Fair Value REIT-AG / Quarter Results/Change in Forecast
09.11.2009
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- Consolidated net income increases significantly to EUR 2.4 million
(previous year: EUR 1.4 million)
- Guidance for 2009 lifted
- Sustained reduction in general administrative expenses
- Dividends planned for 2010
Munich, November 9, 2009 - Fair Value REIT-AG today announced its results
for the first nine months of the current fiscal year. The company has
improved its consolidated net income significantly to EUR 2.4 million
(previous year: EUR 1.4 million). Earnings per share after the end of the
first three quarters of 2009 totaled EUR 0.25 compared to EUR 0.15 in the
same period of the previous year. The Munich-based real estate company's
net asset value (NAV) increased to EUR 8.30 per share as a result of the
consolidated net income (December 31, 2008: EUR 8.16).
Rental income from direct investments and the fully consolidated majority
participations in closed-end real estate funds totaled EUR 7.7 million
(previous year: EUR 9.4 million). The reduction is due to the premature
termination of a general rental agreement against receipt of a compensation
payment in the fourth quarter of 2008. This was put in place with the aim
of generating a long-term increase in the property's value by reducing
existing vacancies. Heating costs increased year-on-year as a result of the
weather, which led to increased property-related operating expenses of EUR
0.3 million. As a result, the funds from operations 'FFO' as of September
30, 2009 were lower than in the previous year (EUR 0.28) at EUR 0.23 per
share.
However, the Group was able to reduce its general administrative expenses.
At the same time, the proportion of earnings from equity-accounted
participations in closed-end real estate funds increased from EUR 2.2
million to EUR 2.5 million. In addition, the EUR 2.2 million improvement in
the valuation result contributed to the significant increase in
consolidated net income.
The operating strengths of Fair Value REIT-AG become obvious when looking
at its consolidated income after adjustment for extraordinary factors.
Extraordinary factors totaled EUR 1.9 million in the first nine months of
2009 (previous year: EUR 3.1 million). 70% of this total is due to
adjustments to the carrying amounts of the properties made during the year,
and around 15% each are due to one-off compensation expenses and due to
expenses for interest rate swaps. This resulted in almost unchanged,
adjusted consolidated income of EUR 4.3 million in the first nine months of
2009 (previous year: EUR 4.5 million). The sustained reduction in general
administrative expenses and the lower net interest expenses as a result of
the reduction in financial liabilities almost fully compensated for the
fact that net rental income was around EUR 1.9 million lower than the
previous year's figure.
Fair Value REIT-AG thus exceeded its own forecasts in the first nine months
of the year. The positive growth in the first three quarters of 2009 has
caused the Managing Board to lift its forecast for consolidated earnings
before one-off factors and changes in market values for the properties and
interest-rate derivatives (IFRS) for 2009 as a whole from the previous
figure of EUR 4.2 - EUR 4.5 million to EUR 4.5 - EUR 4.8 million.
Frank Schaich, the sole member of Fair Value REIT-AG's Managing Board,
described the reasons for this and provided an outlook: 'We have achieved a
great deal during the year to date. Our occupancy rates are very high at
95.1%, and our financing structure is very solid with equity (including
minority interests) totaling 50% of our total assets. We have further
improved both our costs and earnings. In particular in view of our efforts
to sustainably cut the Group's general administrative expenses, which will
have their full impact from 2010, we will reach our target of generating
net income from operating activities under the German GAAP (HGB). As a
result, we intend to pay our shareholders a dividend of 10 cents per share
for fiscal year 2010.'
A full overview of current business developments can be found in the
interim report for the first nine months of 2009, which is available in the
Investor Relations section of www.fvreit.de.
|[![CDATA[|[pre|]]]|]
Sept. 30, 2009 Sept. 30, 2008
Consolidated net income EUR 2,394 thousand EUR 1,371 thousand
EPS EUR 0.23 EUR 0.15
Adjusted consolidated net income EUR 4,286 thousand EUR 4,482 thousand
FFO per share EUR 0.23 EUR 0.28
NAV per share EUR 8.30 EUR 8.16
EPRA-NAV per share EUR 8.84 EUR 8.61
|[![CDATA[|[/pre|]]]|]
Contact
Investor & Media Relations
cometis AG
Dirk Stauer
Phone: +49(0)611 - 205855-22
Fax: +49(0)611 - 205855-66
E-mail: stauer@cometis.de
Company profile
Munich-based Fair Value REIT-AG focuses on the acquisition, leasing,
property management and sale of commercial properties in Germany. Its
investment activities focus primarily on offices, logistics and retail
properties in German regional centers. As a REIT-AG, Fair Value is not
subject to corporation or trade tax and benefits from the exit tax
privilege when purchasing properties. Fair Value's USP is that - in
addition to investing directly in real estate - it also acquires interests
in closed-end real estate funds.
In its 'Participations' segment, Fair Value currently participates in 13
closed-end real estate funds in a highly diversified portfolio of 48
properties with a total rental area of 413,668 m² and a market value of
around EUR 499 million as of December 31, 2008 (Fair Value's share of this
portfolio totaled around EUR 198 million on September 30).
In its 'Direct Investments' segment, Fair Value owns a portfolio of 32
commercial properties in Schleswig-Holstein. These have a rental area of
more than 42,948 m² and are mostly used as bank branches. These properties
had a total market value of around EUR 47.3 million as of December 31,
2008.
On September 30, 2009, the proportion of the entire portfolio due to Fair
Value had a market value of around EUR 245 million. As of September 30,
2009, this proportionate portfolio was 95.1% let in terms of the achievable
annual rent of EUR 21.0 million. The rental agreements had a weighted
remaining term of 6.6 years on September 30, 2009. Around 46% of the
potential rent stems from retail facilities, 40% from offices, 8% is from
logistics facilities and 6% from other facilities.
09.11.2009 Financial News distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: Fair Value REIT-AG
LeopoldstraÃe 244
80807 München
Deutschland
Phone: +49 (0)89 9292 815-01
Fax: +49 (0)89 9292 815-15
E-mail: info@fair-value-reit.de
Internet: www.fair-value-reit.de
ISIN: DE000A0MW975
WKN: A0MW97
Indices: RX REIT All Share Index, RX REIT Index
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in München, Stuttgart
End of News DGAP News-Service
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DGAP-News: Fair Value REIT-AG increases nine-month earnings and lifts forecast for 2009
| Source: EQS Group AG