Quarterly Report • Nov 7, 2008
Quarterly Report
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Corporate | 7 November 2008 07:28
Fair Value REIT-AG records sustained increase in rental results with solid long-term financing structure
Fair Value REIT-AG / Preliminary Results/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.
Munich, November 7, 2008 – Fair Value REIT AG has continued its positive
growth in the first nine months of the current fiscal year according to
preliminary figures. From January 1 to September 30, 2008 the company
recorded revenues of € 10.3 million, of which around € 7.6 million stemmed
from the fully consolidated majority interests in five closed-end real
estate funds. In addition, Fair Value generated a further € 2.7 million
from its portfolio of directly held properties. As of September 30, 2008
the net rental result totaled € 8.0 million.
At the same time, Fair Value REIT-AG also holds minority participations in
a current total of eight closed-end real estate funds (associated
companies). This resulted in income of € 2.2 million in the first nine
months of 2008, which was booked as income from equity accounted
participating interests in the financial result. After minority interests
and net interest expense the financial result totaled € -2.1 million.
According to IFRS, Fair Value REIT-AG recorded consolidated net income of €
1.4 million in the first nine months of 2008, of which € 580 thousand
stemmed from the third quarter alone. As a result, earnings per share
totaled € 0.15 as of September 30, 2008.
Frank Schaich, Fair Value REIT-AG's CEO, has a positive view of the
operative development: 'Our business is currently running better than
expected. The office property Airport Office II in Düsseldorf, which was
completed in the third quarter, is now fully let and in future it will
contribute around € 1.1 million to revenues each year. Consolidated net
income (IFRS) totaled € 1.4 million, exceeding our forecast for the first
nine months.' In particular, the CEO highlighted the portfolio's great
earnings strength: 'After adjustment for changes in valuation and
extraordinary income, funds from operations (FFO) as of September 30, 2008
totaled € 2.6 million. This corresponds to FFO per share of € 0.28.'
The successful business in the first three quarters is also reflected in
Fair Value REIT-AG's balance sheet. Compared to December 31, 2007, total
assets increased slightly to € 233.3 million. The company's equity thus
totaled around € 94.8 million on the balance sheet date, after taking a
reserve for changes in the value of interest hedges into account. This
resulted in net asset value (NAV) per share of € 10.08.
In addition, Frank Schaich underscored the high equity backing of the
immovable assets and the solid financing structure: 'Including minority
interests in our subsidiaries, our economic equity totaled 51% of immovable
assets totaling € 227 million. Around 84% of our bank loans including our
participations in associated companies are fixed over the long term with an
average remaining term for fixed interest rates of 5.5 years. Interest
rates average 5.98% of all loans taken out and are partially hedged by
derivatives. Only around 16% of bank loans have variable interest rates.'
As a result, Fair Value REIT-AG has a solid long-term financing structure
and is mostly independent of the current situation on the credit markets.
In view of the excellent operating growth and the strong financial basis,
the Managing Board believes that it will be possible to achieve the targets
for the current fiscal year subject to the market valuation of the
properties and financial liabilities at the end of the year.
The full interim report for the first three quarters of 2008 will be
published online at www.fvreit.de in the Investor Relations section on
November 28, 2008.
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 € 49.0 million as of June 30, 2008. In
the third quarter of 2008, the portfolio value increased by carried forward
acquisition costs of € 13.7 million as a result of the completed office
building 'Airport Office II' in Düsseldorf.
As of September 30, 2008, the total portfolio which has a proportionate
market value of € 286.1 million for Fair Value, had an economic occupancy
level of more than 95% of the possible annual rent of around € 23.5
million. Around 47% of potential rent stems from offices, 40% from retail
facilities, 8% 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: [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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