alstria office REIT-AG / Quarter Results
19.11.2008
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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Financial Results for the first nine months of 2008
- Revenues increase by 25% to EUR 75.8m
- Funds from operations (FFO) increase by 35% to EUR 29.9m
- Sale of non-core asset in Leipzig at a premium of 4% to half year book
value
- Full year financial guidance confirmed
- Dividend guidance at same level as FY07
Hamburg, November 19, 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 its financial results for the first nine
months of 2008.
Key financials strong cash generation
In the reporting period, rental revenues increased by 25% from EUR 60.8m to
EUR 75.8m. The corresponding Funds from Operations (FFO) increased from EUR
22.1m to EUR 29.9m. Major contributors behind this growth were acquisitions
made under the REIT regime at the end of 2007 resulting in a larger
portfolio. Strong operating cash flow led to a significant increase in FFO.
Due to a non-cash valuation loss on investment properties of EUR 29.8m in
addition to EUR 1.2m non-cash loss from financial derivatives, alstria
reports a consolidated loss of EUR 5.7m for the first nine months of 2008
(vs. a consolidated gain of EUR 55.5m in 9M 2007).
NNNAV per share decreased from EUR 15.1 in Q2 2008 to EUR 14.8 in Q3 2008
due to a strong decrease in value of the financial derivatives (minus EUR
0.30 per share).
in EUR m 9M 2008 9M 2007 Change
Revenues 75.8 60.8 24.7%
Net profit for the period -5.7 55.5 -110.2%
FFO 29.9 22.1 35.1%
FFO/share (in EUR) 0.53 0.39 35.1%
in EUR m Sep. 30, 2008 Dec. 31, 2007 Change
Investment Properties 1.875.8 1.693.7 10.8%
Development Properties 3.1 0.0 n.a.
Cash at hand 54.6 103.0 -47.0%
NNNAV/share (in EUR) 14.81 15.55 -4.7%
G-REIT Equity Ratio 44.2% 51.4% -7.2 pp
Company LTV Ratio 58.7% 55.2% 3.5 pp
Syndicated Loan LTV-ratio 57.5% 55.2% 2.3 pp
Post closing events underscore the strong business case of alstria
1. Successful lease-up
In October 2008, alstria announced the letting of more than 12,000 sqm to
Hamburger Hochbahn AG on a 20 year lease basis. The premises at Steinstraße
5-7, which were vacated earlier this year by BKK Mobil Oil, will undergo
significant reconstruction before being handed over to the new tenant in
April 2010. The building, which is located near the main train station in
an area highly demanded by tenants, is now fully let after only several
months of being vacated. With this new lease signed, the vacancy rate of
alstrias portfolio stands at 6.5% (down from 7.7%).
Since the beginning of the year, alstria has signed contracts on more than
27,000 sqm of new leases, which represent more than 50% of the total vacant
space available at the beginning of the year.
2. Repayment of EUR 107.5m corporate debt
As part of its long term refinancing plan, alstria has refinanced EUR 95m
of debt, using part of the proceeds from its asset sale to repay the main
syndicated loan facility. Following this EUR 107.5m repayment, the LTV
under the main credit facility fell to 57.5% (vs. covenant of 60%).
Anticipated development and financial goals
alstrias strong cash flow position as well as the quality of its assets
and clients allow the company to look positively to the FFO generation
expected for the last quarter. Due to its strong operating performance,
alstria is well on track to achieve its financial goals for 2008 which were
based on revenues of EUR 101m and FFO of EUR 40m at the beginning of the
year.
The main uncertainty remaining for real estate companies lies in the
further devaluation of real estate portfolios. Recent sales which alstria
closed this quarter at premium to half year valuations, the refinancing of
two of the companys assets as well as the high quality of the portfolio
makes the management confident, that alstria although not immune to is
well prepared to resist excessive downward pressure.
Review of dividend policy
In light of recent developments in the capital markets, and in order to
retain operational flexibility, alstria has decided not to increase the
dividend for the year 2008. Although the strong operational result of the
company would have allowed to do so, the management feels that it is in the
best interest of the company and its stakeholders, and subject to market
conditions, to maintain FY08 dividend to the level paid last year (i.e. EUR
28.4m).
Olivier Elamine, alstrias CEO, highlights: 'The new financial environment
we have been living in since mid-September has required us to review a
number of future development assumptions and reconsider what we thought
were certainties. We can see a number of balance sheet challenges that need
to be overcome by real estate players in Germany and elsewhere, before they
are able to get access to the numerous opportunities that will be available
in the market in the coming years. On a relative basis, alstria will have
its own challenges to look at. We feel that alstria is clearly supported in
this process by the strength of its business operations, the quality of its
assets and the sustainability of its cash flow. Most importantly, we feel
that now is the time for decisions. Standing still and hoping for better
days is not an option.'
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 89 properties
with an aggregate lettable space of approximately 944,000 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 19.11.2008
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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: Financial Results for the first nine months of 2008
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