properties in Dresden, Cologne, Langenfeld, Neubrandenburg and Potsdam from three subsidiaries and, in line with our strategic objective, transferred these to direct ownership. Although this did not have an impact from a Group perspective, these transactions meant that two subsidiaries will be dissolved in the fiscal year 2016, which will lead to cost savings. After incidental acquisition costs, these transactions yielded a difference of around €1.4 million without effect on profit and loss.
In the fiscal year 2015, we also acquired almost 400 non-controlling interests in six subsidiaries. As of the reporting date, the resulting aggregated differences with effect on income came to €1.3 million.
Successful fiscal year 2015
The net growth in the portfolio during the year already had a positive effect. The rental income of the Group came to €24.3 million, exceeding the previous-year figure of €23.9 million by some 2%. At €17.7 million, net rental income was up 1% on the previous-year figure of €17.6 million.
At €5.2 million, the general administrative expenses incurred by the Group about €2.3 million higher than the previous year. The increase mainly concerned legal and consulting fees, half of which were incurred in connection with the takeover bid by DEMIRE. The differences with effect on income from acquisitions of investments and the balance of other operating income and expenses almost entirely offset the measurement loss totalling around €2.8 million (previous-year measurement loss: €7.5 million).
At €12.3 million, EBIT was thus more than twice that of the previous-year figure of €5.9 million. At €4.2 million, net interest expenses were 16% below the previous-year figure of €5.0 million, essentially due to repayments. After deducting the share of profit/loss attributable to non-controlling interests, the group net profit came to €6.6 million, following a slight group net loss of €0.05 million in the previous year. This corresponds to a group net profit of €0.53 per average number of shares outstanding.
Group equity attributable to the shareholders of Fair Value REIT-AG as of 31 December 2015 increased to €117.3 million as a result of the capital increase and was thus 50% above the previous-year figure of €78.3 million. This corresponds to a net asset value of €8.36 for each share currently outstanding, compared to €8.39 as of the end of the previous year. Taking into account the dividend of €0.25 per share paid out in 2015 for 2014, the dilutive effects resulting from the capital increase in the past fiscal year were thus more than compensated for.
As of the reporting date, the REIT equity ratio increased to 59.6% of property assets (previous year: 49.2%) and was therefore considerably above the legally prescribed 45% minimum.
At €6.4 million, group net profit adjusted for measurement effects and special effects (EPRA result or FFO = funds from operations) was €2.0 million or 45% higher than previous-year figure of €4.4 million. This corresponds to a group net profit of €0.52 per average number of shares outstanding.
The past fiscal year 2015 was thus highly satisfactory and for the most part met our expectations. We will propose to the Annual General Meeting to distribute the planned dividend of €0.25 per share for fiscal year 2015, that is around €3.5 million. This proposed dividend corresponds to a distribution rate of 100% of the accumulated profit according to German GAAP and 55% of FFO of €6.4 million.
Outlook for 2016
The favourable economic conditions in Germany should have a positive impact on the demand for space and therefore on the upcoming follow-up and new lets. At the beginning of the year, they represented around 37,000 m² or around 11% of potential rents. Since then, we have already re-let around 11,000 m². This is a good 30% of the vacancies both in terms of space and income and at the same time provides proof of the quality of the properties and of our successful leasing and portfolio management.
Based on the existing portfolio, we expect funds from operations (FFO) before non-controlling interests of €10.5 million to €10.8 million for 2016. Without a further increase in the share of properties directly held by the group and a concomitant decrease in the non-controlling interests in group earnings, we expect FFO after non-controlling interests to range between €6.2 million and €6.5 million in 2016. This corresponds to FFO of €0.44 to €0.46 per share currently outstanding. The target dividend for 2016 is €0.25 per share currently outstanding. This is equivalent to a distribution ratio of 54% to 57% of FFO.
May we take this opportunity to thank your for the trust you have placed in us. We would be delighted if would remain favourably disposed to us in the future.