EANS-News: Fair Value REIT-AG grows consolidated net income in first nine months of 2011 and raises full-year forecast
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Earnings Forecast/9-month report Subtitle: IFRS consolidated net income up by 10% to EUR 4.5 million (previous year: EUR 4.1 million) / Adjusted consolidated net income (EPRA earnings) at EUR 4.2 million, slightly ahead of previous year's EUR 4.1 million / FY 2011 consolidated net income forecast upgraded to EUR 5.6 million (+12%) Munich (euro adhoc) - November 15, 2011 - Fair Value REIT-AG generated around EUR 4.5 million of consolidated net income in the first nine months of the current financial year, thereby exceeding the previous year's figure of EUR 4.1 million by 10%. The rise compared to the previous year is primarily the result of an earnings-effective market value increase in cash flow hedges in the associated companies. Consolidated earnings adjusted for market value changes (EPRA earnings) amounted to around EUR 4.2 million, and were therefore slightly higher than the previous-year mark of approximately EUR 4.1 million. Operating earnings (EBIT) of EUR 4.2 million were in line with expectations and were 21% lower than the previous year's figure of around EUR 5.3 million, mainly because of expenses related to re-letting. In contrast, the results of the associated companies rose substantially, up by EUR 1.1 million, or 33%, to EUR 4.5 million. Of the increase in earnings from participations, around 40% is due to lower interest expenses, including after the successful refinancing of mortgage loans in the second quarter of 2011, and around 60% is attributable to an improvement in the valuation of interest-rate hedges. The group's equity amounted to EUR 77.6 million on the balance sheet date (December 31, 2010: EUR 74.6 million). The balance sheet net asset value (NAV) per share in circulation increased by 4% to EUR 8.32 as a consequence (December 31, 2010: EUR 8.00). Taking into account the minority holdings in the subsidiaries, the equity ratio as defined in Section 15 of the German REIT Act (REITG) increased to 50.7% of immovable assets (December 31, 2010: 49.6%). Frank Schaich, the company's CEO, commented on further reasons for the Fair Value Group's positive business trend, and the upgrade to the forecast: "The rental ratio for our proportional overall portfolio at 94.4% represents a slight increase on the previous year's level of 93.6%. In terms of costs, we achieved significant savings on interest expenses and on rental-related costs. These are the main factors that prompted us to boost our earnings expectations for the 2011 financial year. Instead of consolidated net income of previously EUR 5.0 million (EUR 0.54 per share), we now anticipate EUR 5.6 million, or EUR 0.60 per share." The Management Board is still aiming to distribute a dividend of at least EUR 0.10 per share for 2011, although the requisite German commercial law results and liquidity inflows for this have not yet been secured. The interim report for the first nine months of 2011, which will be available in the course of today on the company's website at www.fvreit.de within the Investor Relations area, provides a full overview of current business trends. Selected financial indicators of Fair Value REIT-AG Jan - Sept 2011 Jan - Sept 2010 Rental revenues 7,845 TEUR 8,930 TEUR EBIT 4,212 TEUR 5,324 TEUR IFRS consolidated net income 4,518 TEUR 4,080 TEUR IFRS EPS 0.48 EUR 0.44 EUR Adjusted consolidated income 4,183 TEUR 4,108 TEUR (EPRA-Earnings) EPRA EPS 0.45 EUR 0.44 EUR Sept 30, 2011 Dec 31, 2010 Balance sheet NAV per share 8.32 EUR 8.00 EUR EPRA-NAV per share 9.24 EUR 8.93 EUR Equity ratio under 50.7% 49.6% § 15 of the REIT Act Corporate profile Fair Value REIT-AG, based in Munich, focuses on the acquisition, leasing, property management and sale of commercial properties in Germany. At the core of its investment activities are office and retail properties in German regional centres. Because of its REIT status, Fair Value is exempt from corporation and trade tax. In addition to investing in properties directly, Fair Value also invests in real estate funds. Through direct investments and subsidiaries, the Fair Value Group manages a portfolio of 51 commercial properties with a total leasable floor space of around 163,000 square metres and a market value as of December 31, 2010 of around EUR 129.8 million. (Fair Value's share on these investments amounted to around EUR 93.8 million as of September 30, 2011). In addition, Fair Value REIT-AG holds minority interests in six closed-end real estate funds with holdings in 23 commercial properties and a total leasable floor space of around 269,000 square metres. As of 31 December 2010, the total market value of these properties was EUR 365.3 million. (Fair Value's share on these investments amounted to around EUR 130.0 million as of September 30, 2011). As of September 30, 2011, Fair Value's share on the total portfolio amounted to around EUR 223.9 million. This represented an occupancy rate of 94.4% of the achievable rents at full occupancy of EUR 19.6 million per annum. As of September 30, 2011, the weighted remaining term of the leases was 5.6 years. Around 44% of the potential rent relate to retail floor space, 42% to office space and 14% to other facilities. Further inquiry note: Fair Value REIT-AG Frank Schaich Tel.: 089-9292815-10 Fax: 089-9292815-15 E-Mail: schaich@fvreit.de end of announcement euro adhoc -------------------------------------------------------------------------------- company: Fair Value REIT-AG Leopoldstraße 244 D-80807 München phone: +49 (0) 89 9292815 01 FAX: +49 (0) 89 9292815 15 mail: info@fvreit.de WWW: http://www.fvreit.de sector: Real Estate ISIN: DE000A0MW975 indexes: CDAX, Classic All Share, Prime All Share, RX REIT All Share Index, RX REIT Index stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin, Stuttgart, Düsseldorf, München language: English
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