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.

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[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