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.”

Outlook

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
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.

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[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