10/05/2012 | Corporate News
Fair Value REIT-AG ends first quarter of 2012 successfully and confirms forecast for the year as a whole
156- IFRS consolidated net income of EUR 1.4 million (previous year: EUR 1.8 million)
- Adjusted consolidated net income according to EPRA / FFO increases by 8% to EUR 1.4 million
- REIT equity ratio increases to 51.5%
Munich, May 10, 2012 – Fair Value REIT-AG has made a successful start to the financial year 2012 and generated consolidated net income as per IFRS of EUR 1.4 million, or EUR 0.15 per share, in the first quarter. The decline from the previous year's figure of EUR 1.8 million, or EUR 0.20 per share, results mainly from the fact that in the first quarter of 2011 there was a relatively robust increase, posted through profit and loss, in the market value of interest rate hedges at the equity-accounted participations.
The Fair Value Group's operating result, adjusted for changes in market values (EPRA earnings or FFO), totalled EUR 1.4 million in the first quarter of 2012, some 8% higher than in the previous year (EUR 1.3 million). This corresponds to earnings of EUR 0.15 per share (same quarter last year: EUR 0.14).
Total revenues in the first three months of 2012 amounted to EUR 3.3 million, thereby exceeding the previous year's total by EUR 0.1 million or 3%. This slight increase results from the balance of higher rental income and lower income from ancillary costs allocations. The occupancy rate of the properties held by the Group and its participations increased slightly, proportionate to Fair Value, from 93.8% to 94.2% in the quarter under review. The remaining terms of the lease agreements averaged 5.8 years as of the reporting date March 31, 2012.
Net rental income in the first quarter amounted to EUR 2.1 million, representing an increase of some EUR 0.2 million, or 9%, compared with the corresponding quarter last year (EUR 1.9 million). The increase resulted from higher net sales accompanied by lower real-estate-related expenses. The operating result of EUR 1.5 million was EUR 0.2 million, or 25%, higher than in the first three months of 2011 (EUR 1.2 million).
Earnings from the equity-accounted associated companies, on the other hand, was down by EUR 0.5 million or 25%. The change compared with the previous year's figure is attributable solely to the changes in the market values of interest rate hedges shown in the income statement. This resulted in a liquidity-neutral positive contribution to operating earnings totalling EUR 0.1 million in the quarter under review (previous year: EUR 0.6 million)
Group equity totalled EUR 78.7 million as of March 31, 2012. This means that the balance sheet net asset value per share in circulation increased by 2% to EUR 8.44 per share in the first three months of the year (December 31, 2011: EUR 8.31). The equity ratio as per paragraph 15 of the German REIT Act increased further to 51.5% of the immovable assets (December 31, 2011: 51.0%).
Frank Schaich, CEO of Fair Value REIT-AG, commented on the Group’s development of business in the first quarter as follows: "We regard our business development and the positive results achieved in the first quarter as confirmation of our projections and as a solid starting point for the remainder of the year. That is why we are reiterating our forecast of adjusted consolidated net income of EUR 4.8 million, or EUR 0.52 per share, for 2012 as a whole."
The Interim Report First Quarter 2012 is now available in the Financial Reports section of www.fvreit.de.
2012
