Monday, November 7, 2011

Deleveraging and acquisitions drive FFO growth

First nine months 2011

-        Revenues at EUR 66.6 million (-1.1%) and funds from operations at EUR 25.6 million (+18.7%)
-        EPRA-NAV per share at EUR 11.24
-        Acquired assets transferred to alstria’s balance sheet

Hamburg, November 7, 2011 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, releases its financial results for the first nine months of 2011.

Revenues of EUR 66.6 million (-1.1%) and FFO of EUR 25.6 million (+18.7%) in line with guidance

 In the first nine months of 2011 alstria’s revenues decreased slightly by 1.1% year-on-year to EUR 66.6 million. Despite declining revenues, funds from operations improved strongly by 18.7% to EUR 25.6 million in the first nine months of 2011, reflecting the improved capital structure of the Company and the recent acquisitions closed in the course of 2011. The improvement of the FFO is also true on a per share basis, where the FFO increased by 1 cent/share from EUR 0.35/share to EUR 0.36/share. This increase of FFO/share is testimony to the ability of alstria to raise capital and invest it in an accretive manner for the benefit of all its shareholders. alstria’s net result for the first nine months of 2011 amounted to EUR 27.6 million and compares with a loss of EUR -11.5 million in the prior year period.

 Strong balance sheet – Equity up by 10.9%

As of September 30, 2011, alstria’s investment property totalled EUR 1.5 billion and increased by 14.0% compared to year-end of 2010. This reflects the inclusion of ten assets, acquired in the course of 2010/2011. As of September 30, 2011, alstria’s equity amounted to EUR 767.6 million (+10.9%). The increase of EUR 75.2 million compared to the end of 2010 is mainly resulting from the capital increase in March 2011, but also reflects the dividend payment to shareholders of EUR 31.5 million in June 2011 and the positive operating cashflow in the first nine months of 2011. alstria’s G-REIT equity ratio amounted to 48.7% as per end of September 2011, the company’s net LTV at the reporting date was 51.7%.


New leases of 28,000 sqm


In the first nine months of the year the Company has signed new lease agreements[1] of 28,000 sqm, or around 47% of the vacancy of the portfolio at the beginning of the year, representing the strongest leasing result in alstria’s history. The total physical vacancy rate in the portfolio as of September 30, 2011 stood at 8.5% or 73,500 sqm. The increase compared to June 30, 2011 reflects the consolidation of the acquired assets in Düsseldorf and Frankfurt. The EPRA vacancy rate (excluding vacancy related to development projects) increased for the same reason to 6.4% or 55,300 sqm as of September 30, 2011.

 “For the first nine months of 2011 alstria reports a very strong development in all its KPI’s”, said Olivier Elamine, CEO of alstria. “With our early refinancing in 2010, the rapid execution of two capital increases and the accretive investment of the proceeds the company is in an excellent position to sail through the stormy weather that will come up in the next months, and is ideally positioned to seize opportunities”.

Outlook

alstria confirms its forecast for the 2011 financial year: annual revenues of EUR 89 million and EUR 34 million in FFO.

 Key financials at a glance





Invitation to the conference call on November 7, 2011

The alstria management board, CEO Olivier Elamine and CFO Alexander Dexne, will present the results of the first nine months 2011 during a conference call on November 7, 2011 at 10.00 am (CET) – conference call for analysts and journalists.


Please use the following dial-in numbers:
Germany:     + 49 (0) 6103 485 3002
UK:              + 44 – 207 – 153 2027

 Please note that you can watch the presentation of Olivier Elamine and Alexander Dexne live as a webcast on our website www.alstria.com. As soon as the conference call begins, the presentation and the 9M report will be also available to download.

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. The Company owns a diversified portfolio of properties across attractive German office real estate markets. Its current portfolio comprises 80 properties with an aggregate lettable space of approx. 864,000 sqm and is valued at approximately EUR 1.5 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:
www.alstria.de
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.



1 Only includes new leases signed and disregards any lease renewals
2 9M 2011 based on 71.7 million shares and 9M 2010 based on 61.6 million shares


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