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05/08/2014 | Corporate News

Fair Value REIT-AG remains on track in the first half of 2014

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·         FFO at EUR 2.5 million (adjusted previous year: EUR 2.8 million)

·         NAV per share remains almost unchanged after dividend payment at EUR 8.63 as of June 30, 2014

·         IFRS consolidated net income of EUR 2.1 million (adjusted previous year: EUR 3.4 million)

·         REIT equity ratio increases to 50.3% from 46.9%

·         Full-year forecast confirmed

 

Munich, August 5, 2014 – Fair Value REIT-AG (WKN A0MW97) has successfully concluded the first half of 2014. Adjusted consolidated net income (EPRA-Earnings or FFO) came in at EUR 2.5 million, only slightly down on the adjusted previous year figure of EUR 2.8 million. This corresponds to FFO of EUR 0.26 per share following EUR 0.30 in the previous year.

 

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 six months of 2014 amounted to a total of EUR 12.1 million and, on the back of property sales, was down on the corresponding previous year figure of EUR 14.8 million by EUR 2.7 million or 18 percent, as expected. As a result, net rental income of EUR 9.4 million was also 18 percent lower than the previous year figure of EUR 11.4 million.

 

The operating result came in at EUR 7.6 million in the period under review, following EUR 10.2 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 1.3 million). The substantially lower net interest expenses of EUR 2.7 million (previous year: EUR 4.4 million) had a positive effect compared to the previous year period. The fall resulted from repayments and improved financing conditions.

 

After earnings shares of minority shareholders in subsidiaries (EUR 2.8 million, after EUR 3.6 million in the previous year), the Fair Value Group concluded the first half of 2014 with IFRS consolidated net income of EUR 2.1 million. This result was down on the adjusted previous year figure of EUR 3.4 million due to property sales.

 

Group equity totalled EUR 80.5 million as of June 30, 2014, following EUR 80.7 million at the end of December 2013. This meant that the balance sheet net asset value per share in circulation remained stable at EUR 8.63 after the pay-out of the dividend of EUR 0.25 (December 31, 2013: EUR 8.65). The equity ratio pursuant to Paragraph 15 of the German REIT Act increased significantly to 50.3% of immovable assets (December 31, 2013: 46.9%).

 

Frank Schaich, CEO of Fair Value REIT-AG, commented on the business development to date: “We regard the results from the first half of 2014 as confirmation of our planning. That is why we are reiterating our forecast based on the assumption of adjusted consolidated net income (FFO) of EUR 5.1 million or EUR 0.55 per share for 2014 as a whole, as well as a dividend of EUR 0.25 per share."

 

The Semi-Annual Report 2014 is available from today in the Financial Reports section of www.fvreit.de.

 

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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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Fair Value REIT-AG