DGAP-News: alstria office REIT-AG: Annual result 2013

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| Source: EQS Group AG
DGAP-News: alstria office REIT-AG / Key word(s): Final Results
alstria office REIT-AG: Annual result 2013

27.02.2014 / 17:36

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Press release

Annual result 2013

  - Revenues of EUR 104.2 m (+2.9%) and funds from operations (FFO) of EUR
    45.3 m (+4.0%)

  - NAV per share up by 1.8% to EUR 10.69

  - Strong letting result: EPRA-vacancy rate down by 120 bps to 6.8% and
    like-for-like contractual rent up by 2.3%

  - Management proposes to pay a stable dividend of EUR 0.50 per share for
    FY 2013

  - Guidance for 2014: FFO expected to grow by 4% to EUR 47 m 

Hamburg, February 27, 2014 - alstria office REIT-AG (symbol: AOX, ISIN:
DE000A0LD2U1), the leading German office REIT, announces its result for the
financial year 2013.

Revenues of EUR 104.2 m and FFO of EUR 45.3 m in line with full-year
guidance

In 2013 alstria's revenues grew by 2.9% year-on-year to EUR 104.2 m. The
increase was mainly driven by acquisitions and like-for-like rental growth,
which compensated the effects from disposals related to alstria's portfolio
streamlining-program. Funds from operations for the same period amounted to
EUR 45.3 m (+4.0% compared to FY 2012). The increased revenue base and
lower recurring financing expenses further improved alstria's FFO margin to
43.5% (FY 2012: 43.0%). The FFO per share increased by 4.0% to EUR 0.57
(2012: EUR 0.55). alstria's net profit for the year 2013 was EUR 38.9 m
compared with EUR 39.9 m in 2012.

The annual valuation led to a stable market value of alstria's real estate
portfolio. In total, 45 buildings experienced a valuation gain of EUR 24 m,
while 16 assets were marked down. The gross yield (contractual rent/market
value) of alstria's portfolio remained stable at 6.5%.

Early refinancing massively strengthened alstria's balance sheet 

In 2013, alstria refinanced more than two thirds of its debt. A milestone
was the new credit agreement amounting to EUR 544 m, replacing the existing
syndicated loan facility, which was due to mature on July 20, 2015. The new
syndicated loan has a maturity of seven years. The early refinancing allows
alstria to benefit from the attractive financing environment and
significantly improved the overall debt maturity profile of the Company to
around 5.3 years as of December 31, 2013 (vs. 3.0 years as of December 31,
2012). With the new syndicated loan in place, alstria has no major
refinancing needs before mid-2018.

Furthermore, alstria issued its first convertible bond in June 2013. The
convertible bond improved the maturity profile and is a first step in
diversifying the Company's sources of financing outside of straight
mortgage debt. The Company's net LTV was 50.7% as of December 31, 2013.

As per year-end 2013 alstria's balance sheet reflected a total equity
position of EUR 844.1 m. The NAV per share therefore amounted to EUR 10.69
and was up by 1.8% compared to December 31, 2012. The G-REIT equity ratio,
which is defined as total equity divided by immovable assets, was 50.9%
(December 31, 2012: 50.0%). The G-REIT law requirement is a ratio 45%.
 
Recycling capital 

alstria's total investment property value amounted to EUR 1,632 m as of
December 31, 2013 (December 31, 2012: 1,623 m). The increase of investment
property reflects the net effect of the 2013 transactions, as well as the
capital expenditures that have been spent on the portfolio. In 2013 alstria
initiated a disposal program of assets mainly located in smaller cities in
Eastern Germany and sold eight assets for a total consideration of EUR 43.4
m at a book gain of 3.4% on average. The proceeds were reinvested in two
properties located in Stuttgart and Düsseldorf.

EPRA vacancy rate dropped to 6.8%  

alstria has taken advantage of the very liquid German letting market  and
substantially reduced its vacancy rate also in its recently acquired
assets. A total of 35,600 sqm of new leases and an extension of existing
leases of 49,000 sqm were signed throughout the year. The total vacancy
rate therefore fell by 230 bps to 9.1% as of December 31, 2013. The EPRA
vacancy rate in the portfolio - which disregards the development-related
vacancy - dropped by 120 bps to 6.8%. The like-for-like contractual rent
grew by 2.3%, mainly reflecting substantial rent increases in the assets in
which alstria invested recently (either through acquisition or
repositioning).

"In 2013 alstria took advantage of the demand for office space in Germany.
The combination of attractive buildings and competitive rents again proved
to be the right business model in the current market environment," said
Olivier Elamine, CEO of alstria. "Over the past four years our FFO per
share on average increased by 8.2% per annum, demonstrating that there are
growth opportunities for strong operators, even in a flat market
environment."

Stable dividend of EUR 0.50 per share

The Company will propose to the next Annual General Meeting a dividend
payment of EUR 0.50 per share, representing a 5.5% dividend yield based on
a 2013 VWAP (Volume-weighted average price) of EUR 9.01.
 
Outlook 2014: further increase of FFO expected  

Based on its current portfolio and the contractually agreed rent, alstria
currently expects revenues of EUR 102 m and funds from operations (FFO) to
grow by 4% to EUR 47 m in the financial year 2014. The revenue guidance
reflects the recent disposal of properties as well as planned lease
expires. The expected increase in FFO is mainly due to lower costs of debt
after the recent refinancing.

Invitation to the analyst and press conference on February 28, 2014 

The alstria management board, CEO Olivier Elamine and CFO Alexander Dexne,
will present the 2013 financial results in a press conference for analysts
and journalists at 10:00 am (CET) in Frankfurt. Presentation slides and
webcast will be available on alstria's website www.alstria.com.

The first part of alstria's annual report (company report) is available on
the Company's website (www.alstria.com). The second part of the annual
report (financial report) will be released on March 27, 2014.
 
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 December 31, 2013 its
portfolio comprised 76 properties with an aggregate lettable space of
approx. 894,400 sqm and was 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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Language:    English                                             
Company:     alstria office REIT-AG                              
             Bäckerbreitergang 75                                
             20355 Hamburg                                       
             Germany                                             
Phone:       040-226 341 300                                     
Fax:         040-226 341 310                                     
E-mail:      info@alstria.de                                     
Internet:    http://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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