EANS-News: Fair Value REIT-AG grows consolidated net income in first nine months of 2011 and raises full-year forecast

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Earnings Forecast/9-month report

Subtitle: IFRS consolidated net income up by 10% to EUR 4.5 million
(previous year: EUR 4.1 million) / Adjusted consolidated net income
(EPRA earnings) at EUR 4.2 million, slightly ahead of previous year's
EUR 4.1 million / FY 2011 consolidated net income forecast upgraded
to EUR 5.6 million (+12%)

Munich (euro adhoc) - November 15, 2011 - Fair Value REIT-AG
generated around EUR 4.5 million of consolidated net income in the
first nine months of the current financial year, thereby exceeding
the previous year's figure of EUR 4.1 million by 10%. The rise
compared to the previous year is primarily the result of an
earnings-effective market value increase in cash flow hedges in the
associated companies. Consolidated earnings adjusted for market value
changes (EPRA earnings) amounted to around EUR 4.2 million, and were
therefore slightly higher than the previous-year mark of
approximately EUR 4.1 million.

Operating earnings (EBIT) of EUR 4.2 million were in line with
expectations and were 21% lower than the previous year's figure of
around EUR 5.3 million, mainly because of expenses related to
re-letting. In contrast, the results of the associated companies rose
substantially, up by EUR 1.1 million, or 33%, to EUR 4.5 million. Of
the increase in earnings from participations, around 40% is due to
lower interest expenses, including after the successful refinancing
of mortgage loans in the second quarter of 2011, and around 60% is
attributable to an improvement in the valuation of interest-rate
hedges.

The group's equity amounted to EUR 77.6 million on the balance sheet
date (December 31, 2010: EUR 74.6 million). The balance sheet net
asset value (NAV) per share in circulation increased by 4% to EUR
8.32 as a consequence (December 31, 2010: EUR 8.00). Taking into
account the minority holdings in the subsidiaries, the equity ratio
as defined in Section 15 of the German REIT Act (REITG) increased to
50.7% of immovable assets (December 31, 2010: 49.6%).

Frank Schaich, the company's CEO, commented on further reasons for
the Fair Value Group's positive business trend, and the upgrade to
the forecast: "The rental ratio for our proportional overall
portfolio at 94.4% represents a slight increase on the previous
year's level of 93.6%. In terms of costs, we achieved significant
savings on interest expenses and on rental-related costs. These are
the main factors that prompted us to boost our earnings expectations
for the 2011 financial year. Instead of consolidated net income of
previously EUR 5.0 million (EUR 0.54 per share), we now anticipate
EUR 5.6 million, or EUR 0.60 per share."

The Management Board is still aiming to distribute a dividend of at
least EUR 0.10 per share for 2011, although the requisite German
commercial law results and liquidity inflows for this have not yet
been secured.

The interim report for the first nine months of 2011, which will be
available in the course of today on the company's website at
www.fvreit.de within the Investor Relations area, provides a full
overview of current business trends.

Selected financial indicators of Fair Value REIT-AG

Jan - Sept 2011 Jan - Sept 2010
Rental revenues 7,845 TEUR 8,930 TEUR
EBIT 4,212 TEUR 5,324 TEUR
IFRS consolidated net income 4,518 TEUR 4,080 TEUR
IFRS EPS 0.48 EUR 0.44 EUR
Adjusted consolidated income 4,183 TEUR 4,108 TEUR
(EPRA-Earnings)
EPRA EPS 0.45 EUR 0.44 EUR

Sept 30, 2011 Dec 31, 2010
Balance sheet NAV per share 8.32 EUR 8.00 EUR
EPRA-NAV per share 9.24 EUR 8.93 EUR
Equity ratio under 50.7% 49.6%
§ 15 of the REIT Act

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 September
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 September 30,
2011).

As of September 30, 2011, Fair Value's share on the total portfolio
amounted to around EUR 223.9 million. This represented an occupancy
rate of 94.4% of the achievable rents at full occupancy of EUR 19.6
million per annum. As of September 30, 2011, the weighted remaining
term of the leases was 5.6 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