EANS-News: Fair Value REIT-AG records strong sales and earnings growth in 2010

- IFRS consolidated net profit of EUR 2.2 million (previous year: net
loss of EUR 2.9 million)
- German GAAP (HGB) retained earnings of
EUR 1.0 million (previous year:
net loss of EUR 2.8 million)
-
Proposed dividend of 93.5% of HGB retained earnings (EUR 0.10 per
share)

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Financial Figures/Balance Sheet

Subtitle: - IFRS consolidated net profit of EUR 2.2 million (previous
year: net loss of EUR 2.9 million) - German GAAP (HGB) retained
earnings of EUR 1.0 million (previous year: net loss of EUR 2.8
million) - Proposed dividend of 93.5% of HGB retained earnings (EUR
0.10 per share)

München (euro adhoc) - Munich, 31 March 2011 - The final figures for
the financial year 2010 show a marked improvement in both revenues
and earnings of Fair Value REIT-AG. Revenues increased to EUR 14.4
million from EUR 12.2 million in the previous year. Consolidated net
profit amounted to EUR 2.2 million, which improved by EUR 5.1 million
compared to a net loss of EUR 2.9 million recorded in the previous
year. The 2010 annual report, which includes the complete
consolidated financial statements of Fair Value REIT-AG is available
on the Internet at www.fvreit.de from today.

The Group's net rental result increased from EUR 8.5 million to EUR
9.5 million, representing a year-on-year growth of 12%. This positive
development is the result of the first-time consolidation of earnings
of the IC 13 subsidiary, which was previously included in income from
participations. At EUR 2.9 million, the operating result increased by
EUR 3.6 million over the EUR -0.7 million reported in the previous
year. In addition, earnings from associated companies increased
substantially to EUR 3.9 million thus contributing to the success of
Fair Value REIT-AG in 2010 (previous year: EUR 1.4 million).

The main reason for the increase in earnings was the significantly
improved valuation result of the real estate portfolio, as well as
cost savings. On balance, there was a valuation loss of around 2%,
which was mainly due to temporary vacancies in individual properties.
Compared with the previous year (-4%), the valuation result improved
by 50%.

The consolidated net income of EUR 2.2 million, translates into
earnings of EUR 0.24 per share for the reporting period. This
represents an improvement by EUR 0.55 compared to EUR -0.31 per share
recorded in the previous year.

The operating cash flow (so-called "Funds from Operations", FFO) of
the Fair Value Group amounted to EUR 4.8 million or EUR 0.51 per
share in the year under review. This increase of EUR 1.9 million over
the previous year (EUR 2.9 million) is largely due to higher inflows
from the associated companies. As of the balance sheet date, the
Group's cash and cash equivalents amounted to EUR 12.0 million
(previous year: EUR 8.2 million).

The consolidated net income (EPRA result) adjusted for changes in
market value and other one-off effects, increased to EUR 5.8 million
compared to the full-year forecast raised in November 2010 to EUR 5.1
million. This was mainly due to savings in maintenance and rental
costs. The slight decrease in adjusted consolidated net income in
comparison to the EUR 6.0 million recorded last year was due to the
disposal of properties sold in the previous year.

As of the balance sheet date, consolidated equity amounted to EUR
74.6 million (31 December 2009: EUR 72.7 million). As a result, net
asset value (NAV) per shares in circulation increased by around 3% to
EUR 8.00 per share (previous year: EUR 7.78). Equity pursuant to § 15
of the REIT Act, including minority interests in subsidiaries, rose
to 49.6% of immovable assets (31 December 2009: 45.5%).

With respect to the 2010 German GAAP single-entity financial
statements, the target for retained earnings of around EUR 1.0
million has been achieved. The Management Board and Supervisory Board
will, therefore, submit a proposal to the Annual General Meeting on
31 May 2011 for a dividend payment of EUR 0.10 for 2010. This
represents a payout ratio of 93.5% (the requirement under § 13 of the
REIT Act is at least 90%).

Frank Schaich, CEO of Fair Value REIT-AG, believes that the stable
earnings base is the main reason for the positive performance of the
Group. "In 2010 we were able to maintain a high occupancy rate of
around 94%, which remained close to previous year's level. At the
same time, we managed to realize about 75% of the expiring lease
volume in 2010 through re-letting and new leases. This led to savings
in rental costs, which contributed to the significant increase in our
adjusted consolidated net income compared to forecasts."

Adjusted consolidated net income of EUR 4.3 million or EUR 0.46 per
share is forecasted for 2011. The forecast includes re-letting and
new lease expenses relating to lease agreements expiring during the
year and in addition to that expenses for letting the entire current
vacancy in the portfolio. If such expenes turn out to be lower than
expected, the final result may be higher than forecasted, as was the
case in previous years. For 2012, Fair Value is predicting adjusted
consolidated net income of EUR 5.1 million or EUR 0.55 per share

With respect to the non-consolidated financial statements of Fair
Value REIT-AG under the German Commercial Code, we seek to achieve
retained earnings, which will support a dividend payment of at least
EUR 0.10 per share in 2011 and 2012. In order to reach this target,
income from portfolio adjustments will be required, which has not
been secured yet. However, on the back of the improved investment
climate for real estate we believe this to be achievable.

Selected financial indicators of Fair Value REIT-AG:

2010 2009
FFO EUR 4.8 million EUR 2.9 million
FFO per share in circulation EUR 0.51 EUR 0.32
Adjusted Group earnings after taxes EUR 5.8 million EUR 6.0 million
EPRA EPS EUR 0.62 EUR 0.65
IFRS consolidated net income EUR 2.2 million EUR -2.9 million
IFRS EPS EUR 0.24 EUR -0.31

31/12/2010 31/12/2009
Balance sheet NAV per share EUR 8.00 EUR 7.78
Equity ratio under § 15 of the REIT Act 49.6% 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:

Contact

Fair Value REIT-AG
Frank Schaich
Tel.: 089-9292815-10
Fax: 089-9292815-15
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