Corporate News

15/11/2010 | Corporate News

Fair Value REIT-AG achieves a significant increase in earnings in the first nine months of the year and increases its overall forecast for 2010

  • Consolidated net income increased to €4.1 million (previous year: €2.4 million)
  • Forecast for 2010 as a whole increased: Expected consolidated net income at € 5.1 million (+21%) and FFO at € 3.3 million (+22%)
  • Dividend for 2010 of € 0.10 per share possible


Munich, November 15, 2010 – Fair Value REIT-AG has today announced the results for the first nine months of this financial year. According to these results, the Group achieved revenues of € 10.3 million compared with € 8.4 million in the same period last year. The Group’s net rental result amounted to € 7.1 million compared with € 6.1 million in the first nine months of the previous year. The positive changes in these key indicators mainly result from the first time inclusion of the revenues of a subsidiary which was not fully consolidated and thus were included in the income from participations in the previous year because of the lower shareholding at the time.

The operating result, at € 5.3 million, was around € 1.4 million (+ 36%) above the figure for the previous year. Here too, the increase mainly results from the first time inclusion of the revenues of the aforementioned subsidiary. On a like-for-like basis, i.e. without the subsidiary and adjusted for the proportionate income from the four properties already sold in the first half of 2010, there would be a 6% rise in the operating result at € 3.6 million compared with € 3.4 million in the previous year.

There has also been a significant increase in the results from associated companies, which made a contribution of € 3.4 million in the first nine months of this financial year compared with € 2.3 million in the same period last year. The increase mainly resulted from a lower valuation loss on real estate.

In the first nine months of this financial year, Fair Value REIT-AG achieved an operational cash flow (so-called “Funds from Operations”, FFO) of € 3.1 million or € 0.33 per share. The rise compared with the amount in the same period last year (€ 2.2 million) is based on cost savings at a Group level as well as higher cash inflows from associated companies.

In the reporting period, the Group significantly improved the consolidated net income to € 4.1 million (same period last year: € 2.4 million). Consequently, the earnings per share amount to € 0.44 compared with € 0.25 in the same period last year.

On the balance sheet date, the Group equity totalled € 74.6 million (December 31, 2009: € 72.7 million). Consequently the balance sheet net asset value of € 7.78 per share in circulation increased to € 8.00 per share. With the inclusion of minority interests, the equity ratio increased in accordance with Section 15 REITG to 48.6% of the immovable assets (December 31, 2009: 45.5%). The EPRA-NAV, which reflects the real estate equity, improved from € 8.72 to € 9.17 per share.

Frank Schaich, Management Board of the company, is pleased about the positive business development of the Fair Value Group: “The occupancy rate for our proportionate overall portfolio, at 93.6%, was only slightly below the level for the previous year as a result of active and successful leasing business, the average remaining term of lease agreements also remained practically unchanged at 6.3 years. Consequently, because of this and cost savings, we have already almost achieved our targets for the whole year in the first nine months.”

Because of the significantly higher IFRS consolidated net income in the reporting period, the Management Board has increased the forecast for the adjusted IFRS consolidated net income before market value changes in real estate and interest derivatives (EPRA earnings) for 2010 as a whole from the previous figure of € 4.2 million (€ 0.45 per share) to the current figure of € 5.1 million or € 0.55 per share. The same also applies to the expected Funds from Operations (FFO), which was increased from the previous figure of € 2.7 million (€ 0.29 per share) to € 3.3 million or € 0.35 per share.

With regard to the Company’s non-consolidated financial statements for 2010 which are relevant to dividends in accordance with German commercial law, the Management Board is expecting, as intended, a net income which will enable a dividend of €0.10 per share to be paid in 2011 with a payout ratio of 90% in compliance with the German REIT Act. This expectation assumes that extraordinary current-value depreciation on real estate and participations in line with market developments will not occur.

A complete overview of the current business developments is provided in the interim report for the first nine months of 2010 which is available from today at in the Investor Relations section.

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A REIT – Higher Return for Investors

REIT stands for Real Estate Investment Trust. The assets of these listed companies in Germany consist mainly of real estate and investments in other real estate companies.


At the international level, REITs have been established for many years. On 1 January 2007, they were introduced in Germany as well.


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Fair Value REIT-AG