Quarterly Report • May 15, 2009
Quarterly Report
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Interim Report 1st Quarter 2009
| Business model | Direct and indirect investments in commercial real estate First REIT in Germany to acquire interests in closed-end real estate funds against the issue of shares or payment of a purchase price (so-called UPRE IT) |
|||
|---|---|---|---|---|
| Sectors | Offices, Retail, Logistics / Light industrial | |||
| Region | Germany, focusing on regional locations | |||
| Portfolio | Direct investments and participations in closed-end real estate funds |
|||
| Properties | 32 properties (directly held) | |||
| 48 properties (held indirectly via 13 closed-end real estate | ||||
| funds) | ||||
| Market value | € 244.5 million *) | |||
| Potential rent | € 21.0 million **) |
*) Fair Value's share, based on market evaluations as of December 31, 2008
**) Fair Value's share as of March 31, 2009; approximately € 0.2 million above corresponding figure as of December 31, 2008
| January 1 to March 31, | |||
|---|---|---|---|
| € thousand | 2009 | 2008 | |
| Revenues and earnings | |||
| Rental revenues | 2,565 | 2,947 | |
| EBIT | 1,272 | 1,863 | |
| Consolidated net profit | 426 | 348 | |
| Earnings per share (€) | 0.05 | 0.04 | |
| Funds from operations (FFO) | 260 | 645 | |
| FFO / share (in €) | 0.03 | 0.07 |
| March 31, | December 31, | |
|---|---|---|
| 2009 | 2008 | |
| Assets and capital | ||
| Non-current assets | 181,666 | 181,526 |
| Current assets | 11,911 | 16,717 |
| Equity | 75,772 | 76,787 |
| Total assets | 193,577 | 198,243 |
| Equity ratio (in%) | 39.1 | 38.7 |
| Net asset value | 75,772 | 76,787 |
| Number of outstanding shares | 9,406,882 | 9,406,882 |
| Net asset value / share (in €) | 8.05 | 8.16 |
| Number of employees (including Managing Board) | 5 | 5 |
| To our shareholders |
5 |
|---|---|
| Letter to shareholders | 6 |
| Fair Value's share | 8 |
| Portrait of Fair Value REIT-AG | 12 |
| Group interim management report | 17 |
| Business report | 18 |
| I. Business activities and underlying conditions |
18 |
| i. O verview of business activities and company structure |
18 |
| ii. Underlying economic conditions and developments on the German commercial real estate market |
19 |
| II. Information on the total portfolio | 20 |
| III. Overall statement on the group's economic position and analysis of the financial position and results of operations |
22 |
| i. O verall statement on the group's economic position |
22 |
| ii. E arnings |
23 |
| iii. Financial position | 24 |
| iv. Net assets | 24 |
| IV. Related parties | 25 |
| Report on key events after the balance sheet date | 26 |
| Risk report | 26 |
| Opportunities and Forecast | 27 |
| Co nsolidated interim financial statements |
29 |
| Consolidated Balance Sheet | 30 |
| Consolidated Income Statement | 32 |
| Statement of Changes in consolidated equity | 33 |
| Consolidated Cash Flow Statement | 34 |
| Notes | 36 |
| Declaration by legal representatives | 41 |
| Real Estate portfo lio in detail |
43 |
| Valuation Method | 44 |
| Individual property information on total portfolio | 46 |
| Portfolio share according to proportionate interest | 50 |
| Imprint | 54 |
To our shareholders
Manfred Heiler und Frank Schaich
Dear shareholders, dear friends of our company,
Listed real estate companies such as Fair Value REIT-AG are part of two different worlds: Their own core business, asset and property management, and the world of the capital markets. These two worlds don't always move in the same direction.
In the first quarter of 2009 the international stock markets continued to be highly volatile and nervous. German real estate stocks again recorded major price losses from February after initial gains at the start of the year.
Prices seem to have started bottoming out since the start of the second quarter of 2009. The share prices of some companies have even enjoyed a perceptible upswing since March 2009 – the start of a trend that Fair Value REIT-AG's share price has not yet followed.
In parallel, our operating business has enjoyed on-track growth and there is a continued positive trend as a result of rental successes. The tenants in our property portfolio have met their rental obligations. Due to new lettings the occupancy level could be increased from 94.9% at the end of 2008 to 95.2% of Fair Value´s potential rent as of March 31, 2009. At the same time, prolongations and renewals of rental agreements in the first quarter of 2009 more than compensated ending rental agreements on balance. As a result, in the first quarter of 2009 a good third of the rental agreements that were due for reletting or renewal this year have successfully been processed.
Consolidated earnings for the first quarter of 2009 (adjusted for extraordinary factors) reflect these operating successes. This figure totaled € 1.3 million and was up slightly on our forecast. The extraordinary factors relate to the market valuation of the real estate resulting from the calculatory reduction of overrents during the year and to the market valuation of interest rate hedges which are reflected in income. As of March 31, 2009 these market valuations resulted in total charges to income of € 0.9 million. As a result, we can report consolidated net income of € 0.4 million or € 0.05 per share for the first quarter of 2009. The comparable figure from the previous year totaled € 0.3 million or € 0.04 cent per share in circulation.
The market valuation of effective cash flow hedges resulted in the amount of € 1.4 million increasing the reserve for changes in value to € 6 million, thus depressing equity. Taking the consolidated net income into account, the consolidated equity (NAV) was € 75.8 million or € 8.05 per share in circulation as of March 31, 2009.
As the reserve for changes in value for cash flow hedges will be reversed again upon the maturity of the underlying hedged transactions, the future reduced charges of € 6 million will lift NAV in the amount of € 6 million to a current € 0.64 per share.
After the balance sheet date the financing bank agreed a two-year extension for the short-term financing for the purchase price payment for fund units acquired in 2007 which was about to expire in August 2009. In this connection, this loan of € 13.5 million will be redeemed in the amount of € 6 million from cash and cash equivalents and from financial assets.
As a result, we have already been able to complete financing tasks that were scheduled for this year and therefore, Fair Value REIT-AG's financing has been secured over the long term.
We have done our homework in a difficult environment: We have widened the basis for our income and further improved our financing structure. As a result we believe that our company is well positioned for constant further growth.
Munich, May 14, 2009
The Managing Board
Frank Schaich Manfred Heiler
| Sector | Real Estate (REIT) |
|---|---|
| WKN (German Securities Code) / ISIN | A0MW97 / DE000A0MW975 |
| Stock exchange symbol | FVI |
| Share capital | € 47,034,410.00 |
| Number of shares (non-par value shares) | 9,406,882 |
| Proportion per share in the share capital | 5,– € |
| Initial listing | November 16, 2007 |
| High / low 2009 | € 4.80 / 3.01 (XETR A) |
| Market capitalization on March 31, 2009 | € 31.3 million (XETR A) |
| Market segment | Prime Standard |
| Stock exchanges | Prime Standard: Frankfurt, XETR A |
| OTC: Stuttgart, Berlin-Bremen, Duesseldorf, Munich | |
| Designated Sponsors | WestLB, DZ-Bank |
| Indices | RX REIT All Shares-Index |
| RX REIT-Index |
Fair Value REIT-AG's shareholder structure
| H.F.S. Zweitmarkt Invest 5 GmbH & Co. KG 7,44 | |
|---|---|
| Free Float | 42.28 % |
| H.F.S. Zweitmarkt Invest 4 GmbH & Co. KG 7,44 IC Immobilien Holding AG |
9.39 % |
| H.F.S. Zweitmarkt Invest 2 GmbH & Co. KG | 8.13 % |
| H.F.S. Zweitmarkt Invest 3 GmbH & Co. KG 7,44 H.F.S. Zweitmarkt Invest 5 GmbH & Co. KG |
7.44 % |
| H.F.S. Zweitmarkt Invest 4 GmbH & Co. KG | 7.44 % |
| IC Immobilien Service GmbH 6,34 H.F.S. Zweitmarkt Invest 3 GmbH & Co. KG |
7.44 % |
| IC Immobilien Service GmbH | 6.34 % |
| IFB Beteiligungen AG 5,44 IFB Beteiligungen AG i.L. |
5.44 % |
| Bayerische Beamten Lebensversicherung a.G. 3.76 % | |
| Bayerische Beamten Lebensversicherung a.G. 3,76 IC Fonds GmbH |
2.34 % |
To our shareholders Group interim Consolidated Notes Real Estate portfolio
Share chart Fair Value REIT-AG incl. NAV vs. EPRA / NAREIT Germany-Index (January 1, 2008 – May 13, 2009)
The EPRA/NAREIT Germany-Index is published by the EPRA European Public Real Estate Association and currently consists of the following listed real estate companies: Alstria Office, Colonia Real Estate, DIC Asset, Deutsche Wohnen, Deutsche Euroshop, Gagfah, Patrizia Immobilien, Vivacon.
The international stock markets continue to be influenced by the current financial and economic crisis. At the start of 2009 after a relief in the share price developments this situation deteriorated again, and prices on the capital markets further went down. Fair Value REIT-AG's shares were not able to escape this trend. Starting with a price of € 4.09 per share at the start of the year, the shares initially lifted to a high of € 4.80 on January 12, 2009. During the remainder of the first quarter, Fair Value's shares were increasingly swept along by the general negative trend on the market. When the preliminary results for
fiscal year 2008 were published in March, the share price stabilized at around € 3.30. On March 31, 2009 the shares were listed at € 3.33.
During the first three months of the current fiscal year, the trading volume of Fair Value's shares was 86,646 shares. This means that on all of the stock exchanges, shares with a total volume of € 337.4 thousand were traded. The average daily turnover was 1,379 shares or € 5,356.35.
Fair Value REIT-AG actively seeks dialog with the financial community, even and in particular in difficult economic periods. The Managing Board is in constant contact with analysts, investors and the specialist press, and it provides them with end-toend information on the company's current business growth. The fundamental principles of corporate communication are being up-to-date, transparent and open.
The company constantly provides its interested audience with information via detailed reporting and the publication of company-relevant news. In addition, Fair Value participates regularly at investors' conferences in Germany and abroad, and presents its current results at roadshows.
The company plans to uphold this open exchange of information in future. Finally, the Managing Board constantly seeks dialog with the financial media in order to provide the general public, and also of course the company's many private investors, with the most comprehensive picture possible of Fair Value's growth. Comprehensive information on the shares can also be found at www.fvreit.de in the Investor Relations section.
| Q1 Report 2009 |
|---|
| Annual General Meeting, Munich |
| Presentation, NAREIT REIT - Week, New York City |
| Six-month report 2009 |
| Presentation, 9th specialist conference |
| "Initiative Immobilien-Aktie", Frankfurt am Main |
| Presentation, German Equity Forum, Frankfurt |
| Q3 Report 2009 |
Fair Value REIT-AG focuses on acquiring and managing commercial properties in Germany. To date Fair Value is the only listed real estate company in Germany pursuing a unique business model: In addition to acquiring properties directly, the company acquires participations in closed-end real estate funds. As a rule, these participations can be acquired as noncash acquisitions, i.e., by exchanging participations for shares of Fair Value (so-called "UPREIT"), or participations can be bought against payment of a purchase price. Fair Value REIT-AG's real estate portfolio thus comprises two segments: Direct Investments and Participations.
At present, the total portfolio of direct investments and participations comprises 80 properties with a total rental space 456,597m². The properties are located throughout Germany and had a market value of € 546.3 million based on individual valuations performed as of December 31, 2008. After considering the participation ratios in the individual funds, the value due to Fair Value totals € 244.5 million. Given proportionate potential rent of € 21.0 million, this thus results in an attractive current return of 8.6%. The income-related occupancy level of around 95% and an average remaining term of 6.7 years for the rental agreements means that rental income has been sustainably secured.
In the Participations segment the company acquires both majority and significant minority interests. This ensures an effective influence on management of the closed-end real-estate funds, and thus creates opportunities to realize potential to increase value via active asset management.
At present, Fair Value REIT-AG holds majority participations in five closed-end funds (subsidiaries). The properties held by these real estate funds have a total rental area of 112,673 m². The company holds a participation of between 20 and 50 percent in eight
Fair Value REIT-AG's share
Potential rental return in % based on proportionate market values
other funds (associated companies) with a rental area of 300,977 m². As a result, the rental area of the portfolio of participations totals 413,650 m².
Fair Value REIT-AG currently holds a portfolio of 32 properties directly. These properties are primarily used as bank branches ("Sparkasse portfolio"), and have a total rental area of 42,948 m². The company acquired these properties in December 2007 using the so-called exit-tax privilege, thus effectively employing its status as a REIT. The main tenant for these commercial properties, located in the state of Schleswig-Holstein, is Sparkasse Südholstein. The "Sparkasse portfolio" had a total market value of around € 47.3 million as of December 31, 2008. Over the long term, the company plans to increase the proportion of properties it holds directly in its total portfolio, thus further increasing the rental income which is due to the company each month.
| March 31, | |
|---|---|
| 2009 | |
| Sparkasse Südholstein | 14.14% |
| Edeka Konzern | 9.62% |
| Metro Group | 9.57% |
| Kaufland Gruppe | 5.80% |
| BBV Holding AG | 5.48% |
| Schweizerhof Hotel | 4.50% |
| HPI Germany | 2.93% |
| ABB Grundbesitz GmbH | 2.92% |
| REWE Group | 2.60% |
| comdirect bank AG | 2.51% |
| Other | 39.39% |
| Sum | 100.00% |
* according to potential rent
Lease expiry schedule in % of proportionate contractual rent
(Market value of € 244,5 million of Fair Value's proportionate portfolio by federal state as of December 31, 2008)
management report financial statements in detail
Diversification is one of the main characteristics of Fair Value REIT-AG's real estate portfolio. The total of 80 properties are spread over a large number of locations, and have highly varied uses. Around 45% of the proportionate potential rent are generated from renting retail properties, a further 40% stem from office properties. Around 9% stem from the logistics sector, with other space accounting for 6% of the potential rent. This means that Fair Value is comparatively independent of developments in individual sectors or regions, both with regard to its rental activities as well as the growth in the value of its portfolio.
Fair Value's geographic focus is on medium-sized cities and regional centers throughout Germany. The regional breakdown of the real-estate portfolio shows: The company is present in almost all federal states, with its properties spread broadly throughout Germany. At the same time, the bulk of the properties are in so-called "secondary locations", both in terms of the number and also the market values of the properties.
This portfolio structure allows Fair Value to combine attractive rental returns with a comparatively low risk profile. As a result of the fact that the German economy tends to be geared to SMEs, the volatility for medium-sized locations is comparatively low. In contrast, economic fluctuations tend to impact the real estate markets in major cities to a greater extent – both in terms of the properties rents and the growth in their value.
The structure of the real estate portfolio reflects Fair Value REIT-AG's investment strategy: Direct and indirect acquisitions of high-margin commercial properties, preferably in medium-sized locations. Based on this dual-pillar strategy, over the medium term Fair Value will thus drive the expansion of its business activities both via additional participating interests in specific closed-end real estate funds as well as via targeted direct investments.
Medium-sized cities and regional centers will thus continue to form the focus of investment activities in future thanks to the attractive returns that can be generated there, coupled with the lower fluctuations in market values and rents. In addition, Fair Value will also make selective investments in urban conurbations – as was the case with Airport Office II in Düsseldorf, which has now been sold. In order to further optimize its portfolio structure, in future the company will increase its real estate portfolio for logistics and office properties.
In an international comparison, the real estate market in Germany continues to be relatively stable, and thus continues to offer opportunities despite the current overall economic cooldown. That is why Fair Value REIT-AG is well positioned for further growth, and will consistently and resolutely continue the course it has taken to date.
Number of properties
Fair Value REIT-AG (hereinafter also referred to as Fair Value or the Fair Value Group) focuses on acquiring and managing commercial properties in Germany. Fair Value REIT-AG acts as the parent company for the Fair Value group. At present, the company holds participating interests in a total of 13 closed-end real-estate funds, of which five are majority interests, and eight are minority interests. In the case of minority interests, the shareholding totals 20 % to 50%.
Fair Value's USP is that – in addition to investing directly in real estate – it also acquires interests in closed-end real estate funds. Participations can be acquired as non-cash acquisitions, i.e., by exchanging interests for shares of Fair Value, or interests can be bought against payment of a purchase price.
This method of acquiring real estate (so-called "UPREIT") is unique to date in Germany, and together with the traditional, direct acquisition of real estate, the company's business model has two pillars: the segments "Participations" and "Direct Investments".
As of March 31, 2009, Fair Value REIT-AG's Participations segment held participating interests in a broadly diversified fund portfolio with 48 properties and a total rental area of 413,650 m². As of December 31, 2008, the market value of these properties totaled around € 499 million (Fair Value's share corresponded to around € 197.3 million).
In the Direct Investments segment, since December 2007 the company has owned a portfolio of 32 commercial properties, mostly used as bank branches by Sparkasse Südholstein. The properties,
located in Schleswig-Holstein, have a total rental space of 42,948 m². These properties had a total market value of around € 47.3 million as of December 31, 2008 based on individual valuations.
As of December 31, 2008, the total portfolio had a proportionate market value for Fair Value of around € 244.5 million. At the balance sheet date, around 95% were let (income based) based on the potential rent of € 21.0 million which slightly increased. This is spread over property used for offices, retail, logistics and other uses.
Fair Value REIT-AG is independently managed by its Managing Board, which has many years' experience in acquiring and managing commercial properties and participations in closed-end real estate funds. The five employees (including the Managing Board) focus on the strategic management of the company and its participations as well as risk management.
The Managing Board cooperates closely with the Supervisory Board, which is included in all major decisions. The Supervisory Board comprises three members.
Operating support for the company for accounting, property management and asset management has been outsourced to IC Immobilien Group companies based in Unterschleißheim near Munich. These companies have around 200 employees and the group supports an investment volume of around € 5.3 billion for retail and institutional investors.
In spring 2009 the German economy was in a steep recession. To date even extensive Federal Government's Packages of Economic Measures have not been able to have any effect and recreate market participant's trust. Demand in Germany for investment products has also slumped, which has had a particularly major impact on the export sector - which drives Germany's economy and which has benefited in particular from the global upswing of the past few years. Even though various indicators initially point towards a deceleration in decrease of production and demand at present gross domestic product is forecast to fall by around 6.0% in the current calendar year. The European Central Bank has cut interest rates in several steps to their current level of 1%. However, this is not expected to have a positive effect before the second half of 2009.
Consumer prices did not change in the first three months of 2009 compared to December 2008. The lower cost of crude oil is taking the pressure off energy costs. The tense situation means that the core inflation rate is expected to fall, with the result that only a slight increase in prices is expected in 2009.
The economic downswing is increasingly impacting the job market. Compared to December 2008, in March 2009 almost 500,000 more people or 8.6% of the workforce were unemployed. After seasonal adjustment, this is still almost 200,000 more people than in the previous year. However this should not disguise the fact that short-time work put in place in many companies has had a stabilizing impact on employment. The anticipated significant downturn
in general economic output will lead to accelerated staff cuts, which will result in unemployment passing the four million mark this year.
December 2008 monthly report by the German Federal Labor Agency; Destatis – German Federal Statistics Office; Project Group Common Diagnosis, Spring 2009
The recession has now also reached the office market. This has led to a significant downturn in demand for office space. Letting performance was down by approx. 30% year-on-year, with total results of around 500,000 m² in the six major office centers of Munich, Stuttgart, Berlin, Düsseldorf, Frankfurt/Main and Hamburg.
During the remainder of the year, vacancies are expected to increase compared to the current 7.05 million m² or 9.0%. This will be driven by both speculative new building activity as well as the simultaneous weak demand for space and users potentially reducing the amount of space they require when renting new premises.
After rents peaked at the end of 2008, a downturn could already be seen in the first quarter of 2009 in terms of both peak and average rents. In addition, the use of incentives, such as rent-free periods, has also increased.
The retail market, and top locations in particular, has not yet been affected by the economic crisis. There was also no significant change in market rents in the specialist stores segment, despite the current downturn in retail revenues.
In contrast, the market for logistics space did not present a uniform picture in the first quarter, even though rents were stable. Revenues in urban conurbations fell, however significantly more space was turned over outside the urban conurbations than was the case in previous years.
The volume of transactions for commercially used properties fell substantially in 2008 compared to the previous two exceptional years, and this trend continued in the first quarter of the current fiscal year with a volume of just around € 1.75 million. However, the rapid increase in returns observed over the past few years has weakened significantly. Excellent products continue to find buyers, and the potential for further increases in yields is falling in particular in the top segment as demand increases.
Source:
Jones Lang LaSalle, Office Market Overview Q1 2009, Investment Market Overview Q1 2009 and Logistics Space Market Overview Q1 2009; Kempers Retail Ticker H1 2009
The Fair Value Group's real estate portfolio is either directly owned by the parent company or is held by subsidiaries (participation of more than 50%). In addition, the real estate held by associated companies (participating interest of less than 50%) forms part of Fair Value's total portfolio. This portfolio structure impacts the accounting treatment in the consolidated balance sheet and the consolidated income statement. The full consolidation of subsidiaries means that, according to IFRS accounting, the interests attributable to the minority shareholders are carried on the equity and liability side of the balance sheet. In Fair Value's case, these are carried under liabilities.
Participations in associated companies are carried at equity. Therefore only the proportionate net assets due to Fair Value REIT-AG are carried on the assets side of the balance sheet. The consolidated income statement includes the proportionate current results from the associated companies in the result from participations.
The following table provides information on the real estate attributable to the group and the associated companies. The right hand side shows the annualized contractual rent as of March 31, 2009 and the market values as of December 31, 2008 as well as the rentalrelated information taking into account Fair Value REIT-AG's respective participation rate as of March 31, 2009.
Compared to December 31, 2008, the rental level in the proportionate portfolio due to Fair Value has increased from 94.9% to 95.2% of the proportionate potential rent at the end of the first quarter of 2009. The weighted remaining period of the rental agreements was 6.7 years on the balance sheet date.
| Fair Value REIT-AG's share | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Short name |
Direct investments and participations | Plot size 0) |
Total rental area 0) 6) |
Annu alised con tractual rent March 31, 2009 |
Market value Decem ber 31, 2008 0), 1) |
Percen tage of partici pation |
Annu alised con tractual rent March, 2009 |
Market value Decem ber 31, 2008 1), 2) |
Occu pancy level 3), 4), 5) |
Average remai ning term of rental agree ments 4), 5) |
| [€ thou | [€ thou | [€ thou | [€ thou | |||||||
| Direct investments | [m²] | [m²] | sand] | sand] | [%] | sand] | sand] | [%] | [years] | |
| Sparkasse Portfolio | 58,624 | 42,948 | 3,218 | 47,270 | 100.00 | 3,218 | 47,270 | 98.0 | 13.1 | |
| Total direct investments | 58,624 | 42,948 | 3,218 | 47,270 | 100.00 | 3,218 | 47,270 | 98.0 | 13.1 | |
| Subsidiaries | ||||||||||
| IC07 | IC Fonds & Co. Büropark Teltow KG | 5,324 | 9,732 | 442 | 7,500 | 75.73 | 335 | 5,680 | 63.1 | 2.4 |
| IC03 | IC Fonds & Co. Forum Neuss KG | 19,428 | 12,064 | 613 | 7,720 | 71.58 | 439 | 5,526 | 95.8 | 1.8 |
| IC01 | IC Fonds & Co. München-Karlsfeld KG | 7,019 | 3,375 | 348 | 4,340 | 55.79 | 194 | 2,421 | 100.0 | 6.7 |
| BBV06 | BBV Immobilien-Fonds Nr. 6 | |||||||||
| GmbH & Co. KG | 97,232 | 72,457 | 4,777 | 54,770 | 54.89 | 2,622 | 30,065 | 89.4 | 5.0 | |
| BBV03 | BBV Immobilien-Fonds Nr. 3 | |||||||||
| GmbH & Co. KG Total subsidiaries |
26,210 155,213 |
15,046 112,673 |
882 7,062 |
9,140 83,470 |
53.69 | 474 4,064 |
4,907 48,600 |
91.8 87.8 |
2.7 4.3 |
|
| Total group | 213,837 | 155,620 | 10,280 | 130,740 | ||||||
| Associated companies | ||||||||||
| IC13 | Associated companies | 22,357 | 21,834 | 2,556 | 23,600 | 49.86 | 1,274 | 11,767 | 94.4 | 5.4 |
| BBV14 | BBV Immobilien-Fonds Nr. 14 GmbH & Co. KG |
16,196 | 37,997 | 6,165 | 84,660 | 45.03 | 2,776 | 38,119 | 97.4 | 4.9 |
| IC12 | IC Fonds & Co. SchmidtBank-Passage KG | 4,226 | 8,380 | 536 | 7,760 | 40.22 | 216 | 3,121 | 80.4 | 4.7 |
| BBV02 | BBV Immobilien-Fonds Erlangen GbR | 6,350 | 2,770 | 231 | 1,770 | 38.94 | 90 | 689 | 100.0 | 3.3 |
| IC15 | IC Fonds & Co. Gewerbeobjekte | |||||||||
| Deutschland 15. KG | 21,335 | 33,088 | 3,070 | 34,550 | 38.34 | 1,146 | 12,800 | 96.8 | 4.3 | |
| BBV10 | BBV Immobilien-Fonds Nr. 10 | |||||||||
| GmbH & Co. KG | 177,231 | 96,199 | 10,660 | 122,780 | 38.31 | 4,084 | 47,042 | 97.4 | 5.1 | |
| IC10 | IC Fonds & Co. Rabensteincenter KG | 11,203 | 9,981 | 693 | 9,180 | 26.14 | 181 | 2,400 | 91.3 | 3.1 |
| BBV09 | BBV Immobilien-Fonds Nr. 9 | |||||||||
| GmbH & Co. KG | 114,912 | 90,728 | 11,715 | 131,250 | 24.93 | 2,921 | 32,720 | 100.0 | 8.8 | |
| Total associated companies | 373,810 | 300,977 | 35,626 | 415,550 | 12,688 | 148,658 | 97.2 | 5.8 | ||
| Total proportionate portfolio | 19,970 | 244,528 | 95.2 | 6.7 |
Explanations
0 ) Does not consider the respective participating interest
1 ) According to valuation by CB Richard Ellis GmbH, Berlin, December 31, 2008
2 ) Proportionate market values attributable to Fair Value based on percentage of participations; in the case of IC15 the two-tier fund structure of the properties "Dresden" and "Chemnitzpassage" is taken into account.
3 ) contractual rent/potential rent (= contractual rent + vacancy rates at standard market rent)
4 ) Income-weighted as of March 31, 2009
5 ) (Sub) totals for rental level and average remaining term taking the respective percentage of participations into account
21 6 ) The reduction of lettable areas by a total of 553 m² compared to the list as of December 31, 2008, is due to space reductions at some properties due to market situations with subsequent letting effectively not rentable surfaces such as general surfaces etc. as well as changes of renting surfaces in the course of new measurements
i. Overall statement on the group's economic position
In the first quarter of 2009, operating business enjoyed on-track development both in the group and also at the associated companies. Overall, there was a positive trend for rentals. The occupancy level on the balance sheet date for directly held properties increased to 98,0% of the potential rent (December 31, 2008: 97.1%). At the properties of the subsidiaries this figure increased to 88.4% (December 31, 2008: 87.5%). Fair Value's share of occupancy level at the associated companies was stable at 97.2% (December 31, 2008: 97.2%).
The purchase price retainer in connection with the sale of Airport Office II, Düsseldorf, of € 0.6 million was paid to Fair Value during Q1 2009 with the exception of € 54 thousand. In line with expectations, no claims were made against Fair Value for the rental guarantee it issued for five rental agreements for the first quarter of 2009.
The further reduction in capital market interest rates has caused losses from the valuation of interest rate hedges (interest rate swaps) during the period under review. This caused a € 1.4 million increase in the reserve for changes in value in the amount of the effective cash flow hedges, taking the figure to € 6.0 million (December 31, 2009: € 4.6 million). Income from equity-accounted participations fell as a result of losses from the market valuation of interest rate swaps. This was reflected in income in the proportionate amount of € 0.5 million.
The following table clearly shows that, after adjustment for extraordinary factors from the reduction of so-called overrents and the changes in the market valuation of interest rate swaps, there was adjusted consolidated net income of € 1.3 million. These adjusted earnings are thus slightly higher than the forecast published in the spring of 2009 for IFRS consolidated earnings of € 4.2 to € 4.5 million in fiscal year 2009 prior to the consideration of the reduction in overrents.
| Adjusted consolidated earnings | According to Con solidated Income Statement |
Adjustment for extror dinary factors reduction over-rents |
Interest swaps |
Adjusted Consoli dated Income Statement |
|---|---|---|---|---|
| Net rental result | 1,854 | 1,854 | ||
| General administrative expenses | -571 | -571 | ||
| Other operating income and expenses | -1 | -1 | ||
| Valuation result | -10 | 10 | 0 | |
| Operating income | 1,272 | 1,282 | ||
| Co-operation results | 500 | 375 | 875 | |
| Minority interests | -204 | -5 | -21 | -230 |
| Net interest expense | -1,142 | 550 | -592 | |
| Financial result | -1,346 | -822 | ||
| Consolidated net income (loss) | 426 | 380 | 529 | 1,335 |
In the first three months of 2009 the Fair Value Group recorded revenues (rental income including income from operating and incidental costs) of € 2.8 million (previous year: € 3.3 million). Of this total, 32% was recorded in the Participation segment, and 68% in the Direct Investments segment. After deducting the real estate-related operating expenses including leasehold payments totaling around € 1.0 million, the net rental result totals around € 1.8 million (previous year: € 2.8 million).
The € 0.5 million downturn in revenues compared to the previous year is due to the lower rental income at the subsidiary IC 07 after the premature termination of the general rental agreement against a compensation payment. The real estate-related operating expenses in the first quarter of 2009 are in line with forecast. Around half of the year-onyear increase of € 0.5 million is due to shifts in the settlement of operating costs connected with the
acquisition of the Sparkasse portfolio. This effect will balance itself out during the course of the year. The other half of the increase is due to the increase in maintenance and energy costs.
Fair Value REIT-AG's general administrative costs totaled € 0.57 million in the first quarter of 2009 and were thus 7% below the same period of the previous year. Of this total, 75% was due to overheads at the parent company, with the remaining 25% attributable to general administrative costs at the subsidiaries. Budget of overhead costs of the parent company reflect a reduction of 13% in comparison to the previous year.
Net income for the equity-accounted participating interests totaled € 0.7 million. This included expenses from the valuation of interest rate hedges (swaps) totaling € 1.9 million) and valuation losses from the reduction of overrents totaling € 1.1 million. The
non-cash reduction in the differences from the market valuation of financial liabilities on the date of firsttime consolidation (September 30, 2007) of € 0.2 million, results in an economic result of € 0.9 million. The proportion attributable to Fair Value thus led to income from equity-accounted participations of € 0.5 million (previous year: € 0.4 million).
Taking the minority interest in the result and the net interest expense totaling € 1.3 million into account, there was consolidated net income of € 0.4 million after the first three months of fiscal year 2009 (previous year: € 0.3 million). This corresponds to basic earnings per share of € 0.05 (previous year: € 0.04).
During the period under review, the cash flow from operating activities (so-called funds from operations or FFO) amounted to € 0.3 million (previous year: € 0.6 million (or € 0.03 per share (previous year: € 0.07). In order to calculate this indicator, the non-cash income and expense were added to or deducted from the consolidated net income (see the consolidated cash flow statement). The yearon-year reduction was impacted by the lower rental income at the subsidiary IC 07 after the premature termination of the general rental agreement against a corresponding compensation payment.
The net cash used in operating activities of € 3.3 million (previous year: € 3.6 million) is mostly due to the settlement of value added tax, which resulted from the compensation payment by IC 07's general tenant in December 2008. Cash and cash equivalents fell, taking the investments in property, plant and equipment and the repayment of bank loans totaling € 0.4 million in the first quarter of 2009 by € 3.7 million to € 10.4 million (previous year's balance sheet date: € 5.2 million).
Fair Value's consolidated total assets amounted to € 193.6 million on March 31, 2008 (December 31, 2008: € 198.2 million).
Non-current assets account for the bulk of this total at 94% or € 181.7 million. Around € 130.7 is due to Fair Value REIT-AG's directly held properties and its subsidiaries properties. A further € 48.6 million is due to the net assets of associated companies (equityaccounted participations). In addition, non-current assets include a fixed-term deposit of € 2.3 million which is pledged as security.
During the first quarter of 2009, current assets fell by € 4.8 million to € 11.9 million. This is due to the reduction in cash and cash equivalents. A large proportion of this amount was due to settle value added tax – as a result of the compensation payment made by the subsidiary IC 07's general tenant.
The group's financial liabilities totaled € 94.0 million or 49% of total assets (€ 193.6 million) on the balance sheet date. Of this total 17% or € 16.3 million is due within one year.
Taking into account the minority interests, the equity ratio totaled 51.5% of immovable assets according to Section 15 of the REITG.
Fair Value REIT-AG's equity or net asset value (NAV) on the balance sheet date totaled € 75.8 million or € 8.05 per share (December 31, 2008: € 76.8 million or € 8.16) taking into account the reserve for changes in value (hedge accounting for interest rate hedges) totaling € -6.0 million.
| March | December | |
|---|---|---|
| 31, | 31, | |
| in € thousand | 2009 | 2008 |
| Fair market values – real estate | 130,730 | 130,740 |
| Equity-accounted investments | 48,589 | 48,443 |
| Other assets less other liabilities | 8,055 | 13,150 |
| Minority interests | -16,620 | -16,505 |
| Financial liabilities | -93,976 | -94,257 |
| Other liabilities | -1,006 | -4,784 |
| Net asset value | 75,772 | 76,787 |
| Net asset value per share* (in €) | 8.05 | 8.16 |
* based on 9,406,882 shares in circulation
Companies in the IC Immobilien Group which hold a total interest of 18.09% in Fair Value REIT-AG, provide asset management, property management and corporate services for the group and its associated companies. There are other service agreements at a subsidiary and associated company level. Details of these relationships and of the relationships with other related parties can be found in Fair Value REIT-AG's 2008 annul report on pages 90 to 94. Please refer to Note 12 to the consolidated financial statements with regard to receivables and liabilities on the balance sheet date.
No transactions were concluded with the Supervisory Board, Managing Board and their close relatives in the first three months of 2009.
The financing bank agreed with the company a two-year extension of what had previously been current financial liabilities through to July 31, 2011. In this connection, the company redeemed the loan to finance the fund units purchased in 2007 (participation financing) with an initial total of € 16.1 million (value on March 31, 2009: € 13.5 million) from cash and cash equivalents in the amount of € 3.5 million to € 10.0 million.
As part of a further redemption by € 2.5 million to € 7.5 million, the bank will issue a guarantee in the amount of € 2.3 million, which will be provided to the seller of the Sparkasse portfolio in exchange for the fixed-term deposit pledged as collateral for an eventual loss of the company's REIT status.
In future, further redemption payments are to be made in the amount of 60% of the funds received from the sale of fund properties or participations in funds, however at least in the amount of € 0.5 million p.a. The bank margin will increase from August 2009 from a previous 165 bp to 475 bp over EURIBOR. A margin of 225 bp will accrue for the guarantee.
This agreement will reduce the group's liquidity. At the same time, however, the financial liabilities will also fall by € 6.0 million to around € 88 million, of which approx. 97% will then qualify as non-current financial liabilities under IFRS.
Fair Value is exposed to various risks as a result of its business activities. In addition to economic crisis, these are mostly rental risks, risks of rental default, interest rate risks and liquidity risks. The company's risk management and general risks are detailed in Fair Value REIT-AG's 2008 annual report on pages 42 to 45.
As the forecasts for global economic growth fell further in the first quarter, it is possible that the valuation of the company's real estate on December 31, 2009, will lead to further devaluations. This could have a negative impact on Fair Value REIT-AG's financial position.
The continued reduction in interest rates also bears the risk of losses from financial derivatives, however, these are not cash flow relevant. As a result of the strong downturn in interest rates, at present less interest is incurred for the loans with variable interest rates.
Taking into account the loan for acquired participating interests, which has been extended by two years, cash and cash equivalents and the cash flow from operating activities are sufficient to pay all liabilities when they are due for the coming twelve months. Despite the continuing weak economy, the Managing Board does not believe that risks will occur in fiscal year 2009 that could endanger the continued existence of Fair Value REIT-AG.
Opportunities and forecast
Fair Value REIT-AG is pursuing a consistent corporate strategy by investing directly in properties and participations in closed-end real estate funds. The company can use both opportunities for direct investments and also investments in closed-end real estate funds, based on a broadly diversified portfolio of existing properties with an incomebased rental level of 95,2% of potential rent. In particular the market for closed-end real estate funds offers enormous potential with a portfolio of more than € 140 billion, which Fair Value REIT-AG aims to increasingly penetrate. Fair Value REIT-AG is excellently positioned in this regard as the first "upstream REIT" in Germany.
The company will have to obtain additional equity in order to continue its on-track expansion. This is possible via either cash or non-cash capital increases thanks to Fair Value REIT-AG's special business model. A key requirement for these activities is a positive environment on the capital markets. The most recent recovery on the capital markets could point towards the stock markets stabilizing still further during the course of the year. The company will use the time until then to prepare in the best possible way for the opportunities that arise.
As a result of the on-track growth in the first quarter of 2009, the Managing Board has reinforced its forecast for 2009 as a whole. This forecast includes Fair Value REIT-AG recording consolidated earnings (IFRS) of € 4.2 to € 4.5 million before taking changes in the market values of its real estate and interest rate derivatives into account.
| Note | March 31, | December 31, | |
|---|---|---|---|
| € thousand | No. | 2009 | 2008 |
| Assets | |||
| Noncurrent assets | |||
| Intangible assets | 5 | 2 | |
| Property, plant and equipment | 22 | 22 | |
| Investment property | 3 | 130,730 | 130,740 |
| Equity-accounted investments | 4 | 48,589 | 48,443 |
| Financial assets | 5 | 2,320 | 2,319 |
| Total non-current assets | 181,666 | 181,526 | |
| Current assets | |||
| Trade receivables | 937 | 1,502 | |
| Other receivables and assets | 595 | 1,176 | |
| Cash and cash equivalents | 10,379 | 14,039 | |
| Total current assets | 11,911 | 16,717 | |
| Total assets | 193,577 | 198,243 |
| Note | March 31, | December 31, | |
|---|---|---|---|
| € thousand | No. | 2009 | 2008 |
| Equity & liabilities | |||
| Equity | |||
| Subscribed capital | 47,034 | 47,034 | |
| Share premium | 46,167 | 46,167 | |
| Reserve for changes in value | 6 | (6,016) | (4,575) |
| Retained earnings | (11,413) | (11,839) | |
| Total equity | 75,772 | 76,787 | |
| Non-current liabilities | |||
| Minority interests | 16,620 | 16,505 | |
| Financial liabilities | 7 | 77,681 | 78,352 |
| Derivative financial instruments | 5,439 | 4,217 | |
| Other liabilities | 279 | 279 | |
| Total non-current liabilities | 100,019 | 99,353 | |
| Current liabilities | |||
| Provisions | 253 | 334 | |
| Financial liabilities | 7 | 16,295 | 15,905 |
| Trade payables | 511 | 1,359 | |
| Other liabilities | 8 | 727 | 4,505 |
| Total current liabilities | 17,786 | 22,103 | |
| Total shareholders' equity and liabilities | 193,577 | 198,243 |
| Note | January 1 to March 31, | ||
|---|---|---|---|
| € thousand | No. | 2009 | 2008 |
| Rental income | 2,565 | 2,947 | |
| Income from operating and incidental costs | 272 | 380 | |
| Leasehold payments | (57) | (57) | |
| Real-estate related operating expenses | (926) | (510) | |
| Net rental result | 1,854 | 2,760 | |
| General administrative expenses | 9 | (571) | (614) |
| Other operating income | 2 | 14 | |
| Other operating expenses | (3) | (2) | |
| Other operating income and expenses | (1) | 12 | |
| Valuation gains | 0 | 0 | |
| Valuation losses | (10) | (295) | |
| Valuation result | 3 | (10) | (295) |
| Operating result | 1,272 | 1,863 | |
| Income from equity-accounted investments | 4 | 500 | 419 |
| Income from participations | 500 | 419 | |
| Minority interest in the result | (204) | (250) | |
| Net interest expense | 10 | (1,142) | (1,684) |
| Financial result | (1,346) | (1,934) | |
| Consolidated net income | 426 | 348 | |
| Earnings per share in € (basic/diluted) | 0.05 | 0.04 |
| Shares in |
Subscri bed |
Share | Reserve for changes in |
Retained | ||
|---|---|---|---|---|---|---|
| € thousand | circulation | capital | premium | value | earnings | Total |
| Balance at January 1, 2008 | 9,406,882 | 47,034 | 46,167 | 0 | 1,462 | 94,663 |
| Consolidated net income | 0 | 0 | 0 | 0 | 348 | 348 |
| Balance at March. 31, 2008 | 9,406,882 | 47,034 | 46,167 | 0 | 1,810 | 95,011 |
| Balance at January 1, 2009 | 9,406,882 | 47,034 | 46,167 | (4,575) | (11,839) | 76,787 |
| Change from cash-flow hedge | 0 | 0 | 0 | (1,176) | 0 | (1.176) |
| of which attributable to minority interests | 0 | 0 | 0 | 89 | 0 | 89 |
| Change from cash-flow hedges for associated companies |
0 | 0 | 0 | (354) | 0 | (354) |
| Consolidated net income | 0 | 0 | 0 | 0 | 426 | 426 |
| Balance at March 31, 2009 | 9,406,882 | 47,034 | 46,167 | (6,016) | (11,413) | 75,772 |
| January 1 to March 31, | ||
|---|---|---|
| € thousand | 2009 | 2008 |
| Consolidated net income | 426 | 348 |
| Consolidated net income | 74 | 2 |
| Valuation result | 10 | 295 |
| Share of profit from equity-accounted investments | (500) | (419) |
| Minority interest in the result | 204 | 250 |
| Result from the valuation of derivative financial instruments | 46 | 169 |
| Funds from operations | 260 | 645 |
| Change in assets, equity and liabilities | ||
| (Increase)/decrease in trade receivables | 565 | 432 |
| (Increase)/decrease in other liabilities | 580 | 2,888 |
| (Decrease)/increase in provisions | (81) | 25 |
| (Decrease)/increase in trade payables | (848) | (182) |
| (Decrease)/increase in other liabilities | (3,778) | (213) |
| Cash Flow from operating activities | (3,302) | 3,595 |
| Payments for the purchase of interests in associated companies | 0 | (10) |
| Income from the sale of subsidiaries (BBV 08) | 0 | 2,856 |
| Investments in investment property/property under construction | 0 | (10,171) |
| Investments in property, plant and equipment and intangible assets | (77) | 0 |
| Cash Flow from investment activities | (77) | (7,325) |
| Receipts from financial liabilities | 0 | 6,138 |
| Repayment of financial liablities | (281) | (2,622) |
| Cash Flow from financing activities | (281) | 3,516 |
| Net change in cash and cash equivalents | (3,660) | (214) |
| Cash and cash equivalents - start of period | 14,039 | 5,381 |
| Cash and cash equivalents – end of period | 10,379 | 5,167 |
After being entered as an Aktiengesellschaft on July 12, 2007, Fair Value REIT-AG has been listed on the stock exchange since November 16, 2007. It became a REIT on December 6, 2007.
As a result of its participation in thirteen closedend real estate funds, the company must prepare consolidated financial statements.
Principles of preparation – The consolidated interim financial statements have been prepared based on International Financial Reporting Standards (IFRSs), taking IAS 34 "Interim Financial Reporting" into account.
Investment property and financial derivatives are measured at their fair values, interests in associated companies are equity-accounted. All other measurements are based on cost.
Consolidation – The consolidated financial statements include all subsidiaries. The group of consolidated companies has not changed compared to December 31, 2008.
Accounting and valuation methods – Fair Value REIT-AG has used all of the accounting standards for which application was mandatory from fiscal year 2009. These mostly comprise IAS 1 on presentation of the financial statements, IAS 23 on the capitalization of borrowing costs and IFRS 8 on segment reporting.
The amended IAS 1 has led to a new classification of the components of the annual financial statements.
The amended IAS 23 requires that allocable borrowing costs are capitalized for qualified assets for which production started or which were acquired on or after January 1, 2009. An asset is a qualified
asset if a period of at least one year is required to make the asset ready for its intended use or sale. The amended IAS 23 does not have any impact on the presentation of Fair Value REIT AG's financial position and results of operations.
Comparable figures – the comparable figures in the income statement and the cash flow statement are for the period from January 1 to March 31, 2008.
| Direct | |||
|---|---|---|---|
| invest | Subsidia | ||
| € thousand | ments | ries | Total |
| Acquisition costs | |||
| Balance at | |||
| January 1, 2009 | 51,832 | 104,605 | 156,437 |
| Balance at | |||
| March 31, 2009 | 51,832 | 104,605 | 156,437 |
| Changes in value | |||
| Balance at | |||
| January 1, 2009 | (4,562) | (21,135) | (25,697) |
| Write-downs | 0 | (10) | (10) |
| Balance at | |||
| March 31, 2009 | (4,562) | (21,145) | (25,707) |
| Fair values | |||
| Balance at | |||
| January 1, 2009 | 47,270 | 83,470 | 130,740 |
| Balance at | |||
| March 31, 2009 | 47,270 | 83,460 | 130,730 |
The values identified by CB Richard Ellis GmbH, Berlin, on December 31, 2008, less any "overrents" were used as the fair values of the investment properties. Please refer to the comments and information on pages 44 to 49 (Real Estate portfolio in detail) with regard to the assumptions on which the DCF method is based.
management report financial statements in detail
The lower valuation (valuation loss) of € 10 thousand is due to the removal of the advantage from a rental agreement which was concluded at rent which is higher than the current market level (so-called overrent) which was identified via the company's own estimates.
| € thousand | IC 10 | IC 12 | IC 13 | IC 15 | BBV 02 | BBV 09 | BBV 10 | BBV 14 | Total |
|---|---|---|---|---|---|---|---|---|---|
| Balance at January 1, 2009 | 0 | 2,297 | 853 | 5,106 | 105 | 10,888 | 16,370 | 12,824 | 48,443 |
| Proportion of earnings | 0 | 22 | 20 | 106 | 3 | (178) | 359 | 168 | 500 |
| Loss from cash flow hedge | 0 | 0 | 0 | 0 | 0 | 0 | (354) | 0 | (354) |
| Balance at March 31, 2009 | 0 | 2,319 | 873 | 5,212 | 108 | 10,710 | 16,375 | 12,992 | 48,589 |
This relates to participations where a participation of between 20% and 50% is held in each case. The increase in this item compared to December 31, 2008, by a total of € 146 thousand is due to these companies' proportionate earnings due to Fair Value for the reporting period totaling € 500 thousand less the proportionate change in the reserve for changes in value totaling € 354 thousand taken directly to equity.
The income situation for the equity-accounted investments for the period under review was as follows:
| € thousand | IC 10 | IC 12 | IC 13 | IC 15 | BBV 02 | BBV 09 | BBV 10 | BBV 14 | Total |
|---|---|---|---|---|---|---|---|---|---|
| Rental income | 180 | 132 | 638 | 784 | 58 | 2,994 | 2,765 | 1,524 | 9,075 |
| Income from operating and | |||||||||
| incidental costs | 68 | 63 | 86 | 70 | 7 | 76 | 177 | 370 | 917 |
| Real-estate related operating expenses | (152) | (104) | (171) | (167) | (31) | (164) | (394) | (629) | (1,812) |
| Net rental result | 96 | 91 | 553 | 687 | 34 | 2,906 | 2,548 | 1,265 | 8,180 |
| General administrative expenses | (7) | (9) | (31) | (44) | (7) | (128) | (108) | (140) | (474) |
| Other operating income and expenses | 0 | 0 | 0 | (2) | 16 | 0 | 0 | 3 | 17 |
| Valuation result | 0 | 0 | (180) | (71) | (20) | (530) | (200) | (90) | (1,091) |
| Operating result | 89 | 82 | 342 | 570 | 23 | 2,248 | 2,240 | 1,038 | 6,632 |
| Other interest expense | (116) | (28) | (326) | (365) | (20) | (1,244) | (1,117) | (762) | (3,978) |
| Valuation of derivative financial instru | |||||||||
| ments recognized in income | 0 | 0 | 0 | 0 | 0 | (1,718) | (199) | 0 | (1,917) |
| Net interest expense | (116) | (28) | (326) | (365) | (20) | (2,962) | (1,316) | (762) | (5,895) |
| Net profit | (27) | 54 | 16 | 205 | 3 | (714) | 924 | 276 | 737 |
| Reversal of difference from market | |||||||||
| valuation of financial liabilities as of | |||||||||
| September 30, 2007 | (3) | 2 | 24 | 71 | 4 | 0 | 13 | 98 | 209 |
| Financial result | (30) | 56 | 40 | 276 | 7 | (714) | 937 | 374 | 946 |
| Fair Value REIT-AG's share | 0 | 22 | 20 | 106 | 3 | (178) | 359 | 168 | 500 |
The valuation loss of € 1.1 thousand is due to the removal of the advantage from a several existing rental agreements which were concluded at rent which is higher than the current market level (so-called overrents) which was identified via the company's own estimates.
A bank balance of € 2,300 thousand has been pledged to indemnify against claims in case of the sale of the Sparkasse portfolio not receiving benefits under the German REIT Act within four years of the contract being concluded (October 6, 2007). Interest as of March 31, 2009, was 2.0% p.a.
The reserve for changes in value takes changes in the value of interest rate hedges directly to equity if these fulfill the conditions for hedge accounting. Minority interests are deducted. In addition, this reserve includes changes in equity-accounted participations to the extent that these result from cash flow hedges from associated companies.
Non-current and current financial liabilities totaling € 93,976 thousand fell by € 281 thousand compared to December 31, 2008. This amount comprises scheduled repayments.
The reduction is mostly due to the payment of value added tax liabilities.
| January 1 | ||
|---|---|---|
| to March 31, | ||
| € thousand | 2009 | 2008 |
| Fund administration and trustee fees | 91 | 90 |
| Remuneration (Supervisory Board, | ||
| Advisory Council, General Partner) | 22 | 12 |
| Legal and consulting costs | 52 | 14 |
| Audit expenses | 42 | 47 |
| Valuations | 58 | 125 |
| Stock market listing, general meeting and events |
36 | 51 |
| Personnel expenses | 161 | 197 |
| Office costs | 17 | 27 |
| Travel and vehicle expenses | 13 | 22 |
| Non-deductible VAT | 59 | 5 |
| Other | 20 | 24 |
| 571 | 614 |
Of the general administrative costs, € 144 thousand (25.2%) are due to the subsidiaries and € 427 thousand (74.8%) are due to Fair Value REIT-AG.
| January 1 | ||
|---|---|---|
| to March 31, | ||
| € thousand | 2009 | 2008 |
| Interest income | 62 | 102 |
| Valuation of derivative financial | ||
| instruments | (46) | (169) |
| Other interest expense | (1,158) | (1,617) |
| (1,142) | (1,684) |
Net interest expense include expenses from the change in the fair value of derivative financial instruments (interest rate hedges) totaling € 46 thousand. Of this total, € 21 thousand is due to minority interests in subsidiaries.
(11) Segment revenues and results
| € thousand | March 31, |
Decem ber 31, |
|---|---|---|
| 2009 | 2008 | |
| Receivables | ||
| Other | 6 | 74 |
| Liabilities | ||
| Liabilities from loans | (165) | (115) |
| Liabilities from services | (6) | (237) |
| Other | 0 | (15) |
| (165) | (293) |
This report was not audited within the meaning of Section 317 of the Handelsgesetzbuch (German GAAP) or subject to an audit review by an auditor and thus does not include an auditor's opinion.
| January 1 | ||
|---|---|---|
| to March 31, | ||
| € thousand | 2009 | 2008 |
| Segment revenues | ||
| Direct investments | 914 | 874 |
| Participations | 1,923 | 2,453 |
| 2,837 | 3,327 | |
| Segment results | ||
| Direct investments | 604 | 540 |
| Participations | 1,004 | 1,725 |
| 1,608 | 2,265 | |
| Income from equity-accounted | ||
| participations | 500 | 419 |
| Central administrative expenses | (336) | (402) |
| Minority interest in the result | (204) | (250) |
| Net interest expense | (1,142) | (1,684) |
| Consolidated earnings | 426 | 348 |
The current declarations by Fair Value REIT-AG's Managing and Supervisory Boards according to Section 161 of the AktG on the German Corporate Governance Code have been made permanently accessible on the company's Web site.
To the best of our knowledge, we declare that, according to the principles of proper consolidated reporting applied, the unaudited consolidated financial statements provide a true and fair view of the Group's net assets, financial position and results of operations, that the group management report presents the Group's business including the results and the Group's position such as to provide a true and fair view and that the major opportunities and risks of the Group's anticipated growth for the remaining fiscal year are described.
Munich, May 8, 2009
Fair Value REIT-AG
Frank Schaich Manfred Heiler
Fair Value engaged Frankfurt-based CB Richard Ellis GmbH (CBRE) to value its directly and indirectly held properties as of December 31, 2008. CBRE had already valued the properties as of June 30, 2007, and December 31, 2007, and June 30, 2008.
CBRE is not a company regulated by a supervisory body, however it does employ publicly appointed, sworn experts, members of the Royal Institution of Chartered Surveyors (RICS) and real estate experts certified by HypZert GmbH in its Valuation division. According to the Practical Statement (PS) 3.2 of the RICS Valuation Standards (6th edition) from the Royal Institution of Chartered Surveyors (RICS), London, CBRE identified the properties' market values as defined below:
"The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion."
In terms of concept and content, "market value" according to the definition by the Royal Institution of Chartered Surveyors (RICS) and "fair value" according to IFRS and IAS 40 are comparable.
The market value was identified in each case taking into account incidental acquisition costs (land transfer tax, estate agents' fees and notary's and attorneys' fees) and was presented as the net capital value.
The market values of the individual properties was determined using the internationally recognized discounted cash flow method. The discounted cash flow method forms the basis for dynamic calculations and is used to calculate the value of cash flows anticipated in future on various dates and in differing amounts.
In so doing, after identifying all of the factors relevant for the valuation, the future cash flows, some of which are linked to forecasts, are aggregated on an accrual basis. The balance of the receipts and payments recorded is then discounted to a fixed point in time (valuation date) using the discount rate. In contrast to the German Ertragswertverfahren (income-based approach) according to the Wertermittlungsverordnung (WertV – German Value Calculation Directive), the cash flows are explicitly quantified during the observed period and are not shown as annuity payments.
As the impact of future cash flows falls as a result of the discounting, and as the forecasting insecurity increases over the observed period, as a rule in the case of real estate investments the stabilized net investment income is capitalized over a ten-year period (detailed observation period) using a growthimplicit minimum interest rate (capitalization rate) and discounted to the valuation date.
The assumptions used in the valuation model reflect the average assumptions of the dominant investors on the market on the respective valuation date. These valuation parameters reflect the standard market expectations and the extrapolation of the analyzed past figures for the property to be valued or for one or several comparable properties. CBRE
estimated the valuation parameters as best possible using its best judgment, and these can be broken down into two groups.
The property-specific valuation parameters include, for example, rent for initial term and renewals, the probability of existing rental agreements being extended, vacancy periods and vacancy costs, noallocable incidental costs and capital expenditure expected by the owner, fitting and rental costs for initial and renewals as well as property and leasespecific overall interest on the capital tied up in the investment.
The general economic factors include, in particular, changes to market prices and rent during the detailed observation period and the inflation assumed in the calculation model.
According to Guidance Note 5 of the RICS Valuation Standards CBRE points out explicitly, that the current crisis in the global financial system, including the failure or bail out of important banks and financial institutions, has caused considerable uncertainty in commercial real estate markets. Furthermore, CBRE refers to temporarily increased price volatility regarding prices and values under these circumstances, while the market absorbs different changes and settles down at a stable level. The lack of liquidity on capital markets could lead to potentially severe difficulties in achieving a successful sale of the evaluated investment properties in the short run.
| Individual property information on total portfolio | ||||
|---|---|---|---|---|
| -- | -- | ---------------------------------------------------- | -- | -- |
| Primary | Year of | Last renovation / moderniza |
Market value December |
Market value December |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Street | Town | Fund | use | construction | tion | Plot size | 31, 2007 | 31, 2008 | Change | |
| [m²] | [€ | [€ | [%] | |||||||
| thousand] | thousand] | |||||||||
| Direct holdings | ||||||||||
| Hauptstraße 56e / 56 d | Appen | n/a | Office | 1975 | 1995 | 4,320 | 250 | 230 | -8.0 | |
| Bleeck 1 | Bad Bramstedt | n/a | Office | 1973 | 2006 | 3,873 | 1,300 | 1,200 | -7.7 | |
| Oldesloer Straße 24 | Bad Segeberg | n/a | Office | 1982 | 2007 | 5,152 | 9,700 | 9,240 | -4.7 | |
| Königstr. 19-21 | Barmstedt | n/a | Office | 1911 | ongoing | 2,842 | 1,520 | 1,460 | -3.9 | |
| Bahnhofstraße 9 | Bönnigstedt | n/a | Office | 1992 | 2003 | 1,131 | 260 | 240 | -7.7 | |
| Bahnhofstraße 14 | Boostedt | n/a | Office | 1989 | 2005 | 1,006 | 140 | 130 | -7.1 | |
| Am alten Markt 9a | Bornhöved | n/a | Office | 1991 | 2005 | 873 | 710 | 680 | -4.2 | |
| Berliner Damm 6 | Ellerau | n/a | Office | 1990 | 2000 | 1,177 | 430 | 410 | -4.7 | |
| Pinneberger Straße 155 | Ellerbek | n/a | Office | 1985 | 2001 | 1,708 | 390 | 360 | -7.7 | |
| Dorfstraße 29 | Geschendorf | n/a | Office | 1985 | 2006 | 1,154 | 260 | 230 | -11.5 | |
| Hauptstraße 33 | Halstenbek | n/a | Office | 1969 | 2001 | 1,195 | 910 | 860 | -5.5 | |
| Seestraße 232 | Halstenbek | n/a | Office | 1976 | 2002 | 549 | 100 | 90 | -10.0 | |
| Friesenstraße 59 | Helgoland | n/a | Office | 1986 | 2000 | 194 | 620 | 610 | -1.6 | |
| Hamburger Straße 83 | Henstedt-Ulzburg | n/a | Office | 1989 | 2004 | 1,219 | 1,160 | 1,100 | -5.2 | |
| Holstenstraße 32 | Kaltenkirchen | n/a | Office | 1978 | 2005 | 1,893 | 2,050 | 1,970 | -3.9 | |
| Köllner Chaussee 27 | Kölln-Reisiek | n/a | Office | 1990 | 2001 | 1,004 | 200 | 180 | -10.0 | |
| Hamburger Straße 40 | Leezen | n/a | Office | 1989 | 2005 | 886 | 200 | 190 | -5.0 | |
| Segeberger Straße 21 | Nahe | n/a | Office | 1971 | 2004 | 1,698 | 750 | 700 | -6.7 | |
| Ehndorfer Straße 153 | Neumünster | n/a | Office | 1971 | 2003 | 1,685 | 270 | 250 | -7.4 | |
| Kuhberg 11-13 | Neumünster | n/a | Office | 1989 | 2005 | 5,286 | 16,300 | 15,300 | -6.1 | |
| Röntgenstraße | Neumünster | n/a | Office | 1972 | 1998 | 2,481 | 310 | 280 | -9.7 | |
| Ulzburger Str. 363 d / e | Norderstedt | n/a | Office | 1994 | 2004 | 2,762 | 1,570 | 1,480 | -5.7 | |
| Ulzburger Str. 545 / 547 | Norderstedt | n/a | Office | 1960 | 1,313 | 520 | 510 | -1.9 | ||
| Damm 49 | Pinneberg | n/a | Office | 1996 | 2007 | 1,383 | 2,500 | 2,370 | -5.2 | |
| Oeltingsallee 30 | Pinneberg-Quellental n/a | Office | 1970 | 2002 | 2,047 | 680 | 660 | -2.9 | ||
| Kieler Straße 100 | Quickborn | n/a | Office | 1980 | 2002 | 1,625 | 1,560 | 1,490 | -4.5 | |
| Hauptstraße 49 | Rellingen | n/a | Office | 1983 | 2001 | 828 | 600 | 560 | -6.7 | |
| Rosenstraße 15 | Sparrieshoop | n/a | Office | 1961 | 1999 | 984 | 210 | 200 | -4.8 | |
| Willy-Meyer-Straße 3-5 | Tornesch | n/a | Office | 1977 | 2003 | 970 | 620 | 590 | -4.8 | |
| Am Markt 1 | Trappenkamp | n/a | Office | 1985 | 2005 | 1,190 | 690 | 660 | -4.3 | |
| Wassermühlenstraße 5 | Uetersen | n/a | Office | 2001 | 2,348 | 2,000 | 1,890 | -5.5 | ||
| Markt 1 | Wahlstedt | n/a | Office | 1975 | 2005 | 1,848 | 1,180 | 1,150 | -2.5 | |
| Sub-total direct holdings | 58,624 | 49,960 | 47,270 | -5.4 | ||||||
| Subsidiaries | ||||||||||
| Rheinstr. 8 1), 2) | Teltow | IC07 | Office | 1995 | 5,324 | 25,200 | 7,500 | -70.2 | ||
| Im Taubental 9-17 | Neuss | IC03 | Logistics | 1990 | 19,428 | 8,600 | 7,720 | -10.2 | ||
| Heidhauser Straße 94 | Essen-Heidhausen | IC01 | Retail | 1990 | 4,776 | 2,900 | 2,600 | -10.3 | ||
| Hospitalstraße 17 - 19 / | ||||||||||
| Judengasse 21 | Alzey | IC01 | Retail | 1990 | 2007 | 2,243 | 1,800 | 1,740 | -3.3 | |
| Andreasstr. 1 | Ahaus-Wüllen | BBV06 | Retail | 1990 | 5,513 | 1,300 | 1,110 | -14.6 | ||
| Andreasstr. 3 - 7 | Ahaus-Wüllen | BBV06 | Retail | 1973 | 13,036 | 4,800 | 4,380 | -8.8 | ||
| Marktplatz 3 | Altenberge | BBV06 | Retail | 1986 | 1,756 | 1,200 | 1,190 | -0.8 | ||
| Heerenbergerstr. 51 | Emmerich | BBV06 | Retail | 1987 | 4,314 | 1,200 | 870 | -27.5 | ||
| Hubert-Prott-Str. 117 | Frechen | BBV06 | Retail | 1988 | 4,282 | 1,300 | 1,270 | -2.3 | ||
| Schwarzer Weg 21-24 | Hamm | BBV06 | Retail | 1990 | 2,665 | 1,400 | 1,350 | -3.6 | ||
| Hinüberstr. 6 | Hannover | BBV06 | Other | 1981 | 2006 | 3,204 | 20,200 | 20,000 | -1.0 |
1 ) The general rental agreement with the IDLG Dienstleistungs GmbH was terminated against a compensation payment in the fourth quarter of 2008. As a result, the lettable floor space was adjusted from gross to net. The net space is subject to being measured.
2 ) Through termination of the general rental agreement against a compensation payment and subrogation of the subtenancy agreements on a lower rental level the subsequent valuation losses over the coming years were advanced.
3) The reduction of lettable space by a total of 553 m² compared to the list as of December 31, 2008, is due to space reductions at some properties due to market and new measurement-related reductions of lettable floor space.
management report financial statements in detail
Ongoing
| To our shareholders | Group interim | Consolidated | Notes | Real Estate portfolio |
|---|---|---|---|---|
Ø Remai-
Discount
Capitalization
| interest rate | interest rate | Lettable | ning terms | Occupancy | Annualized | Annualized | yield on | Ongoing yield | |
|---|---|---|---|---|---|---|---|---|---|
| December 31, 2008 |
December 31, 2008 |
floor space 3) |
Vacan cies |
of rental contracts |
by rental revenues |
contractual rent |
potential rent |
contractual rent |
on potential rent |
| [%] | [%] | [m²] | [m²] | [years] | [€ | [€ | [%] | [%] | |
| thousand] | thousand] | ||||||||
| 7.00 | 6.50 | 212 | 0 | 8.8 | 100.0 | 19 | 19 | 8.4 | 8.4 |
| 6.60 6.60 |
5.60 6.10 |
997 9,144 |
0 378 |
15.8 14.4 |
100.0 95.6 |
78 608 |
78 636 |
6.5 6.6 |
6.5 6.9 |
| 6.50 | 6.00 | 1,264 | 0 | 15.2 | 99.1 | 93 | 94 | 6.4 | 6.4 |
| 7.10 | 6.80 | 211 | 0 | 8.8 | 100.0 | 19 | 19 | 8.0 | 8.0 |
| 6.50 | 5.90 | 114 | 0 | 8.8 | 100.0 | 10 | 10 | 8.0 | 8.0 |
| 6.70 | 6.00 | 664 | 0 | 8.3 | 100.0 | 51 | 51 | 7.6 | 7.6 |
| 6.90 | 6.70 | 369 | 0 | 8.8 | 100.0 | 31 | 31 | 7.6 | 7.6 |
| 6.70 | 5.70 | 356 | 0 | 6.2 | 100.0 | 28 | 28 | 7.7 | 7.7 |
| 7.00 | 5.90 | 316 | 0 | 8.8 | 99.4 | 20 | 20 | 8.8 | 8.8 |
| 7.40 | 7.00 | 791 | 0 | 8.8 | 100.0 | 65 | 65 | 7.5 | 7.5 |
| 7.30 | 6.80 | 188 | 0 | 8.8 | 100.0 | 8 | 8 | 9.2 | |
| 6.30 | 5.40 | 488 | 0 | 13.4 | 100.0 | 38 | 38 | 6.2 | |
| 6.50 | 6.00 | 1,005 | 0 | 16.8 | 100.0 | 72 | 72 | 6.5 | |
| 6.50 | 6.10 | 1,581 | 0 | 16.6 | 100.0 | 122 | 122 | 6.2 | |
| 7.10 | 6.40 | 168 | 0 | 8.8 | 100.0 | 15 | 15 | 8.5 | |
| 7.00 | 6.60 | 174 | 0 | 8.8 | 100.0 | 16 | 16 | 8.4 | |
| 7.00 | 6.50 | 734 | 0 | 8.8 | 100.0 | 60 | 60 | 8.5 | |
| 7.60 | 7.00 | 346 | 0 | 7.8 | 99.2 | 23 | 23 | 9.2 | |
| 6.50 | 6.10 | 11,808 | 99 | 16.1 | 99.0 | 951 | 960 | 6.2 | |
| 7.30 | 6.70 | 534 | 0 | 7.7 | 100.0 | 28 | 28 | 10.2 | |
| 6.60 | 5.90 | 1,340 | 0 | 14.2 | 100.0 | 106 | 106 | 7.2 | |
| 8.20 | 7.60 | 1,005 | 495 | 5.3 | 60.5 | 42 | 69 | 8.2 | |
| 7.00 | 6.50 | 1,930 | 0 | 3.8 | 100.0 | 176 | 176 | 7.4 | |
| 6.80 | 6.10 | 624 | 0 | 6.1 | 100.0 | 52 | 52 | 7.9 | |
| 6.60 | 6.00 | 1,309 | 0 | 16.8 | 100.0 | 100 | 100 | 6.7 | |
| 7.50 | 6.90 | 524 | 0 | 8.8 | 100.0 | 42 | 42 | 7.5 | |
| 7.40 | 6.90 | 237 | 0 | 7.3 | 100.0 | 17 | 17 | 8.7 | |
| 6.90 | 6.30 | 657 | 0 | 7.0 | 100.0 | 55 | 55 | 9.4 | |
| 6.90 | 6.00 | 787 | 0 | 7.9 | 100.0 | 53 | 53 | 8.1 | |
| 6.40 | 5.50 | 1,726 | 0 | 14.3 | 100.0 | 124 | 124 | 6.6 | |
| 6.70 | 6.20 | 1,346 42,948 |
0 972 |
8.4 13.1 |
100.0 98.0 |
92 3,218 |
92 3,284 |
8.0 6.8 |
|
| 7.60 | 6.60 | 9,732 | 3,059 | 2.4 | 63.1 | 442 | 701 | 5.9 | |
| 7.60 | 6.90 | 12,064 | 261 | 1.8 | 95.8 | 613 | 640 | 7.9 | |
| 6.80 | 6.40 | 1,386 | 0 | 6.6 | 100.0 | 216 | 216 | 8.3 | |
| 6.90 | 6.40 | 1,989 | 18 | 7.0 | 100.0 | 132 | 132 | 7.6 | |
| 7.60 | 6.90 | 1,496 | 0 | 1.8 | 100.0 | 108 | 108 | 9.7 | |
| 7.60 | 6.80 | 3,915 | 0 | 5.8 | 100.0 | 473 | 473 | 10.8 | 10.8 |
| 6.80 | 6.20 | 1,285 | 0 | 2.8 | 100.0 | 106 | 106 | 8.9 | |
| 7.60 | 6.80 | 1,415 | 92 | 4.6 | 96.8 | 84 | 87 | 9.7 | |
| 7.30 | 6.70 | 1,225 | 0 | 4.6 | 100.0 | 135 | 135 | 10.6 | 10.6 |
| 7.50 | 6.70 | 1,349 | 0 | 1.8 | 100.0 | 144 | 144 | 10.7 | 10.7 |
| 6.60 | 6.00 | 19,460 | 0 | 5.8 | 100.0 | 1,636 | 1,636 | 8.2 | |
| Street | Town | Fund | Primary use |
Year of construction |
Last renovation / moderniza tion |
Plot size | Market value December 31, 2007 |
Market value December 31, 2008 |
Change |
|---|---|---|---|---|---|---|---|---|---|
| [m²] | [€ | [€ | [%] | ||||||
| thousand] | thousand] | ||||||||
| Köhlstr. 8 | Köln | BBV06 | Logistics | 1982 | 40,591 | 9,300 | 9,360 | 0.6 | |
| Gutenbergstr. 152/ St. Töniser Str. 12 |
Krefeld | BBV06 | Retail | 1990 | 8,417 | 4,800 | 4,100 | -14.6 | |
| Lippestr. 2 | Lippetal-Herzfeld | BBV06 | Retail | 1990 | 3,155 | 1,700 | 1,550 | -8.8 | |
| Zeughausstr. 13 | Meschede | BBV06 | Retail | 1989 | 1,673 | 610 | 500 | -18.0 | |
| Äußere Spitalhofstr. 15-17 | Passau | BBV06 | Retail | 2007 | 2007 | 2,884 | 4,900 | 4,440 | -9.4 |
| Steinheimer Str. 64 | Seligenstadt | BBV06 | Retail | 1983 | 4,000 | 1,900 | 1,780 | -6.3 | |
| Bahnhofstraße 20 a-e | Waltrop | BBV06 | Retail | 1989 | 1,742 | 2,900 | 2,870 | -1.0 | |
| Adalbertsteinweg 32-36 | Aachen | BBV03 | Office | 1990 | 1,038 | 2,300 | 2,030 | -11.7 | |
| Marconistr. 4-8 | Köln | BBV03 | Logistics | 1990 | 13,924 | 3,700 | 3,330 | -10.0 | |
| Hauptstr. 51 - 55 | Weyhe-Leeste | BBV03 | Retail | 1989 | 2005 | 11,248 | 3,900 | 3,780 | -3.1 |
| Sub-total subsidiaries | 155,213 | 105,910 | 83,470 | -21.2 | |||||
| Total Group | 213,837 | 155,870 | 130,740 | -16.1 | |||||
| Associated companies | |||||||||
| Max-Planck-Ring 26/28 | Langenfeld | IC13 | Logistics | 1996 | 14,727 | 11,100 | 10,200 | -8.1 | |
| Friedrich-Engels-Ring 52 | Neubrandenburg | IC13 | Office | 1996 | 4,705 | 10,900 | 9,550 | -12.4 | |
| Großbeerenstr. 231 | Potsdam | IC13 | Office | 1995 | 2,925 | 3,300 | 3,850 | 16.7 | |
| Carnotstr. 5 - 7 | Berlin | BBV14 | Office | 1995 | 4,583 | 15,900 | 15,600 | -1.9 | |
| Nossener Brücke 8 - 12 | Dresden | BBV14 | Office | 1997 | 4,134 | 8,300 | 7,660 | -7.7 | |
| Kröpeliner Str. 26-28 | Rostock | BBV14 | Retail | 1995 | 7,479 | 62,800 | 61,400 | -2.2 | |
| Hartmannstr. 3 a - 7 | Chemnitz | IC12 | Office | 1997 | 4,226 | 8,300 | 7,760 | -6.5 | |
| Heinrich-Lorenz-Str. 35 | Chemnitz | IC15 | Office | 1998 | 4,718 | 4,400 | 3,890 | -11.6 | |
| Am alten Bad 1 - 7, Theaterstr. 34a |
Office | -7.3 | |||||||
| Königsbrücker Str. 121 a | Chemnitz Dresden |
IC15 IC15 |
Other | 1997 1997 |
3,246 4,242 |
6,000 12,300 |
5,560 11,900 |
-3.3 | |
| Pascalkehre 15 / 15a | Quickborn | IC15 | Office | 1997 | 9,129 | 15,100 | 13,200 | -12.6 | |
| Zum Rotering 5-7 | Ahaus | BBV10 | Retail | 1989 | 3,884 | 2,600 | 2,320 | -10.8 | |
| Vor den Fuhren 2 | Celle | BBV10 | Retail | 1992 | 21,076 | 13,700 | 12,500 | -8.8 | |
| Nordpassage 1 | Eisenhüttenstadt | BBV10 | Retail | 1993 | 20,482 | 57,800 | 53,500 | -7.4 | |
| Altmärker Str. 5 Robert-Bosch-Str. 11 |
Genthin Langen |
BBV10 BBV10 |
Retail Office |
1998 1994 |
3,153 6,003 |
730 18,500 |
730 17,700 |
0.0 -4.3 |
|
| Hammer Str. 455-459 | Münster | BBV10 | Retail | 1991 | 15,854 | 9,600 | 8,570 | -10.7 | |
| Hannoversche Str. 39 | Osnabrück | BBV10 | Retail | 1989 | 7,502 | 3,300 | 3,050 | -7.6 | |
| Klingelbrink 10 | Rheda-Wiedenbrück | BBV10 | Retail | 1991 | 2,455 | 2,200 | 2,110 | -4.1 | |
| Lerchenbergstr.112/113, | |||||||||
| Annendorfer Str. 15/16 | Wittenberg | BBV10 | Retail | 1994 | 96,822 | 24,800 | 22,300 | -10.1 | |
| Henkestr. 5 | Erlangen | BBV02 | Retail | 1984 | 6,350 | 1,800 | 1,770 | -1.7 | |
| Oberfrohnaer Str. 62 - 74 | Chemnitz | IC10 | Retail | 1997 | 11,203 | 9,800 | 9,180 | -6.3 | |
| Leimbacher Straße | Bad Salzungen | BBV09 | Retail | 1992 | 22,979 | 15,000 | 13,500 | -10.0 | |
| Mühlhäuser Str. 100 | Eisenach | BBV09 | Retail | 1994 | 44,175 | 52,400 | 48,500 | -7.4 | |
| Putzbrunner Str. 71 / 73, | |||||||||
| Fritz-Erler-Str. 3 | München-Neuperlach BBV09 | Office | 1986 | 10,030 | 43,100 | 38,500 | -10.7 | ||
| Weißenfelser Str. 70 | Naumburg | BBV09 | Retail | 1993 | 20,517 | 21,600 | 21,000 | -2.8 | |
| An der Backstania 1 | Weilburg | BBV09 | Retail | 1994 | 17,211 | 10,800 | 9,750 | -9.7 | |
| Total associated companies | 373,810 | 446,130 | 415,550 | -6.9 | |||||
| Grand Total | 587,647 | 602,000 | 546,290 | -9.3 | |||||
Ongoing
| To our shareholders | Group interim | Consolidated | Notes | Real Estate portfolio |
|---|---|---|---|---|
Ø Remai-
Discount
Capitalization
| December 31, December 31, floor Vacan of rental by rental contractual potential 2008 2008 space 3) cies contracts revenues rent |
|---|
| [%] [%] [m²] [m²] [years] [€ |
| thousand] thousand] |
| 8.00 7.20 23,076 12,879 4.8 46.7 473 |
| 7.50 6.60 4,683 0 1.4 100.0 451 |
| 7.40 6.70 1,452 0 1.7 100.0 144 |
| 7.30 6.60 1,095 0 4.3 100.0 42 |
| 7.00 6.80 8,492 0 8.1 100.0 600 |
| 7.10 6.60 1,390 0 4.5 100.0 153 |
| 7.30 6.60 2,124 250 5.1 91.6 226 |
| 7.30 6.40 2,264 1,183 2.6 68.8 171 |
| 7.00 6.40 9,640 0 3.1 100.0 330 |
| 7.00 6.50 3,141 45 2.5 99.8 381 |
| 112,673 17,787 4.4 88.4 7,062 |
| 155,620 18,759 7.1 91.2 10,281 |
| 7.30 6.70 10,453 0 6.6 100.0 1,170 |
| 7.00 6.20 7,557 1,314 4.8 91.4 1,110 |
| 6.90 6.30 3,824 234 2.6 85.0 276 |
| 6.60 5.80 9,863 643 2.2 92.4 1,141 |
| 7.10 6.60 8,828 20 0.7 92.9 724 |
| 6.20 5.80 19,306 194 6.4 99.6 4,300 |
| 6.50 5.90 8,380 1,150 4.7 80.4 536 |
| 7.20 6.20 5,845 0 1.1 100.0 533 |
| 77.3 343 6.40 6.00 5,119 1,195 2.4 |
| 6.60 6.00 11,554 0 8.7 100.0 869 |
| 7.00 6.20 10,570 0 3.1 100.0 1,325 |
| 7.60 6.90 2,054 164 1.7 96.6 227 |
| 7.10 6.40 10,611 0 3.7 100.0 1,129 |
| 6.70 6.20 40,101 0 4.6 100.0 4,988 |
| 7.60 6.70 1,275 256 4.1 80.1 65 |
| 6.90 6.40 13,665 2,298 1.4 86.8 1,279 6.90 6.40 7,353 0 9.9 100.0 674 |
| 7.00 6.50 4,207 0 3.2 100.0 293 |
| 7.10 6.30 2,235 238 1.8 90.8 168 |
| 6.50 6.00 14,698 774 9.2 97.4 1,836 |
| 7.20 6.50 2,770 0 3.3 100.0 231 |
| 6.90 6.10 9,981 465 3.1 91.3 693 |
| 7.30 6.60 10,985 0 3.3 100.0 1,260 |
| 6.50 6.10 37,400 0 15.4 100.0 3,483 |
| 6.60 6.00 19,018 0 4.8 100.0 4,391 |
| 7.00 6.50 15,180 0 9.4 100.0 1,743 |
| 7.30 6.70 8,145 0 9.1 100.0 839 |
| 300,977 8,943 6.2 97.5 35,626 |
| 456,597 27,702 6.4 96.0 45,907 |
| Street | Town | Fund | Proportionate participating interest |
Market value December 31, 2007 |
Market value December 31, 2008 |
Change |
|---|---|---|---|---|---|---|
| [%] | [€ thousand] | [€ thousand] | [%] | |||
| Direct holdings | ||||||
| Hauptstraße 56e / 56 d | Appen | n/a | 100.00 | 250 | 230 | -8.0 |
| Bleeck 1 | Bad Bramstedt | n/a | 100.00 | 1,300 | 1,200 | -7.7 |
| Oldesloer Straße 24 | Bad Segeberg | n/a | 100.00 | 9,700 | 9,240 | -4.7 |
| Königstr. 19-21 | Barmstedt | n/a | 100.00 | 1,520 | 1,460 | -3.9 |
| Bahnhofstraße 9 | Bönnigstedt | n/a | 100.00 | 260 | 240 | -7.7 |
| Bahnhofstraße 14 | Boostedt | n/a | 100.00 | 140 | 130 | -7.1 |
| Am alten Markt 9a | Bornhöved | n/a | 100.00 | 710 | 680 | -4.2 |
| Berliner Damm 6 | Ellerau | n/a | 100.00 | 430 | 410 | -4.7 |
| Pinneberger Straße 155 | Ellerbek | n/a | 100.00 | 390 | 360 | -7.7 |
| Dorfstraße 29 | Geschendorf | n/a | 100.00 | 260 | 230 | -11.5 |
| Hauptstraße 33 | Halstenbek | n/a | 100.00 | 910 | 860 | -5.5 |
| Seestraße 232 | Halstenbek | n/a | 100.00 | 100 | 90 | -10.0 |
| Friesenstraße 59 | Helgoland | n/a | 100.00 | 620 | 610 | -1.6 |
| Hamburger Straße 83 | Henstedt-Ulzburg | n/a | 100.00 | 1,160 | 1,100 | -5.2 |
| Holstenstraße 32 | Kaltenkirchen | n/a | 100.00 | 2,050 | 1,970 | -3.9 |
| Köllner Chaussee 27 | Kölln-Reisiek | n/a | 100.00 | 200 | 180 | -10.0 |
| Hamburger Straße 40 | Leezen | n/a | 100.00 | 200 | 190 | -5.0 |
| Segeberger Straße 21 | Nahe | n/a | 100.00 | 750 | 700 | -6.7 |
| Ehndorfer Straße 153 | Neumünster | n/a | 100.00 | 270 | 250 | -7.4 |
| Kuhberg 11-13 | Neumünster | n/a | 100.00 | 16,300 | 15,300 | -6.1 |
| Röntgenstraße | Neumünster | n/a | 100.00 | 310 | 280 | -9.7 |
| Ulzburger Str. 363 d / e | Norderstedt | n/a | 100.00 | 1,570 | 1,480 | -5.7 |
| Ulzburger Str. 545 / 547 | Norderstedt | n/a | 100.00 | 520 | 510 | -1.9 |
| Damm 49 | Pinneberg | n/a | 100.00 | 2,500 | 2,370 | -5.2 |
| Oeltingsallee 30 | Pinneberg-Quellental n/a | 100.00 | 680 | 660 | -2.9 | |
| Kieler Straße 100 | Quickborn | n/a | 100.00 | 1,560 | 1,490 | -4.5 |
| Hauptstraße 49 | Rellingen | n/a | 100.00 | 600 | 560 | -6.7 |
| Rosenstraße 15 | Sparrieshoop | n/a | 100.00 | 210 | 200 | -4.8 |
| Willy-Meyer-Straße 3-5 | Tornesch | n/a | 100.00 | 620 | 590 | -4.8 |
| Am Markt 1 | Trappenkamp | n/a | 100.00 | 690 | 660 | -4.3 |
| Wassermühlenstraße 5 | Uetersen | n/a | 100.00 | 2,000 | 1,890 | -5.5 |
| Markt 1 | Wahlstedt | n/a | 100.00 | 1,180 | 1,150 | -2.5 |
| Sub-total direct holdings | 49,960 | 47,270 | -5.4 | |||
| Subsidiaries | ||||||
| Rheinstr. 8 1), 2) | Teltow | IC07 | 75.73 | 19,085 | 5,680 | -70.2 |
| Im Taubental 9-17 | Neuss | IC03 | 71.58 | 6,156 | 5,526 | -10.2 |
| Heidhauser Straße 94 | Essen-Heidhausen | IC01 | 55.79 | 1,618 | 1,451 | -10.3 |
| Hospitalstraße 17 - 19 / | ||||||
| Judengasse 21 | Alzey | IC01 | 55.79 | 1,004 | 971 | -3.3 |
| Andreasstr. 1 | Ahaus-Wüllen | BBV06 | 54.89 | 714 | 609 | -14.6 |
| Andreasstr. 3 - 7 | Ahaus-Wüllen | BBV06 | 54.89 | 2,635 | 2,404 | -8.7 |
| Marktplatz 3 | Altenberge | BBV06 | 54.89 | 659 | 653 | -0.8 |
| Heerenbergerstr. 51 | Emmerich | BBV06 | 54.89 | 659 | 478 | -27.5 |
| Hubert-Prott-Str. 117 | Frechen | BBV06 | 54.89 | 714 | 697 | -2.3 |
| Schwarzer Weg 21-24 | Hamm | BBV06 | 54.89 | 769 | 741 | -3.6 |
| Hinüberstr. 6 | Hannover | BBV06 | 54.89 | 11,089 | 10,979 | -1.0 |
1) The general rental agreement with the IDLG Dienstleistungs GmbH was terminated against a compensation payment in the fourth quarter of 2008. As a result, the lettable floor space was adjusted from gross to net. The net space is subject to being measured.
2) Taking the received compensation payment in the amount of € 15.4 million into account, the reduction in value for the property in Teltow falls to € 2.2 million or 9%. In terms of Fair Value REIT-AG's portfolio share the total reduction in value falls from 10.7% year-on-year to 6.4%.
| To our shareholders | Group interim | Consolidated | Notes | Real Estate portfolio |
|---|---|---|---|---|
| Ø Remaining term of rental agreements |
Rental level by rental revenues |
Annualized contractual rent |
Annualized potential rent |
Ongoing yield on contractual rent |
Ongoing yield on potential rent |
|---|---|---|---|---|---|
| [years] | [%] | [€ thousand] | [€ thousand] | [%] | [%] |
| 8.8 | 100.0 | 19 | 19 | 8.4 | 8.4 |
| 15.8 | 100.0 | 78 | 78 | 6.5 | 6.5 |
| 14.4 | 95.6 | 608 | 636 | 6.6 | 6.9 |
| 15.2 | 99.1 | 93 | 94 | 6.4 | 6.4 |
| 8.8 | 100.0 | 19 | 19 | 8.0 | 8.0 |
| 8.8 | 100.0 | 10 | 10 | 8.0 | 8.0 |
| 8.3 | 100.0 | 51 | 51 | 7.6 | 7.6 |
| 8.8 | 100.0 | 31 | 31 | 7.6 | 7.6 |
| 6.2 | 100.0 | 28 | 28 | 7.7 | 7.7 |
| 8.8 | 99.4 | 20 | 20 | 8.8 | 8.8 |
| 8.8 | 100.0 | 65 | 65 | 7.5 | 7.5 |
| 8.8 | 100.0 | 8 | 8 | 9.2 | 9.2 |
| 13.4 16.8 |
100.0 100.0 |
38 72 |
38 72 |
6.2 6.5 |
6.2 6.5 |
| 16.6 | 100.0 | 122 | 122 | 6.2 | 6.2 |
| 8.8 | 100.0 | 15 | 15 | 8.5 | 8.5 |
| 8.8 | 100.0 | 16 | 16 | 8.4 | 8.4 |
| 8.8 | 100.0 | 60 | 60 | 8.5 | 8.5 |
| 7.8 | 99.2 | 23 | 23 | 9.2 | 9.3 |
| 16.1 | 99.0 | 951 | 960 | 6.2 | 6.3 |
| 7.7 | 100.0 | 28 | 28 | 10.2 | 10.2 |
| 14.2 | 100.0 | 106 | 106 | 7.2 | |
| 5.3 | 60.5 | 42 | 69 | 8.2 | |
| 3.8 | 100.0 | 176 | 176 | 7.4 | |
| 6.1 | 100.0 | 52 | 52 | 7.9 | |
| 16.8 | 100.0 | 100 | 100 | 6.7 | |
| 8.8 | 100.0 | 42 | 42 | 7.5 | |
| 7.3 | 100.0 | 17 | 17 | 8.7 | |
| 7.0 | 100.0 | 55 | 55 | 9.4 | |
| 7.9 | 100.0 | 53 | 53 | 8.1 | 8.1 |
| 14.3 | 100.0 | 124 | 124 | 6.6 | 6.6 |
| 8.4 | 100.0 | 92 | 92 | 8.0 | 8.0 6.9 |
| 13.1 | 98.0 | 3,218 | 3,284 | 6.8 | |
| 2.4 | 63.1 | 335 | 531 | 5.9 | 9.3 |
| 1.8 | 95.8 | 439 | 458 | 7.9 | 8.3 |
| 6.6 | 100.0 | 121 | 121 | 8.3 | 8.3 |
| 7.0 | 100.0 | 74 | 74 | 7.6 | 7.6 |
| 1.8 | 100.0 | 59 | 59 | 9.7 | 9.7 |
| 5.8 | 100.0 | 260 | 260 | 10.8 | 10.8 |
| 2.8 | 100.0 | 58 | 58 | 8.9 | 8.9 |
| 4.6 | 96.8 | 46 | 48 | 9.7 | 10.0 |
| 4.6 | 100.0 | 74 | 74 | 10.6 | 10.6 |
| 1.8 | 100.0 | 79 | 79 | 10.7 | 10.7 8.2 |
| 5.8 | 100.0 | 898 | 898 | 8.2 |
| Street | Town | Fund | Proportionate participating interest |
Market value December 31, 2007 |
Market value December 31, 2008 |
Change |
|---|---|---|---|---|---|---|
| [%] | [€ thousand] | [€ thousand] | [%] | |||
| Köhlstr. 8 | Köln | BBV06 | 54,89 | 5,105 | 5,138 | 0.6 |
| Gutenbergstr. 152/ | ||||||
| St. Töniser Str. 12 | Krefeld | BBV06 | 54,89 | 2,635 | 2,251 | -14.6 |
| Lippestr. 2 | Lippetal-Herzfeld | BBV06 | 54,89 | 933 | 851 | -8.8 |
| Zeughausstr. 13 | Meschede | BBV06 | 54,89 | 335 | 274 | -18.0 |
| Äußere Spitalhofstr. 15-17 | Passau | BBV06 | 54,89 | 2,690 | 2,437 | -9.4 |
| Steinheimer Str. 64 | Seligenstadt | BBV06 | 54,89 | 1,043 | 977 | -6.3 |
| Bahnhofstraße 20 a-e | Waltrop | BBV06 | 54,89 | 1,592 | 1,575 | -1.0 |
| Adalbertsteinweg 32-36 | Aachen | BBV03 | 53,69 | 1,235 | 1,090 | -11.7 |
| Marconistr. 4-8 | Köln | BBV03 | 53,69 | 1,986 | 1,788 | -10.0 |
| Hauptstr. 51 - 55 | Weyhe-Leeste | BBV03 | 53,69 | 2,094 | 2,029 | -3.1 |
| Sub-total subsidiaries | 64,748 | 48,600 | -24.9 | |||
| Associated companies | ||||||
| Max-Planck-Ring 26/28 | Langenfeld | IC13 | 49,86 | 5,534 | 5,086 | -8.1 |
| Friedrich-Engels-Ring 52 | Neubrandenburg | IC13 | 49,86 | 5,435 | 4,762 | -12.4 |
| Großbeerenstr. 231 | Potsdam | IC13 | 49,86 | 1,645 | 1,920 | 16.7 |
| Carnotstr. 5 - 7 | Berlin | BBV14 | 45,03 | 7,159 | 7,024 | -1.9 |
| Nossener Brücke 8 - 12 | Dresden | BBV14 | 45,03 | 3,737 | 3,449 | -7.7 |
| Kröpeliner Str. 26-28 | Rostock | BBV14 | 45,03 | 28,276 | 27,646 | -2.2 |
| Hartmannstr. 3 a - 7 | Chemnitz | IC12 | 40,22 | 3,338 | 3,121 | -6.5 |
| Heinrich-Lorenz-Str. 35 | Chemnitz | IC15 | 38,34 | 1,687 | 1,492 | -11.6 |
| Am alten Bad 1 - 7, | ||||||
| Theaterstr. 34a | Chemnitz | IC15 | 36,10 | 2,166 | 2,007 | -7.3 |
| Königsbrücker Str. 121 a | Dresden | IC15 | 35,63 | 4,382 | 4,240 | -3.3 |
| Pascalkehre 15 / 15a | Quickborn | IC15 | 38,34 | 5,790 | 5,061 | -12.6 |
| Zum Rotering 5-7 | Ahaus | BBV10 | 38,31 | 996 | 889 | -10.8 |
| Vor den Fuhren 2 | Celle | BBV10 | 38,31 | 5,249 | 4,789 | -8.8 |
| Nordpassage 1 | Eisenhüttenstadt | BBV10 | 38,31 | 22,145 | 20,498 | -7.4 |
| Altmärker Str. 5 | Genthin | BBV10 | 38,31 | 280 | 280 | 0.0 |
| Robert-Bosch-Str. 11 | Langen | BBV10 | 38,31 | 7,088 | 6,782 | -4.3 |
| Hammer Str. 455-459 | Münster | BBV10 | 38,31 | 3,678 | 3,283 | -10.7 |
| Hannoversche Str. 39 | Osnabrück | BBV10 | 38,31 | 1,264 | 1,169 | -7.6 |
| Klingelbrink 10 | Rheda-Wiedenbrück | BBV10 | 38,31 | 843 | 808 | -4.1 |
| Lerchenbergstr.112/113, Annendorfer Str. 15/16 |
Wittenberg | BBV10 | 38,31 | 9,502 | 8,544 | -10.1 |
| Henkestr. 5 | Erlangen | BBV02 | 38,94 | 701 | 689 | -1.7 |
| Oberfrohnaer Str. 62 - 74 | Chemnitz | IC10 | 26,14 | 2,562 | 2,400 | -6.3 |
| Leimbacher Straße | Bad Salzungen | BBV09 | 24,93 | 3,739 | 3,366 | -10.0 |
| Mühlhäuser Str. 100 | Eisenach | BBV09 | 24,93 | 13,063 | 12,091 | -7.4 |
| Putzbrunner Str. 71 / 73, | ||||||
| Fritz-Erler-Str. 3 | München-Neuperlach BBV09 | 24,93 | 10,745 | 9,598 | -10.7 | |
| Weißenfelser Str. 70 | Naumburg | BBV09 | 24,93 | 5,385 | 5,235 | -2.8 |
| An der Backstania 1 | Weilburg | BBV09 | 24,93 | 2,692 | 2,431 | -9.7 |
| Sub-total associated companies | 159,084 | 148,658 | -6.6 | |||
| Grand Total 2) | 273,791 | 244,528 | -10.7 |
1) The general rental agreement was cancelled against a compensation payment in the fourth quarter of 2008. As a result, the rental space was adjusted from gross to net. The net space is subject to being measured.
2) Taking the received compensation payment in the amount of € 15.4 million into account, the reduction in value for the property in Teltow falls to € 2.2 million or 9%. In terms of Fair Value REIT-AG's portfolio share the total reduction in value falls from 10.7% year-on-year to 6.4%.
| To our shareholders | Group interim | Consolidated | Notes | Real Estate portfolio |
|---|---|---|---|---|
| Change | Ø Remaining term of rental agreements |
Rental level by rental revenues |
Annualized contractual rent |
Annualized potential rent |
Ongoing yield on contractual rent |
Ongoing yield on potential rent |
|---|---|---|---|---|---|---|
| [%] | [years] | [%] | [€ thousand] | [€ thousand] | [%] | [%] |
| 0.6 | ||||||
| 4.8 | 46.7 | 260 | 557 | 5.1 | 10.8 | |
| 1.4 | 100.0 | 248 | 248 | 11.0 | 11.0 | |
| 1.7 | 100.0 | 79 | 79 | 9.3 | 9.3 | |
| 4.3 | 100.0 | 23 | 23 | 8.4 | 8.4 | |
| 8.1 4.5 |
100.0 100.0 |
329 84 |
329 84 |
13.5 8.6 |
13.5 8.6 |
|
| 5.1 | 91.6 | 124 | 136 | 7.9 | 8.6 | |
| 2.6 | 68.8 | 92 | 134 | 8.4 | 12.3 | |
| 3.1 | 100.0 | 177 | 177 | 9.9 | 9.9 | |
| 2.5 | 99.8 | 205 | 205 | 10.1 | 10.1 | |
| 4.3 | 87.8 | 4,064 | 4,631 | 8.4 | 9.5 | |
| 6.6 4.8 |
100.0 91.4 |
583 553 |
583 605 |
11.5 11.6 |
11.5 12.7 |
|
| 2.6 | 85.0 | 138 | 162 | 7.2 | 8.4 | |
| 2.2 | 92.4 | 514 | 556 | 7.3 | 7.9 | |
| 0.7 | 92.9 | 326 | 351 | 9.4 | 10.2 | |
| 6.4 | 99.6 | 1,936 | 1,943 | 7.0 | ||
| 4.7 | 80.4 | 216 | 268 | 6.9 | 13.7 | |
| 1.1 | 100.0 | 204 | 204 | 13.7 | ||
| 2.4 | 77.3 | 124 | 160 | 6.2 | ||
| 8.7 | 100.0 | 310 | 310 | 7.3 | ||
| 3.1 | 100.0 | 508 | 508 | 10.0 | ||
| 1.7 | 96.6 | 87 | 90 | 9.8 | ||
| 3.7 | 100.0 | 432 | 432 | 9.0 | ||
| 4.6 | 100.0 | 1,911 | 1,911 | 9.3 | ||
| 4.1 | 80.1 | 25 | 31 | 8.8 | ||
| 1.4 | 86.8 | 490 | 565 | 7.2 | ||
| 9.9 3.2 |
100.0 100.0 |
258 112 |
258 112 |
7.9 9.6 |
||
| 1.8 | 90.8 | 65 | 71 | 8.0 | ||
| 9.2 | 97.4 | 703 | 722 | 8.2 | ||
| 3.3 | 100.0 | 90 | 90 | 13.1 | 13.1 | |
| 3.1 | 91.3 | 181 | 199 | 7.6 | ||
| 3.3 15.4 |
100.0 100.0 |
314 868 |
314 868 |
9.3 7.2 |
||
| 4.8 | 100.0 | 1,095 | 1,095 | 11.4 | 11.4 | |
| 9.4 | 100.0 | 435 | 435 | 8.3 | 8.3 | |
| 9.1 | 100.0 | 209 | 209 | 8.6 | 8.6 | |
| 5.8 | 97.2 | 12,687 | 13,053 | 8.5 | 8.8 | |
| 6.7 | 95.2 | 19,970 | 20,968 | 8.2 | 8.6 | |
Fair Value REIT-AG Leopoldstraße 244 80807 Munich Germany
Tel. + 49 (0) 89 / 92 92 8 15 - 01 Fax + 49 (0) 89 / 92 92 8 15 - 15
[email protected] www.fvreit.de
Frank Schaich, Chief Executive Officer Manfred Heiler
Prof. Dr. Heinz Rehkugler, Chairman Christian Hopfer, Vice Chairman Dr. Oscar Kienzle
Registered office: Munich Commercial register at Munich Local Court No. HRB 168 882
Date of publication: May 15, 2009
cometis AG Unter den Eichen 7 65195 Wiesbaden Germany www.cometis.de
Fair Value REIT-AG Cover: Subsidy of Sparkasse Südholstein, Pinneberg, Damm 49 Page 55 and interior photos: Headquarter of Sparkasse Südholstein, Neumünster, Kuhberg 11-13
This interrim report contains future-oriented statements, which are subject to risks and uncertainties. They are estimations of the executive board of Fair Value REIT-AG and reflect their current views with regard to future events. Such expressions concerning forecasts can be recognised by terms such as "expect", "estimate", "intend ","can ", "will" and similar expressions with reference to the enterprise. Factors, that can cause deviations or effects can be (without claim on completeness): the development of the property market, competition influences, alterations of prices, the situation on the financial markets or developments related to general economic conditions. Should these or other risks and uncertainty factors take effect or should the assumptions underlying the forecasts prove to be incorrect, the results of Fair Value REIT-AG could vary from those, which are expressed or implied in these forecasts. The Company assumes no obligation to update such expressions or forecasts.
Fair Value REIT-AG Leopoldstraße 244 80807 Munich Germany
Tel. +49 (0) 89 / 92 92 8 15 - 01 Fax +49 (0) 89 / 92 92 8 15 - 15
[email protected] www.fvreit.de
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