Corporate News

15/04/2008 | Corporate News

Fair Value REIT-AG publishes 2007 annual report and announces outlook for 2008

  • Consolidated net income (IFRS) of EUR 1.74 million or EUR 0.74 per share
  • NAV totals EUR 10.06 as of December 31, 2007
  • Outlook 2008: Dividend of EUR 0.30 – 0.35 per share outstanding expected for fiscal year 2008


Munich, April 15, 2008 – Fair Value REIT-AG published its annual report for fiscal year 2007 today. According to the final figures, the Munich-based real estate company recorded rental income totaling EUR 4.33 million. This rental income primarily stems from majority interests in closed-end real estate funds that were fully consolidated for the first time on September 30, 2007. However, the rental income from the Sparkasse portfolio directly acquired as of December 21, 2007 will only have its full impact in fiscal year 2008. After the deduction of real-estate related expenses the net rental result of EUR 2.55 million is thus not representative for a full fiscal year.

During the past fiscal year, Fair Value recorded general administrative expenses totaling EUR 3.50 million, with around 40% being due to setting up the REIT. Other operating income and expenses totaled EUR 0.14 million, and at the same time the valuation result for the fully consolidated real estate properties totaled EUR -0.73 million.

Earnings from associated companies were carried in the financial result at equity. This income totaled EUR 7.23 million and included substantial extraordinary factors: On the date the participating interests were acquired, there was a difference recognized in income between the present value and the acquisition costs of EUR 14.82 million, which was reduced by impairment of EUR 7.6 million on the balance sheet date to take ongoing fundspecific costs into account. In addition, the financial result includes net interest expenses (EUR 1.49 million), earnings attributable to minority interests (EUR 0.77 million) and one-off costs totaling EUR 1.83 million for the stock exchange listing. In total, the financial result for fiscal year 2007 amounted to EUR 3.55 million.

As a result, the Fair Value Group, which is exempt from corporation and trade tax as a result of its REIT structure, recorded consolidated net income (IFRS) of EUR 1.74 million. This corresponds to weighted earnings per share of EUR 0.74. Under HGB accounting, the oneoff costs described above caused a net loss for the year of EUR 1.9 million, which was balanced out via a withdrawal from capital reserves. In view of the net loss for the year it is not possible to pay a dividend this year for the company's first fiscal year 2007. Net asset value (NAV) per share totaled EUR 94.7 million or EUR 10.06 per share as of the balance sheet date.

Frank Schaich, Fair Value's CEO is looking to the future with optimism: "Our rental income will increase substantially this year thanks to the fact that subsidiaries and the Sparkasse portfolio will be included for the full year, and due to the acquisition of an office property in Düsseldorf. Our associated companies will also record income for the full twelve months. Our cost structure will improve at the same time, as there will no longer be any start-up costs for setting up the REIT or the initial listing. Subject to us not making any other investments, we are forecasting consolidated net income (IFRS) of EUR 1.3 – 1.5 million." In addition, Frank Schaich also mentioned that dividends for each share currently outstanding for fiscal year 2008 could total EUR 0.30 – 0.35.

The full 2007 annual report can be downloaded at


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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