Annual Reports

To our shareholders

Since Fair Value REIT-AG’s listing on the stock exchange in 2007, we have been able to report stable operating earnings every year. Constantly high occupancy rates of around 95%, a solid equity base averaging 50% of our real estate portfolio, falling interest expenses for variable interest loans as well as high repayment volumes were and remain to be the basis for our stability even in uncertain times. 2011 was another very successful financial year, although we were unable to achieve all of our goals.

Financial Year 2011: Consolidated net income doubles

The consolidated net income of € 4.6 million was over twice the amount recorded in the previous year (€ 2.2 million). This was particularly due to the higher market valuation of our real estate. The consolidated net income figure adjusted for valuation effects totalled € 5.5 million and was slightly down on the previous year figure of € 5.8 million.

The Group balance sheet equity ratio rose from 38% in the previous year to 40% of total assets. The REIT equity ratio came in at 51% of real estate assets after 50% in the previous year, substantially higher than the legally required minimum level of 45%. Net asset value per share rose by 4% from € 8.00 in the previous year to € 8.31 on the balance sheet date.

Net income pursuant to HGB on a par with the previous year

Net income pursuant to HGB was on a level with the previous year in 2011,
coming in at € 0.7 million. The distribution of profits by associated companies
required for distributing the target dividend of at least € 0.10 per share was
however not completely realised. At the Annual General Meeting on May 14, 2012, we will therefore propose distributing a dividend of € 0.08 per share from the retained earnings of Fair Value REIT-AG for the year 2011.

Sustainably increasing earnings over the five-year forecast

Our newly introduced five-year forecast of prospective business development based on an unchanged real estate portfolio anticipates sustainable increases in EPRA earnings/FFO, particularly as interest expenses are expected to fall.

In 2012 and 2013, a total of around 62% of the Group’s financial liabilities are due for renegotiating interest conditions, and this figure is around 75% at associated companies. Given the current historically low interest rate levels, we are anticipating substantial potential savings despite generally increasing bank margins. We are expecting FFO of € 4.8 million or € 0.52 per share in 2012. The forecast then predicts that FFO will rise to € 5.8 million in 2013 and up to € 7.5 million by 2016.

We are confident of being able to use these general conditions to raise the profile of the Fair Value share on the capital market.

Download Annual Report

Download Financial Accounting for the Single Entity