Earnings Release • Aug 5, 2014
Earnings Release
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Corporate | 5 August 2014 07:30
Fair Value REIT-AG remains on track in the first half of 2014
Fair Value REIT-AG / Key word(s): Half Year Results
05.08.2014 / 07:30
Fair Value REIT-AG remains on track in the first half of 2014
– FFO at EUR 2.5 million (adjusted previous year: EUR 2.8 million)
– NAV per share remains almost unchanged after dividend payment at EUR 8.63 as of June 30, 2014
– IFRS consolidated net income of EUR 2.1 million (adjusted previous year: EUR 3.4 million)
– REIT equity ratio increases to 50.3% from 46.9%
– Full-year forecast confirmed
Munich, August 5, 2014 – Fair Value REIT-AG (WKN A0MW97) has successfully concluded the first half of 2014. Adjusted consolidated net income (EPRA-Earnings or FFO) came in at EUR 2.5 million, only slightly down on the adjusted previous year figure of EUR 2.8 million. This corresponds to FFO of EUR 0.26 per share following EUR 0.30 in the previous year.
The first-time adoption of the accounting standard IFRS 10 as of December 31, 2013 resulted in the full consolidation of all participations. As a result, the previous year comparison figures have been adjusted.
The rental income of the Group for the first six months of 2014 amounted to a total of EUR 12.1 million and, on the back of property sales, was down on the corresponding previous year figure of EUR 14.8 million by EUR 2.7 million or 18 percent, as expected. As a result, net rental income of EUR 9.4 million was also 18 percent lower than the previous year figure of EUR 11.4 million.
The operating result came in at EUR 7.6 million in the period under review, following EUR 10.2 million in the previous year. On the back of the termination of the last participation not fully consolidated as of December 31, 2013, no income from participations was recorded (previous year: EUR 1.3 million). The substantially lower net interest expenses of EUR 2.7 million (previous year: EUR 4.4 million) had a positive effect compared to the previous year period. The fall resulted from repayments and improved financing conditions.
After earnings shares of minority shareholders in subsidiaries (EUR 2.8 million, after EUR 3.6 million in the previous year), the Fair Value Group concluded the first half of 2014 with IFRS consolidated net income of EUR 2.1 million. This result was down on the adjusted previous year figure of EUR 3.4 million due to property sales.
Group equity totalled EUR 80.5 million as of June 30, 2014, following EUR 80.7 million at the end of December 2013. This meant that the balance sheet net asset value per share in circulation remained stable at EUR 8.63 after the pay-out of the dividend of EUR 0.25 (December 31, 2013: EUR 8.65). The equity ratio pursuant to Paragraph 15 of the German REIT Act increased significantly to 50.3% of immovable assets (December 31, 2013: 46.9%).
Frank Schaich, CEO of Fair Value REIT-AG, commented on the business development to date: “We regard the results from the first half of 2014 as confirmation of our planning. That is why we are reiterating our forecast based on the assumption of adjusted consolidated net income (FFO) of EUR 5.1 million or EUR 0.55 per share for 2014 as a whole, as well as a dividend of EUR 0.25 per share.”
The Semi-Annual Report 2014 is available from today in the Financial Reports section of www.fvreit.de .
Selected financial key figures for Fair Value REIT-AG
| 1/1-6/30/2014 | 1/1-6/30/2013 * | |
| Rental income | EUR 12.076 million | EUR 14.765 million |
| EBIT | EUR 7.646 million | EUR 10.158 million |
| Result including minority interests | EUR 4.908 million | EUR 7.029 million |
| Result from equity-accounted investments | EUR (2.797) million | EUR (3.616) million |
| Consolidated net income (IFRS) | EUR 2.111 million | EUR 3.354 million |
| IFRS-EPS | 0.23 EUR | 0.36 EUR |
| Adjusted consolidated net income (EPRA-Earnings)/FFO | EUR 2.453 million | EUR 2.765 million |
| EPRA-EPS | 0.26 EUR | 0.30 EUR |
| June 30, 2014 | December 31, 2013 | |
| Net asset value per share | 8.63 EUR | 8.65 EUR |
| EPRA-NAV per share | 8.73 EUR | 8.86 EUR |
| Equity ratio within the meaning of section 15 of the REIT act | 50.3% | 46.9% |
*Previous year period adjusted as part of the first-time adoption of IFRS 10
Contact
Fair Value REIT-AG
Frank Schaich
Tel. +49 (0) 89-9292815-10
Fax +49 (0) 89-9292815-15
e-mail: [email protected]
Corporate Profile
Fair Value REIT-AG, based in Munich, focuses on the acquisition, leasing, property management and sale of commercial properties in Germany. At the core of its investment activities are retail and office properties in German regional centres.
As of June 30, 2014, Fair Value’s share of the total portfolio of 44 properties amounted to around EUR 289 million. This portfolio had an occupancy rate of 89.4% of the achievable rents at full occupancy of EUR 26.1 million per annum. As of June 30, 2014, the weighted remaining term of the leases was 5.1 years. Around 53% of the potential rent relates to retail floor space, 37% to office space and 11% to other types of use.
05.08.2014 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
| Language: | English |
| Company: | Fair Value REIT-AG |
| Leopoldstraße 244 | |
| 80807 München | |
| Germany | |
| Phone: | +49 (0)89 9292 815-01 |
| Fax: | +49 (0)89 9292 815-15 |
| E-mail: | [email protected] |
| Internet: | www.fvreit.de |
| ISIN: | DE000A0MW975 |
| WKN: | A0MW97 |
| Indices: | RX REIT All Share Index, RX REIT Index |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart |
| End of News | DGAP News-Service |
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| 280709 05.08.2014 |
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