Fair Value REIT-AG / Quarter Results
02.06.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
- Revenues total 3.33 million
- Consolidated net income after three months of 0.35 million
Munich, June 2, 2008 Fair Value REIT-AG, to date Germany's only 'upstream
REIT', publishes its quarterly report for the first three months of the
current fiscal year today. The company recorded revenues in the first
quarter of 2008 totaling 3.33 million. Of this total, 2.45 million
stemmed from the fully consolidated majority participations in five
closed-end real estate funds. A further 0.87 million resulted from Fair
Value's portfolio of directly held properties. Net rental income totaled
2.76 million. A comparison with Q1 2007 is not meaningful, as the company
only commenced its operating activities at the start of the fourth quarter
of 2007.
Fair Value REIT-AG also records further sustained income from its minority
participations in a current total of eight closed-end real estate funds
(associated companies). This income from equity-accounted participations
totaled 0.42 million in the period under review and was carried under the
financial result. A special feature of the first quarter was the expense
from the market valuation of interest rate hedges in the amount of 0.95
million (Fair Value's proportion: 0.87 million). After taking minority
interests and the net interest expense into account, the financial result
in the first quarter was -1.52 million. In total, Fair Value REIT-AG thus
recorded consolidated net income (IFRS) of around 0.35 million in the
first quarter of 2008. Earnings per share thus totaled 0.04.
Frank Schaich, Fair Value REIT-AG's CEO is very pleased with the company's
results: 'Our business is growing on track. We have been able to lift our
rental income substantially compared to Q4 2007. Consolidated net income in
the first quarter of 2008 of 1.2 million after adjustment for the market
valuation of interest rate hedges confirms that our portfolio generates
sustained earnings.' The Managing Board is forecasting a further increase
in earnings after the completion of an office property at Düsseldorf
airport in July 2008. 'The excellent location in the direct proximity of
the terminal means that rentals are progressing rapidly. This will create
the basis for our further growth,' Frank Schaich went on to say.
Fair Value's positive growth can also be seen on its balance sheet.
Compared to December 31, 2007, the company's total assets have increased by
around 3.91 million to 234.27 million as a result of the incurred
acquisition costs for the office property in Düsseldorf. As of March 31,
2007, Fair Value REIT-AG had equity of around 95.0 million. Net Asset
Value (NAV) per share totaled 10.10, up slightly by 0.06 compared to
December 31, 2007.
The full Q1 report will be published today on the Web site www.fvreit.de in
the Investor Relations section.
Contact
Investor & Media Relations
cometis AG
Ulrich Wiehle
Tel.: +49(0)611 205855-11
Fax: +49(0)611 205855-66
e-mail: wiehle@cometis.de
Company profile
Munich-based Fair Value REIT-AG focuses on the acquisition, rental,
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 owns interests in 13
closed end real estate funds with a highly diversified portfolio of 49
properties. The rental area of this portfolio totals 422,503 m² and had a
market value of around EUR 558 million as of December 31, 2007 (Fair
Value's interest in this portfolio currently totals around EUR 225
million).
In its 'Direct Investments' segment, Fair Value acquired a portfolio of 32
commercial properties in the federal state of Schleswig-Holstein with a
rental area of 43,113 m², mostly used as bank branches. These properties
had a total market value of around EUR 50 million as of December 31, 2007.
As of December 31, 2007, the total portfolio which has a proportionate
market value of EUR 275 million for Fair Value, had an economic occupancy
level of more than 96% of the possible annual rent of around EUR 22
million. Around 47% of rental income stems from offices, 40% from retail
facilities, 8% is from logistics facilities and 5% from other facilities.
DGAP 02.06.2008
---------------------------------------------------------------------------
Language: English
Issuer: Fair Value REIT-AG
Leopoldstraße 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
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Stuttgart, München
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-News: Fair Value REIT-AG enjoys highly successful Q1 2008
| Source: EQS Group AG