Monday, May 14, 2012

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
or by email to

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
Contact IPD Investment Property Databank GmbH
Lars Dierkes
Head of Lease Intelligence
Tel.: +49 6 11 – 33 44 987
Press IPD Investment Property Databank GmbH
Alexandra May
Tel.: +49 6 11 – 72 48 944

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:

Contact alstria office REIT-AG:
Ralf Dibbern
Tel.: +49 40 - 226 341 329

Tuesday, May 8, 2012

Acquisitions drive FFO performance

-        Revenues at EUR 23.6 m (+10.7%) and funds from operations (FFO) at EUR 9.8 m (+22.2%)
-        Full year guidance confirmed (revenues EUR 100 m and FFO EUR 40 m)
-        EPRA NAV per share at EUR 11.15

Hamburg, May 8, 2012 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, announces its result for the first three months of 2012.

Revenues of EUR 23.6 m and FFO of EUR 9.8 m

In the first three months of 2012, alstria’s revenues increased by 10.7% year-on-year to EUR 23.6 m, mainly as a result of the acquisition of real estate assets in 2011. The funds from operations improved by 22.2% to EUR 9.8 m in the first three months of 2012, reflecting the increased revenue base and normalised administration expenses. More importantly, the FFO per share increased by 9.1% to EUR 0.12 (EUR 0.11 in Q1 2011), demonstrating the company’s ability to deliver on FFO accretion. alstria’s net profit for the first three months of 2012 amounted to EUR 10.2 m and was up by 3.7% compared to the first quarter of 2011.

Further improvement of balance sheet ratios

As of March 31, 2012, alstria’s investment property totalled EUR 1.5 bn. This number is unchanged compared to December 31, 2011. The real estate portfolio acquired in February 2012 was consolidated as of May 1, 2012 and is therefore not reflected in the numbers for the first quarter 2012. alstria’s equity amounted to EUR 837 m as of March 31, 2012. The increase of EUR 69 m compared to December 31, 2011 was mainly driven by the capital increase executed end of February 2012 and the operating profit for the period. alstria’s G-REIT equity ratio amounted to 52.9% as per end of March 2012, the Company’s net LTV at the reporting date (including inflow from the capital increase) was 46.3%.

Operational performance

In the first three months of the year alstria has signed new leases[1] of 3,600 sqm. The Company has agreed to renew[2] around 30,000 sqm of leases with two of its key tenants, which were due to expire at the end of 2012, following the initial five year leaseback period.

The total physical vacancy rate in the portfolio has increased in the first quarter 2012 from 8.6% (as of year-end 2011) to 10.7%, mainly reflecting the expected vacancy of the Hans-Böckler-Strasse asset (Düsseldorf), which was acquired in 2011 as part of the Vastned portfolio. The EPRA vacancy rate[3] remained low at around 7.5% (6.5% as of year-end 2011).

“It was of paramount importance that we generated FFO per share growth following the capital increase reinvestment, and we are glad that we have been able to deliver on this promise” said Olivier Elamine, CEO of alstria. “The consolidation of the recently acquired DIVE portfolio should allow us to further improve our FFO per share. Our asset management work is now focusing on leasing up the new vacant space that we have acquired, providing even further upside to the FFO.”


alstria confirms its forecast for the 2012 financial year: annual revenues of EUR 100 m (2011: EUR 90.7 m) and EUR 40 m in FFO (2011: EUR 34.7 m).

Key financials at a glance

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. 929,000 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

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.

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

[2] Some renewals agreed are pending contracts

[3] EPRA vacancy rate disregards vacancy from development projects

4 Q1 2012 based on 78.9 m shares, Q1 2011 based on 71.6 m shares