DGAP-News: Fair Value REIT-AG / Key word(s): Final Results/Real Estate Fair Value REIT-AG's business development in 2016 positive 30.03.2017 / 07:30 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Fair Value REIT-AG's business development in 2016 positive - EBIT up 26% to EUR 15.5 million in 2016 (previous year: EUR 12.3 million) - Group net profit up 3% to EUR 6.9 million (previous year: EUR 6.6 million) - Funds from operations (FFO) as forecast at previous-year level of EUR 6.4 million (EUR 0.45/share) - Proposed dividend for 2016 of EUR 0.40 per share - Successful lets increase pro forma occupancy rate to 93.2% Graefelfing, 30 March 2017 - In the past fiscal year 2016, Fair Value REIT-AG (WKN A0MW97) successfully continued with its strategic portfolio streamlining. The sale of seven directly and indirectly held properties that no longer belong to its core portfolio generated income before selling costs of EUR 19.8 million, exceeding carrying amounts by 4% overall. As a result of successful lets, the occupancy rate of the portfolio increased to 90.6% of potential rents as of 1 January 2017 compared to 88.5% (like-for-like) of potential rents in the previous year. After including, on a pro forma basis, lease agreements already entered into for space still to be handed over, the occupancy rate again stood at 93.2% of potential rents as of 1 January 2017. This had a positive impact on the measurement result from the properties of the portfolio which, with a measurement gain of EUR 1.7 million in the fiscal year 2016, was up considerably on the previous-year figure. In 2015, a measurement loss of EUR 2.8 million had been recorded. Rental income within the Fair Value Group totalling EUR 22.5 million in 2016 was around 7% short of the previous-year figure of EUR 24.3 million due to sales and vacancies. Net rental income amounted to EUR 16.1 million, down 9% on the previous-year figure of EUR 17.7 million. At EUR 15.5 million, the operating result (EBIT) of the Fair Value Group in 2016 exceeded the previous-year figure of EUR 12.3 million by 26%. The increase in earnings of EUR 3.3 million resulted from an increase of EUR 2.8 million in the balance of disposal and measurement gains and losses as well as other operating income and expenses in addition to a decrease in general administrative expenses. At EUR 3.4 million, net interest expenses in 2016 were 19% below the previous-year figure of EUR 4.2 million, largely due to repayments. Deducting the share of profit/loss attributable to non-controlling interests generated a group net profit of EUR 6.9 million compared to EUR 6.6 million in the previous year. This corresponds to a group net profit of EUR 0.49 per share currently outstanding (previous year basic: EUR 0.53). At EUR 10.4 million, group net profit adjusted for measurement effects and non-recurring effects (EPRA result or FFO = funds from operations) was up slightly in the reporting period compared to the previous-year figure of EUR 10.3 million. After non-controlling interests, FFO amounted to EUR 6.3 million (previous year: EUR 6.4 million). This figure is within the expected range of between EUR 6.2 million and EUR 6.5 million and corresponds to an adjusted group net profit of EUR 0.45 per share currently outstanding. Group equity attributable to the shareholders of Fair Value REIT-AG as of 31 December 2016 increased by 3% to EUR 120.6 million compared to EUR 117.3 million in the previous year. This corresponds to a net asset value of EUR 8.60 for each share currently outstanding, compared to EUR 8.36 as of the end of the previous year. As of the reporting date, the REIT equity ratio increased to 62.7% of property assets (previous year: 59.6%) and was therefore considerably above the legally prescribed 45% minimum. The Group's net debt decreased by 7% to 39.6% of property assets compared to 42.8% in the previous year. As announced in the ad hoc announcement from 21 February 2017, the Management Board is planning to propose to the Annual General Meeting being held on 2 June 2017 to distribute a dividend of EUR 0.40 per share currently outstanding for the fiscal year 2016 - and thus EUR 0.15 more than the EUR 0.25 per share originally planned for the fiscal year 2016. This is largely attributable to the net income for 2016 pursuant to German GAAP of EUR 6.2 million. The planned distribution of around EUR 5.6 million is around 91.0% of the net income pursuant to German GAAP generated for the year and thus fulfils the requirements of the REIT law. For the fiscal year 2017, Fair Value REIT-AG expects funds from operations (FFO) before non-controlling interests to range between around EUR 9.6 million and EUR 10.2 million and after non-controlling interests of between EUR 6.1 million and EUR 6.4 million. This corresponds to FFO of between EUR 0.43 and EUR 0.46 per share currently outstanding. The target dividend for 2017 is EUR 0.25 per share for all shares currently outstanding. This corresponds to a distribution rate of 55% to 57% of FFO. Frank Schaich, CEO of Fair Value REIT-AG, is pleased with the net income for 2016: "On the rental side, we have achieved our goals and our target for the operating business result was also met. The pleasing increase in the planned dividend for 2016 is a direct result of successfully streamlining the portfolio, which had a positive impact on the German GAAP profit due to the increase in investment income." The annual report containing the complete consolidated financial statements of Fair Value REIT-AG for fiscal year 2016 and the 2016 separate financial statements prepared in accordance with the requirements of German GAAP can be accessed from today at www.fvreit.de in the Financial Reports section. Selected key financials of Fair Value REIT-AG EUR million 2016 2015 Rental income 22.5 24.3 Net rental income 16.1 17.7 Operating result (EBIT) 15.5 12.3 IFRS group net profit 6.9 6.6 IFRS earnings per share 1) EUR 0.49 EUR 0.53/0.52 EPRA result/FFO 6.3 6.4 FFO per share 1) EUR 0.45 EUR 0.52/0.51 31/12/2016 31/12/2015 NAV in the consolidated statement of EUR 120.6 EUR 117.3 financial position million million NAV per share in the consolidated EUR 8.60 EUR 8.36 statement of financial position EPRA-NAV per share EUR 8.60 EUR 8.36 Ratio of net financial liabilities 39.6% 42.8% (Net-LTV) Equity ratio pursuant to Sec. 15 REITG 62.7% 59.6% 1) Weighted average of shares outstanding in 2016: 14,029,013 (basic/diluted) Weighted average number of shares outstanding in 2015: 12,379,587 (basic)/13,265,505 (diluted) Contact Fair Value REIT-AG Tel. 089-9292815-13 Fax. 089-9292815-15 E-mail: [email protected] Company profile Fair Value REIT-AG, with its registered offices in Gräfelfing in the Munich district, concentrates its activities on acquiring, leasing, holding portfolios in and selling commercial property in Germany. The primary focus of investing activities is currently placed on retail and office properties in regional centres in Germany. As of 31 December 2016, the portfolio represented 33 properties (previous year: 40) with an aggregate market value of around EUR 291 million (previous year: EUR 300 million). The portfolio recorded an occupancy rate of 90.6% as of 1 January 2017 (previous year: 89.2%). Lease agreements had a weighted residual term of 5.2 years at that point in time compared to 4.9 years in the previous year. As of 1 January 2017, around 55% of potential rents of EUR 24 million relate to retail space, 37% to office space and 8% to other space. --------------------------------------------------------------------------- 30.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Fair Value REIT-AG Würmstraße 13a 82166 Gräfelfing Germany Phone: +49 (0)89 9292 815-1 Fax: +49 (0)89 9292 815-15 E-mail: [email protected] Internet: www.fvreit.de ISIN: DE000A0MW975 WKN: A0MW97 Indices: RX REIT All Share Index, RX REIT Index Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 559751 30.03.2017