alstria and IPD present the results of the fourth German office rent reversion index (DMX)

Rent reversion in the German office market has significantly increased

The results of the German office rent reversion index (DMX), published annually by IPD and sponsored and initiated by the alstria office REIT-AG, show for 2011 that the German property market has significantly increased over the last year. While office rental space in 2010 showed nearly no potential for rental growth with a value of -0.4%, the potential to May 2011 increased considerably to a value of 3.9% in May 2011. The current average contract rent (rent stock) for existing leases is 12.89 EUR/sqm/month, which is significantly less than the current sustainable rents of 13.40 EUR/sqm/month.

The results of the DMX, which shall bring transparency to the rent reversion of the German office market, show for May 2011, that almost all the investigated cities have a positive rent reversion potential, but again with significant differences in the amount of potential in these locations. "This year again the DMX shows very interesting results and confirms once, why the German property market is particularly popular with foreign investors," said Lars Dierkes, Head of Lease Intelligence at IPD Investment Property Databank GmbH, Wiesbaden. "We see a significant potential for rental growth in almost all analyzed German office locations, which holds the chance of rising yields for investors."

The sustainable rents in the German office market have significantly increased during the previous year by 7.7% on average

The results of the DMX show that the German office rental market has recovered since last year. All analyzed cities show a positive growth for sustainable rents. Both the average contractual rent and the sustainable rent had a significant growth compared to the results of last year, with a higher increase of sustainable rents of 7.7% compared to 3.2% for contract rents. "The results of this year’s DMX is testimony of the positive momentum that is building up in the German office leasing markets", says Olivier Elamine, CEO of alstria. The only location with a slight decline in average contract rent is Cologne, where a slight decrease of contract rents was measured by -0.5%.

For all investigated locations, with the exception of Dusseldorf, a positive rent increase of 3.9% by average was measured. The highest potential for rental growth is currently measured in Hamburg with 9.6%, where the sustainable rents increased by 10.2% to 14,69 EUR/sqm/month and thus have risen disproportionately to the growth of contract rents with 3.0% to 13.41 EUR/sqm/month. Also a high potential rental growth can be seen in Munich (6.5%), Cologne (6.4%) and Berlin (4.2%). A slightly less positive potential for rental growth is currently seen in Stuttgart (3.8%) and in B-cities (2.9%).

Dusseldorf is the only location under investigation, still with negative rental growth potential, Frankfurt is currently close to balance

Despite the overall positive development of sustainable rent and contract rent Dusseldorf as the only location, as well as in the previous year, still shows a negative potential for rental growth currently of 2.8%. The amount of the negative potential has, however, due to the substantial growth of sustainable rent of 4.3%, decreased, as the contract rent only showed an increase of 1.5%. Therefore Dusseldorf shows a sustainable rent of currently 12.73 EUR/sqm/month and an average contractual rent of 13.09 EUR/sqm/month.

As close to balance results indicate for the contract rent in Frankfurt am Main. Despite a substantial growth of 6,8% in sustainable rent since last year the potential for rental growth is only 0,5%, as the average contract rent also showed a considerable growth of 7,3%. Therefore the contract rent of 19.61 EUR/sqm/month almost shows the same level as the sustainable rent of 19.71 EUR/sqm/month.

The DMX is calculated by comparing the contract rent of existing leases against the sustainable rent from the valuations of properties. The results of the DMX are based on eight sub-indices calculated from a stock of 21,000 leases with a monthly rental value of EUR 260 million. These leases are analyzed based on their market segment and the term of the lease and lease age.

The complete DMX results are available for free from IPD under www.ipd.com/germany or by email to germany@ipd.com 

Hamburg/Wiesbaden, Germany, May 10 2011

About IPD Germany:

IPD devotes itself as a global service provider in the objective Performance measurement of institutional investors. As a global leader in real estate performance measurement and analysis IPD is present in more than 20 countries in Europe, North America, Asia, Africa and Australia. Our services and products include the publication of country indices, portfolio benchmarking, research, organizing conferences for investors, managers, owners and tenants.

The country indices of IPD are a globally recognized standard for performance and real estate markets and also form the basis for trading in property derivatives.

For more information visist www.ipd.com/germany.

Contact IPD Investment Property Databank GmbH
Lars Dierkes
Head of Lease Intelligence
Tel. 06 11 – 33 44 987
Email: lars.dierkes@ipd.com

Press IPD Investment Property Databank GmbH
Alexandra May
(Cert.) INVESTOR RELATIONS+COMMUNICATION
Tel.: 06 11 – 72 48 944
Email: am@alexandra-may.com


About alstria:
alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) is an internally managed Real Estate Investment Trust (REIT), that exclusively focuses on acquisition, owning and managing office real estate in Germany. alstria was founded in January 2006 and converted to the first German REIT in October 2007. The company, based in Hamburg, is listed at the Frankfurt Stock Exchange and on the SDAX.

The Company owns a diversified portfolio of office properties in attractive locations throughout Germany. Currently the portfolio of alstria comprises of 74 properties with a total lettable area of approximately 821,000 sqm and is valued at approximately EUR 1.4 billion.

alstria's strategy is based on active asset and portfolio management as well as on establishing and maintaining close and long-term relationships with customers and decision makers. alstria focuses on long-term real estate values.

For further information:
http://www.alstria.com/
http://www.alstria.blogspot.com/
www.twitter.com/alstria_REIT



Contact alstria office REIT-AG:

Ralf Dibbern
Phone: +49 - 40 - 226 341 329
Email: ir@alstria.de

Quarter Results alstria office REIT-AG: Strong operating performance: Increase of full year FFO guidance to EUR 32 million

First Quarter 2011
• Strong operating performance: Increase of full year FFO guidance to EUR 32 million

• Revenues at EUR 21.3 million and Funds From Operations at EUR 8.0 million

• Full year FFO Guidance increased to EUR 32 million

• EPRA-NAV per share at EUR 11.57

Hamburg, May 6, 2011 - alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), an internally managed Real Estate Investment Trust (REIT) focused solely on acquiring, owning and managing office real estate in Germany, releases its financial result for the first three months of 2011.

Revenues of EUR 21.3 million and FFO of EUR 8.0 million outperforming previous guidance

In the first three months of 2011 alstria's revenues decreased by 7.8% year-on-year to EUR 21.3 million, mainly as a result of the disposal of real estate assets in 2010. Despite declining revenues the Funds From Operations improved by 10% to EUR 8.0 million in the first three months of 2011, reflecting the sale of lower yielding mature assets, and the improved capital structure of the company. alstria's net profit for the first three months of 2011 amounted to EUR 9.9 million and was up by 18% compared to the first quarter of 2010. The net result benefited from the successful operating business and positive non-cash valuation gains of interest derivatives amounting to EUR 2.0 million.

Further improvement of balance sheet ratios

As of March 31, 2011, alstria's investment property totalled EUR 1.4 billion. This number reflected the inclusion of the asset in Karlsruhe and two assets in Hamburg, acquired in November 2010 and January 2011 respectively. The third Hamburg asset was added to the balance sheet in April 2011, and therefore is not reflected in the numbers of the first quarter. alstria's equity amounted to EUR 808.7 million as of March 31, 2011. The increase of EUR 116.3 million compared to Q4 2010 was mainly driven by the successful capital increase executed end of March 2011 and operating profit for the period. alstria's G-REIT equity ratio amounted to 55.8% as per end of March 2011, the company's net LTV at the reporting date (including inflow from capital increase) was 45.0%.

Strong leasing activities

In the first three months of the year the company has signed new leases of 7,000 sqm, or around 12% of the vacancy of the portfolio at the beginning of the year. The total physical vacancy rate in the portfolio has declined in the first quarter from 7.6% (as of year-end of 2010) to 7.5%, mainly reflecting the strong leasing activities of the company. The EPRA vacancy rate amounted to 4.9% as of March 31, 2011 and was down from 5.1% as of year-end 2010.

'In the first quarter of 2011 alstria was able to further strengthen its portfolio, its balance sheet profile and its overall profitability,' said Olivier Elamine, CEO of alstria. 'Considering the first quarter result we are increasing the FFO guidance from EUR 30 to EUR 32 m. We are looking forward to putting the cash at hand at work, in order to further improve alstria's profitability'.



Outlook

alstria increases its forecast for the 2011 financial year: annual revenues of EUR 87 million and EUR 32 million in FFO.

Key financials at a glance

Invitation to the conference call on May 06, 2011

The alstria management board will present the Q1 results during a conference call at 10.00 am (CET) - conference call for analysts and journalists.

Please use the following dial-in numbers:

Germany: +49 (0) 6103 485 3000

UK: + 44 - 207 - 153 2027

About alstria:


alstria office REIT-AG is an internally managed Real Estate Investment Trust (REIT) focused solely on acquiring, owning and managing office real estate in Germany. alstria was founded in January 2006 and was converted into the first German REIT in October 2007. Its headquarters are in Hamburg.

alstria office REIT-AG owns a diversified portfolio of properties across attractive German office real estate markets. Its current portfolio comprises 74 properties with an aggregate lettable space of approx. 813,000 sqm and is valued at approximately EUR 1.4 bn.

The alstria office REIT-AG strategy is based on active asset and portfolio management as well as on establishing and maintaining good relationships with key customers and decision makers. alstria focuses on long-term real estate value creation.

For further information, please contact:

Ralf Dibbern, IR/PR
Phone: +49 (0) 40 / 226 341-329
Email: rdibbern@alstria.de

More information on:
http://www.alstria.de/
http://www.alstria.blogspot,com/
www.twitter.com/alstria_REIT

Disclaimer:

This release constitutes neither an offer to sell nor a solicitation of an offer to buy any shares. As far as this press release contains forward-looking statements with respect to the business, financial condition and results of operations of alstria office REIT-AG (alstria), these statements are based on current expectations or beliefs of alstria's management. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those reflected in such forward-looking statements. Apart from other factors not mentioned here, differences could occur as a result of changes in the overall economic situation and the competitive environment – especially in the core business segments and markets of alstria. Also, the development of the financial markets and changes in national as well as international provisions particularly in the field of tax legislation and financial reporting standards could have an effect. Terrorist attacks and their consequences could increase the likelihood and the extent of differences. alstria undertakes no obligation to publicly release any revisions or updates to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.