Corporate News

15/11/2011 | Corporate News

Fair Value REIT-AG grows consolidated net income in first nine months of 2011 and raises full-year forecast

  • IFRS consolidated net income up by 10% to € 4.5 million (previous year: € 4.1 million)
  • Adjusted consolidated net income (EPRA earnings) at € 4.2 million, slightly ahead of previous year's € 4.1 million
  • FY 2011 consolidated net income forecast upgraded to € 5.6 million (+12%)

Munich, November 15, 2011 – Fair Value REIT-AG generated around € 4.5 million of consolidated net income in the first nine months of the current financial year, thereby exceeding the previous year's figure of € 4.1 million by 10%. The rise compared to the previous year is primarily the result of an earnings-effective market value increase in cash flow hedges in the associated companies. Consolidated earnings adjusted for market value changes (EPRA earnings) amounted to around € 4.2 million, and were therefore slightly higher than the previous-year mark of approximately € 4.1 million.

Operating earnings (EBIT) of € 4.2 million were in line with expectations and were 21% lower than the previous year's figure of around € 5.3 million, mainly because of expenses related to re-letting. In contrast, the results of the associated companies rose substantially, up by € 1.1 million, or 33%, to € 4.5 million. Of the increase in earnings from participations, around 40% is due to lower interest expenses, including after the successful refinancing of mortgage loans in the second quarter of 2011, and around 60% is attributable to an improvement in the valuation of interest-rate hedges.

The group's equity amounted to € 77.6 million on the balance sheet date (December 31, 2010: € 74.6 million). The balance sheet net asset value (NAV) per share in circulation increased by 4% to € 8.32 as a consequence (December 31, 2010: € 8.00). Taking into account the minority holdings in the subsidiaries, the equity ratio as defined in Section 15 of the German REIT Act (REITG) increased to 50.7% of immovable assets (December 31, 2010: 49.6%).

Frank Schaich, the company's CEO, commented on further reasons for the Fair Value Group's positive business trend, and the upgrade to the forecast: "The rental ratio for our proportional overall portfolio at 94.4% represents a slight increase on the previous year's level of 93.6%. In terms of costs, we achieved significant savings on interest expenses and on rental-related costs. These are the main factors that prompted us to boost our earnings expectations for the 2011 financial year. Instead of consolidated net income of previously € 5.0 million (€ 0.54 per share), we now anticipate € 5.6 million, or € 0.60 per share."

The Management Board is still aiming to distribute a dividend of at least € 0.10 per share for 2011, although the requisite German commercial law results and liquidity inflows for this have not yet been secured.

The interim report for the first nine months of 2011, which will be available in the course of today on the company's website at within the Investor Relations area, provides a full overview of current business trends.

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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