Fair Value REIT-AG

Quarterly Report • May 14, 2013

Interim Report 1st Quarter 2013

Semi-Annual Key figures Fair Value Group
2013
Revenues and earnings		1/1–3/31/2013	1/1–3/31/20121)
Rental revenues	in € thousand	2,458	2,731
Net rental result	in € thousand	1,230	1,965
EBIT	in € thousand	815	1,314
Result from equity-accounted investments	in € thousand	1,669	1,418
Consolidated net income	in € thousand	1,620	1,210
Earnings per share	in €	0.17	0.13
Interim Report Adjusted consolidated net income ( EPRA-Earnings )/FFO	in € thousand	1,448	1,275
1st to 3rd Quarter 2013 EPRA-Earnings/FFO per share	in €	0.16	0.14
Assets and capital		3/31/2013	12/31/2012
Non-current assets	in € thousand	177,443	176,294
Current assets	in € thousand	7,399	8,546
Total assets	in € thousand	184,842	184,840
Equity/Net asset value ( NAV )	in € thousand	79,776	77,393
Equity ratio	in %	43.2	41.9
Immovable assets	in € thousand	177,984	176,141
Equity within the meaning of Section 15 of the REIT act	in € thousand	94,883	92,692
Equity ratio within the meaning of Section 15 of the REIT act ( minimum 45 % )	in %	53.3	52.6
Real estate investments2)		3/31/2013	12/31/2012
Number of properties	amout	65	65
Market value of properties3)	in € million	213	213
Contractual rent p.a.	in € million	18.1	17.9
Potential rent p.a.	in € million	19.0	18.9
Occupancy	in %	95.0	94.4
Remaining term of rental agreements	years	5.8	5.7
Contractual rental yield before costs	in %	8.5	8.4

1) Rental income and consolidated net income for Q1 2012 was adjusted on the back of the accrual of a rent repayment received

( Explanation see Note 11 )

2) Relating to Fair Value's proportionate portfolio. For further information see Annual Report 2012, pages 124–129.

3) Based on the market valuation dated December 31, 2012, relating to Fair Value's proportionate portfolio.

Further key figures
		3/31/2013	12/31/2012
Number of shares in circulation	in pieces	9,325,572	9,325,572
Net asset value ( NAV ) per share	in €	8.55	8.30
EPRA-NAV per share	in €	9.40	9.25
Number of employees ( including Management Board )		3	3

Letter to Shareholders

Dear Shareholders and Business Partners, Ladies and Gentlemen,

In the first three months of 2013, the German economy regained momentum after its slump in the final quarter of 2012, growing by 0.5 % year-on-year. The unemployment rate in Germany was unchanged at a low level of 7.3 %, while the inflation rate was at 1.4 % in March, substantially below the critical two percent mark.

Nevertheless, despite the solid basis in Germany, overall Europe is showing recessionary development. As a result, at its meeting on May 2, 2013, the European Central Bank reduced the key ECB interest rate by another 25 basis points to an all-time low of 0.5 % p.a. which is intended to help facilitate the credit supply for the European economy.

In this context, the business development of Fair Value REIT-AG in the first quarter 2013 forms a very good basis for the full year 2013. The occupancy rate of our proportionate real estate portfolio increased from 94.4 % to 95.0 % in the reporting period, with the average remaining lease terms totalling 5.8 years as of March 31, 2013, following 5.7 years at the end of the previous year.

We generated consolidated net income of € 1.62 million in the first quarter of 2013. This represents an increase of 34 % over the previous year figure of € 1.21 million, which is particularly attributable to the lower net interest expenses in the Group and associated companies. Consolidated net income adjusted for changes in market values, or FFO earnings, was € 1.45 million in the first quarter of 2013, some 13% higher than the previous year's figure of € 1.28 million.

As of the balance sheet date, consolidated equity amounted to € 79.8 million. As a result, the balance sheet net asset value increased by 3 % in the first quarter of 2013 to € 8.55 per share in circulation. The REIT equity ratio rose from 52.6 % to 53.3 % of immovable assets.

The sales of three properties outlined in the supplementary report correspond with our strategy of selling smaller properties as part of an active portfolio management approach. The sales prices achieved were substantially above on the book values and underline the sustainable value of our portfolio.

We regard the results from the first quarter of 2013 as confirmation of our targets and are maintaining our forecast for the current financial year. As a result, for 2013 as a whole, we are anticipating adjusted consolidated net income of € 5.3 million, or € 0.57 per share.

Munich, May 7, 2013 Kind regards

Frank Schaich, CEO

The Share

Fair Value Share and development of the Stock Market The European stock markets recorded relatively weak development in the first quarter of 2013. The Fair Value share price also fell slightly overall following an upwards trend at the start of the quarter.

The Fair Value share closed Xetra trading at the end of 2012 at a price of € 4.55. On the last trading day of the quarter under review, March 28, 2013, the share was trading at € 4.39. By this point, the Fair Value REIT-AG-share had recorded a market capitalisation of € 41.3 million. The price plotted upwards development until mid-February, with the share reaching a high of € 4.85. However, in the second half of the quarter, the share price returned to its level at the start of the year and closed the quarter with a fall of 3.5 %.

As a result, in Q1 2013 the Fair Value share recorded very similar development to the benchmark index DAX Subsector Real Estate, with the latter falling by 2.9 %. The DAX was able to grow by 2.4 % overall during this time.

	Development of Fair Value's share January 2 to May 6, 2013				Fair Value REIT-AG (XETRA)
in €					DAX Subsector Real Estate (chain-linked at 1/1/2013)
5.00
4.75
4.50
4.25
4.00
3.75
3.50
	January	February	March	April	May

Key data Fair Value REIT-AG's share
at March 31, 2013
Sector	Real Estate (REIT)
WKN (German Securities Code)/ISIN	A0MW97/DE000A0MW975
Stock symbol	FVI
Share capital	€47,034,410.00
Number of shares (non-par value shares)	9,406,882 pcs.
Proportion per share in the share capital	€5.00
Initial listing	November 16, 2007
High/low 1st quarter 2013 (XETRA)	€4.85/€4.37
Market capitalization at March 31, 2013 (XETRA)	€41.3 million
Market segment	Prime Standard
Stock exchanges Prime Standard	Frankfurt, XETRA
Stock exchanges OTC	Stuttgart, Berlin-Bremen, Duesseldorf, Munich
Designated sponsor	Close Brothers Seydler Bank
Indices	RX REIT All Shares-Index, RX REIT-Index

Further information about the share, the shareholder structure as well as other investor relations content is available on www.fvreit.de in the "Investor Relations" section.

Financial calendar
Fair Value REIT-AG
May 16, 2013	Annual General Meeting (Munich, Germany)
August 8, 2013	Semi Annual Report 2013
November 7, 2013	Interim Report 1st–3rd Quarter 2013
November 11, 2013	Presentation, German Equity Forum (Frankfurt/Main, Germany)

Group Interim Management Report

Economic Report

Business Activities and General Conditions

Real Estate Portfolio and Group Structure

The occupancy rate of the properties held by the Group and its associated companies increased to 95.0 % on a proportionate basis compared with 94.4 % on December 31, 2012. The weighted remaining lease terms as of March 31, 2013 totalled 5.8 years, compared with 5.7 years as of December 31, 2012.

The following table provides an overview of the real estate assets attributable to the Group (€ 127 million) and its associated companies (€ 336 million) as of March 31, 2013. The market values of the properties are based on property-specific valuations by the external surveyor CBRE GmbH as of December 31, 2012, to which reference is made individually on pages 124 to 129 of the Annual Report 2012.

Real estate assets of Fair Value REIT-AG as of March 31, 2013
									Fair Value REIT-AG's share
	Total plot size 1) [m2 ]	Lettable space1) [m2 ]	Annualized contractrual rent p. a.1) [T€]	Market value 12/31/20121)2) [T€]	Participating interest [%]	Annualized contractrual rent3) [T€]	Market value 12/31/20122)3) [T€]	Occupancy level 4)6) [%]	Ø-remaining term of rental agree ments 5)6) [years]	Contractual rental yield before costs6)7) [%]
Segment direct investments	49,999	39,488	3,038	43,712	100.0	3,038	43,712	95.7	10.2	6.9
Segment subsidiaries	155,682	117,075	7,480	82,960	58.0	4,323	48,144	93.7	4.4	9.0
Total Group	205,681	156,564	10,518	126,672	72.5	7,361	91,856	94.5	6.8	8.0
Total associated companies	340,250	259,594	30,737	335,860	36.0	10,723	121,022	95.3	5.1	8.9
Total Portfolio	545,931	416,158	41,255	462,532	46.0	18,084	212,878	95.0	5.8	8.5

1) Does not take into account the respective participating interest

2) According to market valuation by CBRE GmbH, Frankfurt/Main, Berlin branch as of December 31, 2012

3) Proportionate values attributable to Fair Value based on percentage of participations

4) Contractual rent/(contractual rent + vacant space at market rent)

5) Income-weighted 6)

(Sub) totals taking the respective participating interest into account 7) Contractual rents as of March 31, 2013, as % of the proportionate market values

Macroeconomic and Sector-Specific Conditions

Macroeconomic Situation The difficult overall economic environment was dominated by uncertainty in the first quarter 2013 on the back of the developments in the Eurozone. However, following the slump in the final quarter of 2012, the German economy was able to make gains once again. According to estimates from the German Institute for Economic Research (Deutsches Institut für Wirtschaftsforschung – DIW), in the rest of the year, the world economy will gain some momentum, which is likely to support German exports. The German economy is also benefiting from the upbeat situation on the employment market and substantial pay rises, which will stimulate private consumption.1)

In the reporting period, the German economy grew by 0.5 % compared to the previous year period according to DIW forecasts. A gain of 0.7 % is anticipated for the year as a whole. In March 2013, almost 3.1 million people were registered as unemployed, which is 70,000 more than in the previous year period. This represents an unemployment rate of 7.3 %. In the first three months of the new year, inflation was substantially below the two percent mark, and only totalled 1.4 % in March.2)

The Real Estate Market in Germany The Leasing Market Office Space The German office rental market made a weak start to 2013. In the first quarter, the turnover at the seven large office centres3) totalled just 0.57 million m² and was therefore down 21 % on the previous year quarter. In particular, large space rentals were rare. Vacancies however continued to fall in all cities and recorded a new 10-year-low with an average of 8.7 %. In Frankfurt, the top rent increased by one Euro to 34 €/m², while it remained constant at other locations. For the full year, the analysts at Jones Lang LaSalle (JLL) are anticipating a somewhat weaker market overall with space turnover of 2.8 to 3 million m² - in line with the moderate economic prospects.4)

Retail Space In the first quarter on the retail market, 136,000 m² space changed hands, which was therefore slightly down on the previous year period. Of this amount, 76 % of the total turnover came from international concepts. The importance of the ten largest retail locations continued to fall, with these accounting for a total of 40 % of all deals. At the top locations, the top rents continued to grow during the reporting period. Across Germany, an increase in rent averaging 1.3 % is expected in the first half of 2013.5)

The Investment Market 2013 has seen a dynamic start on the German investment market for commercial real estate: In the first quarter, transaction volumes were up 35 % year on year to € 7.1 billion. Of this amount, € 4.6 billion were attributable to the seven largest locations. Office real estate made up 40 % of the overall turnover and was the most sought-after asset class at € 2.9 billion. This was followed by retail properties with € 1.7 billion (24 % share) and mixed use properties (14 % share). The most important groups of buyers in the period under review were special funds, which invested € 1.5 billion.6)

• 2) See DIW: Frühjahrsgrundlinien 2013. See Federal Employment Agency: Moderate Spring Recovery Begins. Press release from 28.3.2013.
• 3) Berlin, Duesseldorf, Frankfurt/Main, Hamburg, Cologne, Munich, Stuttgart
• 4) See Jones Lang LaSalle (JLL): Office Market Overview 1st Quarter 2013
• 5) See JLL: Rental market overview Q1 2013 6) See JLL: The German Investment Market Q1 2013

¹⁾ See DIW: Frühjahrsgrundlinien 2013

Overall Statement of the Management on Business Performance

Lower rental income and higher property-related expenses led to net rental income down € 0.73 million within the Group in Q1 of the financial year 2013. However, these lower proceeds were more than offset by substantially reduced net interest expenses in the Group and in the equity-accounted participations.

The Fair Value Group's operating business result adjusted for changes in market values and valuation losses (EPRA earnings or FFO) was therefore at € 1.45 million, around 13 % up on the previous year figure of € 1.28 million:

Adjusted consolidated net income
(EPRA earnings or FFO)	1/1–3/31/2013							1/1–3/31/20121)
			Adjustment for extraordinary factors			Adjustment for extraordinary factors
in € thousand	According to consolidated income statement	Profits/ losses on sale and valuation	Interest rate swaps	Adjusted consolidated income statement	According to consolidated income statement	Profits/ losses on sale and valuation	Interest rate swaps	Adjusted consolidated income statement
Net rental income	1,230	—	—	1,230	1,965	—	—	1,965
General administrative expenses	(533)	—	—	(533)	(529)	—	—	(529)
Total other operating income and expenses	118	—	—	118	44	—	—	44
Earnings from sale of investment properties	—	—	—	—	(14)	14	—	—
Valuation profit/loss	—	—	—	—	(152)	152	—	—
Operating result	815	—	—	815	1,314	166	—	1,480
Income from participations	1,669	36	(314)	1,391	1,418	—	(152)	1,266
Net interest expense	(1,000)	—	106	(894)	(1,265)	—	142	(1,123)
Income before minority interests	1,484	36	(208)	1,312	1,467	166	(10)	1,623
Minority interests	136	—	—	136	(257)	(11)	(62)	(348)
Consolidated net income	1,620	36	(208)	1,448	1,210	155	(72)	1,275
Adjusted consolidated net income (FFO) per share (in €)				0.16				0.14

Income, Financial and Net Asset Position

Income Position

				Change
in € thousand	1/1–3/31/2013	1/1–3/31/20121)	in € thousand	in %
Total revenues	2,973	3,146	(173)	(5 )
Net rental income	1,230	1,965	(735)	(37)
General adminstrative expenses	(533)	(529)	4	1
Sales and valuation result	—	(166)	166	100
Operating result	815	1,314	(499)	(38)
Income from participations	1,669	1,418	251	18
Net interest expense	(1,000)	(1,265)	(265)	(21 )
Minority interest in the result	136	(257)	393	153
Consolidated net income	1,620	1,210	410	34

1) Rental income and consolidated net income for Q1 2012 was adjusted on the back of the accrual of a rent repayment received (Explanation see Note 11)

Total revenues totalled € 2.97 million, some € 0.17 million or 5 % down on the previous year figure. This fall resulted from a balance of lower rental income - mainly as a result of property sales (€ 0.27 million) - and higher income from incidental cost reimbursements (€ 0.10 million). Due to increased propertyrelated expenses in connection with new lettings, the net rental income came in at € 1.23 million, around € 0.74 million or 37 % down on the € 1.97 million reported in the previous year.

In contrast, after higher other operating income and an improved sales and valuation result, the operating result was recorded at € 0.82 million and was therefore around € 0.50 million down on the € 1.31 million reported in the previous year.

Income from participations from equity-accounted associated companies came in at € 1.67 million, which represents an increase of 18 % over the previous year figure of € 1.42 million. This improvement mainly stemmed from the lower net interest expenses in the associated companies.

The net interest expenses in the Group came in at € 1.0 million and was therefore € 0.27 million or 21 % down on the € 1.27 million reported in the previous year. This contains liquidity-neutral expenses from the market valuation of interest hedging transactions worth € 0.11 million (previous year: € 0.14 million).

After minority interests in the result of € 0.14 million (previous year: € -0.26 million), the Fair Value Group concluded the first quarter of the current financial year 2013 with consolidated net income of € 1.62 million, or € 0.17 per share (previous year: € 1.21 million or € 0.13 per share).

Financial Position

Cash Flow from Operating Activities The cash inflow from operating activities in the period under review totalled € 0.51 million and was therefore 33 % down on the previous year mark of € 0.76 million. The higher previous year figure largely resulted from cash inflows from equity-accounted participations, which are expected at a later date during the current financial year.

Cash and cash equivalents
in € thousand	1/1–3/31/2013	1/1–3/31/2012
Cash flow from operating activities	508	758
Cash flow from investment activities	—	1,100
Cash flow from financing activities	(1,209)	(1,669)
Change of cash and cash equivalents	(701)	189
Cash and cash equivalents – start of period	5,861	7,725
Cash and cash equivalents – end of period	5,160	7,914

Cash Flow from Investment Activities No cash inflow resulted from investment activities, while in the previous year quarter, the purchase price for the sold property in Frechen (subsidiary BBV 06) was received.

Cash Flow from Financing Activities Due to the repayment of bank borrowings, financing activities generated a net cash outflow of € 1.21 million (of which € 0.50 million was a one-off repayment after the payment of purchase prices for two properties sold as of the end of 2012) compared to € 1.67 million in the corresponding period in the previous year.

Liquidity In the first quarter 2013, cash and cash equivalents in the Group fell by € 0.70 million to € 5.16 million (previous year period: € 0.2 million increase to € 7.91 million).

Net Asset Position

Assets Total assets as of March 31, 2013 amounted to € 188.84 million, and were therefore unchanged compared with December 31, 2012.

Non-current assets totalling around € 177.44 million accounted for 96 % of total assets (December 31, 2012: 95 %). Of this amount, investment properties accounted for € 125.99 million or 71 % (December 31, 2012: € 126.67 million or 72 %). An amount of € 51.31 million from the equity-accounted participations in the associated companies (December 31, 2012: € 49.47 million) is included in the non-current assets.

Around 70 % of the current assets of € 7.40 million (December 31, 2012: € 8.55 million) comprise cash and cash equivalents, while 21 % are receivables and other assets, and 9 % are two directly owned properties held for sale (see supplementary report).

Equity and Liabilities As of March 31, 2013, 43 % of the assets were financed by equity and 57 % by debt. It should be noted that the minority interests in subsidiaries amounting to € 15.11 million are shown under liabilities in accordance with IFRS. The equity according to the REIT act, which includes minority interests in subsidiaries, totalled € 94.88 million. This represents around 51 % of total assets (December 31, 2012: 50 %) or 53 % of immovable assets.

Financial Liabilities The Group's financial liabilities of € 81.78 million as of March 31, 2013 account for 44 % of total assets, compared with 45 % or € 82.98 million as of December 31, 2012. Of these, 15 % or € 12.40 million (December 31, 2012: 16 % or € 13.11 million) were due within one year.

Equity/Net Asset Value (NAV) The net asset value (NAV), calculated as the sum of the market values of the properties and the participations, after taking the other balance sheet items into account, amounted to € 79.78 million as of March 31, 2013, compared with € 77.39 million as of December 31, 2012.

Based on 9,325,572 shares in circulation as of the balance sheet date, the NAV per share was € 8.55, compared to € 8.30 on December 31, 2012.

Balance sheet NAV
in € thousand	3/31/2013	12/31/2012
Market value of properties (including properties held for sale)	126,672	126,672
Equity-accounted participations	51,312	49,469
Miscellaneous assets minus miscellaneous liabilities	(376)	881
Minority interests	(15,107)	(15,299)
Financial liabilities	(81,775)	(82,984)
Other liabilities	(950)	(1,346)
Net Asset Value	79,776	77,393
Net Asset Value per share (in €)	8.55	8.30

The "Best Practice Recommendations" of the European Public Real Estate Association (EPRA) are accepted recommendations which complement the IFRS reporting of real estate companies by providing guidance on a transparent net asset value calculation. The EPRA-NAV indicator shown below was calculated on the basis of these recommendations; it eliminates the market value of derivative financial instruments and therefore represents the real estate-related net asset value. As deferred taxes are not relevant to Fair Value REIT-AG as a result of its REIT status, the EPRA-NAV figures shown below also correspond to the NNAV indicator used by some experts.

EPRA-NAV
in € thousand	3/31/2013	12/31/2012
NAV pursuant to consolidated balance sheet	79,776	77,393
Market value of derivative financial instruments	6,202	6,685
Thereof due to minority interests	(52)	(52)
Market value of derivative financial instruments of equity-accounted participations (proportionate)	1,778	2,265
EPRA-NAV	87,704	86,291
EPRA-NAV per share (in €)	9.40	9.25

Supplementary Report

Sale of three properties at a profit

After the reporting date, the directly held properties in Boostedt (Segeberg county) and on the island of Helgoland (Pinneberg county), which were mainly leased to Sparkasse Südholstein, were sold to private investors. In addition, the subsidiary BBV 06 sold a retail property located in Emmerich on the river Rhine (Kleve county) to a developer, which is planning to erect a new building after the current rental agreement expires in October 2013.

The agreed purchase prices for the three properties with a total lettable area of around 2,000 sqm added up to € 1.5 million and were therefore 11 % up on the market valuation as of December 31, 2012. The transfer of ownership, risks and benefits is expected to take place in the current second quarter 2013. The purchase prices are largely to be used for repaying financial liabilities.

Risk Report

The Fair Value Group's business activities expose the company to a wide range of risks. In addition to general economic risks, these are essentially occupancy risks, rental default risks, interest rate risks and liquidity risks. The risk management activities and the general risks faced by the company are described on pages 50 to 56 of the Fair Value REIT-AG Annual Report 2012.

The Management Board does not expect any risks to materialise in the coming 12 months that could pose a threat to the continued existence of Fair Value REIT-AG.

Opportunities and Forecast

The business development in the first quarter 2013 forms a very good basis for the full year 2013. The occupancy rate of the Fair Value portfolio was increased slightly to 95.0% (December 31, 2012: 94.4%). Net sales were somewhat lower than planned, net rental income and the operating result were substantially down on the previous year on the back of the increased property-related expenses due to rentals year-on-year. Higher income from the associated companies and substantially lower net interest expenses resulted in adjusted consolidated net income of € 1.45 million or € 0.16 per share, which was slightly above the budgeted figure.

Confirmation of the forecast for 2013

The positive development in the first quarter 2013 is being seen as a confirmation of the forecast. As a result, the Management Board is reiterating its forecast for the full year 2013. This provides for adjusted IFRS consolidated net income (EPRA earnings or FFO) of € 5.3 million for 2013, corresponding to € 0.57 per share.

Munich, May 7, 2013

Fair Value REIT-AG

Frank Schaich, CEO

Consolidated Interim Financial Statements

Balance Sheet

Consolidated balance sheet
in € thousand	Note no.	3/31/2013	12/31/2012
Assets
Non-current assets
Intangible assets	3	134	143
Property, plant and equipment		5	4
Investment property	4	125,985	126,672
Equity-accounted investments	5	51,312	49,469
Other receivables and assets		7	6
Total non-current assets		177,443	176,294
Current assets
Non-current assets available for sale	6	687	—
Trade receivables		1,177	1,398
Income tax receivables		71	65
Other receivables and assets		304	1,222
Cash and cash equivalents		5,160	5,861
Total current assets		7,399	8,546
Total assets		184,842	184,840
Equity and liabilities
Equity
Subscribed capital		47,034	47,034
Share premium		46,167	46,167
Reserve for changes in value	7	(5,648)	(6,411)
Loss carryforward		(7,379)	(8,999)
Treasury shares		(398)	(398)
Total equity		79,776	77,393
Non-current liabilities
Minority interests		15,107	15,299
Financial liabilities	8	69,379	69,873
Derivative financial instruments		6,202	6,685
Other liabilities		90	90
Total non-current liabilities		90,778	91,947
Current liabilities
Provisions		252	268
Financial liabilities	8	12,396	13,111
Trade payables		780	865
Other liabilities		860	1,256
Total current liabilities		14,288	15,500
Total equity and liabilities		184,842	184,840

Income Statement

Consolidated income statement
in € thousand	Note no.	1/1–3/31/2013	1/1–3/31/20121)
Rental income		2,458	2,731
Income from operating and incidental costs		515	415
Leasehold payments		—	(3)
Real estate-related operating expenses		(1,743)	(1,178)
Net rental result		1,230	1,965
General administrative expenses	9	(533)	(529)
Other operating income		118	45
Other operating expenses		—	(1)
Total other operating income and expenses		118	44
Net income from the sale of investment properties		—	1,100
Expenses in connection with the sale of investment properties		—	(1,114)
Result from sale of investment properties	6	—	(14)
Valuation gains		—	—
Valuation losses		—	(152)
Valuation result	4	—	(152)
Operating result		815	1,314
Result from equity-accounted investments	5	1,669	1,418
Interest income		1	3
Interest expense	10	(1,001)	(1,268)
Income before taxes		1,484	1,467
Income tax		—	—
Income before minority interests		1,484	1,467
Minority interest in the result		136	(257)
Net income		1,620	1,210
Earnings per share in € (basic/diluted)		0.17	0.13

Statement of Comprehensive Income

Consolidated statement of comprehensive income
in € thousand	1/1–3/31/2013	1/1–3/31/20121)
Net income	1,620	1,210
Other results
Change in cash flow hedges	589	(117)
Thereof due to minority interests	—	32
Change in cash flow hedges of associated companies	174	(108)
Total other results	763	(193)
Comprehensive income	2,383	1,017

1) Rental income and consolidated net income for Q1 2012 was adjusted on the back of the accrual of a rent repayment received (Explanation see Note 11)

Statement of Changes in Equity

Consolidated statement of changes in equity
in € thousand	Shares in circulation [in pcs.]	Subscribed capital	Share premium	Own shares	Reserve for changes in value	Retained earnings	Total
Balance at January 1, 2012	9,325,572	47,034	46,167	(398)	(6,480)	(8,851)	77,472
Adjustment without effect on income IFRS	—	—	—	—	—	(1)	(1)
Total net income 1)	—	—	—	—	(108)	1,210	1,102
Balance at March 31, 2012	9,325,572	47,034	46,167	(398)	(6,588)	(7,642)	78,573
Balance at January 1, 2013	9,325,572	47,034	46,167	(398)	(6,411)	(8,999)	77,393
Hedge Accounting	—	—	—	—	763	—	763
Total net income	—	—	—	—	—	1,620	1,620
Balance at March 31, 2013	9,325,572	47,034	46,167	(398)	(5,648)	(7,379)	79,776

Cash Flow Statement

Consolidated cash flow statement
in € thousand	1/1–3/31/2013	1/1–3/31/20121)
Net income	1,620	1,210
Adjustments to consolidated earnings for reconciliation to cash flow from operating activities
Income tax expenses/(income)	(6)	(9)
Amortization of intangible assets and depreciation of property, plant and equipment	8	8
Valuation result	—	3
Income from equity-accounted investments	(1,669)	(1,418)
Withdrawals from equity-accounted investments	—	214
Loss/(profit) of minority shareholders in subsidiaries	(136)	257
Disbursement to minority shareholders in subsidiaries	(56)	—
Result from the valuation of derivative financial instruments	106	142
Change in assets, equity and liabilities
(Increase)/decrease in trade receivables	221	43
(Increase)/decrease in other liabilities	917	297
(Decrease)/increase in provisions	(16)	(9)
(Decrease)/increase in trade payables	(85)	(197)
(Decrease)/increase in other liabilities	(396)	217
Cash flow from operating activities	508	758
Disposal of investment properties/properties under construction	—	1,100
Cash flow from investment activities	—	1,100
Receipts of financial liabilities	68	—
Repayment of financial liabilities	(1,277)	(1,669)
Cash flow from financing liabilities	(1,209)	(1,669)
Cash effective change of liquid funds	(701)	189
Cash and cash equivalent (start of period)	5,861	7,725
Cash and cash equivalent (end of period)	5,160	7,914

Notes

(1) General Information about the Company

Fair Value REIT-AG is headquartered in Munich, Germany, and does not have any branch offices. As a real estate investment firm, the Company focuses on the acquisition and management of commercial properties in Germany. Investment activities focus in particular on office and retail properties in regional centres. Fair Value REIT-AG invests directly in real estate as well as indirectly in real estate partnerships via the acquisition of participations. Following its registration as a public company on July 12, 2007, Fair Value REIT-AG ("the Company") has been listed on the stock exchange since November 16, 2007. It became a REIT on December 6, 2007.

As a result of its participations in a total of twelve closed-end real estate funds, the company must prepare consolidated financial statements.

(2) Key Accounting and Valuation Methods

Basis of the Preparation The Interim Consolidated Financial Statement has been prepared on the basis of the International Financial Reporting Standards ("IFRSs") in compliance with IAS 34 "Interim Financial Reporting".

Investment properties and financial derivates are valued at fair value; interests held in associated companies are equity-accounted. All other valuations are based on cost.

Consolidation All subsidiaries are included in the consolidated financial statement. The composition of the consolidated group of companies has not changed since December 31, 2012.

Accounting and Valuation Methods The same accounting and valuation methods are used for the quarterly report as for the consolidated financial statement on December 31, 2012.

Comparative Figures The figures used for comparison in the balance sheet and the statement of change in the equity capital are from the reporting date December 31, 2012. The comparative figures used for the profit and loss account, the statement of income and accumulated earnings and the cash flow statement in general relate to the period from January 1 to March 31, 2012.

(3) Intangible Assets

The intangible assets include a contractual right that was valued individually within the framework of a company acquisition and will be amortized over a useful life of five years. Amortization totalling € 9,000 of € 133,000 were carried out in the quarter under review.

(4) Investment Property

Development of investment property
in € thousand	Direct investments	Subsidiaries	Total
Acquisition costs
Balance at January 1, 2013	49,147	113,330	162,477
Reclassifications	(778)	—	(778)
Balance at March 31, 2013	48,369	113,330	161,699
Changes in value
Balance at January 1, 2013	(5,435)	(30,370)	(35,805)
Reclassifications	91	—	91
Balance at March 31, 2013	(5,344)	(30,370)	(35,714)
Fair values
Balance at January 1,2013	43,712	82,960	126,672
Balance at March 31, 2013	43,025	82,960	125,985

The fair values used for the investment properties are those determined on December 31, 2012 by CBRE GmbH, Frankfurt. In the period under review, two properties were reclassified from being directly held to "available for sale". This relates to two office buildings in Boostedt and Helgoland with residual carrying amounts of € 126,000 and € 561,000 respectively (together a total of € 687,000). The agreed purchase prices total € 751,000. The transfer of all risks and benefits for both properties is expected in the next quarter. No selling costs were incurred during the quarter under review.

(5) Equity-accounted Participations

Development of equity-accounted participations
in € thousand	IC12	IC15	BBV02	BBV09	BBV10	BBV14	Total
Proportionate equity
Balance at January 1, 2013	2,495	7,090	113	11,082	12,891	18,970	52,641
Proportionate earnings	10	188	7	648	389	427	1,669
Profit from cash flow hedge	—	—	—	—	174	—	174
Balance at March 31, 2013	2,505	7,278	120	11,730	13,454	19,397	54,484
Value adjustment
Balance at January 1, 2013/March 31, 2013	(118)	(377)	(49)	(431)	(1,086)	(1,111)	(3,172)
Carrying amounts
Balance at January 1, 2013	2,377	6,713	64	10,651	11,805	17,859	49,469
Balance at March 31, 2013	2,387	6,901	71	11,299	12,368	18,286	51,312

This refers to participations with holdings of between 20 % and 50 %. The € 1,843,000 increase in the carrying amounts in comparison to December 31, 2012 consists of the proportionate earnings allocation to Fair Value in the reporting period, amounting to a total of € 1,669,000 plus the proportional profit from cash flow hedge recorded without affecting net income, amounting to a total of € 174,000. The value adjustments arises from the net present value of company expenses not taken into account in the market valuations of the properties. For further information regarding the difference in value, please refer to the explanations on page 81 of the Annual Report 2012.

	Proportionate share of assets and liabilities of equity-accounted associated companies at March 31, 2013
in € thousand	IC12	IC15	BBV02	BBV09	BBV10	BBV14	Total
Fair Value REIT-AG's share	40.95%	39.08%	41.39%	25.17%	38.43%	45.14%
Investment property	3,182	13,912	608	26,972	38,100	38,468	121,242
Trade receivables	53	113	4	35	99	200	504
Other receivables and assets	4	14	—	24	30	232	304
Cash and cash equivalents	201	637	7	3,199	1,087	1,911	7,042
Provisions	(3)	(3)	(3)	(7)	(11)	(14)	(41)
Financial liabilities	(866)	(7,264)	(480)	(17,070)	(24,906)	(20,746)	(71,332)
Derivative financial instruments	—	—	—	(1,030)	(551)	(197)	(1,778)
Trade payables	(32)	(54)	(7)	(55)	(175)	(98)	(421)
Other liabilities	(34)	(77)	(9)	(338)	(219)	(359)	(1,036)
Net assets at March 31, 2013	2,505	7,278	120	11,730	13,454	19,397	54,484

Overview of maturities of financial liabilities at March 31, 2013
Long term	(834)	(4,230)	(453)	(16,252)	(15,098)	(20,205)	(57,072)
Short term	(32)	(3,034)	(27)	(818)	(9,808)	(541)	(14,260)
Total financial liabilities	(866)	(7,264)	(480)	(17,070)	(24,906)	(20,746)	(71,332)

	Proportionate share of assets and liabilities of equity-accounted associated companies at December 31, 2012
in € thousand	IC12	IC15	BBV02	BBV09	BBV10	BBV14	Total
Fair Value REIT-AG's share	40.95%	39.08%	41.39%	25.17%	38.43%	45.12%
Investment property	3,183	13,912	608	26,972	38,100	38,450	121,225
Trade receivables	54	62	3	23	95	212	449
Other receivables and assets	2	21	—	3	—	203	229
Cash and cash equivalents	197	646	7	2,849	905	1,720	6,324
Provisions	(4)	(6)	(3)	(10)	(12)	(14)	(49)
Financial liabilities	(873)	(7,328)	(486)	(17,070)	(25,151)	(20,864)	(71,772)
	—	—		(1,301)	(750)	(214)	(2,265)
Derivative financial instruments			—
Trade payables	(29)	(63)	(8)	(68)	(116)	(128)	(412)
Other liabilities	(35)	(154)	(8)	(316)	(180)	(395)	(1,088)
Net assets at December 31, 2012	2,495	7,090	113	11,082	12,891	18,970	52,641
Overview of maturities of financial liabilities at December 31, 2012
Long term	(844)	(1,167)	(460)	(16,416)	(15,251)	(20,349)	(54,487)
Short term	(29)	(6,161)	(26)	(654)	(9,900)	(515)	(17,285)

The proportionate income position of the equity-accounted companies for the reporting period compared to the same period of the previous year was as follows:

Proportionate income situation for the equity-accounted associated companies at March 31, 2013
in € thousand	IC12	IC15	BBV02	BBV09	BBV10	BBV14	Total
Fair Value REIT-AG's share	40.95%	39.08%	41.39%	25.17%	38.43%	45.14%
Rental income	46	284	23	730	889	707	2,679
Income from operating and incidental costs	25	28	2	13	216	174	458
Real estate-related operating expenses	(49)	(47)	(10)	(38)	(321)	(304)	(769)
Net rental income	22	265	15	705	784	577	2,368
General administrative expenses	(4)	(13)	(2)	(34)	(35)	(66)	(154)
Other operating income and expenses (balance)	2	—	—	9	(2)	24	33
Valuation result	—	—	—	(8)	1	(28)	(35)
Operating result	20	252	13	672	748	507	2,212
Net interest expense	(10)	(64)	(6)	(295)	(334)	(80)	(789)
Valuation result of derivative financial instruments
with effect to net income	—	—	—	271	(25)	—	246
Financial result	(10)	(64)	(6)	(24)	(359)	(80)	(543)
Economic result at March 31, 2013	10	188	7	648	389	427	1,669

Proportionate income situation for the equity-accounted associated companies at March 31, 2012

in € thousand	IC12	IC15	BBV02	BBV09	BBV10	BBV14	Total
Fair Value REIT-AG's share	40.34%	38.94%	41.05%	25.17%	38.43%	45.12%
Rental income	34	290	23	737	934	721	2,739
Income from operating and incidental costs	20	25	(7)	13	68	151	270
Real estate-related operating expenses	(101)	(49)	(8)	(40)	(165)	(302)	(665)
Net rental income	(47)	266	8	710	837	570	2,344
General administrative expenses	(4)	(12)	(5)	(22)	(39)	(58)	(140)
Other operating income and expenses (balance)	—	1	—	9	—	3	13
Operating result	(51)	255	3	697	798	515	2,217
Net interest expense	(12)	(74)	(7)	(297)	(356)	(180)	(926)
Valuation result of derivative financial instruments
with effect to net income	—	—	—	127	—	—	127
Financial result	(12)	(74)	(7)	(170)	(356)	(180)	(799)
Economic result at March 31, 2012	(63)	181	(4)	527	442	335	1,418

(6) Non-current Assets available for Sale

in € thousand	3/31/2013	12/31/2012
Office building ("FVAG") in Boostedt and Helgoland	687	—
Total non-current assets available for sale	687	—

The reclassification of the office buildings in Boostedt and Helgoland was made during the quarter under review at the residual carrying amounts. The transfer of ownership, risks and benefits for both properties has occurred at the end of April 30, 2013.

(7) Reserve for Changes in Value

Included in the reserve for changes in value currently reducing the total equity are changes in value (with no effect on net income) relating to interest rate hedges, to the extent that these fulfil the requirements for "Hedge Accounting". During the reporting period, the revaluation reserve decreased on balance by € 763,000. After deduction of the units held by minority shareholders, the share held by the group decreased to € 589,000. In addition, there was a reduction of the reserve by € 174,000 related to the equity-accounted participations, to the extent that these resulted from cash flow hedges made by the participating companies.

(8) Financial Liabilities

The long-term and short-term financial liabilities of € 81,775,000 decreased by € 1,277,000 compared to December 31, 2012. This was because of scheduled repayments of € 775,000 and unscheduled repayments of € 502,000 relating to the sales of the properties Ellerau and Bönningstedt (FVAG). There was an increase in financial liabilities of € 68,000 at subsidiary IC 03 due to a roof refurbishment. Current financial liabilities decreased by € 715,000 to € 12,396,000 compared with December 31, 2012.

(9) General Administrative Expenses

in € thousand	1/1–3/31/2013	1/1–3/31/2012
Personnel expenses	104	107
Office costs	11	12
Travel and vehicle expenses	9	11
Accounting	33	36
Stock market listing, general meeting and events	83	72
Valuations	29	19
Legal and consulting costs	35	48
Audit expenses	37	40
Remuneration (Supervisory and Advisory Boards, General Partner)	17	13
Fund management fees	82	78
Trustee fees	29	29
Amortization and depreciation	10	9
Other	13	11
Non-deductible VAT	41	44
Total general administrative expenses	533	529

Of the general administrative expenses, € 364,000 (68 %) are attributable to Fair Value (€ 372,000 or 71 % in the previous year). To the subsidiaries € 169,000 (32 %) are attributable (€ 150,000 or 29 % in the previous year).

(10) Interest Expenses

in € thousand	1/1–3/31/2013	1/1–3/31/2012
Valuation of derivative financial instruments	(106)	(142)
Other interest expenses	(894)	(1,126)
Total interest expenses	(1,000)	(1,268)

Interest expenses include costs relating to the change in the fair value of derivative financial instruments (interest rate hedges) amounting to € 106,000.

( 11 ) Segment Revenues and Results

	1/1–3/31/2013
in € thousand	Segment revenues	Segment results	Segment revenues	Segment results
Direct investments	898	624	831	416
Subsidiaries	2,076	507	2,463	1,222
Total segment revenues and results	2,974	1,131	3,294	1,638
Central administrative expenses and other		( 315 )		( 324 )
Earnings from equity-accounted participations		1,669		1,418
Net interest expenses		( 1,000 )		( 1,265 )
Minority interest in the result		135		(257)
Net income		1,620		1,210

1) The segment results of the previous year quarter were reduced by € 148,000 at a subsidiary ("IC03"). The segment revenues of the previous year included a rent prepayment totalling € 150,000 over 25 years for the use of the roof space for operating a photovoltaic system, which was accrued as part of the annual financial statements 2012 at a total of € 144,000. This accrual was now taken into account on a quarterly basis, meaning that the proceeds from the payment totalled € 2,000 in the previous year quarter.

The following table shows the income statement of the segments, with the "subsidiaries" segment being broken down according to the individual fund companies.

Income statement by segments at March 31, 2013
	Direct invest ments							Subsidiaries
in € thousand	FV AG	IC01	IC03	IC07	IC13	BBV03	BBV06	Total	Recon ciliation	Group
Rental income	750	—	117	124	439	110	918	1,708	—	2,458
Income from operating and incidental costs	148	1	53	39	131	27	118	369	—	517
Segment revenue	898	1	170	163	570	137	1,036	2,077	—	2,975
Real estate-related operating expenses	(237)	—	(72)	(579)	(211)	(318)	(327)	(1,507)	—	(1,744)
Administrative expenses related to segment	(35)	—	(7)	(8)	(27)	(41)	(80)	(163)	(6)	(204)
Other operating expenses and income (balance)	8	—	1	88	3	7	1	100	10	118
Valuation result	—	—	—	—	—	—	—	—	—	—
Segment result	634	1	92	(336)	335	(215)	630	507	4	1,145
Central administrative costs	(329)	—	—	—	—	—	—	—	—	(329)
Income from equity-accounted participations	—	—	—	—	—	—	—	—	1,669	1,669
Other income from participations	72	—	—	—	—	—	—	—	(72)	—
Net interest expenses	(636)	—	(15)	(20)	(117)	—	(213)	(365)	—	(1,001)
Minority interests	—	—	—	—	—	—	—	—	136	136
Consolidated net income	(259)	1	77	(356)	218	(215)	417	142	1,737	1,620

Consolidated net income	191	80	(10)	81	(3)	96	275	519	500	1,210
Minority interests	—	—	—	—	—	—	—	—	(257)	(257)
Net interest expenses	(562)	(10)	(27)	(25)	(158)	—	(483)	(703)	—	(1,265)
Other income from participations	667	—	—	—	—	—	—	—	(667)	—
Income from equity-accounted participations	—	—	—	—	—	—	—	—	1.418	1,418
Central administrative costs	(330)	—	—	—	—	—	—	—	(9)	(339)
Segment result	416	90	17	106	155	96	758	1,222	15	1,653
Valuation result	(142)	—	—	—	(10)	—	(14)	(24)	—	(166)
Other operating expenses and income (balance)	—	1	—	16	—	—	12	29	15	44
Administrative expenses related to segment	(42)	(9)	(10)	(6)	(21)	(32)	(70)	(148)	—	(190)
Real estate-related operating expenses	(231)	59	(139)	(95)	(347)	(76)	(349)	(947)	—	(1,178)
Leasehold payments	—	—	—	—	—	—	(3)	(3)	—	(3)
Segment revenue	831	39	166	191	533	204	1,182	2,315	—	3,146
Income from operating and incidental costs	9	12	38	79	129	28	120	406	—	415
Rental income	822	27	128	112	404	176	1,062	1,909	—	2,731
in € thousand	FV AG	IC01	IC03	IC07	IC13	BBV03	BBV06	Total	Recon ciliation	Group
	Direct invest ments							Subsidiaries

Income statement by segments at March 31, 20121)

The following table shows all the allocated and non-allocated assets and liabilities, with the "subsidiaries" segment being broken down according to the individual companies.

Segment assets and liabilities at March 31, 2013
	Direct invest ments							Subsidiaries
in € thousand	FV AG	IC01	IC03	IC07	IC13	BBV03	BBV06	Total	Recon ciliation	Group
Intangible assets and property, plant and equipment	6	—	—	—	—	—	—	—	133	139
Investment property	43,025	—	6,010	7,920	19,170	6,630	43,230	82,960	—	125,985
Non-current assets held for sale	687	—	—	—	—	—	—	—	—	687
Trade receivables	341	114	160	261	47	22	225	829	7	1,177
Income tax receivables	46	—	—	—	—	—	—	—	25	71
Other receivables and assets	161	20	7	74	1	48	—	150	—	311
Cash and cash equivalents	41	120	129	439	502	865	3,035	5,090	29	5,160
Subtotal segment assets	44,307	254	6,306	8,694	19,720	7,565	46,490	89,029		194 133,530
Participation in subsidiaries	29,901	—	—	—	—	—	—	—	(29,901)	—
Equity-accounted participations	46,835	—	—	—	—	—	—	—	4,477	51,312
Total assets	121,043	254	6,306	8,694	19,720	7,565	46,490			89,029 (25,230) 184,842
Provisions	(163)	(11)	(6)	(4)	(7)	(17)	(36)	(81)	(8)	(252)
Trade payables	(222)	(115)	(25)	(80)	(50)	(104)	(185)	(559)	1	(780)
Other liabilities	(185)	(47)	(173)	(123)	(208)	(30)	(178)	(759)	(6)	(950)
Subtotal segment liabilities	(570)	(173)	(204)	(207)	(265)	(151)	(399)	(1,399)	(13)	(1,982)
Minority interests	—	—	—	—	—	—	—	—		(15,107) (15,107)
Financial liabilities	(32,865)	—	(3,166)		(1,564) (16,793)	—		(27,583) (49,106)		196 (81,775)
Derivative financial instruments	(6,082)	—	—	—	—	—	(120)	(120)	—	(6,202)
Total liabilities	(39,517)	(173)	(3,370)		(1,771) (17,058)			(151) (28,102) (50,625) (14,924) (105,066)
Net assets at March 31, 2013	81,526	81	2,936	6,923	2,662	7,414	18,388		38,404 (40,154)	79,776
Overview of maturities of financial liabilities at March 31, 2013
Long term	(31,852)	—	(2,995)		(1,316) (13,882)	—	(19,334)	(37,527)	—	(69,379)
Short term	(1,013)	—	(171)	(248)	(2,911)	—		(8,249) (11,579)		196 (12,396)
Financial liabilities	(32,865)	—	(3,166)		(1,564) (16,793)	—		(27,583) (49,106)		196 (81,775)

Segment assets and liabilities at December 31, 2012
	Direct invest ments							Subsidiaries
in € thousand	FV AG	IC01	IC03	IC07	IC13	BBV03	BBV06	Total	Recon ciliation	Group
Intangible assets and property, plant and equipment	5	—	—	—	—	—	—	—	142	147
Investment property	43,712	—	6,010	7,920	19,170	6,630	43,230	83,090	—	126,802
Non-current assets held for sale	—	—	—	—	—	—	—	1,100	—	1,100
Trade receivables	399	115	166	186	116	16	400	861	—	1,260
Income tax receivables	46	—	—	—	—	—	—	—	19	65
Other receivables and assets	744	23	9	—	97	41	374	975	(60)	1,659
Cash and cash equivalents	998	246	60	870	207	1,061	2,360	7,088	59	8,145
Subtotal segment assets	45,904	384	6,245	8,976	19,590	7,748	46,364	89,307		160 135,371
Participation in subsidiaries	29,901	—	—	—	—	—	—		— (29,901)	—
Equity-accounted participations	46,835	—	—	—	—	—	—	—	2,634	49,469
Total assets	122,640	384	6,245	8,976	19,590	7,748	46,364			89,307 (27,107) 184,840
Provisions	(167)	(11)	(9)	(8)	(13)	(14)	(37)	(92)	(9)	(268)
Trade payables	(323)	(119)	(14)	(25)	(119)	(84)	(181)	(542)	—	(865)
Other liabilities	(650)	(46)	(162)	(100)	(85)	(21)	(267)	(681)	(15)	(1,346)
Subtotal segment liabilities	(1,140)	(176)	(185)	(133)	(217)	(119)	(485)	(1,315)	(24)	(2,479)
Minority interests	—	—	—	—	—	—	—			— (15,299) (15,299)
Financial liabilities	(33,734)	—	(3,200)		(1,564) (16,929)	—		(27,787) (49,480)		230 (82,984)
Derivative financial instruments	(6,564)	—	—	—	—	—	(121)	(121)	—	(6,685)
Total liabilities	(41,438)	(176)	(3,385)		(1,697) (17,146)		(119) (28,393)			(50,916) (15,093) (107,447)
Net assets at December 31, 2012	81,202	208	2,860	7,279	2,444	7,629	17,971		38,391 (42,200)	77,393
Overview of maturities of financial liabilities at December 31, 2012
Long term	(32,775)	—	(2,971)		(1,316) (13,273)	—	(19,538)	(37,098)	—	(69,873)
Short term	(959)	—	(229)	(248)	(3,656)	—		(8,249) (12,382)		230 (13,111)
Financial liabilities	(33,734)	—	(3,200)		(1,564) (16,929)	—		(27,787) (49,480)		230 (82,984)

(12) Extent to Relationships with Related Parties

Receivables and Liabilities to IC Real Estate Group
in € thousand	1/1–3/31/2013	1/1–3/31/2012
Receivables	—	—
Liabilities	—	(22)
Total Receivables and Liabilities to IC Real Estate Group	—	(22)

No Auditor's Review

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.

Declaration Concerning the German Corporate Governance Code

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 website.

Munich, May 7, 2013 Fair Value REIT-AG

Frank Schaich, CEO

Declaration by Legal Representative To the best of my knowledge, I declare that, according to the principles of proper consolidated reporting applied, the unaudited interim consolidated financial statement provide a true and fair view of the Group's net assets, financial position and results of operations, that the group interim 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 development are described.

Munich, May 7, 2013 Fair Value REIT-AG

Frank Schaich, CEO

Imprint

Fair Value REIT-AG Leopoldstrasse 244 80807 Munich Germany Tel. +49(0)89/929 28 15-01 Fax +49(0)89/929 28 15-15 info@fvreit.de www.fvreit.de

Registered office: Munich Commercial register at Munich Local Court No. HRB 168 882

Date of publication: May 8, 2013

Management Board

Frank Schaich

Supervisory Board

Prof. Dr. Heinz Rehkugler, Chairman Dr. Oscar Kienzle, Vice Chairman Christian Hopfer

Concept and Design

KMS TEAM GmbH www.kms-team.com

Disclaimer This interim report contains future-oriented statements, which are subject to risks and uncertainties. They are estimations of the management board of Fair Value REIT-AG and reflect it's 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.