Corporate News

11/08/2011 | Corporate News

Fair Value REIT-AG increases consolidated net income in the first half of 2011 and confirms forecast for full year

  • IFRS consolidated net income up by 38% to EUR 3.2 million (previous year: EUR 2.3 million)
  • Adjusted consolidated net income (EPRA-Earnings) at EUR 2.9 million, an increase of 9% on previous year figure of EUR 2.6 million
  • Forecast for full year 2011 and 2012 confirmed


Munich, August 11, 2011 – In the first half of the year Fair Value REIT-AG has generated consolidated net income of around EUR 3.2 million and thereby exceeded the previous year's mark of around EUR 2.3 million by 38% or EUR 0.9 million. The gains compared to the previous year are primarily the result of an income effective market value increase of cash flow hedges in the associated companies. Consolidated earnings adjusted for market value changes (EPRA-Earnings) amounted to around EUR 2.9 million, and were therefore 9% higher than the previous year mark of approx. EUR 2.6 million.

The operating income (EBIT) of EUR 2.9 million was in line with expectations and came in at 13% lower than the previous year’s figure of around EUR 3.4 million, mainly due to re-letting related expenses. In contrast, the results of the associated companies rose substantially, up by EUR 1.0 million to EUR 3.1 million. Of this increase, 20% was attributable to reduced interest expenses and 80% to an improved valuation of interest rate hedges, as recorded in the respective profit and loss statements.

On the balance sheet date, the group’s equity capital amounted to EUR 77.9 million (December 31, 2010: EUR 74.6 million). The balance sheet net asset value (NAV) per share in circulation therefore increased by 4% to EUR 8.35 (December 31, 2010: EUR 8.00). Taking the minority holdings in the subsidiaries into account, the equity ratio as defined in section 15 REITG (German REIT act) was up to 50.9% of immovable assets (December 31, 2010: 49.6%).

Frank Schaich, CEO of Fair Value REIT-AG, explains the group's gratifying development: "The long-term nature of our lease agreements allows us to plan our income with confidence. This was boosted further by successes in the rental business and the follow-up financing and refinancing of financial liabilities within the group and at associated companies."

The Management Board confirms the forecast, which was last increased as part of the Q1 2011 financial report, for adjusted consolidated net income of EUR 5.0 million (EUR 0.54 per share) for the full year 2011. Also, the forecast of an adjusted consolidated net income of EUR 5.7 million (EUR 0.61 per share) for fiscal year 2012 is being confirmed.

As of today, the report for the first half of 2011 is available at in the Investor Relations area.

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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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