alstria office REIT-AG / Final Results

31.03.2009 

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's financial year 2008: strong stable cash flow generation

- Revenues increase by 23.6% to EUR 102.1 million
- Funds from Operations (FFO) rise by 25% to EUR 39.4 million (FFO per
share EUR 0.70)
- Consolidated loss of EUR 1 per share driven by devaluation 
- Dividend confirmed at same level as in 2007
- Option for dividend payment in shares offered to shareholders

Hamburg, March 31, 2009 - 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 announced its financial results for 2008. Strong
cash flow generation and operational results highlight the quality of
alstria's assets and tenants, and its strength to navigate through a
challenging environment

Revenue development, Funds from Operations and net income
Revenues increased by more than 23% from EUR 82.6 million in the previous
year to EUR 102.1 million, mainly due to the full year accounting of assets
acquired at the end of 2007. The same factor led to a 25% increase of FFO
from EUR 31.5 million in the previous year to EUR 39.4 million. The strong
cash generation and operational result of alstria were offset by a negative
change in the real estate market that led to a negative non cash
devaluation of the real estate portfolio of EUR 88 million. alstria closed
its financial year with a net loss of EUR 56 million, or EUR 1 per share

Key financials
 2008 2007 Variation in %
Revenues (EUR m) 102.1 82.6 +23.6%
Net loss (EUR m) -56.0 52.5 -206.0%
Funds from operations (FFO) (EUR m) 39.4 31.5 +25.0%
FFO per share (EUR) 0.70 0.56 +25.0%
Investment property (EUR m) 1,805.2 1,693.7 +6.6%
Net asset value (NAV) (EUR m) 729.7 870.9 -16.2%
NAV per share (EUR) 13.03 15.55 -16.2%

Assets and financial situation
At closing, alstria's portfolio was valued at EUR 1.8 billion, which
reflects a valuation yield of 5.9% (5.4% in 2007). Net Asset Value (NAV)
decreased year on year by approx. 16.2% to EUR 730 million. This decrease
was mainly driven by the non cash devaluation of Investment Properties and
the impact of the mark to market of hedge instruments. The NAV per share
stood at EUR 13.03 down from EUR 15.55 in 2007.
alstria was in line with all its debt covenants at year end with an LTV on
its main credit facility at 59.1% versus a covenant at 60%. Post closing,
alstria announced that it had successfully renegotiated the debt covenant
from 60% to 65% offering additional flexibility on the balance sheet.

The G-REIT equity ratio decreased to 40.3%, below the 45% requirement of
the REIT law. However, this does not challenge the REIT status of alstria,
as the REIT law provides for a 3 year cure period.

Operational Achievements
alstria's strong focus on asset management allowed the company to sign more
than 30,000 sqm of new leases which represented more than 50% of the
vacancy in the portfolio at the end of 2007. Despite the sale of fully let
assets and the acquisition of one vacant asset in Hamburg, the vacancy rate
was reduced from 6.5% to 5.9%. The successful lease up of alstria also
allowed the company to extend its lease maturity with the average lease
length remaining above ten years. Like for like rental growth over the year
remained steady at 2.2%.

alstria successfully disposed selected properties in the second half of the
year, at a profit to the 30 June 2008 valuation, highlighting the quality
and attractiveness of its portfolio. The sold property with an overall
volume of EUR 18 million generated a realised gain of EUR 1.5 million for
the period.

alstria's portfolio in 2008
Metric Value
Number of properties  89
Market value (EUR bn)  1.8
Contractual rent (EUR m)  106.5
Valuation yield 5.9%
Approx. lettable area (sqm)  944,000
Vacancy (% of lettable area) 5.9%
WAULT (years)  10
Average value per sqm (EUR) 1,918
Average rent per sqm (EUR per month) 9.41

Options for the 2008 dividend
For the financial year 2008, the management board will propose to the
Annual General Meeting a dividend of EUR 28.4 million, which is equal to
around EUR 0.52 per share. Furthermore, alstria will offer its shareholders
to opt for a dividend payment in shares. The company will use the treasury
shares for that purpose, which will be offered at a discount to the market
price at the time of the dividend payment. No new shares will be issued for
that purpose.

Outlook 2009
For 2009, alstria expects an increase in revenues to EUR 103 million. Funds
from Operations (FFO) are expected to decline from EUR 39 million to EUR 32
million mainly driven by increased financing costs expected in 2009.

'As early as January 2008 alstria was among the first companies to adjust
to the new environment,' says Olivier Elamine, CEO of alstria. 'We decided
at that time to freeze any acquisition programme, and to focus on the debt
side of our balance sheet as well as on our asset management operations.
These decisions allowed us to operate efficiently in the market despite
challenging times by staying committed to that guidance and achieving it.
The combination of an early renegotiation of the debt covenants with our
banks and the strong operational results have allowed us to successfully
manage our LTV covenant despite a gross drop in the portfolio value of
around 8%. Due to the overall quality of our assets, the stability and
quality of our cash flow positions alstria was ideally positioned to
navigate through the challenging environment and deleverage efficiently.'

The annual Analyst and Press Conference on March 31, 2009, can be followed
live via alstria's webcast at 10:00 am CET.


About alstria
alstria office REIT-AG 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 office REIT-AG 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 1.8 bn.

For further information, please see: www.alstria.com 
www.alstria.blogspot.com

Disclaimer:

This release constitutes neither an offer to sell nor a solicitation of an
offer to buy any securities. 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.


André Bense 
Manager PR | IR
Tel: +49 - 40 - 226 341 329    
Fax: +49 - 40 - 226 341 310
E-Mail: pr@alstria.de 


DGAP 31.03.2009 
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Language:     English
Issuer:       alstria office REIT-AG
              Bäckerbreitergang 75
              20355 Hamburg
              Deutschland
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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