Monday, December 19, 2011

Successful financing of recent acquisitions

  • alstria strengthens proven track record of access to debt financing in a difficult environment
  • Gross cash inflow of EUR 56 million increases financing flexibility
  • 7-year term of the new loan improves maturity profile of alstria’s liabilites

Hamburg, December 19, 2011 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, announces the financing of its recent acquisitions.

Targeted financial structure successfully implemented

Taking advantage of its strong market position, alstria invested approximately EUR 172 million in value-enhancing acquisitions of German offices over the past 12 months. The investments were mainly financed using the available cash raised through the recent capital increase. As part of its deleveraging strategy it was alstria’s target to lever the new acquisitions at around 40% LTV. This new loan allows the company to achieve this target, while providing a gross EUR 56 million of cash inflow, which will improve the company’s financial flexibility.

Attractive terms and improvement of maturity profile

The bullet loan provided by Berlin Hyp und Landesbank Berlin has a term of 7 years, thus improving alstria’s average maturity of liabilities from 3.6 to 3.8 years. The new interest rate exposure is fully hedged with a 3% interest rate cap.

"Our ability to finance a value-add portfolio at a time of severe restrictions in property lending is not only a testimony to the strength of our balance sheet, but also to the trust of the lenders in alstria’s asset-management capability," said Olivier Elamine, CEO of alstria. "This new inflow of EUR 56 million will increase our financing flexibility and allow us to rapidly respond to opportunities that might rise in the market”, added alstria’s CFO Alexander Dexne.

Portfolio data as of Jan 1, 2012

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 79 properties with an aggregate lettable space of approx. 861,000 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

More information on:

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.

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