22/02/2010 | Corporate News
Fair Value REIT-AG announces preliminary results for 2009
67- Adjusted consolidated net income (acc. EPRA) beat forecasts
- Occupancy rate up on previous year
- Fall in income due to valuations leads to net group loss
Munich, February 22, 2010 – Fair Value REIT-AG has recorded an adjusted consolidated net income of € 5 million (previous year € 5.9 million) according to the preliminary figures for the 2009 financial year. This result (acc. EPRA) is adjusted to take into account changes in the market value of property and interest derivatives as well as other one-off effects and is slightly higher than the recently lifted forecast of between € 4.5 and 4.8 million.
During the past fiscal year, the Group’s rental income amounted to € 10.5 million (previous year: € 12.4 million). This includes rental income from directly owned property as well as the closed-end real estate funds, in which Fair Value REIT-AG held the majority of shares over the year. At the same time, the “at equity” accounted holding companies achieved rental income of € 35.8 million, i.e. the same level as the previous year. According to Fair Value REIT-AG’s share in the overall portfolio, the rental income totalled € 20.2 million (previous year: € 21.7 million). The drop in rental income and the figures detailed below result primarily from the sale of an office building and the termination of a general lease contract in return for a compensation payment.
Occupancy rates have increased to 95.5% of the potential rent as of December 31, 2009, up from 94.9 % in the previous year, as a result of active rental management. The residual term of the rental contracts was 6.3 years at the end of fiscal year 2009, in contrast to 6.9 years at the end of the previous year.
During the reporting period, Fair Value REIT-AG realised operational cash flow at the Group level (funds from operations, FFO) of € 2.7 million, or € 0.29 per share (previous year: € 3.5 million). On the balance sheet date, the Group’s liquid funds totalled € 8.2 million (previous year: € 14 million). The fall in liquidity from the previous year by € 5.5 million is due to the repayment of financial liabilities by the amount of € 8.2 million.
According to preliminary figures, Fair Value REIT-AG registered a valuation related consolidated loss of € 4.1 million according to IFRS accounting principles in fiscal year 2009 (previous year’s loss: € 13.1 million). This included a one-off expenditure of € 0.3 million as a severance payment to a board member who left the company.
The market value of the derivative financial instruments placed a burden of € 4.9 million on the Group’s equity on the balance sheet. In the previous year, the number had totalled € 4.2 million. On the basis of a property valuation carried out by an independent surveyor, the increased requirements of property investors for returns resulted on balance in a 3.3 % proportionate loss for Fair Value holdings to € 236.5 million as of December 31, 2009, despite increases in the market value of individual properties. The percentage change, however, improved by 50% in comparison with the previous year.
With a consolidated balance sheet total of € 203 million (previous year: € 198 million), Group equity on the balance sheet date equalled € 71.4 million (previous year: € 76.8 million). This corresponds to a balance sheet NAV of € 7.64 for each share in circulation (previous year: € 8.16). The EPRA-NAV (balance sheet NAV plus market value of derivative financial instruments) per share is € 8.15 (previous year: € 8.61). In terms of § 15 REIT-G, equity including the minority share holdings worth € 15.2 million, totalled € 86.6 million, corresponding to 45.1% of the immovable assets.
Frank Schaich, Chief Executive Officer of Fair Value REIT-AG, is satisfied with the operational annual result of the Munich-based real estate group: “We have exceeded our operational goals in a difficult market environment and have also further improved the occupancy rate of our portfolio.” Despite a repeated valuation loss, he comments the property valuation positively: “We consider that to be a reversal of the trend. Around 18% of our properties were stable or gained in value. In addition, the valuation loss on the portfolio level was cut in half compared to the previous year. In our opinion, this is an indication that we have seen the bottom line.”
The final results for the 2009 financial year will be published by Fair Value REIT-AG on March 25, 2010 in the Investor Relations section of www.fvreit.de.
2010
