Fair Value REIT-AG

Earnings Release • Apr 15, 2008

News Details

Corporate | 15 April 2008 08:29

Fair Value REIT-AG publishes 2007 annual report and announces outlook for 2008

Fair Value REIT-AG / Final Results/Forecast

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.

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• Consolidated net income (IFRS) of EUR 1.74 million or EUR 0.74 per share
• NAV totals EUR 10.06 as of December 31, 2007
• Outlook 2008: Dividend of EUR 0.30 – 0.35 per share outstanding expected
  for fiscal year 2008

Munich, April 15, 2008 – Fair Value REIT-AG published its annual report for
fiscal year 2007 today. According to the final figures, the Munich-based
real estate company recorded rental income totaling EUR 4.33 million. This
rental income primarily stems from majority interests in closed-end real
estate funds that were fully consolidated for the first time on September
30, 2007. However, the rental income from the Sparkasse portfolio directly
acquired as of December 21, 2007 will only have its full impact in fiscal
year 2008. After the deduction of real-estate related expenses the net
rental result of EUR 2.55 million is thus not representative for a full
fiscal year.

During the past fiscal year, Fair Value recorded general administrative
expenses totaling EUR 3.50 million, with around 40% being due to setting up
the REIT. Other operating income and expenses totaled EUR 0.14 million, and
at the same time the valuation result for the fully consolidated real
estate properties totaled EUR -0.73 million.

Earnings from associated companies were carried in the financial result at
equity. This income totaled EUR 7.23 million and included substantial
extraordinary factors: On the date the participating interests were
acquired, there was a difference recognized in income between the present
value and the acquisition costs of EUR 14.82 million, which was reduced by
impairment of EUR 7.6 million on the balance sheet date to take ongoing
fund-specific costs into account. In addition, the financial result
includes net interest expenses (EUR 1.49 million), earnings attributable to
minority interests (EUR 0.77 million) and one-off costs totaling EUR 1.83
million for the stock exchange listing. In total, the financial result for
fiscal year 2007 amounted to EUR 3.55 million.

As a result, the Fair Value Group, which is exempt from corporation and
trade tax as a result of its REIT structure, recorded consolidated net
income (IFRS) of EUR 1.74 million. This corresponds to weighted earnings
per share of EUR 0.74. Under HGB accounting, the one-off costs described
above caused a net loss for the year of EUR 1.9 million, which was balanced
out via a withdrawal from capital reserves. In view of the net loss for the
year it is not possible to pay a dividend this year for the company's first
fiscal year 2007. Net asset value (NAV) per share totaled EUR 94.7 million
or EUR 10.06 per share as of the balance sheet date.

Frank Schaich, Fair Value's CEO is looking to the future with optimism:
'Our rental income will increase substantially this year thanks to the fact
that subsidiaries and the Sparkasse portfolio will be included for the full
year, and due to the acquisition of an office property in Düsseldorf. Our
associated companies will also record income for the full twelve months.
Our cost structure will improve at the same time, as there will no longer
be any start-up costs for setting up the REIT or the initial listing.
Subject to us not making any other investments, we are forecasting
consolidated net income (IFRS) of EUR 1.3 – 1.5 million.' In addition,
Frank Schaich also mentioned that dividends for each share currently
outstanding for fiscal year 2008 could total EUR 0.30 – 0.35.

The full 2007 annual report can be downloaded at www.fvreit.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 226
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 276 million for Fair Value, had an economic occupancy
level of more than 96% of the possible annual rent of around EUR 22
million. Around 44% of rental income stems from offices, 42% from retail
facilities, 9% is from logistics facilities and 5% from other facilities.

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

15.04.2008 Financial News transmitted by DGAP

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

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