- Pressemitteilung BoxID 61266
Fair Value REIT AG continues on-track growth
Revenues total € 6.7 million in H1 2008 / Consolidated net income of € 0.8 million after first six months / NAV per share up to € 10.15
€ 6.7 million in the first six months of the year. Of this total, € 5.0 million were due to the fully consolidated majority interests in five closed-end real estate funds. A further € 1.7 million stemmed from Fair Value's portfolio of directly held properties. Net rental income totaled € 5.3 million. A comparison with H1 2007 is not meaningful, as the company only commenced its operating activities at the start of the fourth quarter of 2007.
At the same time, Fair Value REIT-AG also recorded sustained income from its minority participations in a current total of eight closed-end real estate funds (associated companies).
This income from equity-accounted participations totaled € 1.5 million in the period under review and was carried under the financial result. The market valuation of the company's properties by CB Richard Ellis GmbH as of June 30, 2008 showed that the proportionate market values of the properties due to Fair Value were € 4 million or 1.3% lower, down to
€ 272 million compared to December 31, 2007. Income from the market valuation of interest hedges and from a restructuring of debt had a positive impact on net earnings.
In total, Fair Value REIT-AG thus recorded consolidated net income (IFRS) of € 0.8 million in the first half of 2008. This corresponds to earnings per share of € 0.08.
Frank Schaich, Fair Value REIT-AG's CEO is very pleased with the company's six-month results: "Our business is growing right on track. Consolidated net income is within our expectations. We have been able to lift our rental income again compared to Q1 2008. After adjustment for changes in valuation and extraordinary income, our funds from operations(FFO) in the first six months of 2008 amounted to € 1.3 million or € 0.14 per share. This clearly shows our portfolio's sustained earnings strength." The CEO is also confident with regard to the second half of the year. "We have an optimistic view of the second half of the year. We are continuing to forecast consolidated net income with a bandwidth of € 1.3 to
€ 1.5 million for the year as a whole," Frank Schaich went on to comment.
The Managing Board is forecasting a further increase in income as a result of the office property at Düsseldorf airport completed after June 30, 2008 and transferred to Fair Value REIT-AG. Frank Schaich: "The excellent location in the direct proximity of the terminal means that rentals progressed rapidly. This property is currently around 91% in terms of total potential rent, and we are in final negotiations for the remaining space."
Fair Value REIT-AG's positive growth can also be seen on its balance sheet. Total assets are up slightly compared to December 31, 2007 to € 231.5 million, and Fair Value REIT-AG had equity of around € 95.4 million on June 30, 2008. Net asset value (NAV) per share thus totaled € 10.15.
The full half-yearly report will be published on August 29, 2008 at www.fvreit.de in the Investor Relations section.
Fair Value REIT-AG
Munich-based Fair Value REIT-AG focuses on the acquisition, rental, property management and sale of commercial properties in Germany. Its investment activities focus primarily on offices, logistics and retail properties in German regional centers. As a REIT-AG, Fair Value is not subject to corporation or trade tax and benefits from the exit tax privilege when purchasing properties. Fair Value's USP is that - in addition to investing directly in real estate
- it also acquires interests in closed-end real estate funds.
In its "Participations" segment Fair Value currently owns interests in 13 closed end real estate funds with a highly diversified portfolio of 49 properties. The rental area of this portfolio totals 421,864 m² and had a market value of around € 553 million as of June 30, 2008 (Fair Value's interest in this portfolio currently totals around € 223 million).
In its "Direct Investments" segment, Fair Value acquired a portfolio of 32 commercial properties in the federal state of Schleswig-Holstein with a rental area of 42,940 m², mostly used as bank branches. These properties had a total market value of around € 49.2 million as of June 30, 2008.
As of June 30, 2008, the total portfolio which has a proportionate market value of € 272 million for Fair Value, had an economic occupancy level of more than 95% of the possible annual rent of around € 21.5 million. Around 45% of potential rent stems from offices, 42% from retail facilities, 8% is from logistics facilities and 5% from other facilities.
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