Corporate News

27/03/2013 | Corporate News

Fair Value REIT-AG increases operating result and proposes dividend of EUR 0.10 per share

  • Funds from operations (FFO) up 8% on forecast to EUR 5.6 million (previous 
         year: EUR 5.5 million)
  • Consolidated net income of EUR 1.2 million (previous year: EUR 4.6 million)
  • Proposed dividend of EUR 0.10 per share (previous year: EUR 0.08 per share)
  • REIT equity ratio increases to 52.6% (previous year: 50.7%)


Munich, March 27, 2013 – Fair Value REIT-AG achieved net sales of EUR 13.6 million for the financial year 2012 (previous year: EUR 13.4 million), while net rental income for the Group came in at EUR 8.4 million (previous year: EUR 8.8 million). The operating result (EBIT) was recorded at around EUR 5.9 million after EUR 6.7 million in the previous year. Income from participations totalled EUR 1.2 million (previous year: EUR 3.2 million). This fall is primarily attributable to the reduced market values of two properties.


Consolidated net income adjusted for changes in market value and other one-off effects (in accordance with EPRA), which is also funds from operations (FFO), totalled EUR 5.6 million or EUR 0.60 per share. This was around 2% up on the previous year figure of EUR 5.5 million. The forecast of EUR 5.2 million, most recently revised upwards in August 2012, was therefore exceeded by 8%.


In the year under review, however, consolidated net income fell to EUR 1.2 million after EUR 4.6 million in the previous year. The reduction by around EUR 3.4 million was attributable to the valuation loss at individual properties, to increased letting costs and to changes of the market values of interest rate derivatives recognised in profit or loss. 


On the balance sheet date, consolidated equity came in at EUR 77.4 million (December 31, 2011: EUR 76.9 million). The balance sheet net asset value increased from EUR 8.25 to EUR 8.30 per share in circulation. Taking into consideration the minority interests in subsidiaries, the equity ratio pursuant to § 15 of the REIT Act rose to 52.6% of immovable assets (December 31, 2011: 50.7%). 


Retained earnings reported in the non-consolidated financial statements of Fair Value REIT-AG under the German Commercial Code (HGB) reached EUR 1.0 million (previous year: EUR 0.8 million). The Management Board and Supervisory Board will propose a dividend payment of EUR 0.10 per share for the financial year 2012 at the Annual General Meeting on May 16, 2013. This represents a pay-out ratio of 93.6% of retained earnings.


Frank Schaich, CEO of Fair Value REIT-AG, commented on the Group’s business development: “In 2012, Fair Value REIT-AG was again able to sustain the stable development of its operating business. High occupancy rates averaging around 95% have shaped the results of all business years since our listing on the stock exchange in 2007.”


FFO of EUR 5.3 million or EUR 0.57 per share is anticipated for 2013, with forecasts suggesting an adjusted consolidated net income figure of EUR 5.6 million or EUR 0.60 per share for Fair Value in 2013.


“In the financial years 2013 and 2014, our total revenues will fall as planned, as we are aiming to make the most of the high demand for real estate already seen in 2012 for further property sales. In addition, our forecast plans for renewal agreements at partially lower market rents. These falls are however largely offset due to the continued highly favourable interest rate level, so that we can also anticipate FFO results on a par with previous years in the coming couple of years,” explains Schaich, referring to the Company’s guidance.


With respect to the non-consolidated financial statements of Fair Value REIT-AG under the German Commercial Code, the Management Board is anticipating net income which enables a rising dividend payment of EUR 0.12 per share in 2013 and 2014.


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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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