28/02/2012 | Corporate News
Fair Value REIT-AG achieves substantial growth in earnings in 2011 according to preliminary figures and pays out dividend
152- Consolidated net income up € 2.4 million to € 4.6 million (previous year: € 2.2 million)
- Funds from operations (FFO) total € 5.6 million as anticipated (previous year: € 5.8 million)
- REIT equity ratio increases to 50.8% (previous year: 49.4%)
- Dividend of € 0.08 per share planned for 2011
Munich, February 27, 2012 – According to preliminary figures, Fair Value REIT-AG achieved net sales of € 13.3 million for the financial year 2011 in line with its planning (previous year: € 14.4 million). Net rental income for the Group therefore came in at € 8.7 million (previous year: € 9.5 million).
The operating result (EBIT) rose by around € 3.8 million to € 6.7 million and was therefore substantially up on the previous year figure of € 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 € 3.3 million, around € 0.6 million down on the previous year figure of € 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: -2.0%).
During the reporting period, the Company was able to substantially boost its consolidated net income by € 2.4 million to € 4.6 million (previous year: € 2.2 million). Earnings per share were up € 0.26 to € 0.50 per share, compared with € 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 € 5.6 million or € 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 € 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 € 76.8 million (December 31, 2010: € 74.6 million) according to preliminary figures. As a result, the balance sheet net asset value increased from € 8.00 to € 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 € 0.8 million (previous year: € 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 € 0.8 million will only allow a dividend pay-out of presumably € 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 www.fvreit.de.
2012
