EANS-News: Fair Value REIT-AG / Fair Value REIT-AG exceeds FFO-target in the first half year and increases earnings forecast for 2012

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6-month report/Earnings Forecast

München (euro adhoc) - * Occupancy rate increases to 95.0%, rental
income up by 7.3% * IFRS consolidated net income of EUR 2.1 million
(previous year: EUR 3.2 million) * Adjusted consolidated net income
in accordance with EPRA / FFO on par with previous year at EUR 2.9
million * REIT equity ratio increases to 52.2%

Munich, August 9, 2012 - Fair Value REIT-AG achieved total revenues
of EUR 6.6 million in the first half of 2012. This exceeded the
corresponding previous year figure by EUR 0.2 million or 3.8%. The
rise came on the back of rental income which rose by 7.3% to EUR 5.6
million and lower income from operating and incidental costs. The
occupancy rate of the properties held by the Group and its
participations increased proportionate to Fair Value from 93.8% to
95.0% and therefore returned to its long-term average as of June 30,
2012. The remaining terms of the lease agreements averaged 5.7 years
as of the reporting date.

Net rental result for the first half year came in at EUR 4.3 million.
The decrease of around EUR 0.1 million or 2% compared to the first
half of 2011 is attributable to a rise in expenses for investment
properties totalling EUR 0.3 million. This resulted equally from
rental-related renovation costs as well as on-going maintenance
expenses. On the back of sales and valuation expenses of EUR 1.0
million (previous year: EUR 0.3 million), the operating result for
the first six months was EUR 2.1 million, EUR 0.8 million or 27% down
on the corresponding period in the previous year (EUR 2.9 million).

Earnings from the equity-accounted associated companies fell by EUR
0.5 million or 16% to EUR 2.6 million. The change was exclusively
attributable to the market value changes to interest rate hedges
recorded in the income statement, which resulted in a
liquidity-neutral positive contribution to earnings totalling EUR 0.1
million (previous year period: EUR 0.6 million).

Overall, Fair Value REIT-AG generated consolidated net income
according to IFRS of EUR 2.1 million, or EUR 0.22 per share, in the
first six months of 2012. The decrease compared to the previous year
period (EUR 3.2 million or EUR 0.34) was largely attributable to the
higher earnings contribution from the market valuation of interest
rate hedges in the first half of 2011. In addition to that
capitalised and amortised renovation costs and the valuation loss on
a sold property had an impact on the net income.

The consolidated net income of the Fair Value Group adjusted for
changes in market value and sales expenses (EPRA earnings or FFO)
came in at EUR 2.9 million in the first half of 2012 or EUR 0.31 per
share. This was therefore on par with the previous year and higher
than expected for the reporting period.

Group equity as of June 30, 2012, totalled EUR 79.3 million and was
therefore 2% up on the mark from December 31, 2011 (EUR 77.5
million). This meant that the balance sheet net asset value per share
in circulation totalled EUR 8.51 per share in the first six months of
the year (December 31, 2011: EUR 8.31). The equity ratio pursuant to
Paragraph 15 of the German REIT Act increased to 52.2% of immovable
assets (December 31, 2011: 51.0%).

Frank Schaich, CEO of Fair Value REIT-AG, provides an outlook on
future development: "Funds from operations in the first half of the
year exceeded our target and we are confident that the positive
development can be sustained in the second half of the year. We are
therefore now anticipating adjusted consolidated net income of EUR
5.2 million for the full year 2012, instead of the previously
forecast EUR 4.8 million. This represents EPRA earnings per share of
EUR 0.56. In the coming months, already concluded new lease
agreements will have a positive impact on the Group figures, as will
the recently finalised property sales. In addition, we would like to
make the most of the current strong demand for real estate, which has
been additionally stimulated by low interest rates, for further sales
from our property portfolio held directly or by associated
companies."

The Semi-Annual Report 2012 is now available in the Financial Reports
section of {www.fvreit.de}[HYPERLINK: file:///Dc-fairvalueServerP
resse-MarketingPressemitteilungen2010Corporate%20Newswww.fvreit.d
e].

Selected financial indicators of Fair Value REIT-AG

1/1 - 6/30/2012 1/1 - 6/30/2011
Rental revenues EUR 5.555 million EUR 5.176 million
EBIT EUR 2.147 million EUR 2.945 million
Result from
equity-accounted
investments EUR 2.584 million EUR 3.066 million
IFRS-Consolidated
net income EUR 2.058 million EUR 3.198 million
IFRS-EPS EUR 0.22 EUR 0.34
Adjusted
consolidated income
(EPRA-Earnings)/FFO EUR 2.882 million EUR 2.864 million
EPRA EPS EUR 0.31 EUR 0.31

June 30, 2012 December 31, 2011
Net asset value
per share EUR 8.51 EUR 8.31
EPRA-NAV per share EUR 9.53 EUR 9.27
Equity ratio within
the meaning
of section 15
of the REIT act 52.2% 51.0%

Contact

{Fair}[HYPERLINK: mailto:Fair] Value REIT-AG

Frank Schaich
Tel. +49 (0) 89 9292815-10
Fax +49 (0) 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 real estate directly, Fair Value also
acquires participations in real estate partnerships.

Through direct investments and subsidiaries, Fair Value Group manages
a portfolio of 48 commercial properties with a total leasable floor
space of around 161,000 square metres and a market value of around
EUR 128 million as of June 30, 2012. Fair Value's share of these
investments amounted to around EUR 93 million on the same date.

In addition, Fair Value REIT-AG holds minority interests in six
closed-end real estate partnerships with holdings in 23 commercial
properties with a total leasable floor space of around 269,000 square
metres. As of December 31, 2011, the total market value of these
properties was around EUR 358 million. (Fair Value's share of this
amounted to around EUR 128 million on June 30, 2012).

As of June 30, 2012, Fair Value's share of the total portfolio
amounted to around EUR 221 million. This portfolio had an occupancy
rate of 95.0% of the achievable rents at full occupancy of EUR 19.5
million per annum. As of June 30, 2012, the weighted remaining term
of the leases was 5.7 years. Around 44% of the potential rent relates
to retail floor space, 42% to office space and 14% to other types of
use.

Further inquiry note:
{Fair}[HYPERLINK: mailto: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: free trade: Berlin, München, Düsseldorf, Stuttgart, regulated
dealing/prime standard: Frankfurt
language: English