Corporate News

08/05/2014 | Corporate News

Fair Value REIT-AG further increases operating result (FFO) in the first quarter 2014 and confirms forecast for the full year


·         FFO at € 1.3 million (adjusted previous year: € 1.2 million)

·         Net asset value per share rises to € 8.78 as of March 31

·         IFRS consolidated net income of € 1.2 million (adjusted previous year: € 1.4 million)

·         REIT equity ratio increases to 50.4 percent from 46.9 percent


Munich, May 8, 2014 – Fair Value REIT-AG (WKN A0MW97) has made a successful start to the financial year 2014 and has once again increased the operating result in the first quarter. Adjusted consolidated net income (EPRA-Earnings or FFO) came in at € 1.3 million, exceeding the adjusted previous year result of € 1.2 million by around 8 percent. This corresponds to earnings of € 0.14 per share (previous year quarter: € 0.13) and is therefore slightly above target.


The first-time adoption of the accounting standard IFRS 10 as of December 31, 2013 resulted in the full consolidation of all participations. As a result, the previous year comparison figures have been adjusted.


The rental income of the Group for the first three months of 2014 amounted to a total of € 6.2 million and, on the back of property sales, was down on the corresponding previous year figure of € 7.2 million by € 1.1 million or 15 percent as expected. Due to lower non-recoverable real estate-related expenses, net rental income came in at € 4.8 million, which was just € 0.5 million or 10 percent lower than the corresponding quarter in the previous year (€ 5.3 million).


The operating result came in at € 4.0 million in the period under review, following € 4.6 million in the previous year. On the back of the termination of the last participation not fully consolidated as of December 31, 2013, no income from participations was recorded (previous year: € 0.6 million). The substantially lower net interest expenses of € 1.4 million (previous year: € 2.3 million) had a positive effect compared to the previous year period.


After minority interests in subsidiaries (€ 1.4 million after € 1.6 million in the previous year), the Fair Value Group concluded the first quarter 2014 with consolidated net income of € 1.2 million. This result was down on the adjusted previous year figure of € 1.4 million as expected due to property sales.


As of March 31, 2014, Group equity rose to € 81.8 million following € 80.7 million as of the end of December 2013. This meant that the balance sheet net asset value per share in circulation increased by 2 percent to € 8.78 per share in the first three months of 2014 (December 31, 2013: € 8.65). The equity ratio pursuant to Paragraph 15 of the German REIT Act increased further to 50.4 percent of immovable assets (December 31, 2013: 46.9 percent).


Frank Schaich, CEO of Fair Value REIT-AG, commented on business development in the first quarter: “We regard the results from the first quarter of 2014 as confirmation of our plans and a solid platform for development throughout the rest of the year. That is why we are reiterating our forecast based on the assumption of adjusted consolidated net income (FFO) of € 5.1 million or € 0.55 per share, for 2014 as a whole, as well as a dividend of € 0.25 per share.”


The Interim Report for the First Quarter 2014 is available from today in the Financial Reports section of


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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