DGAP-News: First quarter 2010: Successful start of current year
(firmenpresse) - Fair Value REIT-AG / Quarter Results
11.05.2010 07:30
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- EPRA adjusted consolidated net income up 11%
- IFRS consolidated net income improved from EUR 0.4 million to EUR 1.2
million
- Cost-cutting program with considerable impact
- Equity ratio pursuant to§ 15 REITG increases to 46.4%
- Forecast for fiscal year of 2010 confirmed
Munich, Germany, May 11, 2010 - Fair Value REIT-AG successfully started
into the current fiscal year. According to financial figures for the first
quarter 2010 published today, the Group generated a net rental result of
EUR 2.6 million, compared to EUR 1.8 million in the same period during the
previous year. On the one hand, this increase is due to the first-time full
consolidation of one of the company's subsidiaries, which was included in
the income from participations in the previous year given the lower holdingat that time. On the other hand, real-estate related costs turned out to be
lower. Therefore, net rental result for the first quarter improved by 10%
also in a like-for-like comparison, i.e. without taking this subsidiary
into account, compared to the same period in the previous year.
Due to the change in status of the subsidiary, the operating result of EUR
2 million also increased significantly (by EUR 0.8 million) compared to the
same period in the previous year. A like-for-like increase also resulted in
this context: On a comparable basis the operating result was improved by
16%. This isprimarily due to the success of the cost-cutting measures
initiated during the previous year, which aimed at the reduction of general
administrative expenses on the holding level. In addition, repair and
maintenance expenses were lower compared to the same period in the previous
year.
The result from the currently seven associated companies amounted to EUR
0.9 million (previous year EUR 0.5 million). This increase is mainly due to
lower valuation losses of the properties.
Net interest expenses amounted to EUR 1.2 million in total, thereby
exceeding the figure of EUR 1.1 million from the previous year by 9%.
Without the change in status of the subsidiary, the net interest expenses
would have been 4% lower than during the same period in the previous year.
During the first three months of the current fiscal year, Fair Value
REIT-AG achieved an operative cash flow (so called 'Funds from Operations',
FFO) of EUR 0.9 million (previous year: EUR 0.3 million) or EUR 0.09 per
share (previous year EUR 0.03). Besides the aforementioned status change,
this increase is also primarily due to lower expenses.
The consolidated net income was EUR 1.2 million, compared to EUR 0.4
million in the previous year. This equates to earnings per share of EUR
0.13 (previous year EUR 0.05). On March 31, 2010, the consolidated net
income adjusted for changes in the market value of properties and
interesting hedges (EPRA result) was EUR 1.5 million, or EUR 0.16 per
share, an increase of approximately 11% compared to the same period in the
previous year (EUR 1.3 million or EUR 0.14 per share).
On the balance sheet date, the company's equity amounted to EUR 72.8
million (December 31, 2009: EUR 72.7 million). The net asset value shown on
the balance sheet thus increased slightly from EUR 7.78 per share in
circulation to EUR 7.81. With the inclusion of minority interests, the
equity ratio pursuant to§ 15 REITG (German REIT Act) increased to 46.4 %
of immovable assets (31 December 2009: 45.5 %). The EPRA NAV, which mirrors
the real-estate-related equity, improved from EUR 8.72 to EUR 8.89 per
share.
Frank Schaich, Chief Executive Officer, is pleased with the performance of
the Fair Value Group: 'During the first quarter we managed to successfully
process more than one third of the rental agreements requiring extension or
re-letting during 2010. The Fair Value-proportionate occupancy rate was
93.9% on March 31, 2010. This figure even increased after the balance sheet
date to 94.7%, on thebasis of already concluded contracts.' Progress has
also been made in terms of earnings, as the reduction in the general
administration expenses are beginning to take effect. 'The significant
reduction in costs is the direct result of our efforts in recent months,'
adds Mr. Schaich, commenting on the increase in the adjusted consolidated
net income for the first three months of the year.
Although the 2010 first quarter results were very good, the Management
Board has retained the same forecast for the IFRS adjusted consolidated net
income (EPRA result) for the whole of 2010, which is EUR 4.2million or EUR
0.45 per share. In this respect, the Management Board also noted that the
expected income and costs for 2010 are not evenly distributed throughout
the year.
The interim report for the 2010 first quarter is now available in the
Investor Relations area at www.fvreit.de as of today.
Key performance figures for Fair Value REIT-AG
Jan 1 - Mar 31, Jan 1 - Mar 31,Company profile
2010 2009
Consolidated net income EUR 1.2 million EUR 0.4 million
EPS EUR 0.13 EUR 0.05
Adjusted consolidated net income (EPRA EUR 1.5 million EUR 1.3 million
Earnings)
EPRA-EPS EUR 0.16 EUR 0.14
FFO EUR 0.9 million EUR 0.3 million
FFO per share in circulation EUR 0.09 EUR 0.03
Mar 31, 2010 Dec 31, 2009
Balance sheet NAV per share EUR 7.81 EUR 7.78
EPRA-NAV per share EUR 8.89 EUR 8.72
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, 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 46 properties with a total rental area of
410,566 m² and a market value of around EUR 476 million as of December 31,
2009 (Fair Value's share of this portfolio totaled around EUR 188.9 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 than42,948 m² and are
mostly used as bank branches. These properties had a total market value of
around EUR 45.5 million as of December 31, 2009.
On March 31, 2010, the proportion of the entire portfolio due to Fair Value
had a market value of around EUR 234.5 million. As of March 31, 2010, this
proportionate portfolio was 93.9% let in terms of the achievable annual
rent of EUR 20.7 million. The rental agreements had a weighted remaining
term of 6.4 years on March 31, 2010. Around 45.7% of the potential rent
stems from retail facilities, 39.7% from offices, 8.5% is from logistics
facilities and6.1%from other facilities.
Contact
Investor&Media Relations
cometis AG
Dirk Stauer
Phone: +49(0)611 - 205855-22
Fax: +49(0)611 - 205855-66
E-mail: stauer(at)cometis.de
11.05.2010 07:30 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Fair Value REIT-AG
Leopoldstraße 244
80807 München
Deutschland
Phone: +49 (0)89 9292 815-01
Fax: +49 (0)89 9292 815-15
E-mail: info(at)fvreit.de
Internet: www.fvreit.de
ISIN: DE000A0MW975
WKN: A0MW97
Indices: RX REIT All Share Index, RX REIT Index
Listed:Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in München, Stuttgart
End of News DGAP News-Service
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