Fair Value REIT-AG
Fair Value REIT-AG increases operating result in 2013 and raises proposed dividend again
Fair Value REIT-AG / Key word(s): Final Results/Dividend Fair Value REIT-AG increases operating result in 2013 and raises proposed dividend again – Operating IFRS consolidated net income (FFO) was up 8% year-on-year in 2013 to EUR 6.4 million and substantially higher than anticipated – Proposed dividend raised to EUR 0.25 per share (previous year: EUR 0.10 per share) – Full consolidation of all participations through the first-time adoption of IFRS 10 Munich, April 3, 2014 – Fair Value REIT-AG substantially exceeded its operating targets in the financial year 2013 and is able to offer a positive outlook for the years ahead. On the back of the strategic sale of properties and the termination of a participation as well as the full consolidation of all participations, the Group structure has become significantly simpler and more transparent. Consolidated net income adjusted for changes in market value and other one-off effects (funds from operations – FFO) totalled EUR 6.4 million. This was around 8% up on the previous year figure of EUR 5.9 million. This corresponds to EUR 0.69 per share, following EUR 0.63 per share in 2012. The previous forecast of EUR 5.3 million was therefore exceeded by 21% due to higher rental income than anticipated and lower than expected real estate-related expenditure. The Management Board of Fair Value REIT-AG will therefore propose a dividend for 2013 of EUR 0.25 per share to the Annual General Meeting. A dividend of EUR 0.10 was disbursed for the financial year 2012. Most recently, the dividend forecast was raised in November 2013 from EUR 0.12 to EUR 0.24 per share. The basis for this is a substantially increased adjusted net income pursuant to HGB (the critical key figure for dividends) in 2013 of EUR 2.5 million, after EUR 1.0 million in 2012. The total portfolio was reduced from 65 to 49 properties in 2013. Simplifying the Group structure through full consolidation Due to the expansion of the scope of consolidation, the Group’s total assets were doubled and rental income almost tripled. As all participations of Fair Value REIT-AG were fully consolidated as of the balance sheet date 2013, the comparability of Fair Value REIT-AG with other real estate companies has been substantially improved. One-off effects influencing IFRS consolidated net income The operating result of EUR 5.0 million, following EUR 11.9 million in the previous year (adjusted figure), was greatly influenced by the valuation loss totalling EUR 14.0 million, following EUR 9.7 million in the previous year. Income from participations of EUR 1.5 million was EUR 2.2 million higher than the adjusted loss of EUR 0.6 million reported in the previous year. The rise was around 60 percent due to the release of the market values of former interest hedging transactions recognised in profit or loss, as well as due to the valuation loss of the real estate at Fair Value REIT-AG’s only associated company. The limited partnership interest in this company was cancelled as of December 31, 2013 and has therefore been terminated in return for a settlement at fair market value. Net interest expenses of EUR 12.7 million were EUR 1.8 million higher than in the previous year. It should be noted that expenses from the valuation and partial termination of interest hedging transactions recognised through profit or loss totalling EUR 4.0 million were incurred. Ongoing net interest expenses came in at EUR 8.7 million in 2013, around EUR 1.7 million down on the EUR 10.4 million reported in the previous year. After deducting minority interests in the subsidiaries, this resulted in a consolidated net loss of EUR 5.2 million after a consolidated net loss of EUR 0.2 million in the previous year (adjusted figure). Adjusted for changes in market value and other one-off effects (in line with EPRA), the adjusted consolidated net income (FFO) rose by around 8% to EUR 6.4 million. In the financial year 2013, the one-off effects after minority interests totalled EUR 11.6 million. Group equity (NAV) increases to EUR 8.65 per share On the balance sheet date, Group equity attributable to the shareholders of Fair Value REIT-AG (NAV = net asset value) therefore totalled EUR 80.7 million (adjusted figure as of December 31, 2012: EUR 80.4 million). The balance sheet net asset value per share increased slightly year-on-year from EUR 8.62 to EUR 8.65 per share. Taking into consideration the minority interests in subsidiaries, the equity ratio pursuant to Section 15 of the REIT Act rose to 46.9% of immovable assets as of December 31, 2013 (certified previous year figure in line with previous accounting method: 52.6%). Cash and cash equivalents in the Group rose to EUR 17.4 million as of December 31, 2013, following EUR 14.2 million in the previous year. Forecasts for 2014 and 2015 Frank Schaich, CEO of Fair Value REIT-AG, is happy with business development: “In the financial year 2013, we made the most of the positive market environment for achieving our operating and strategic targets. As a result, we are now able to sustainably raise the dividends for 2013 and the following years. The first-time adoption of the accounting standard IFRS 10 has resulted in the full consolidation of all participations. This increases the transparency of our business model and therefore the attractiveness of our share on the capital market.” The Annual Report with the complete consolidated financial statements of Fair Value REIT-AG for the financial year 2013 is available from today in the Financial Reports section of www.fvreit.de. Selected financial key figures for Fair Value REIT-AG
* Year adjusted as part of the first-time adoption of IFRS 10 (see consolidated notes 2b) Contact Fair Value REIT-AG 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. As of December 31, 2013, Fair Value’s share of the total portfolio of 49 properties amounted to around EUR 312 million. This portfolio had an occupancy rate of 93.3% of the achievable rents at full occupancy of EUR 28.4 million per annum. As of December 31, 2013, the weighted remaining term of the leases was 5.0 years. Around 50% of the potential rent relates to retail floor space, 34% to office space and 16% to other types of use. End of Corporate News 03.04.2014 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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@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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