DGAP-News

Fair Value REIT-AG further optimises portfolio in 2014 while substantially improving earnings

DGAP-News: Fair Value REIT-AG / Key word(s): Preliminary Results
Fair Value REIT-AG further optimises portfolio in 2014 while
substantially improving earnings

03.03.2015 / 07:30

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Fair Value REIT-AG further optimises portfolio in 2014 while substantially
improving earnings

- EBIT up 12% to EUR 5.6 million in 2014 according to preliminary figures

- Further portfolio alignment - property sales totalling EUR 23 million

- Consolidated net loss reduced by EUR 4.9 million to EUR 0.3 million
(previous year: consolidated net loss of EUR 5.2 million)

- Operating result (FFO) of EUR 4.4 million after EUR 6.4 million in the
previous year (forecast: EUR 5.1 million); decline mainly due to
property sales

- Dividend forecast for 2014 of EUR 0.25 per share confirmed

- REIT equity ratio increases to 49.2% (previous year: 46.9%)

- Future growth focussed on German office and retail properties in
secondary locations

Munich, March 3, 2015 - Fair Value REIT-AG has successfully continued its
planned portfolio adjustments in 2014 and sold further properties which
were considered to be outside of its core portfolio. As a result, Fair
Value REIT-AG closed the financial year 2014 with substantially improved
earnings and considerably higher REIT equity according to preliminary
figures.

The operating result (EBIT) was up 12% to EUR 5.6 million (previous year:
EUR 5.0 million). This increase in earnings mainly resulted from the
significantly lower valuation losses on properties, which at EUR 7.5
million were almost 50% lower than the previous year number of EUR 14.0
million. On the back of the property sales both in the reporting period and
in 2013, Fair Value REIT-AG posted lower rental income in the financial
year 2014 than in the previous year. In 2014, this item totalled EUR 23.9
million and was therefore around 19% down on the corresponding figure from
the previous year (EUR 29.6 million). Non-allocatable real estate-related
expenses came in at EUR 6.3 million, lower than the previous year figure of
EUR 6.5 million.

A substantial reduction in interest expenses greatly contributed to an
improved financial result. This expense item came in at EUR 5.9 million.
The previous year expenses of EUR 11.7 million contained one-off costs for