EANS-News: Fair Value REIT-AG
Fair Value REIT-AG increases total revenues in
the first nine months of 2012 and confirms forecast for full year 2012
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quarterly report/9-month report
Subtitle:
* Occupancy rate increases to 95.1%, total revenues up by 5%
* IFRS consolidated net income of EUR 3.8 million (previous year: EUR 4.5
million)
* Adjusted consolidated net income in accordance with EPRA / FFO at EUR 4.3
million (+3%)
* REIT equity ratio increases to 52.8%
München (euro adhoc) - November 8, 2012 - Fair Value REIT-AG posted consolidated
total revenues of EUR 10.1 million in the first nine months of 2012, up some 5%
on the total revenues of EUR 9.6 million recorded in the corresponding period of
the previous year. This increase was the result of leasing successes in both the
previous and current year. The occupancy rate of the properties held by the
Group and its participations increased, proportionate to Fair Value, from 93.8%
to 95.1% and is therefore now back on par with the long-term average of around
95%. The average remaining term of lease agreements was 5.5 years as of the
reporting date on September 30, 2012.
Net rental income amounted to EUR 6.5 million, thereby exceeding the previous
year's total of EUR 6.3 million by 4%. The operating result for the first nine
months came in at EUR 4.0 million, around EUR 0.2 million down on the EUR 4.2
million mark posted in the corresponding previous year period. This decline
mainly resulted from expenses in connection with the sale of a property.
The financial result from the equity accounted associated companies before the
market valuation of interest rate hedges was almost on par with the previous
year level. After taking into account liquidity-neutral market value changes to
interest rate hedges, income from participations totalled EUR 4.0 million, down
EUR 0.5 million on the corresponding figure in the previous year.
At EUR 3.6 million, net interest expenses increased by around EUR 0.2 million
year-on-year. Adjusted for the liquidity-neutral expenses from the market
valuation of interest rate hedges contained within this figure, this results in
net interest expenses of EUR 3.2 million, down 10% on the comparative figure of
EUR 3.5 million in the previous year.
Overall, Fair Value REIT-AG generated consolidated net income according to IFRS
of EUR 3.8 million, or EUR 0.41 per share, in the first nine months of 2012. The
decrease compared to the previous year figure of EUR 4.5 million or EUR 0.48 per
share is due in equal part to the higher earnings contribution from the market
valuation of interest rate hedges in the previous year period and the expenses
incurred during the year in connection with the sale of a property.
The consolidated net income of the Fair Value Group adjusted for market
valuation changes as well as selling and valuation expenses (EPRA earnings or
FFO) came in at EUR 4.3 million in the first nine months of 2012, which equates
to EUR 0.46 per share and is around 3% higher than the corresponding figure for
the first nine months of 2011.
Group equity as of September 30, 2012, totalled EUR 80.3 million and was
therefore 3.6% up on the mark from December 31, 2011 (EUR 77.5 million). This
meant that the balance sheet net asset value per share in circulation totalled
EUR 8.61 per share in the first nine months of the year (December 31, 2011: EUR
8.31). The equity ratio pursuant to Paragraph 15 of the German REIT Act
increased to 52.8% of immovable assets (December 31, 2011: 51.0%).
Frank Schaich, CEO of Fair Value REIT-AG, provides an outlook on the fourth
quarter as well as the full year 2012: "With regard to the fourth quarter, we
are anticipating higher rental-related expenses above the average of the first
three quarters of the current financial year in connection with additional lease
agreements. For the full year 2012, we are anticipating earnings at a slightly
higher level than expected. On the back of this, we are confirming our forecast
and continue to anticipate an adjusted consolidated net income (EPRA earnings or
FFO) of EUR 5.2 million, or EUR 0.56 per share, for 2012 as a whole."
The Interim Report 1st-3rd Quarter 2012 is now available in the Financial
Reports section of {www.fvreit.de}[HYPERLINK:
file:///\\Dc-fairvalue\Server\Presse-Marketing\Pressemitteilungen\2010\Corporate%20News\www.fvreit.de].
Selected financial indicators of Fair Value REIT-AG
1/1 - 9/30/2012 1/1 - 9/30/2011
Rental Revenues EUR 8.329 million EUR 7.845 million
EBIT EUR 4.038 million EUR 4.212 million
Result from
equity-accounted investments EUR 4.010 million EUR 4.528 million
IFRS-Consolidated net income EUR 3.783 million EUR 4.518 million
IFRS-EPS EUR 0.41 EUR 0.48
EPRA-Earnings/FFO EUR 4.291 million EUR 4.183 million
EPRA EPS EUR 0.46 EUR 0.45
September 30, 2012 December 31, 2011
Net asset value per share EUR 8.61 EUR 8.31
EPRA-NAV per share EUR 9.61 EUR 9.27
Equity ratio within
the meaning of section 15
of the REIT act 52.8% 51.0%
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 real estate directly, Fair Value also
acquires participations in real estate partnerships.
Through direct investments and subsidiaries, Fair Value Group manages a
portfolio of 46 commercial properties with a total leasable floor space of
around 159,500 square metres and a market value of around EUR 127 million as of
September 30, 2012. Fair Value's share of these investments amounted to around
EUR 92 million on the same date.
In addition, Fair Value REIT-AG holds minority interests in six closed-end real
estate partnerships with holdings in 23 commercial properties with a total
leasable floor space of around 269,000 square metres. As of December 31, 2011,
the total market value of these properties was around EUR 358 million. (Fair
Value's share of this amounted to around EUR 128 million on September 30, 2012).
As of September 30, 2012, Fair Value's share of the total portfolio amounted to
around EUR 220 million. This portfolio had an occupancy rate of 95.1% of the
achievable rents at full occupancy of EUR 19.3 million per annum. As of
September 30, 2012, the weighted remaining term of the leases was 5.5 years.
Around 44% of the potential rent relates to retail floor space, 42% to office
space and 14% to other types of use.
Further inquiry note:
{Fair}[HYPERLINK: mailto:Fair] Value REIT-AG
Frank Schaich
Tel. 089-9292815-10
Fax. 089-9292815-15
e-mail: schaich@fvreit.de
end of announcement euro adhoc
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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: free trade: Berlin, München, Düsseldorf, Stuttgart, regulated
dealing/prime standard: Frankfurt
language: English
Original content of: Fair Value REIT-AG, transmitted by news aktuell