DGAP-News: Fair Value REIT-AG: Fair Value REIT-AG terminates minority interest against settlement at market value
(firmenpresse) - DGAP-News: Fair Value REIT-AG / Key word(s): Investment
Fair Value REIT-AG: Fair Value REIT-AG terminates minority interest
against settlement at market value
22.10.2013 / 07:51
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Munich, October 22, 2013 - Fair Value REIT-AG has terminated as of the 2013
year-end its investment in Associated Company BBV 9, in which it holds a
25% interest. As a consequence, the participation will convert as of
December 31, 2013 into an interest-bearing receivable due from company BBV
9 equivalent to the participation's market value.
The participation company BBV 9 holds four retail properties in Bad
Salzungen, Eisenach, Naumburg and Weilburg that are rented on a long-term
basis, and an office property in Munich that is rented until the end of
2013. The weighted-average residual term of the participation company's
rental agreements will then amount to around five years.
Fair Value's proportional market value of the related properties amounted
to around EUR 27 million at the end of 2012, or to approximately 13% of the
proportional overall portfolio. The IFRS carrying amount reported in the
Fair Value consolidated balance sheet as of June 30, 2013 of the equity
accounted investment amounts to EUR 11.4 million, and corresponds to
approximately 6% of the immovable assets of the Fair Value Group as of this
balance sheet date.
Frank Schaich, CEO of Fair Value REIT-AG, explained the measure and its
effects: 'The termination of the participation with the lowest voting
rights level serves our objective of boosting our influence within our
portfolio of participations. Although it is the case that - including the
real estate disposals from our direct and participation holdings that have
already been reported this year - the proportional rents from our portfolio
next year will be around 20% below their previous level, the lower net
rental income and participation income will nevertheless be offset by a
marked reduction in interest expenses in the future, so that we are
maintaining our existing FFO forecasts of EUR 5.3 million and EUR 5.6
million for the current financial year and for 2014 (EUR 0.57 and EUR 0.60
per share respectively). The same applies for our dividend target of EUR
1.2 million for 2013 and 2014 respectively (EUR 0.12 per share).'
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 office and retail properties in
German regional centres.
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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22.10.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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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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235521 22.10.2013
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Datum: 22.10.2013 - 07:51 Uhr
Sprache: Deutsch
News-ID 307839
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