Corporate News

06/11/2014 | Corporate News

Fair Value REIT-AG records stable business development in the first nine months of 2014


 ·         FFO at EUR 3.7 million (previous year adjusted: EUR 4.0 million)

·         NAV per share as of September 30, 2014 at EUR 8.77 (December 31, 2013: EUR 8.65)

·         IFRS consolidated net income of EUR 3.4 million (previous year adjusted: EUR 5.3 million)

·         REIT equity ratio increases to 51.2% (December 31, 2013: 46.9%)

·         Dividend target of EUR 0.25 per share reiterated


Munich, November 6, 2014 – Fair Value REIT-AG (WKN A0MW97) has concluded the first nine months of 2014 with stable results. Adjusted consolidated net income (EPRA Earnings or FFO) totalled EUR 3.7 million or EUR 0.39 per share (previous year: EUR 4.0 million or EUR 0.43 per share).


The first-time adoption of the accounting standard IFRS 10 as of December 31, 2013 resulted in the full consolidation of all participations. As a result, the previous year comparison figures have been adjusted.


The rental income of the Group for the first nine months of 2014 amounted to a total of EUR 18.0 million and, on the back of property sales, was down on the corresponding previous year figure of EUR 22.1 million as expected. Net rental income of EUR 13.8 million was also lower than the previous year figure of EUR 17.0 million.


The operating result (EBIT) came in at EUR 11.8 million in the period under review, following EUR 14.8 million in the previous year. On the back of the termination of the last participation not fully consolidated as of December 31, 2013, no income from participations was recorded (previous year: EUR 2.1 million). The substantially lower net interest expenses of EUR 3.9 million compared to the previous year period (EUR 6.7 million) had a positive effect. This reduction resulted from repayments and improved financing conditions.


After the minority interests in the result (EUR 4.4 million, after EUR 6.7 million in the previous year), the Fair Value Group concluded the first nine months of 2014 with a consolidated IFRS net income of EUR 3.4 million. This result was down on the adjusted previous year figure of EUR 5.3 million due to property sales.


Group equity totalled EUR 81.8 million as of September 30, 2014, following EUR 80.7 million at the end of December 2013. In relation to shares in circulation, the balance sheet net asset value increased to EUR 8.77 per share (December 31, 2013: EUR 8.65). The equity ratio pursuant to Paragraph 15 of the German REIT Act rose significantly to 51.2% of immovable assets (December 31, 2013: 46.9%).


Frank Schaich, CEO of Fair Value REIT-AG, comments on business development to date: “We regard the results from the first nine months of 2014 as confirmation of our forecast. However, we are anticipating a sales-related decline in rental income, as well as an increase in maintenance and rental costs in the fourth quarter 2014. We are reiterating our dividend target for the financial year 2014 of EUR 0.25 per share, although we will likely only just reach our forecast of adjusted consolidated net income (FFO) for the full year 2014 of EUR 5.1 million or EUR 0.55 per share.”


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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