Underlying interim results were effectively looking backwards to a period of portfolio rationalisation and declining rental income. Meanwhile, Fair Value REIT (FVI) has been making considerable progress with its growth strategy, investing directly in properties previously owned by subsidiaries, increasing its investment in existing subsidiaries, and adding the new closed-end real estate fund subsidiary (BBV08). Management guidance anticipates further investments over 2015 and 2016 that have the potential to significantly increase our estimates further (based on the current structure). Meanwhile, a voluntary public takeover offer for FVI by Demire has been proposed. The move is welcomed by management and would see the creation of a larger, more diversified player, with c €1bn in gross assets.
