Corporate News

18/08/2008 | Corporate News

Fair Value REIT AG continues on-track growth

  • Revenues total € 6.7 million in H1 2008
  • Consolidated net income of € 0.8 million after first six months
  • NAV per share up to € 10.15


Munich, August 18, 2008 – Fair Value REIT-AG further increased its revenues and earnings in the first half of 2008 according to preliminary figures. The company recorded revenues of € 6.7 million in the first six months of the year. Of this total, € 5.0 million were due to the fully consolidated majority interests in five closed-end real estate funds. A further € 1.7 million stemmed from Fair Value's portfolio of directly held properties. Net rental income totaled € 5.3 million. A comparison with H1 2007 is not meaningful, as the company only commenced its operating activities at the start of the fourth quarter of 2007.

At the same time, Fair Value REIT-AG also recorded sustained income from its minority participations in a current total of eight closed-end real estate funds (associated companies). This income from equity-accounted participations totaled € 1.5 million in the period under review and was carried under the financial result. The market valuation of the company's properties by CB Richard Ellis GmbH as of June 30, 2008 showed that the proportionate market values of the properties due to Fair Value were € 4 million or 1.3% lower, down to € 272 million compared to December 31, 2007. Income from the market valuation of interest hedges and from a restructuring of debt had a positive impact on net earnings.

In total, Fair Value REIT-AG thus recorded consolidated net income (IFRS) of € 0.8 million in the first half of 2008. This corresponds to earnings per share of € 0.08.

Frank Schaich, Fair Value REIT-AG's CEO is very pleased with the company's six-month results: "Our business is growing right on track. Consolidated net income is within our expectations. We have been able to lift our rental income again compared to Q1 2008. After adjustment for changes in valuation and extraordinary income, our funds from operations FFO) in the first six months of 2008 amounted to € 1.3 million or € 0.14 per share. This clearly shows our portfolio's sustained earnings strength." The CEO is also confident with regard to the second half of the year. "We have an optimistic view of the second half of the year. We are continuing to forecast consolidated net income with a bandwidth of € 1.3 to € 1.5 million for the year as a whole," Frank Schaich went on to comment.

The Managing Board is forecasting a further increase in income as a result of the office property at Düsseldorf airport completed after June 30, 2008 and transferred to Fair Value REIT-AG. Frank Schaich: "The excellent location in the direct proximity of the terminal means that rentals progressed rapidly. This property is currently around 91% in terms of total potential rent, and we are in final negotiations for the remaining space."

Fair Value REIT-AG's positive growth can also be seen on its balance sheet. Total assets are up slightly compared to December 31, 2007 to € 231.5 million, and Fair Value REIT-AG had equity of around € 95.4 million on June 30, 2008. Net asset value (NAV) per share thus totaled € 10.15.

The full half-yearly report will be published on August 29, 2008 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