Corporate News

08/11/2012 | Corporate News

Fair Value REIT-AG increases total revenues in the first nine months of 2012 and confirms forecast for full year 2012

  • Occupancy rate increases to 95.1%, total revenues up by 5%
  • IFRS consolidated net income of EUR 3.8 million (previous year: EUR 4.5 million) 
  • Adjusted consolidated net income in accordance with EPRA / FFO at EUR 4.3 million (+3%)
  • REIT equity ratio increases to 52.8%


Munich, November 8, 2012 – Fair Value REIT-AG posted consolidated total revenues of EUR 10.1 million in the first nine months of 2012, up some 5% on the total revenues of EUR 9.6 million recorded in the corresponding period of the previous year. This increase was the result of leasing successes in both the previous and current year. The occupancy rate of the properties held by the Group and its participations increased, proportionate to Fair Value, from 93.8% to 95.1% and is therefore now back on par with the long-term average of around 95%. The average remaining term of lease agreements was 5.5 years as of the reporting date on September 30, 2012.


Net rental income amounted to EUR 6.5 million, thereby exceeding the previous year's total of EUR 6.3 million by 4%. The operating result for the first nine months came in at EUR 4.0 million, around EUR 0.2 million down on the EUR 4.2 million mark posted in the corresponding previous year period. This decline mainly resulted from expenses in connection with the sale of a property.


The financial result from the equity accounted associated companies before the market valuation of interest rate hedges was almost on par with the previous year level. After taking into account liquidity-neutral market value changes to interest rate hedges, income from participations totalled EUR 4.0 million, down EUR 0.5 million on the corresponding figure in the previous year. 


At EUR 3.6 million, net interest expenses increased by around EUR 0.2 million year-on-year. Adjusted for the liquidity-neutral expenses from the market valuation of interest rate hedges contained within this figure, this results in net interest expenses of EUR 3.2 million, down 10% on the comparative figure of EUR 3.5 million in the previous year.


Overall, Fair Value REIT-AG generated consolidated net income according to IFRS of EUR 3.8 million, or EUR 0.41 per share, in the first nine months of 2012. The decrease compared to the previous year figure of EUR 4.5 million or EUR 0.48 per share is due in equal part to the higher earnings contribution from the market valuation of interest rate hedges in the previous year period and the expenses incurred during the year in connection with the sale of a property.


The consolidated net income of the Fair Value Group adjusted for market valuation changes as well as selling and valuation expenses (EPRA earnings or FFO) came in at EUR 4.3 million in the first nine months of 2012, which equates to EUR 0.46 per share and is around 3% higher than the corresponding figure for the first nine months of 2011.


Group equity as of September 30, 2012, totalled EUR 80.3 million and was therefore 3.6% up on the mark from December 31, 2011 (EUR 77.5 million). This meant that the balance sheet net asset value per share in circulation totalled EUR 8.61 per share in the first nine months of the year (December 31, 2011: EUR 8.31). The equity ratio pursuant to Paragraph 15 of the German REIT Act increased to 52.8% of immovable assets (December 31, 2011: 51.0%). 


Frank Schaich, CEO of Fair Value REIT-AG, provides an outlook on the fourth quarter as well as the full year 2012: "With regard to the fourth quarter, we are anticipating higher rental-related expenses above the average of the first three quarters of the current financial year in connection with additional lease agreements. For the full year 2012, we are anticipating earnings at a slightly higher level than expected. On the back of this, we are confirming our forecast and continue to anticipate an adjusted consolidated net income (EPRA earnings or FFO) of EUR 5.2 million, or EUR 0.56 per share, for 2012 as a whole."


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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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