EANS-News: Fair Value REIT-AG increases consolidated net income in the first half of 2011 and confirms forecast for full year

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6-month report

Subtitle: IFRS consolidated net income up by 38% to € 3.2 million
(previous year: € 2.3 million) / Adjusted consolidated net income
(EPRA-Earnings) at € 2.9 million, an increase of 9% on previous year
figure of € 2.6 million / Forecast for full year 2011 and 2012
confirmed

Munich (euro adhoc) - August 11, 2011 - In the first half of the year
Fair Value REIT-AG has generated consolidated net income of around
EUR 3.2 million and thereby exceeded the previous year's mark of
around EUR 2.3 million by 38% or EUR 0.9 million. The gains compared
to the previous year are primarily the result of an income effective
market value increase of cash flow hedges in the associated
companies. Consolidated earnings adjusted for market value changes
(EPRA-Earnings) amounted to around EUR 2.9 million, and were
therefore 9% higher than the previous year mark of approx. EUR 2.6
million.

The operating income (EBIT) of EUR 2.9 million was in line with
expectations and came in at 13% lower than the previous year´s figure
of around EUR 3.4 million, mainly due to re-letting related expenses.
In contrast, the results of the associated companies rose
substantially, up by EUR 1.0 million to EUR 3.1 million. Of this
increase, 20% was attributable to reduced interest expenses and 80%
to an improved valuation of interest rate hedges, as recorded in the
respective profit and loss statements.

On the balance sheet date, the group´s equity capital amounted to EUR
77.9 million (December 31, 2010: EUR 74.6 million). The balance sheet
net asset value (NAV) per share in circulation therefore increased by
4% to EUR 8.35 (December 31, 2010: EUR 8.00). Taking the minority
holdings in the subsidiaries into account, the equity ratio as
defined in section 15 REITG (German REIT act) was up to 50.9% of
immovable assets (December 31, 2010: 49.6%).

Frank Schaich, CEO of Fair Value REIT-AG, explains the group's
gratifying development: "The long-term nature of our lease agreements
allows us to plan our income with confidence. This was boosted
further by successes in the rental business and the follow-up
financing and refinancing of financial liabilities within the group
and at associated companies."

The Management Board confirms the forecast, which was last increased
as part of the Q1 2011 financial report, for adjusted consolidated
net income of EUR 5.0 million (EUR 0.54 per share) for the full year
2011. Also, the forecast of an adjusted consolidated net income of
EUR 5.7 million (EUR 0.61 per share) for fiscal year 2012 is being
confirmed.

As of today, the report for the first half of 2011 is available at
www.fvreit.de in the Investor Relations area.

Selected financial indicators of Fair Value REIT-AG

January - June 2011 January - June 2010
Rental revenues 5,176 TEUR 6,046 TEUR
EBIT 2,945 TEUR 3,376 TEUR
IFRS consolidated net income 3,198 TEUR 2,313 TEUR
IFRS EPS 0.34 EUR 0.25 EUR
Adjusted consolidated income (EPRA-Earnings) 2,864 TEUR 2,629 TEUR
EPRA EPS 0.31 EUR 0.28 EUR

June 30, 2011 December 31. 2010
Balance sheet NAV per share 8.35 EUR 8.00 EUR
EPRA-NAV per share 9.11 EUR 8.93 EUR
Equity ratio under § 15 of the REIT Act: 50.9% 49.6%

Contact

Fair Value REIT-AG

Frank Schaich
Tel.: +49 89-9292815-10
Fax.: +49 89-9292815-15
E-Mail: schaich@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. Because of its REIT
status, Fair Value is exempt from corporation and trade tax. In
addition to investing in properties directly, Fair Value also invests
in real estate funds.

Through direct investments and subsidiaries, the Fair Value Group
manages a portfolio of 51 commercial properties with a total leasable
floor space of around 163,000 square metres and a market value as of
December 31, 2010 of around EUR 129.8 million. (Fair Value's share on
these investments amounted to around EUR 93.8 million as of June 30,
2011).

In addition, Fair Value REIT-AG holds minority interests in six
closed-end real estate funds with holdings in 23 commercial
properties and a total leasable floor space of around 269 000 square
metres. As of 31 December 2010, the total market value of these
properties was EUR 365.3 million. (Fair Value's share on these
investments amounted to around EUR 130.0 million as of June 30,
2011).

As of June 30, 2011, Fair Value's share on the total portfolio
amounted to around EUR 223.8 million. This represented an occupancy
rate of 93.1% of the achievable rents at full occupancy of EUR 19.5
million per annum. As of June 30, 2011, the weighted remaining term
of the leases was 5.8 years. Around 44% of the potential rent relate
to retail floor space, 42% to office space and 14% to other
facilities.

Further inquiry note:
Fair Value REIT-AG
Frank Schaich
Tel.: 089-9292815-10
Fax: 089-9292815-15
E-Mail: schaich@fvreit.de

end of announcement euro adhoc
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company: Fair Value REIT-AG
Leopoldstraße 244
D-80807 München
phone: +49 (0) 89 9292815 01
FAX: +49 (0) 89 9292815 15
mail: info@fvreit.de
WWW: http://www.fvreit.de
sector: Real Estate
ISIN: DE000A0MW975
indexes: CDAX, Classic All Share, Prime All Share, RX REIT All Share Index,
RX REIT Index
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Stuttgart, Düsseldorf, München
language: English