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Jump in earnings for Fair Value REIT-AG in 2015

03-23-2016 12:41 PM CET | Industry, Real Estate & Construction

Press release from: Fair Value REIT-AG

• EBIT more than doubled to EUR 12.3 million in 2015
• Group net profit of EUR 6.6 million (previous year: group net loss of EUR 47 thousand)
• Funds from operations (EPRA result) increased by 45% to EUR 6.4 million (previous year: EUR 4.4 million)
• Proposed dividend for 2014 of EUR 0.25 per share (55% of FFO)
• REIT equity ratio increased to 59.6% (previous year: 49.2%)

Munich, 23 March 2016 – Fair Value REIT-AG presented its figures today for fiscal year 2015 and reports a significant jump in earnings. At EUR 24.3 million, rental income exceeded the previous-year figure of EUR 23.9 million by around 2%. At EUR 17.7 million, net rental income was up 1% on the previous-year level of EUR 17.6 million.

At EUR 12.3 million, EBIT was more than twice that of the previous-year figure of EUR 5.9 million. The increase in earnings of EUR 6.4 million mainly stems from an increase of EUR 8.6 million in the balance of disposal and measurement gains and losses as well as other operating income and expenses, and on the other side an increase in general administrative expenses of EUR 2.3 million. This increase mainly related to legal and consulting fees.

At EUR 4.2 million, net interest expenses were 16% below the previous-year figure of EUR 5.0 million, largely due to repayments. After deducting the share of profit/loss attributable to non-controlling interests, the group net profit came to EUR 6.6 million, following a slight group net loss of EUR 0.05 million in the previous year. This corresponds to a group net profit per average number of shares outstanding of EUR 0.53.

At EUR 6.4 million, group net profit adjusted for measurement effects and special effects (EPRA result or FFO = funds from operations) was EUR 2.0 million or 45% higher than previous-year figure of EUR 4.4 million. This corresponds to an adjusted group net profit per average number of shares outstanding of EUR 0.52.

Group equity attributable to the shareholders of Fair Value REIT-AG as of 31 December 2015 increased to EUR 117.3 million as a result of the capital increase performed in May 2015 and was thus 50% above the previous-year figure of EUR 78.3 million. This corresponds to a net asset value of EUR 8.36 for each share currently outstanding, following EUR 8.39 as of the end of the previous year. Taking into account the dividend of EUR 0.25 per share paid out in 2015 for 2014, the dilutive effects resulting from the capital increase in the past fiscal year were thus more than compensated for.

As of the reporting date, the REIT equity ratio increased to 59.6% of property assets (previous year: 49.2%) and was therefore considerably above the legally prescribed 45% minimum.

The 2015 separate financial statements of Fair Value REIT-AG prepared in accordance with German GAAP closed with an accumulated profit of around EUR 3.5 million (previous year: EUR 2.3 million). The Management Board proposes to distribute 100% of the accumulated profit. As in the previous year, this corresponds to a dividend of EUR 0.25 for each share currently outstanding or 55% of FFO.

The Management Board expects funds from operations (FFO) in 2016 of EUR 10.5 million to EUR 10.8 million before non-controlling interests. With an unchanged share of non-controlling interests within the Group, there is FFO after non-controlling interests of between EUR 6.2 million and EUR 6.5 million. This corresponds to FFO of EUR 0.44 to EUR 0.46 for each share currently outstanding. The target dividend for 2016 is EUR 0.25 per share to all outstanding shares. This corresponds to a distribution ratio of 54% to 57% of FFO.

Frank Schaich, CEO of Fair Value REIT-AG, is optimistic: “Since the beginning of the current fiscal year, we have sustainably reduced a third of the vacancies for a total of 11.000 m², principally through long-term lease agreements, which we view as evidence of the quality of our portfolio and the stable market environment.”

The annual report containing the complete consolidated financial statements of Fair Value REIT-AG for fiscal year 2015 and the 2015 separate financial statements prepared in accordance with the requirements of the HGB [“Handelsgesetzbuch”: German Commercial Code] can be accessed as of today at in the Financial Reports section.

Company profile

Fair Value REIT-AG, based in Munich, focuses on retail and office properties in German secondary locations as well as on real estate holdings with a special emphasis on closed end funds.

As of 31 December 2015, the overall portfolio represented 40 properties (previous year: 43) with an aggregate market value of around EUR 300 million (previous year: EUR 281 million). The portfolio recorded an occupancy rate of 89.2% as of 1 January 2016 (previous year: 91.5%). Rental income had a weighted residual term of 4.9 years at that point in time, following 5.0 years in the previous year. As of 1 January 2016, around 56% of potential rents of EUR 26 million relate to retail space, 34% to office space and 10% to other space.


Fair Value REIT-AG
Frank Schaich
Leopoldstraße 244
80807 München
Tel. 089-9292815-10
Fax 089-9292815-15

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