EANS-News: Fair Value REIT-AG achieves a significant increase in earnings in the 2010 financial year and exceeds forecast

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Financial Figures/Balance Sheet

München (euro adhoc) - - Consolidated net income increased by EUR 4.8
million to EUR 1.9 million according to preliminary figures (previous
year: consolidated net loss of EUR 2.9 million) - REIT equity ratio
increased to 49.4% (previous year: 45.5%) - Goal of making a dividend
payment for 2010 of 0,10 EUR per share achieved

Munich, February 22, 2011 - According to preliminary figures, Fair
Value REIT-AG has achieved revenues of EUR 14.4 million for the 2010
financial year compared with EUR 12.2 million in the previous year.
This corresponds to growth of around 18%. At the same time, the Group
was able to increase its net rental result to EUR 9.5 million
compared with EUR 8.5 million in the previous year. The positive
development in these key figures was mainly due to revenues achieved
by the IC13 subsidiary being recorded in the results for the first
time, rather than in the income from participations as was the case
in the previous year.

At EUR 2.7 million, the operating result was around EUR 3.5 million
higher than the previous year´s figure of EUR -0.8 million. To a
small extent, this increase results from the recording of the
revenues of the aforementioned subsidiary for the first time.
However, the rise in the operating result is primarily due to a
significantly improved valuation result in the market valuation of
real estate compared with the previous year.

There has also been a significant increase in the results from
associated companies which contributed EUR 3.6 million towards the
success of Fair Value REIT-AG in 2010 compared with EUR 1.4 million
in the previous year. This increase was also due to a significantly
improved valuation result for the real estate portfolio.

In the reporting period, Fair Value REIT-AG achieved an operating
cash flow (so-called "Funds from Operations", FFO) of EUR 4.7 million
or EUR 0.50 per share. Consequently, this figure has increased by 62%
in comparison with the previous year (2009: EUR 2.9 million). The
forecast for FFO, which was increased to EUR 3.3 million (EUR 0.35
per share) in November 2010, has thus also been significantly
exceeded. This increase results from higher cash inflows from
associated companies.

Consequently, the company significantly improved the consolidated net
income by EUR 4.8 million to EUR 1.9 million during the reporting
period (previous year: consolidated net loss of EUR 2.9 million). The
earnings per share increased by EUR 0.50, to EUR 0.20 from EUR -0.31
in the previous year.

The real estate valuation result on the balance sheet date showed
that the valuation loss had been halved, to 2% of the proportionate
values for the previous year (previous year: 4%).

The consolidated net income adjusted for changes in market value and
other one-off effects (in accordance with EPRA), at EUR 5.6 million,
was significantly higher than the forecast for the EPRA consolidated
net income which had been increased to EUR 5.1 million in November
2010. This is mainly due to savings made in maintenance and rental
costs which led to an improved net rental result in the Group. For
the same reasons, the income from associated companies was also much
higher than forecast. The adjusted consolidated net income, which was
slightly lower in comparison with the previous year´s value of EUR
6.0 million, results from the disposal of real estate sold in the
previous year.

On the balance sheet date, according to preliminary figures, the
consolidated equity totalled EUR 74.2 million (31 December 2009: EUR
72.7 million). Consequently, the balance sheet net asset value
increased from EUR 7.78 per share in circulation to EUR 7.96 per
share. With the inclusion of minority interests in subsidiaries, the
equity ratio in accordance with Section 15 REITG increased to 49.4%
of the immovable assets (31 December 2009: 45.5%).

Frank Schaich, CEO of Fair Value REIT-AG, explains the positive
business development of the Group as follows: "The cost savings
achieved and the significantly improved real estate valuation result
compared with the previous year have contributed to the pleasing
increase in the IFRS consolidated net income. With regard to the 2010
non-consolidated financial statements drawn up in accordance with
German commercial law, we have also achieved a balance sheet profit
which will enable us to pay out the targeted dividend of EUR 0.10 per
share in 2011."

Fair Value REIT-AG will publish the final results for the 2010
financial year on 31 March 2011 at www.fvreit.de in the Investor
Relations section.

Selected preliminary key financial indicators for Fair Value REIT-AG:

2010 2009
FFO EUR 4.7 million EUR 2.9 million
FFO per share in circulation EUR 0.50 EUR 0.32
Adjusted consolidated net profit (EPRA-Earnings)EUR 5.6 million EUR 6.0 million
EPRA EPS EUR 0.60 EUR 0.65
Consolidated net income (IFRS) EUR 1.9 million EUR -2.9 million
EPS (IFRS) EUR 0.20 EUR -0.31

Dec 31, 2010 Dec 31, 2009
Balance sheet NAV per share EUR 7.96 EUR 7.78
Equity ratio according to Section 15 REITG 49.4% 45.5%

end of announcement euro adhoc
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ots Originaltext: Fair Value REIT-AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Fair Value REIT-AG
Frank Schaich
Tel. +49 (0)89-9292815-10
Fax. +49 (0)89-9292815-15
e-mail: schaich@fvreit.de

Branche: Real Estate
ISIN: DE000A0MW975
WKN: A0MW97
Index: CDAX, Classic All Share, Prime All Share, RX REIT All Share
Index, RX REIT Index
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade