Earnings Release • Mar 31, 2009
Earnings Release
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Corporate | 31 March 2009 14:33
Fair Value REIT-AG announces final figures for 2008
Fair Value REIT-AG / Final Results
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.
Munich, March 31, 2009 - Fair Value REIT-AG published its annual report for
fiscal year 2008 today. Fair Value REIT-AG's stable existing business meant
that it was able to successfully meet the challenges posed by the current
market environment and it surpassed its economic targets from its ongoing
business with consolidated earnings before extraordinary factors of EUR 5.2
million. However, the market valuation of its real estate and other
extraordinary factors, including losses from interest rate hedges and gains
from the sale of investment properties totaled a negative EUR 18.5 million.
This resulted in a consolidated net loss of EUR 13.3 million. This
corresponds to earnings per share of EUR -1.41. The German GAAP (HGB)
earnings, which are relevant for the dividend disbursement, were balanced
after the formation of a reinvestment reserve within the meaning of Section
13 of the REIT-G. As a result, the company will not pay a dividend for
fiscal year 2008.
Including charges from the valuation of interest rate derivatives in the
amount of EUR 4.6 million, consolidated equity fell to EUR 76.8 million.
This corresponds to a net asset value (NAV) of EUR 8.16 per share in
circulation, compared to EUR 10.06 in the previous year. Consolidated total
assets fell from EUR 230 million in the previous year to EUR 198 million.
Fair Value REIT-AG had an equity ratio within the meaning of Section 15 of
the REIT-G of 52% of immoveable assets on December 31, 2008. As a result,
the Fair Value Group has solid equity despite the valuation-related
consolidated loss.
The group's cash and cash equivalents enjoyed positive growth: in total,
the net cash provided by operating activities totaled EUR 21.5 million.
This was coupled with net cash provided by investment activities of EUR 3.6
million. These cash flows were used to repay liabilities in the amount of
EUR 16.4 million, and also increased the Fair Value Group's cash and cash
equivalents by EUR 8.7 million year-on-year to EUR 14 million.
Frank Schaich, Fair Value REIT-AG's CEO, believes that the company is well
positioned in view of the high occupancy rates of 95% of potential rent for
the proportionate total portfolio due to Fair Value: 'The crisis on the
financial and capital markets has not left us unscathed with regard to the
valuations of our properties, however we are looking to our ongoing
business this year with confidence. Just 7% of our rental volume is due to
be extended or newly let in 2009.' In addition, the CEO believes the
company's financial stability offers advantages given the current situation
on the market: 'Fair Value's equity ratio and liquidity are high. In
addition, we only have to extend borrowing of EUR 13.5 million or 14% of
the group's financial liabilities. That means that our financing structure
is very solid.' The Managing Board is forecasting consolidated earnings
(IFRS) in a bandwidth of between EUR 2.7 million to EUR 3.0 million in 2009
if business is in line with forecast. This already includes the anticipated
valuation losses from overrents. It does not include any other changes in
the market value of the real estate and interest rate derivatives.
The full 2008 annual report is available online 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 tax and 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 48
properties. The rental area of this portfolio totals 414,161 m² and had a
market value of around EUR 499 million as of December 31, 2008 (Fair
Value's interest in this portfolio currently totals around EUR 197.2
million).
In its 'Direct Investments' segment, Fair Value is owner of a portfolio of
32 commercial properties in the federal state of Schleswig-Holstein with a
rental area of 42,990 m², mostly used as bank branches. These properties
had a total market value of around EUR 47.3 million as of December 31,
2008.
As of December 31, 2008, the total portfolio represented a proportionate
market value of EUR 245 million for Fair Value and had an occupancy level
of more than 95% of the potential annual rent of around EUR 21 million. The
rental agreements offered a weighted remaining term of 6.9 years on
balanced sheet day. Around 45% of potential rents stems from retail, 40%
from office facilities, 9% is from logistics facilities and 6% from other
facilities.
Contact
Investor & Media Relations
cometis AG
Dirk Stauer
Tel: +49(0)611 - 205855-22
Fax: +49(0)611 - 205855-66
e-mail: [email protected]
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: [email protected]
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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