Fair Value REIT-AG

Earnings Release • Nov 30, 2007

News Details

Corporate | 30 November 2007 08:39

Fair Value Immobilien-Aktiengesellschaft publishes quarterly figures for first time after successful listing

Fair Value Immobilien-AG / Quarter 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.

---

• Consolidated net income after nine months totals € 6.15 million
• NAV increases to € 11.43 in comparison to the former issuing price of €
10.00

Munich, November 30, 2007 – Fair Value Immobilien-Aktiengesellschaft has
published its first set of quarterly figures after its successful stock
market debut on Frankfurt Stock Exchange’s Prime Standard on November 16,
2007 (German Securities Code (WKN): A0MW97, ISIN: DE000A0MW975). The
consolidated interim financial statements as of September 30, 2007 are
practically the company’s opening accounts, as the company did not acquire
its investment portfolio until the end of the third quarter. As a result,
income from the portfolio will only be reflected in the consolidated income
statement from the fourth quarter of 2007. The consolidated net income for
the first nine months totaling € 6.15 million is thus mostly due to the
financial result, which stems from the increase in property values.

As of September 30, 2007, Fair Value Immobilien-AG’s net asset value (NAV)
amounted to EUR 102 million, with the NAV per share thus totaling € 11.43.
This intrinsic value is likely to increase further as a result of ongoing
rental income starting in the fourth quarter and also the pre-listing
capital increase with a volume of around € 5 million.

The third quarter was characterized by an offering to investors in 14
closed-end commercial real estate funds to exchange their interests for
shares of Fair Value. Around 2,100 investors availed of this opportunity
and converted their limited partners’ shares at the NAV as of December 31,
2006. Furthermore, additional fund investors sold their interests to Fair
Value Immobilien-AG against payment of the purchase price. This means that
the company thus participates indirectly in a pan-German, highly
diversified real estate portfolio comprising 52 commercial projects, with a
proportionate market value of around € 246 million due to Fair Value. The
proportionate annual rent due to Fair Value of around € 20 million is well
secured with a rental level of more than 96% for more than 6 years.

In addition, after the balance sheet date, the company further expanded its
portfolio by directly acquiring 33 commercial properties with a total
rental area of around 45,400 m². These properties are mostly used as bank
branches and, after the hand-over in December 2007, they have an economic
rental level of 98% with rental agreements with an average term of 13
years. They will secure income of approx. € 3.4 million each year in future
for Fair Value. The main tenant, accounting for 84%, is Sparkasse
Südholstein. This savings bank benefited from selling its portfolio to Fair
Value as a result of the exit tax privilege thanks to Fair Value's pre-REIT
status, and thus only has to tax 50% of its book gains.

The investment in an office building still to be constructed at Düsseldorf
Airport with a rental area of 4,600 m² underscores the company’s strategy
of investing more strongly in office premises in future.

CEO Frank Schaich is very pleased with the course of business: 'Over the
past few months we have laid the foundations for continued future growth.
Fair Value is superbly equipped to continue its sustained on-track
expansion thanks to its highly profitable portfolio of commercial
properties. As a result, we believe that we are outstandingly well
positioned as a prospective REIT.'

The full interim report will be available for download during the course of
the day at www.fair-value-reit.de.

Company profile

Fair Value Immobilien Aktiengesellschaft is an independent real estate
company and focuses on the acquisition and management of top quality
commercial properties. The investment focus lies on office, retail and
logistics premises with long-term leases and commercial parks in attractive
locations. These include, in particular, medium-sized cities and regional
centers. Fair Value is already registered as a pre-REIT and therefore
benefits from the Exit Tax privilege when acquiring real estate. The
participation in both closed-end funds and direct investments are
distinctive features of Fair Value. In summer 2007, the company has
acquired participation in 14 closed-end IC/BBV real estate funds, when
approximately 2,100 investors made use of the possibility to exchange their
units against shares of Fair Value. Moreover, fund investor’s availed of
Fair Value’s offer of selling their interest against payment of the
purchasing price. After this successful transaction Fair Value participates
in a widely diversified portfolio of 52 properties with a total rental area
of more than 450,000 sqm and a market value of approximately 600 million
EUR (Fair Value’s share equals approximately 246 million EUR). In addition,
Fair Value has secured itself a portfolio of 33 commercial properties
(mostly used as branch banks) with a rental area of more than 45,400 m² as
well as an office building to be constructed with a total rental area of
4,600 m². A high economic occupancy rate of more than 95% with regards to
attainable rents enables sustainable profits.

Investor & Media Relations
cometis AG
Ulrich Wiehle
Tel.: +49(0)611 – 205855-11
Fax: +49(0)611 – 205855-66
e-mail: wiehle@cometis.de

30.11.2007 Financial News transmitted by DGAP

Language: English
Issuer: Fair Value Immobilien-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

---