DGAP-News: Fair Value REIT-AG: Fair Value REIT-AG boosts earnings further in the first half of 2013
(firmenpresse) - DGAP-News: Fair Value REIT-AG / Key word(s): Half Year Results
Fair Value REIT-AG: Fair Value REIT-AG boosts earnings further in the
first half of 2013
08.08.2013 / 07:54
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- IFRS consolidated net income of EUR 3.36 million (previous year: EUR 1.95
million)
- Adjusted consolidated net income in accordance with EPRA / FFO at EUR
2.85 million (+3%)
- REIT equity ratio increases to 55%
Munich, August 8, 2013 - Fair Value REIT-AG recorded successful development
in the first half of 2013. Consolidated net income according to IFRS came
in at EUR 3.36 million, or EUR 0.36 per share. The significant increase of
72% compared to the previous year's figure of EUR 1.95 million resulted
from lower net interest expenses within the Group, higher other operating
earnings and a substantially improved sales and valuation result. In
addition, income from participations improved significantly. The
considerably higher consolidated net income for the first half of 2013,
however, should be viewed in the context that the previous year figure was
burdened by a valuation loss totalling around EUR 1.0 million.
The Fair Value Group's consolidated net income, adjusted for extraordinary
effects, (EPRA earnings or FFO) totalled EUR 2.85 million in the first half
of 2013, some 3% higher than in the prior year period (EUR 2.78 million).
This corresponds to FFO of EUR 0.31 per share (previous year quarter: EUR
0.30).
Net sales in the first half of 2013 totalled EUR 6.21 million and were
therefore EUR 0.24 million or 4% down on the corresponding amount from the
previous year. This fall is largely attributable to the reduction in rental
income and ancillary income due to the sale of properties. The occupancy
rate of the real estate managed by the Group and its associated companies
calculated on a proportional basis in relation to Fair Value increased from
94.4% to 94.6%. The remaining terms of the lease agreements averaged 5.6
years as of the reporting date June 30, 2013.
On the back of property sales and higher property-related expenses relating
to new lettings, net rental income in the first half of 2013 amounted to
EUR 3.39 million, representing a fall of some EUR 0.79 million or 19%
compared with the corresponding period in the previous year (EUR 4.18
million). However, the operating result improved by EUR 0.44 million or 22%
from the previous year total of EUR 2.0 million to EUR 2.44 million. This
improvement came on the back of higher other operating income as well as a
substantially improved sale and valuation result.
In addition, the lower net rental income was more than offset by a
substantial fall in net interest expenses, which also led to higher income
from equity-accounted participations. Income from participations at
associated companies totalled EUR 3.41 million and was therefore 32% up on
the first half of the previous year (EUR 2.58 million). The improvement of
EUR 0.82 million was 55% attributable to the valuation of interest rate
hedges effective in profit or loss, 33% to the lower net interest expenses
and 12% to other earnings improvements as well as a gain from the sale of a
property.
Net interest expenses in the Group were down by 21% in the first six months
of 2013 to EUR 1.83 million, with this figure totalling EUR 2.32 million in
the previous year period. After minority interestsin the result, the Fair
Value Group concluded the first half of 2013 with consolidated net income
of EUR 3.36 million.
Group equity totalled EUR 81.71 million as of June 30, 2013. This means
that the balance sheet net asset value per share in circulation increased
by 5% to EUR 8.76 per share in the first six months of the year (December
31, 2012: EUR 8.33²). The equity ratio pursuant to Paragraph 15 of the
German REIT Act increased to 55.0% of immovable assets (December 31, 2012:
52.6%).
Frank Schaich, CEO of Fair Value REIT-AG, commented on business development
in the first half of the year as follows: 'The highly pleasing results from
the first half of 2013 form a solid basis for further positive development
in the second half of the year. That is why we are reiterating our forecast
for adjusted consolidated net income (FFO) of EUR 5.3 million, or EUR 0.57
per share, for 2013 as a whole.'
The Semi-Annual Report 2013 is now available in the Financial Reports
section of www.fvreit.de.
Selected financial indicators of Fair Value REIT-AG
1/1 - 6/30/2013 1/1 - 6/30/20121)
Rental Revenues EUR 5.220 million EUR 5.408 million
EBIT EUR 2.438 million EUR 2.000 million
Results from equity-accounted investments EUR 3.408 million EUR 2.584
million
IFRS-Consolidated net income EUR 3.359 million EUR 1.953 million
IFRS-EPS EUR 0.36 EUR 0.21
Adjusted consolidated income (EPRA-Earnings)/FFO EUR 2.848 million EUR
2.777 million
EPRA-EPS EUR 0,31 EUR 0.30
June 30, 2013 December 31, 20122)
Net asset value per share EUR 8.76 EUR 8.33
EPRA-NAV per share EUR 9.48 EUR 9.28
Equity ratio within the meaning of section 15 of the REIT Act 55.0% 52.6%
1) 1H 2013 adjusted - accrual of a rent repayment received (Explanation see
Note 10, Semi-Annual Report 2013)
2) Financial year 2012 adjusted in line with IAS 8 - amendment of an error
relating to minority interests (Explanation
see Note 2, Semi-Annual Report 2013)
Contact
Fair Value REIT-AG
Frank Schaich
Tel. +49 (0) 89-9292815-10
Fax. +49 (0) 89-9292815-15
e-mail: schaich(at)fvreit.de
Corporate Profile
Fair Value REIT-AG, based in Munich, focuses on the acquisition, leasing,
property management and sale of commercial properties in Germany. At the
core of its investment activities are retail and office properties in
German regional centres. Because of its REIT status, Fair Value is exempt
from corporation and trade tax. In addition to investing in real estate
directly, Fair Value also acquires participations in real estate
partnerships.
Through direct investments and subsidiaries, Fair Value Group manages a
portfolio of 39 commercial properties with a total leasable floor space of
around 155,000 square metres and a market value of around EUR 125 million
as of June 30, 2013. Fair Value's share of these investments amounted to
around EUR 91 million on the same date.
In addition, Fair Value REIT-AG holds minority interests in six closed-end
real estate partnerships with holdings in 22 commercial properties with a
total leasable floor space of around 257,000 square metres. As of December
31, 2012, the total market value of these properties was around EUR 333
million (Fair Value's share of this amounted to around EUR 120 million on
June 30, 2013).
As of June 30, 2013, Fair Value's share of the total portfolio amounted to
around EUR 211 million. This portfolio had an occupancy rate of 94.6% of
the achievable rents at full occupancy of EUR 18.9 million per annum. As of
June 30, 2013, the weighted remaining term of the leases was 5.6 years.
Around 43% of the potential rent relates to retail floor space, 42% to
office space and 15% to other types of use.
End of Corporate News
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Language: English
Company: Fair Value REIT-AG
Leopoldstraße 244
80807 München
Germany
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 Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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