Corporate News

05/11/2015 | Corporate News

Fair Value REIT-AG reports a substantial rise in consolidated net income in first nine months of 2015


·         IFRS Group net profit increased to EUR 7.8 million in Q3 2015 (previous year: EUR 3.5 million)

·         Net asset value according to EPRA (EPRA-NAV) per share amounted to EUR 8.45 as of 30 September 2015 (31 December 2014: EUR 8.49)

·         REIT equity ratio increased to 59.5% (31 December 2014: 49.2%) 

·         FFO at EUR 4.5 million in Q3 2015 (previous year: EUR 3.7 million)

·         Confirmation of FFO forecast 2015 of EUR 6.9 million – EUR 7.2 million, which corresponds to EUR 0.56 – EUR 0.58 per share   

·         Target dividend for 2015 stays at EUR 0.25 per share


Munich, 5 November 2015 - Fair Value REIT-AG (WKN A0MW97) reports successful first nine months of 2015 and has more than doubled the IFRS consolidated net income as compared to the corresponding period of the previous year. The IFRS Group net profit of EUR 7.8 million is EUR 4.4 million higher than the IFRS Group net profit of EUR 3.5 million in the previous year.


The additional profit of EUR 4.2 million resulted from acquisitions of further interests in six subsidiaries, from the acquisition of a majority interest in an additional real estate closed-end fund and from the direct acquisition of properties which were previously owned by subsidiaries.


Despite the dividend pay-out of EUR 0.25 per share, the EPRA NAV per share amounted to EUR 8.45 as of 30 September 2015, which is only slightly below the EPRA NAV per share of EUR 8.49 as of 31 December 2014. For this reason, the capital costs and dilution effects of the capital increase were almost fully absorbed. The REIT equity ratio increased to 59.4% of the immovable assets as of 30 September 2015 compared to 49.2% as of 31 December 2014.  


Consolidated net income adjusted for measurement and other extraordinary effects (FFO – Funds From Operations) amounted to EUR 4.5 million during the first nine months of 2015, hence ca. 22% above the FFO of EUR 3.7 million last year. The increase mainly reflects the gradual impact from investments made, from redemption-related reduced interest expenses and from the decrease in earnings attributable to non-controlling interests.   


For 2015 the Management Board affirmed its expectation of a FFO after non-controlling interests in a range of EUR 6.9 million – EUR 7.2 million. With regards to the increased weighted average number of shares outstanding in 2015 (12.38 million shares) this corresponds to an undiluted FFO per share in a range of EUR 0.56 – EUR 0.58.   


The Management Board aims for a dividend for 2015 of EUR 0.25 per every share entitled to a dividend (14.03 million shares). The corresponding pay-out value amounts to about EUR 3.5 million, which is in line with the strategic target of 50% of the FFO.


Frank Schaich, CEO of Fair Value REIT-AG, commented on the operative business development: “The current increase in FFO in the third quarter of the current fiscal year has confirmed that our NAV-accretive investments are also generating attractive current results. This proves the success of our strategic approach.”




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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