Accretive growth, FFO per share up by 14%

-        Strong growth of revenues and funds from operations (FFO)

-        Revenues at EUR 75.1 m (+12.7%) and FFO at EUR 32.0 m (+25.2%)

-        EPRA NAV per share at EUR 10.90

 

-        FFO guidance 2012 up from EUR 40 m to EUR 43 m

-        Publication of Sustainability Report 2012

 

Hamburg, November 6, 2012 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, announces its result for the first nine months of 2012. 

Revenues of EUR 75.1 m and FFO of EUR 32.0 m

In the first nine months of 2012, alstria’s revenues increased by 12.7% year-on-year to EUR 75.1 m, mainly as a result of the acquisition of real estate assets. The funds from operations (FFO) improved by 25.2% to EUR 32.0 m in the first nine months of 2012, driving the FFO margin by 4.2 percentage points to 42.6%. This development was driven by alstria’s increased revenue base, a sub- proportional growth of financing costs and efficiency gains. alstria’s FFO per share increased by 13.9% to EUR 0.41 (Q1-Q3 2011: EUR 0.36), again demonstrating the Company’s ability to deliver on FFO accretion. The net profit for the first nine months of 2012 amounted to EUR 32.5 m and was up by 17.9% compared to the prior year period.

Further balance sheet improvement

As of September 30, 2012, alstria’s investment property totalled EUR 1.6 bn, reflecting an increase of 6.6% compared to December 31, 2011. This is mainly due to the acquisition of the DIVE portfolio, which was consolidated as of May 1, 2012. alstria’s equity amounted to EUR 819.6 m as of September 30, 2012. The increase of EUR 51.4 m reflects the capital increase and the operating profit in the first nine months of 2012 on the one hand and the dividend payment to the Company’s shareholders on the other hand. alstria’s G-REIT equity ratio improved to 49.5% as per end of September 2012, the Company’s net LTV at the reporting date was 48.1%. The EPRA NAV per share amounted to EUR 10.90 as of September 30, 2012, and has therefore recouped the full dilution from the capital increase[1]. In the third quarter of 2012 alstria secured a new loan of EUR 42.5 m with a seven year maturity to finance the DIVE acquisition. The Company has continued to sell smaller assets mainly in Eastern Germany with the signature of an SPA for the sale of an asset in Dresden for a total consideration of EUR 2.65 m (vs. book value of EUR 2.5 m as of Dec. 31, 2011).  

Successful letting activities

Since the beginning of the year, alstria has signed new leases[2] for a total lettable area of 21,000 sqm and extended 42,500 sqm of expiring leases. The EPRA vacancy rate[3] stood at 8.2% and was down by 40 bps compared to June 30, 2012. With regard to the new acquisitions the Company was able to reduce the vacancy by 15%, driving like-for-like rents up by 5.3% in this specific portfolio.

“We have been steadily and continuously improving our FFO per share since we came back to the market at the end of 2010”, said Olivier Elamine, CEO of alstria. “We are still scouting the market for further acquisition opportunities that would allow us to invest our current cash at hand. The recent success of our real estate operations in leasing is ahead of our plans and should allow us to further add value to the newly acquired assets.”

Outlook

Based on the results for the first nine months 2012 alstria specifies its forecast for the 2012 financial year: While the guidance for annual revenues of EUR 100 m (2011: EUR 90.7 m) is maintained, the FFO is expected to grow by almost 25% to EUR 43 m (2011: EUR 34.7 m).  

New sustainability report published

Today alstria has published its new Sustainability Report for the year 2012. The report, which has a GRI self-declared B application level, demonstrates the substantial progress done in terms of sustainability reporting by the Company. This report is one of the first financial/CSR reports published globally to use Augmented Reality features, therefore substantially improving the reading experience of our stakeholders.

 

Key financials at a glance

	Q1-Q3 2012	Q1-Q3 2011	Change
Revenues (EUR m)	75.1	66.6	12.7 %
Net result for the period (EUR m)	32.5	27.6	17.9 %
Funds from operations (FFO) (EUR m)	32.0	25.6	25.2 %
FFO per share[4] (EUR)	0.41	0.36	13.9 %

 

	Sep. 30, 2012	Dec. 31, 2011	Change
Investment properties (EUR m)	1,630	1,529	6.6 %
Cash at hand (EUR m)	70.1	96.0	-27.0 %
EPRA NAV per share (EUR)	10.90	11.32	-3.7 %
G-REIT equity ratio (%)	49.5	48.7	0.8 pp
Net LTV ratio (%)	48.1	50.2	-2.1 pp

 

Invitation to the conference call on November 06, 2012

The alstria Management Board will present the results of the first nine months 2012 during a conference call at 10.00 am (CET).

 

Please use the following dial-in numbers:

Germany:     +49 (0) 6958 999 0805

UK:              + 44–207–153-2027

 Please note that you can watch the management’s presentation live as a webcast on our website www.alstria.com. As soon as the conference call begins, the presentation and the interim report, as well as the Sustainibility Report, will be available for 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. As of September 30, 2012 the portfolio comprises 84 properties with an aggregate lettable space of 927,000 sqm and is valued at approximately EUR 1.6 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.com

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] EPRA NAV as of Dec. 31, 2011 was EUR 10,88 (corrected for dividend payment of EUR 0.44)

[2] Only includes new leases signed and disregards any lease renewals

[3] EPRA vacancy rate disregards vacancy from development projects

 

[4] Q1-Q3 2012 based on 78.9 m shares, Q1-Q3 2011 based on 71.7 m shares

 

Successful financing of DIVE portfolio

-     alstria agreed on a new loan of EUR 42.5 m and increases its financial flexibility

-     LTV of 47% and 7 year term of the new loan further improve balance sheet quality

Hamburg, September 3, 2012 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, announces the financing of its DIVE portfolio. The loan is provided by Helaba Landesbank Hessen-Thüringen.

Cash inflow provides financial flexibility

 

Following the acquisition of six buildings worth EUR 95 m (DIVE portfolio) in early 2012, alstria successfully closed the financing of the transaction. The bullet loan has a term of 7 years, thus improving alstria’s average maturity of liabilities from 3.2 to 3.4 years. alstria’s intention is to draw down on the loan after it has identified an adequate use of the proceeds.

LTV of 47% further improves balance sheet ratios

In line with its long-term deleveraging strategy alstria further improved its financial structure. The LTV of the new loan amounts to 47% (LTV covenant of 65%) and therefore supports alstria’s target to lower its corporate LTV to around 50% in the mid-term.

"The new loan is again testimony to the strength of our balance sheet and the trust of the lenders in alstria’s asset management capability, as the maturity of the loan exceeds the remaining lease length of the portfolio", said Olivier Elamine, CEO of alstria. "Our recent positive trend in leasing up the vacant space in the portfolio is clearly supportive in this respect”.

 

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. As of June 30, 2012 alstria’s portfolio comprised 85 properties with an aggregate lettable space of approx. 930,000 sqm and is valued at approximately EUR 1.6 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.com

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.

alstria leases 1,600 sqm in Frankfurt

-        Long-term lease signed in Frankfurt

Hamburg, July 30, 2012 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, announces the signing of a lease agreement in Frankfurt, Stresemannallee 30.

The 9.000 sqm asset, which has been acquired by alstria in May 2012 as part of the “Dive” transaction, has had a total vacancy rate at acquisition of 38%. The signing of this new lease allows the vacancy rate on this asset to be cut down to 22%, and increases the total annual rental income from EUR 960 k to EUR 1,155 k.

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 85 properties with an aggregate lettable space of approx. 930,000 sqm and is valued at approximately EUR 1.6 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.com

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.

alstria leases 2,100 sqm in Hamburg Norderstedt

-       Long-term lease signed with the German subsidiary of a major international industrial corporation

-        Rental income on the property increased by almost 40%

Hamburg, July 12, 2012 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, announces the signing of a lease agreement with the German subsidiary of a major industrial international corporation in Hamburg Norderstedt.

The asset which has been recently acquired by alstria in May 2012 as part of the “Dive” transaction has had a total vacancy rate at acquisition of 40%. The signing of this new lease allows the vacancy rate on this asset to be cut down to 21%, and increase the total annual rental income by almost 40% from EUR 590 k to EUR 827 k per annum.

The lease transaction was brokered by BNP Paribas Real Estate GmbH (Hamburg). The new lease is set to start in December 2012.

“This leasing result reflects the ability of alstria’s real estate operation to deliver on our strategy” says Olivier Elamine, CEO of alstria. “Our leasing activity is running according to our plans, and sometimes, as in this case, even faster than we have expected. The strong letting demand in the market is still extremely supportive."

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 84 properties with an aggregate lettable space of approx. 927,000 sqm and is valued at approximately EUR 1.6 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.com

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.

German office market nearly balanced

alstria and IPD present the results of the fifth German Office Rent Reversion Index (DMX)

Hamburg/Wiesbaden, Germany, May 10, 2012

The results of the German Office Rent Reversion Index (DMX), annually published by IPD and sponsored and initiated by alstria office REIT-AG, show a very low rent reversion for the reporting year to May 2012. After the strong result of 3.9% in the last reporting period the current value of the DMX to May 2012 is only 0.3% and therefore shows a nearly balanced relation between the average contract rents and the average sustainable rents of office leases. The current contract rent for all running office leases is 12.85 EUR/sqm/month which is very close to the average sustainable rent of 12.89 EUR/sqm/month.

The German Office Rent Reversion Index (DMX) shows the potential for rental growth for the German office market by comparing the contract rents with the sustainable rents and thus creating more transparency for the German office market. While in the last year nearly all analyzed office markets showed a positive rent reversion, this reporting year shows much more diverse results. “About half of the eight analyzed locations, including the B-Cities segment, show a positive rent reversion and therefore potentially increasing rents. The other half shows a negative rent reversion, which means potentially decreasing rents”, explains Lars Dierkes, project manager at IPD Investment Property Databank GmbH, Wiesbaden. “But the amounts of rent reversion in the positive direction as well as in the negative direction are very moderate in this reporting year – with the exception of Hamburg – compared to the results of last year.”

Sustainable rents in all analyzed locations decreased during the reporting year to May 2012

After the positive growth of sustainable rents of 7.7% on average in the last reporting period to May 2011, sustainable rents could not keep this level in the last 12 months. The results of the DMX show a decrease of sustainable rents in all analyzed locations. On average the decrease was -3.8%, whereas Frankfurt am Main shows the strongest decrease with -7.0%. In contrast, the average contract rents were nearly stable and only decreased by -0.3% compared to last year’s value. Most of the analyzed locations even show a slightly positive growth of contract rents in the last 12 months except Frankfurt am Main which shows the strongest decrease of contract rents with -6.5%. The strongest increase of contract rents was currently measured in Munich with 2.1%. “For us as an investor, the DMX is a very useful tool”, says Olivier Elamine, CEO of alstria, “however, we do not focus that much on the actual numbers, but are interested in the trend. It shows that there is not much to be expected from the market in terms of rent reversion. Value needs to come from hard work, the market will not help.”

Hamburg shows the strongest positive rent reversion

Due to the decrease of sustainable rents and the nearly stable contract rents, both values have become very close and result into a very small rent reversion of 0.3%. The highest positive rent reversion is currently measured in Hamburg with 6.3%, followed by Munich with 0.7%, Frankfurt am Main with 0.6% and Cologne with 0.5%. Dusseldorf shows the highest negative rent reversion with -3.0% followed by Stuttgart with -2.2% and Berlin with -1.3%. Average contract rents and sustainable rents in the B-Cities segment are nearly balanced and therefore only show a slight rent reversion of -0.3%

In the long-term view of rent reversions over the last 10 years, Berlin shows the strongest positive rent reversion of 6.1% on average per year, followed by Frankfurt am Main with 2.4%. The highest negative potential in the long-term view was measured in Dusseldorf with -4.8% on average per year, followed by Cologne with -2.2%. B-Cities show a slightly positive rent reversion of 1.1% and therefore nearly match the total long-term result of the DMX with 1.0% average rent reversion per year.

“The insights of the DMX and its regional sub-indices are reliable and a good basis for further analyses, as IPD put together a very comprehensive database with primary data”, explains Dr. Daniel Piazolo, managing director of IPD Investment Property Databank GmbH. The results of the DMX are based on eight sub-indices that are calculated out of 26,000 office leases with a monthly rental value of EUR 336m. These leases are analyzed based on their market segments and their lease term 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.

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 visit www.ipd.com/germany.

Contact IPD Investment Property Databank GmbH

Lars Dierkes

Head of Lease Intelligence

Tel.: +49 6 11 – 33 44 987

Email: lars.dierkes@ipd.com

Press IPD Investment Property Databank GmbH

Alexandra May
(Cert.) INVESTOR RELATIONS+COMMUNICATION

Tel.: +49 6 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 member of the SDAX. The Company owns a diversified portfolio of office properties in attractive locations throughout Germany. Currently the portfolio of alstria comprises of 85 properties with a total lettable area of approximately 929,000 sqm and is valued at approximately EUR 1.6 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:

www.alstria.com

alstria.blogspot.com

www.twitter.com/alstria_REIT

Contact alstria office REIT-AG:

Ralf Dibbern

Tel.: +49 40 - 226 341 329

Email: ir@alstria.de