- Pressemitteilung BoxID 153730
Fair Value REIT-AG announces final financial figures for 2009
- Adjusted consolidated net income (in accordance with EPRA) of € 6 million
- Valuation-related decline in income leads to consolidated net loss of € 2.9 million
- Equity ratio pursuant to § 15 REIT-G (German REIT Law) amounts to 45.5%
- EPRA-Earnings of 45 ct per share forecasted for 2010
- Annual Report 2009 available from today at www.fvreit.de
For the fiscal year 2009, Fair Value REIT-AG recorded adjusted consolidated net income (EPRA-Earnings) of € 6 million (previous year € 5.7 million). This adjusted result, which excludes market value changes of properties and interest derivatives, as well as other one-off effects, is considerably higher than the forecast of € 4.5 million issued in the previous year. This is primarily due to savings in net interest expenses.
An opposite effect had the market valuations of the properties at the end of the year. However, a positive aspect was that some of the properties had shown an increase in value again. Whilst the proportionate valuation result for the Fair Value real estate portfolio was on balance -3.4%, the rate of decline was halved compared to the previous year's figure of - 6.4%.
Due to the market valuations, the Group recorded a consolidated net loss in 2009 of € 2.9 million in 2009 (pursuant to IFRS), compared to € 13.3 million in the previous year. The positive deviation of € 1.3 million compared to the preliminary financial figures released on February 22, 2010 is due to a resolution of value adjustments for the book values of the associated companies, which had not yet been determined at that time.
With a consolidated balance sheet total of € 203.8 million, the consolidated equity on December 31, 2009, was € 72.7 million, corresponding to a decline of 4.7% compared to the previous year. When stated in accordance with § 15 REIT-G (German REIT Law), which means that minority interests of €15.3 million have to be included, equity amounted to € 88 million. This corresponds to 45.5% of the immovable assets.
The currently negative market values for the derivative financial instruments included in the consolidated equity amount to a proportionate position for Fair Value of € 8.8 million. This position will gradually dissipate as the interest rate hedging transactions expire and thereby give rise to an increase in equity. Thus the real estate related net assets of the Fair Value Group, pursuant to EPRA, added up to € 81.5 million (€ 8.72 per share) on December 31, 2009 after inclusion of the proportionate market value of the derivative financial instruments.
The funds from operations (FFO) recorded at the Group level totalled € 2.9 million (previous year € 3.5 million), which corresponds to € 0.32 per share. The Group's cash and cash equivalents were € 8.3 million on the balance sheet date (previous year € 14 million). The fall in liquidity of € 5.7 million compared to the previous year is primarily the result of the repayment of financial liabilities amounting to € 8.4 million and the accrual of € 1.8 million due to an addition to the consolidated companies.
Frank Schaich, Chief Executive Officer of Fair Value REIT-AG, is positive about the current situation: "The business is very stable, both in terms of occupancy and of our debt side. The average term of our rental contracts is 6.3 years, and the remaining period of our financial liabilities until renegotiation averages 4.3 years. In this respect, the proportionate average interest rate on the financial liabilities has been 5.2% p.a. on balance sheet date." He also has a positive view regarding the continuing development of the business, not least because of the rental successes already achieved early in 2010. "Since the beginning of the year, we have been able to halve the Group's already low vacancy level and negotiate the early conclusion of follow-up rental agreements. In our view, these are clear indications of a positive turnaround in the sector. For the current fiscal year we thus expect EPRA-Earnings of 45 ct per share due to maintenance and leasing costs, while we anticipate the FFO to account for 29 ct per share. In 2011, we want to further improve our results. According to our plans, the EPRA-Earnings will amount to 59 ct and the FFO to 46 ct per share."
The Annual Report 2009 provides a comprehensive overview of the results for the year, and is available from today for download at www.fvreit.de.
Fair Value REIT-AG
Munich-based Fair Value REIT-AG focuses on the acquisition, leasing, property management and sale of commercial properties in Germany. Its investment activities focus primarily on offices, logistics and retail properties in German regional centers. As a REIT-AG, Corporate News Page 3 of 3 Fair Value is not subject to corporation or trade tax. Fair Value's USP is that - in addition to investing directly in real estate - it also acquires interests in closed-end real estate funds.
Fair Value currently participates in 13 closed-end real estate funds in a highly diversified portfolio of 48 properties with a total rental area of 414.220 m² and a market value of around € 479 million as of December 31, 2009 (Fair Value's share of this portfolio totaled around € 191 million on December 31, 2009).
Fair Value further directly owns a portfolio of 32 commercial properties in Schleswig-Holstein. These have a rental area of more than 42,948 m² and are mostly used as bank branches. These properties had a total market value of around € 46 million as of December 31, 2009.
On December 31, 2009, the proportion of the entire portfolio due to Fair Value had a market value of around € 236 million. As of December 31, 2009, this proportionate portfolio was 95.5% let in terms of the achievable annual rent of € 21 million. The rental agreements had a weighted remaining term of 6.3 years on December 31, 2009. Around 45% of the potential rent stems from retail facilities, 40% from offices, 8% is from logistics facilities and 6% from other facilities.
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