alstria office REIT-AG

Quarterly Report • May 5, 2022

2022 CONSOLIDATED

INTERIM STATEMENT

as of March 31, 2022

GROUP FINANCIALS

Revenues and earnings	January 1 − March 31, 2022	January 1 − March 31, 2021	Change
Revenues (EUR k)	45,915	44,666	2.8%
Net rental income (EUR k)	39,949	38,722	3.2%
Consolidated profit for the period (EUR k)	20,657	26,232	-21.3%
FFO (EUR k)1)	27,495	29,350	-6.3%
Earnings per share (EUR)	0.12	0.15	-20.0%
FFO per share (EUR)1)	0.15	0.17	-9.4%
1) Excluding minorities.
Balance sheet	March 31, 2022	December 31, 2021	Change
Investment property (EUR k)	4,767,160	4,775,801	-0.2%
Total assets (EUR k)	5,302,370	5,234,372	1.3%
Equity (EUR k)	3,388,408	3,367,083	0.6%
Liabilities (EUR k)	1,913,962	1,867,289	2.5%
Net asset value (NAV) per share (EUR)	19.03	18.91	0.6%
Net loan-to-value (Net LTV, %)	27.7	28.8	-1.1 pp
G-REIT figures	March 31, 2022	December 31, 2021	Change
G-REIT equity ratio (%)	70.4	69.1	1.3 pp
Revenues including other income from investment properties (%)	100	100	0.0 pp
EPRA figures1)	January 1 − March 31, 2022	January 1 − March 31, 2021	Change
EPRA earnings per share (EUR)	0.12	0.15	-20.0%
EPRA cost ratio A (%)2)	31.5	27.2	4.3 pp
EPRA cost ratio B (%)3)	26.8	22.5	4.3 pp
	March 31, 2022	December 31, 2021	Change
EPRA NRV per share (EUR)	20.98	20.86	0.6%
EPRA NTA per share (EUR)	19.09	18.97	0.6%
EPRA NDV per share (EUR)	19.37	18.82	2.9%
EPRA net initial yield (%)	3.1	2.9	0.2 pp
EPRA 'topped-up' net initial yield (%)	3.3	3.4	-0.1 pp
EPRA vacancy rate (%)	7.7	6.9	0.8 pp

1) For further information, please refer to EPRA Best Practices Recommendations, www.epra.com.

2) Including vacancy costs.

3) Excluding vacancy costs.

1 PORTFOLIO OVERVIEW

Key metrics	March 31, 2022	December 31, 2021
Number of properties	110	112
Market value (EUR bn)1)	4.8	4.9
Annual contractual rent (EUR m)	193.1	204.6
Valuation yield (%, contractual rent/market value)	4.0	4.2
Lettable area (m²)	1,410,600	1,434,000
EPRA vacancy rate (%)	7.7	6.9
WAULT (weighted average unexpired lease term in years)	6.0	5.7
Average value per m² (EUR)	3,403	3,398
Average rent/m² (EUR/month)2)	13.41	13.33

1) Including fair value of owner-occupied properties.

2) Average rent of office space.

Real estate operations

Letting metrics (m²)	January 1 − March 31, 2022	January 1 − March 31, 2021	Change (m²)
New leases	11,600	4,300	7,300
Renewals of leases1)	22,500	12,600	9,900
Total	34,100	16,900	17,200

1) Option drawings of existing tenants are included.

Transactions

Disposals	City	Disposal price (EUR k)	Gain/loss to book value (EUR k)1), 2)	Signing SPA	Transfer of benefits and burdens
Heidenkampsweg 44—46	Hamburg	9,100	1,070	Dec. 9, 2021	March 31, 2022
Vaihinger Str.131	Stuttgart	63,000	15,730	Dec. 23, 2021	March 31, 2022
Kanzlerstr. 8	Düsseldorf	24,970	-15	Feb. 16, 2022	April 30, 2022
Total Disposals		97,070	16,785

1) Different from the position 'Net result from the disposal of investment property' in the income statement. This position only contains contracts that impact the financial year 2020 and their transaction costs.

2) Rounded to the nearest five thousand Euros.

2 EARNINGS POSITION

alstria's revenues and earnings developed as planned in the reporting period. Rental income increased by 2.8 % to EUR 45,915 k (previous year: EUR 44,666 k), mainly due to revenues from new leases, indexations as well as revenues from leases of the properties acquired in the fiscal year 2021. The disposal of properties in the 2021 financial year did not have a significant impact in the reporting period.

The consolidated net income for the reporting period amounted to EUR 20,657 k (3M 2021: EUR 26,232 k). The decrease is primarily due to higher personnel expenses, reflecting an increase in the compensation for virtual shares and stock options by EUR 1,853 k. Other operating expenses also went up by EUR 2,134 k compared to the prior-year period and mainly caused by higher expenses for the valuation of minority interests.

To provide a clear picture of the Group's operating performance, alstria also publishes the operating result (FFO after minorities), which amounted to EUR 27,495 k in the reporting period (3M 2021: EUR 29,350 k). Net rental income was up by EUR 1,421 k but was more than offset by higher personnel expenses (EUR 683 k), lower other operating income (EUR 352 k), a lower net financial result (EUR 990 k) and a lower share of the result of companies accounted for at equity (EUR 733 k).

The reconciliation of consolidated net income to FFO is based on eliminating non-cash income items, items that are not expected to recur annually, non-periodic items and items that do not serve the operating business. The adjustments between the income figures in the income statement and FFO are shown in the table on the next page. The most significant adjustments (> EUR 1,000 k) in the current reporting period related to real estate operating expenses relating to a different accounting period (EUR 1,180 k), non-cash personnel expenses (EUR 2,427 k), non-cash other operating expenses (EUR 2,571 k) and expenses not attributable to the operating business in the financial result (EUR 1,279 k). Adjustments shown in the table are related primarily to the costs associated with the bridge facility. The adjustments in the operating expenses mainly relate to the valuation of the limited partner capital.

			FFO	FFO
EUR k1)	IFRS P&L	Adjustments	Jan. 1 − March 31, 2022	Jan. 1 − March 31, 2021
Revenues	45,915	0	45,915	44,666
Revenues from service charge income	14,234	0	14,234	14,009
Real estate operating expenses	-20,200	1,180	-19,020	-18,967
Net rental income	39,949	1,180	41,129	39,708
Administrative expenses	-1,730	242	-1,488	-1,569
Personnel expenses	-7,243	2,427	-4,816	-4,133
Other operating income	823	-312	511	863
Other operating expenses	-2,784	2,571	-213	-155
Net result from fair value adjustments to investment property	-52	52	0	0
Net result from the disposal of investment property	-300	300	0	0
Net operating result	28,663	6,460	35,123	34,714
Net financial result2)	-7,019	1,279	-5,740	-4,750
Share of the result of joint ventures and equity accounted investments	-818	0	-818	-85
Pretax income/Pretax FFO3)	20,826	7,739	28,565	29,879
Income tax expenses	-169	169	0	0
Consolidated profit/FFO (before minorities)	20,657	7,908	28,565	29,879
Minority interests	0	-1,070	-1,070	-529
Consolidated profit/FFO (after minorities)	20,657	6,838	27,495	29,350
Number of outstanding shares (k)			178,033	177,793
FFO per share (EUR)			0.15	0.17

1) Numbers may not sum up due to rounding.

2) The operating financial result contains interest expenses for financial liabilities, which are used for the financing of the existing portfolio. The nonoperating financial result contains interest expenses for financial liabilities, which are not used for the financing of the existing portfolio. This concerns the interest expenses for already refinanced financial liabilities and financial liabilities intended for future property investments.

3) FFO is not a measure of operating performance or liquidity under generally accepted accounting principles — in particular, IFRS — and should not be considered an alternative to the Company's income or cash flow measures as determined in accordance with IFRS. Furthermore, there is no standard definition for FFO. Thus, alstria's FFO values and the measures with similar names presented by other companies may not be comparable.

3 FINANCIAL AND ASSET POSITION

Investment property

The fair value of investment property amounted to EUR 4,767,160 k as of March 31, 2022, which was slightly below the December 31, 2021, level (EUR 4,775,801 k). The decrease resulted from a property in Düsseldorf being sold, which was reclassified as held for sale as of March 31, 2022 (EUR 25,000 k). An partly opposite effect resulted from investments made in the existing portfolio during the first quarter of 2022 (EUR 16,411 k).

EUR k
Investment property as of December 31, 2021	4,775,801
Investments	16,411
Acquisitions	0
Acquisition costs	0
Disposals	0
Transfers to assets held for sale	-25,000
Transfers to property, plant, and equipment (owner-occupied properties)	0
Net loss/gain from the fair value adjustment on investment property	-52
Investment property as of March 31, 2022	4,767,160
Carrying amount of owner-occupied properties	18,745
Carrying amount of the forest	2,683
Fair value of assets held for sale	24,970
Interests in joint ventures	106
Carrying amount of immovable assets	4,813,664

For a detailed description of the investment properties, please refer to the Group Management Report 2021.

Further key figures of the financial and asset position

As of March 31, 2022, alstria's cash and cash equivalents amounted to EUR 377,821 k (December 31, 2021: EUR 313,684 k).

Total equity increased by EUR 21,325 k to EUR 3,388,408 k as of March 31, 2022 (December 31, 2021: EUR 3,367,083 k). The consolidated profit of the period of EUR 20,657 k contributed significantly to the increase in equity.

Loans

The loan facilities in place as of March 31, 2022 are as follows:

Liabilities	Maturity	Principal amount drawn as of March 31, 2022 (EUR k)	LTV1) as of March 31, 2022 (%)	LTV cove nant (%)	Principal amount drawn as of De cember 31,2020 (EUR k)
Loan #1	June 28, 2024	34,000	13.4	65.0	34,000
Loan #22)	Apr. 14, 2022	45,900	28.1	75.0	45,900
Loan #3	June 30, 2026	56,000	35.0	65.0	56,000
Loan #4	Sept. 29, 2028	60,000	30.2	n/a	60,000
Loan #5	Sept. 30, 2024	12,125	5.8	n/a	13,338
Loan #6	March 31, 2023	4,440	n/a	n/a	5,550
Total secured loans		212,465	20.0	–	214,788
Bond #2	Apr. 12, 2023	325,000	-	-	325,000
Bond #3	Nov. 15, 2027	350,000	-	-	350,000
Bond #4	Sept. 26, 2025	400,000	-	-	400,000
Bond #5	June 23, 2026	350,000	-	-	350,000
Schuldschein 10y/fix	May 6, 2026	40,000	-	-	40,000
Schuldschein 7y/fix	May 6, 2023	37,000	-	-	37,000
Revolving credit line	Feb. 16, 2022	0	-	-	0
Bridge Facility	Jan. 27, 2023	0	-	-	0
Total unsecured loans		1,502,000	-	-	1,502,000
Total		1,714,465	35.5	-	1,716,788
Net LTV			27.7

1) Calculation based on the market values of the properties serving as collateral in relation to the loan amount drawn down.

2) Loan agreement terminated, refinancing occurred on April 14, 2022.

On April 29, 2022, and thus after the reporting date, a new revolving credit line of EUR 200,000 k with a term of three years was signed.

4 COVENANT REPORT

Compliance with and calculation of the Covenants referring to §11 of the Terms and Conditions*

In case of the incurrence of new Financial Indebtedness that is not drawn for the purpose of refinancing existing liabilities, alstria needs to comply with the following covenants:

• The ratio of the Consolidated Net Financial Indebtedness over Total Assets will not exceed 60 %
• The ratio of the Secured Consolidated Net Financial Indebtedness over Total Assets will not exceed 45 %

^* The following section refers to the Terms and Conditions of the Fixed Rate Notes as well as to the Terms and Conditions of the Schuldschein (for further information, please refer to www.alstria.com). Capitalized terms have the meanings defined in the Terms and Conditions.

▪ The ratio of Unencumbered Assets over Unsecured Consolidated Net Financial Indebtedness will be more than 150 %

In the reporting period alstria did not incur any Financial Indebtedness. Secured net financial indebtedness of EUR 45,900 k were repaid since the reporting date.

EUR k	March 31, 2022
Consolidated Net Financial Indebtedness as of the reporting date	1,343,755
Net Financial Indebtedness incurred since the reporting date	-
Sum Consolidated Net Financial Indebtedness	1,343,755
Total Assets as of the reporting date (less cash)	4,924,548
Purchase price of any Real Estate Property acquired or contracted for acquisition since the reporting date	-
Proceeds of any Financial Indebtedness incurred since the reporting date that were not used to acquire Real Estate Property or to reduce Financial Indebtedness	-
Sum Total Assets	4,924,548
Ratio of the Consolidated Net Financial Indebtedness over Total Assets (max. 60%)	27 %
EUR k	March 31, 2022
Secured Consolidated Net Financial Indebtedness as of the reporting date	165,602
Secured Net Financial Indebtedness incurred since the reporting date	-45,900
Sum Secured Consolidated Net Financial Indebtedness	119,702
Total Assets as of the reporting date (less cash attributable to secured debt)	5,209,908
Purchase price of any Real Estate Property acquired or contracted for acquisition since the reporting date	-
Proceeds of any Financial Indebtedness incurred since the reporting date that were not used to acquire Real Estate Property or to reduce Financial Indebtedness	-
Sum Total Assets	5,209,908
Ratio of the Secured Consolidated Net Financial Indebtedness over Total Assets (max. 45%)	2 %
EUR k	March 31, 2022
Value of Unencumbered Real Estate Property	3,725,550
Value of all other assets	188,442
Unencumbered Assets as of the reporting date	3,913,992
Net Unencumbered Assets recorded since the reporting date	-24,970
Sum Unencumbered Assets	3,889,022
Unsecured Consolidated Net Financial Indebtedness as of the reporting date	1,178,152
Net Unsecured Financial Indebtedness incurred since the reporting date	-
Sum Unsecured Consolidated Net Financial Indebtedness	1,178,152
Ratio of Unencumbered Assets over Unsecured Consolidated Net Financial Indebtedness (min. 150%)	330 %

Furthermore, alstria needs to maintain a ratio of the Consolidated Adjusted EBITDA over Net Cash Interest of no less than 1.80 to 1.00. The ratio should be calculated and published at every reporting date following the issuance of the bond or the Schuldschein.

EUR k	Q2 2021 -Q1 2022 cumulative
Earnings Before Interest and Taxes (EBIT)	231,622
Net profit / loss from fair value adjustments to investment property	−94,825
Net profit / loss from fair value adjustments to financial derivatives	−
Profit / loss from the disposal of investment property	−14,837
Other adjustments1)	18,690
Fair value and other adjustments in joint venture	-
Consolidated Adjusted EBITDA	140,649
Cash interest and other financing charges	−22,857
One-off financing charges	−
Net Cash Interest	−22,857
Consolidated Coverage Ratio (min. 1.80 to 1.00)	6.2

1) Depreciation, amortization, and nonrecurring or exceptional items.

On March 31, 2022 no covenants under the loan agreements and / or the terms and conditions of the bonds and Schuldschein have been breached. The breach of a covenant would lead to liquidity outflow.

5 OUTLOOK

The first quarter of the financial year 2022 developed as expected. Against this background, alstria confirms its guidance for the financial year 2022 with expected revenues of approximately EUR 183 million and an operating result (FFO) of EUR 106 million.

Reliable forecasts are very difficult due to the current environment. The war in Ukraine, with its hardly assessable consequences for the German economy, is causing uncertainty. In addition, the commercial leasing market continues to be strained. Large companies in particular are still reluctant to sign new leases.

Risk management

alstria is exposed to various risks through its business activities. Please refer to the detailed descriptions in the Annual Report 2021. There were no changes in the risk situation compared to the status described in the 2021 consolidated financial statements, also with regard to the Ukraine war.

PRINCIPLES OF THE CONSOLIDATED INTERIM STATEMENT

The consolidated interim statement of alstria office REIT-AG was prepared in accordance with International Financial Reporting Standards (IFRS), as published by the International Accounting Standards Board (IASB), which the European Union adopted as European law.

Although no explanatory notes are disclosed, the requirements of IAS 34 (interim financial reporting) have been considered. The accounting principles applied correspond to the principles described and applied in the consolidated financial statement as of December 31, 2021.

The consolidated interim statement contains the consolidated statement of financial position, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of cash flow, and the consolidated statement of changes in equity.

DISCLAIMER

The consolidated interim statement contains statements relating to anticipated future developments. These statements are based on current assessments and are, by their very nature, exposed to risks and uncertainty. Actual developments may differ from those predicted in these statements.

alstria office REIT-AG, Hamburg
Consolidated Statement of Financial Position as of March 31, 2022

	Q1 2022	Q1 2021
	EUR k	EUR k
Net rental revenues	45,915	44,666
Service charge income	14,234	14,009
Real estate operating costs	-20,200	-19,953
Net Rental Income	39,949	38,722
Administrative expenses	-1,730	-1,797
Personnel expenses	-7,243	-4,777
Other operating income	823	1,211
Other operating expenses	-2,784	-650
Net result from fair value adjustments
on investment property	-52	-50
Gain on disposal of investment property	-300	-4
Net Operating Result	28,663	32,655
Net financial result	-7,019	-6,310
Share of the result of joint ventures and equity
accounted investments	-818	-85
Pre-Tax Income (EBT)	20,826	26,260
Income tax result	-169	-28
Consolidated profit for the period	20,657	26,232
Attributable to:
Owners of the company	20,657	26,232
Earnings per share in EUR
Basic earnings per share	0.12	0.15
Diluted earnings per share	0.12	0.15

Consolidated Statement of Comprehensive Income for the Period from January 1 to March 31, 2022

	Q1 2022	Q1 2021
	EUR k	EUR k
Consolidated profit for the period	20,657	26,232
Other comprehensive result for the period:	0	0
Total comprehensive result for the period:	20,657	26,232
Total comprehensive profit/loss attributable to:
Owners of the company	20,657	26,232

ASSETS	March 31, 2022	December 31, 2021
	EUR k	EUR k
Non-Current Assets
Investment property	4,767,160	4,775,801
Equity-accounted investments	106	923
Property, plant and equipment	22,878	22,936
Intangible assets	265	274
Financial assets	91,369	39,185
Total Non-Current Assets	4,881,778	4,839,119
Current Assets
Trade receivables	9,032	3,922
Tax receivables	1,289	1,289
Other financial receivables	7,480	4,258
Cash and cash equivalents	377,821	313,684
Assets held for sale	24,970	72,100
Total Current Assets	420,592	395,253
Total Assets	5,302,370	5,234,372
EQUITY AND LIABILITIES	March 31, 2022	December 31, 2021
	EUR k	EUR k
Equity
Share capital	178,033	178,033
Capital surplus	1,262,297	1,261,630
Retained earnings	1,944,593	1,923,935
Revaluation surplus	3,485	3,485
Total Equity	3,388,408	3,367,083
Non-Current Liabilities Liabilities minority interests
Long-term loans, net of current portion	124,492	69,798
	1,650,218	1,697,605
Other provisions Other financial liabilities	2,867	2,585
	13,097	14,369
Total Non-Current Liabilities	1,790,674	1,784,357
Current Liabilities
Liabilities minority interests	21	15
Short-term loans	71,358	19,594
Trade payables	4,315	3,487
Profit participation rights	541	541
Liabilities of current tax	2,251	4,525
Other provisions	2,499	2,439
Other current financial liabilities	42,303	52,331
Total Current Liabilities	123,288	82,932
Total Liabilities	1,913,962	1,867,289
Total Equity and Liabilities	5,302,370	5,234,372

alstria office REIT-AG, Hamburg Consolidated Statement of Financial Position as of March 31, 2022

	Q1 2022	Q1 2021
	EUR k	EUR k
1. Operating activities
Consolidated profit	20,657	26,232
Interest income	-724	-310
Interest expense	7,743	6,620
Result from income taxes	169	28
Unrealized valuation movements	3,633	134
Other non-cash expenses (+)/income(-)	3,832	1,168
Gain (-)/Loss (+) on disposal of fixed assets	0	4
Depreciation and impairment of fixed assets (+)	242	228
Decrease (+)/Increase (-) in trade receivables and other assets that are
not attributed to investing or financing activities	-3,384	-781
Decrease (-)/increase (+) in trade payables and other liabilities that are
not attributed to investing or financing activities	-17,386	-4,385
Cash generated from operations	14,782	28,938
Interest received	-20	310
Interest paid	-599	-686
Income tax received (+)/paid (-)	-2,442	16
Net cash generated from operating activities	11,721	28,578
2. Investing activities
Acquisition of investment properties	-16,392	-57,711
Proceeds from sale of investment properties	72,100	0
Payment of transaction cost in relation
to the sale of investment properties	-288	-4
Acquisition of other property, plant and equipment and intangible
assets	-175	-105
Net cash generated from/used in investing activities	55,245	-57,820
3. Financing activities
Payments for the acquisition of limited partnerships
of minority shareholders	-1	0
Proceeds from the issue of bonds and borrowings	0	21,210
Payments for the redemption portion of the lease liability	-505	0
Payments of the redemption of bonds and borrowings	-2,323	-114
Net cash used in/generated from financing activities	-2,829	21,096
4. Cash and cash equivalents at the end of the period
Change in cash and cash equivalents (subtotal of 1 to 3)	64,137	-8,146
Cash and cash equivalents at the beginning of the period	313,684	460,960
Cash and cash equivalents at the end of the period
(thereof restricted: EUR 0; previous year: EUR 0)	377,821	452,814

alstria office REIT-AG, Hamburg

Consolidated Statement of Changes in Equity for the period from January 1 to March 31, 2022

(in EUR k)	Share capital	Capital surplus	Retained earnings	Share capital	Total Equity
As of December 31, 2021	178,033	1,261,630	1,923,935	3,485	3,367,083
Changes Q1 2022
Consolidated profit	0	0	20,657	0	20,657
Total comprehensive income	0	0	20,657	0	20,657
Share-based remuneration	0	667	0	0	667
As of March 31, 2022	178,033	1,262,297	1,944,592	3,485	3,388,408

0 -1 0 0 0

alstria office REIT-AG, Hamburg

Consolidated Statement of Changes in Equity for the period from January 1 to March 31, 2021

(in EUR k)	Share capital	Capital surplus	Retained Revaluation
			earnings	surplus	Total Equity
As of December 31, 2020	#BEZUG! 177,793	#BEZUG! 1,356,907	#BEZUG! 1,714,257	#BEZUG! 3,485	#BEZUG! 3,252,442
Changes Q1 2021
Consolidated profit	0	0	26,232	0	26,232
Total comprehensive income	0	0	26,232	0	26,232
Share-based remuneration	0	670	0	0	670
As of March 31, 2021	177,793	1,357,577	1,740,489	3,485	3,279,344

Steinstr. 7 20095 Hamburg, Germany +49 (0) 40/22 63 41-300

Elisabethstr. 11 40217 Düsseldorf, Germany +49 (0) 211 /30 12 16-600

Rankestr. 17 10789 Berlin, Germany +49 (0) 30/89 67 795-00 Platz der Einheit 1 60327 Frankfurt / Main, Germany +49 (0) 69/ 153 256-740

Reuchlinstr. 27 70176 Stuttgart, Germany +49 (0) 711 /33 50 01-50

alstria office REIT-AG www.alstria.com info@alstria.de