alstria office REIT-AG / Miscellaneous
21.10.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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alstria office REIT-AG: Debt refinancing of EUR 95 million completed
New loan of EUR 95 million with 7 year maturity
Spread at 115 bps above three-month EURIBOR
Average total cost of debt on an corporate level stands at 4.6%
LTV ratio of existing credit line declines to 57.5% from 58.8%
HAMBURG, October 21, 2008 alstria office REIT-AG (symbol: AOX, ISIN:
DE000A0LD2U1), an internally managed Real Estate Investment Trust (REIT)
which is solely focused on acquiring, owning and managing office real
estate in Germany, today reports the completion of a EUR 95 million debt
refinancing.
As alstria already announced earlier this year, the refinancing is part of
an overall strategy intended to align the maturity of asset-specific
business plans with the underlying financing while simultaneously
increasing the flexibility of credit lines. Furthermore, this transaction
together with recent asset sales reduces the LTV ratio under the existing
credit line from 58.8% to 57.5%. This increases the flexibility within the
companys most important credit facility.
The new credit facility has a 7 year maturity and is priced at 115 bps
above the three-month EURIBOR. It has an 80% loan to value and a 100%
interest cover covenant. The new facility is secured on a non recourse
basis against two assets from alstria´s Hamburg portfolio with long term
lease contracts and high quality tenants.
alstria has been working on reducing the LTV risk under its main facility
since the end of the first quarter 2008, which allowed the company to
secure non core asset sales and refinancing before the freeze of the credit
market that has occurred.
Olivier Elamine, alstria CEO comments: 'Having taken these steps, our
balance sheet today can support a further yield expansion of more than 20
bps which would take the overall valuation yield of our portfolio to around
5.9%, reflecting a further potential devaluation of around EUR 70 million.
Following our EUR 29.8 million write-down in the first six months of 2008,
this gives us more leeway to react to further yield shifts in the market.
Asset management will continue to be the main focal point within our
portfolio over the coming months. However, we also anticipate the need for
real estate companies to deleverage their balance sheets, as a consequence
of the radical change in the credit environment. We will continue to focus
our attention and efforts on this issue, as we have already done during the
last six months.'
About alstria:
alstria office REIT-AG (alstria) is an internally managed Real Estate
Investment Trust (REIT) solely focused 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
based in Hamburg.
alstria owns a diversified portfolio of properties across attractive German
office real estate markets. Its current portfolio comprises 90 properties
with an aggregate lettable space of approximately 943,000 sqm and is valued
at approximately EUR 1.9 billion.
alstria intends to expand its portfolio significantly in the upcoming years
as part of a sustainable growth strategy. This strategy is based on
selective investments and active asset and portfolio management as well as
on establishing and maintaining good relationships with its key customers
and decision makers.
For further information, please see: www.alstria.com
Disclaimer:
This release constitutes neither an offer to sell nor a solicitation of an
offer to buy any securities. The securities have already been sold.
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.
Media:
Simon Steiner
Phone: +49 - 40 - 226 341 340
EMail: pr@alstria.de
Investor Relations:
Brigitte Büchner
Phone: +49 - 40 - 226 341 319
EMail: ir@alstria.de
DGAP 21.10.2008
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Language: English
Issuer: alstria office REIT-AG
Fuhlentwiete 12
20355 Hamburg
Deutschland
Phone: +49 (0)40 226 341 300
Fax: +49 (0)40 226 341 310
E-mail: info@alstria.de
Internet: www.alstria.de
ISIN: DE000A0LD2U1
WKN: A0LD2U
Indices: SDAX, EPRA, German REIT Index
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hamburg, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: alstria office REIT-AG: Debt refinancing of EUR 95 million completed
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