Fair Value REIT-AG / Preliminary Results/Half Year Results
18.08.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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- Revenues total 6.7 million in H1 2008
- Consolidated net income of 0.8 million after first six months
- NAV per share up to 10.15
Munich, August 18, 2008 Fair Value REIT-AG further increased its revenues
and earnings in the first half of 2008 according to preliminary figures.
The company recorded revenues of 6.7 million in the first six months of
the year. Of this total, 5.0 million were due to the fully consolidated
majority interests in five closed-end real estate funds. A further 1.7
million stemmed from Fair Value's portfolio of directly held properties.
Net rental income totaled 5.3 million. A comparison with H1 2007 is not
meaningful, as the company only commenced its operating activities at the
start of the fourth quarter of 2007.
At the same time, Fair Value REIT-AG also recorded 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 1.5 million in the period under review and was
carried under the financial result. The market valuation of the company's
properties by CB Richard Ellis GmbH as of June 30, 2008 showed that the
proportionate market values of the properties due to Fair Value were 4
million or 1.3% lower, down to 272 million compared to December 31, 2007.
Income from the market valuation of interest hedges and from a
restructuring of debt had a positive impact on net earnings.
In total, Fair Value REIT-AG thus recorded consolidated net income (IFRS)
of 0.8 million in the first half of 2008. This corresponds to earnings
per share of 0.08.
Frank Schaich, Fair Value REIT-AG's CEO is very pleased with the company's
six-month results: 'Our business is growing right on track. Consolidated
net income is within our expectations. We have been able to lift our rental
income again compared to Q1 2008. After adjustment for changes in valuation
and extraordinary income, our funds from operations (FFO) in the first six
months of 2008 amounted to 1.3 million or 0.14 per share. This clearly
shows our portfolio's sustained earnings strength.' The CEO is also
confident with regard to the second half of the year. 'We have an
optimistic view of the second half of the year. We are continuing to
forecast consolidated net income with a bandwidth of 1.3 to 1.5 million
for the year as a whole,' Frank Schaich went on to comment.
The Managing Board is forecasting a further increase in income as a result
of the office property at Düsseldorf airport completed after June 30, 2008
and transferred to Fair Value REIT-AG. Frank Schaich: 'The excellent
location in the direct proximity of the terminal means that rentals
progressed rapidly. This property is currently around 91% in terms of total
potential rent, and we are in final negotiations for the remaining space.'
Fair Value REIT-AG's positive growth can also be seen on its balance sheet.
Total assets are up slightly compared to December 31, 2007 to 231.5
million, and Fair Value REIT-AG had equity of around 95.4 million on June
30, 2008. Net asset value (NAV) per share thus totaled 10.15.
The full half-yearly report will be published on August 29, 2008 at
www.fvreit.de in the Investor Relations section.
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 421,864 m² and had a
market value of around 553 million as of June 30, 2008 (Fair Value's
interest in this portfolio currently totals around 223 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 42,940 m², mostly used as bank branches. These properties
had a total market value of around 49.2 million as of June 30, 2008.
As of June 30, 2008, the total portfolio which has a proportionate market
value of 272 million for Fair Value, had an economic occupancy level of
more than 95% of the possible annual rent of around 21.5 million. Around
45% of potential rent stems from offices, 42% from retail facilities, 8% is
from logistics facilities and 5% from other facilities.
Contact
Investor & Media Relations
cometis AG
Ulrich Wiehle / Dirk Stauer
Tel.: +49(0)611 205855-11
Fax: +49(0)611 205855-66
e-mail: wiehle@cometis.de
DGAP 18.08.2008
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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
Indices: RX REIT All Share Index, RX REIT Index
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Stuttgart, München
End of News DGAP News-Service
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DGAP-News: Fair Value REIT AG continues on-track growth
| Source: EQS Group AG