Quarterly Report • Aug 14, 2009
Quarterly Report
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Audited/unaudited
All numbers presented in this report are unaudited with the exception of those dated Dec. 31, 2008
Slight differences may occur in the interim financial report due to rounding differences of figures to EUR thousand, as the individual calculations are based on figures in euros.
| ISIN | DE000A0LD2U1 |
|---|---|
| Symbol | AOX |
| Prime sector | Financial Services |
| Industry group | Real Estate |
| Market segment | Prime Standard, Frankfurt |
| Indices | S-DAX, EPRA, German REIT Index, S&P/Citigroup Global REIT Index, GPR 250 Index / GPR 250 REIT Index |
| Share capital (notional) | EUR 56,000,000 |
| Market capitalisation (June 30) | EUR 313,600,000 |
| Issued shares | 56,000,000 |
| Treasury shares (June 30) | 1,340,134 |
| Shares outstanding (June 30) | 54,659,866 |
| Free float | 39% |
| in EUR k | Jan. 01 - June 30, 2009 |
Jan. 01 - June 30, 2008 |
Change |
|---|---|---|---|
| Revenues and Earnings | |||
| Revenues | 51,647 | 49,632 | 4.1% |
| Net rental income | 46,826 | 44,940 | 4.2% |
| Consolidated loss for the period | -2,286 | -10,392 | 78.0% |
| FFO | 16,174 | 20,428 | -20.8% |
| Loss/share | -0.04 | -0.19 | 78.0% |
| June 30, 2009 | Dec. 31, 2008 | Change | |
| Balance Sheet | |||
| Investment property | 1,758,445 | 1,805,265 | -2.6% |
| Total assets | 1,872,009 | 1,873,493 | -0.1% |
| Equity | 688,820 | 729,667 | -5.6% |
| NAV/share | 12.30 | 13.03 | -5.6% |
| NNNAV/share | 12.33 | 13.03 | -5.4% |
| G-REIT Key Figures | |||
| G-REIT ratio | 38.2% | 40.3% | -2.1 pp |
| Revenues plus other income from investment | |||
| properties | 100% | 100% | 0.0 pp |
There is no doubt that the situation has improved when compared to the end of last year. The new issuance of Pfandbriefe and a few real estate deals have reached the headlines of the real estate newswire and of magazines. A few people here and there talk about the management of the "exit" strategy when discussing the global financial crisis.
All of the headlines may as well be true, and optimism might as well benefit the overall level of confidence. However, although things are getting better, it is too early to say they are getting good. The Pfandbrief market (a key market for real estate financing) may have picked up (albeit from a difficult situation). However, the spreads paid by banks for refinancing in the Pfandbrief markets are still ten times higher than the level from 18 months ago, and three times higher than the average issue price. Transactions are being carried out, but still at the slowest pace since the real estate crisis of the 1990s.
Source: German Credit Benchmark Model, Barkow Consulting
4
Preface alstria Share Management Report Consolidated Financial Statement Confirmations
Other Information
The sky is clearer than it used to be, but still looks rather cloudy. In the current environment, alstria is sticking to its plans:
We have made these plans the centre of focus since mid-2008 and are now executing them. In the last quarter, we refinanced four assets for a total of EUR 68 m and sold one for around EUR 13 m. In total since mid-2008, we have reduced the balloon payment on our main syndicated loan facility, which is due in November 2011, by 17.4% (or EUR 190 m) from EUR 1.1 bn to around EUR 910 m. In the same period we sold five assets for a total volume of more than EUR 50 m. Two of the asset sales were concluded in 2009 for a total volume of EUR 32.5 m. All of these sales were concluded at a level at or above the latest reported IFRS valuation.
alstria successfully closed two real estate asset sales in the first six months of the year and in one of the most difficult investment market environments. The first asset, located in Hamburg, is a long-term leased asset, while the second, located in Berlin, has a short-term lease profile (less than 4 years). Both assets were in line with the year-end valuation. In this difficult environment, our disposal process is clearly supported by the relatively small size of our assets as well as their overall quality.
We have also finalised the refinancing of four properties. These include one in Hamburg (a refurbishment project that we are conducting), two in Mannheim and one in Wiesbaden. These properties were refinanced on a non-recourse basis with a loan agreement that provides more flexibility in terms of covenants than our overall syndicated loan facility. Although the margin charged by the banks is higher than the one we are charged on the main syndicated loan facility, the overall financial costs have decreased from 4.8% to 4.4% by these two loans, as decreasing interest rates have more than compensated for the higher margin.
alstria has successfully extended a significant portion of the leases due to expire in 2009. We have renewed or replaced nearly 70% or EUR 2.7 m of the EUR 4 m in rents that could be terminated this year. In addition, we are actively working on the remainder as well as the leases expiring in the coming years. In order to increase our flexibility in Hamburg, we have furthermore acquired a vacant building of around 2,150 sqm for a total of approximately EUR 3.5 m (or EUR 1,630/sqm).
Following the sale of fully let assets and the acquisition of a vacant asset, the vacancy rate of the portfolio has increased slightly to around 6.5% of the total area (or around 60,400 sqm). More than 40% of this vacancy (some 26,500 sqm) has been generated by alstria in order to carry out refurbishment measures on the assets. We have made significant progress on our main projects and with the issue of the building permit on one of our projects in Hamburg. We are also seeing positive development on the other projects.
We are confirming the company's full-year guidance from a revenue and FFO perspective, although we would point out that a potential acceleration of our disposal plan could lead to lower FY revenues and FFO as a consequence of a change in the portfolio perimeter.
With kind regards
Olivier Elamine Alexander Dexne Chief Executive Officer Chief Financial Officer
Stock markets continued to be highly volatile in the first six months of the year, and the alstria share has followed the overall trend. The share price increased from EUR 4.95 on December 31, 2008 to EUR 5.60 on June 30, 2009, a gain of 13%. As a consequence of the high market volatility, the share price ranged between EUR 2.88 and EUR 6.89 during the first six months. In the first half of 2009, alstria's share outperformed its key benchmark indices. Within the same period, the SDAX showed an increase of 4%, while the EPRA/EUROPE Index and the EPRA Germany Index fell slightly by 2%.
The company's Annual General Meeting, held on June 10, 2009, resolved to grant a dividend entitlement of EUR 0.52 per share outstanding for the 2008 financial year. This represents a total dividend of EUR 28,423 k, fully covered by the company's recurring cash flow. EPRA GERMANY EPRA EUROPE alstria
alstria was the first German company to give its shareholders the opportunity to swap their dividend rights for shares. For the purpose of this dividend exchange offer, the company provided up to 1,340,134 of its treasury shares. The stock dividend offer was oversubscribed by more than 100%, thus representing broad acceptance by the shareholders and making it a favourable success for the company.
8
alstria manages a portfolio of 89 properties and more than 940,000 sqm. The properties are located all over Germany, mainly in Hamburg, Stuttgart, Berlin, Munich and Dusseldorf area. For a detailed description of the alstria portfolio, please refer to the 2008 annual report.
The first half of the year was characterised by a virtual freeze of real estate transactions in the market. A lack of liquidity rather than the spread between bid and ask represented the main hurdle for the investment market. Despite these prevailing challenges a binding notarised sale and purchase agreement for the disposal of an asset was signed after the balance sheet date in the third quarter of 2009. So far, all assets were sold at a premium to the valuation (as of year-end 2008 and June 30, 2009), therefore sustaining the quality of the portfolio's valuation and its overall value (please refer to "Recent development and outlook" for further details).
In order to meet the needs of the asset management activities of alstria, a binding notarised sale and purchase agreement for the acquisition of a vacant property in Hamburg was signed on June 8, 2009 for a total consideration (all-in cost) of around EUR 3.5 m (or EUR 1,630 per sqm) with the aim of refurbishing and letting it by the end of 2009.
Preface alstria Share Management Report Consolidated Financial Statement Confirmations Other Information Portfolio Overview Earnings Position Financial and Asset Position Risik and Opportunity Report Recent Developments and Outlook
11
Significant progress was made on the redevelopment/refurbishment projects with the issue of a building permit for the refurbishment of the property at Bäckerbreitergang in Hamburg and the start of construction at the Steinstrasse 5-7, Hamburg building (fully pre-let on a 20-year lease basis). All projects are on schedule.
New lease contracts for an area of approx. 2,350 sqm were signed in the first half of 2009. In the first six months of the year a number of lease contracts were prolonged. The leases expiring within the next two years were reduced by 2.1 percentage points to 10.7% (compared to 12.8% as at December 31, 2008).
Revenues increased moderately in the first half of 2009 due to the previous year's acquisitions, and alstria managed to benefit further from the improvement in the administrative efficiency measures implemented in early 2008. Revenues amounted to EUR 51,647 k (previous year's period: EUR 49,632 k) with real estate operating expenses of around 9.3% of revenues at EUR 4,821 k (H1 2008: EUR 4,530 k or 9.1% of revenues). Net rental income increased by EUR 1,886 k to EUR 46,826 k compared to the first half of 2008.
The value of the investment properties was adjusted by EUR 8,215 k in the first six months following a rise in the real estate transfer tax rate in Hamburg (which increased from 3.5% to 4.5%). Another EUR 6,917 k worth of devaluation adjustments relate to expenses for tenant incentives and refurbishment following the significant letting success in the last quarter of 2008 (EUR 6,267 k) and subsequent acquisition costs (EUR 650 k).
Administrative and personnel expenses amounted to EUR 5,356 k for the first six months compared to EUR 6,669 k in the same period of 2008. Accordingly, total recurring operating expenses amounted to 10.4% of all revenues for the first half of 2009 (H1 2008 13.4%). The drop in administrative expenses is a consequence of the efficiency measures implemented by the company in the beginning of 2008.
alstria closed out the first six months of 2009 with a net operating result of EUR 26,636 k, which was significantly influenced by the valuation result (EUR -15,132 k). This compares to a net operating result of EUR 10,719 k in the previous year's period (valuation result H1 2008: EUR -29,816 k). Adjusted for the valuation result, the H1 2009 figures would amount to EUR 41,768 k, which would compare to EUR 40,535 k in H1 2008.
| Funds from operations (FFO) | 16,174 | 20,428 | -4,254 |
|---|---|---|---|
| +/- Non-cash expenses |
593 | 549 | 44 |
| Net loss/gain from fair value adjust +/- ments on investment property |
15,132 | 29,816 | -14,684 |
| Net loss/gain from fair value adjust +/- ments on financial derivatives |
2,735 | 3811 | 2,354 |
| Pre-tax income (EBT) | -2,286 | -10,318 | 8,032 |
| in EUR k | Jan. 01 - Jun. 30, 2009 |
Jan. 01 - Jun. 30, 2008 |
Change |
Fair value loss disregarding realised fair value gains of EUR 2.328 k
1
FFO is not a measure of operating performance or liquidity under generally accepted accounting principles, in particular IFRS, and should not be considered as an alternative to the Company's income or cash-flow measures as determined in accordance with IFRS. Furthermore, no standard definition exists for FFO. Thus, the FFO or measures with similar names as presented by other companies may not necessarily be comparable to the Company's FFO.
Preface alstria Share Management Report Consolidated Financial Statement Confirmations Other Information Portfolio Overview Earnings Position Financial and Asset Position Risik and Opportunity Report Recent Developments and Outlook
Funds from operations (FFO) were EUR 16,174 k in the reporting period compared to EUR 20,428 k in the first half of 2008. As a result, FFO per share amounted to EUR 0.29 in the first half of 2009, which is in line with the full-year guidance (H1 2008: EUR 0.36). The reason for the decline is mainly related to the increase in net financing costs (EUR - 3,204 k) and the drop in other operating income (EUR -1,773 k).
In order to limit the P&L impact from the volatility of interest rate markets, hedge accounting is applied to all hedges that qualify. This allows the loss or gain on the qualifying derivatives to be recognised through the cash flow hedge reserve. For more details please refer to the Notes to the consolidated financial statements as at December 31, 2008.
in EUR k Nominal Jun. 30, 2009 Dec. 31, 2008 Change Swap - 3.6165% 625,000 -29,129 -12,326 -16,803 Swap - 3.9087% 148,785 -8,220 -4,282 -3,938 Swap - 4.9000% 75,000 -7,165 -5,497 -1,668 Swap - 4.1160% 100,000 -7,026 -4,517 -2,509 Swap - 3.1925% 80,880 -2,880 -557 -2,323 Swap - 4.6000%1 95,000 -1,161 -1,447 286 Cap - 4.9000% 75,000 182 176 6 Total 1,104,6652 -55,399 -28,450 -26,949
The following table gives an overview of the composition of the fair values:
1. Not effective before July 10, 2013
2. Nominal excluding the 95,000 k not effective at June 30, 2009
The following table gives a breakdown of changes in alstria's financial derivatives:
| in EUR k | |
|---|---|
| Hedging instruments as at Dec. 31, 2008 | -28,450 |
| Effective change in fair values cash flow hedges | -16,154 |
| Ineffective change in fair values cash flow hedges | -2,770 |
| Fair value changes in financial instruments held for trading (cap) | 35 |
| Changes in accrued interests concerning financial derivatives | -8,060 |
| Hedging instruments as at June 30, 2009 | -55,399 |
A decrease of EUR 16,154 k in the first six months of 2009 represents the effective change in the value of the swaps. This is recorded in equity in the cash flow hedging reserve (H1 2008: increase of EUR 19,893 k). The ineffective impact of changes in the fair value of EUR – 2,735 k is reflected in the income statement. The changes in interest accruals on swaps and caps (EUR -8,060 k) are shown in the financial result. As a result, EUR -10,794 k in changes (H1 2008: increase in value of EUR 2,167 k) are reflected in the income statement.
alstria has a syndicated loan facility worth EUR 1,139 m in place. This was arranged by J.P. Morgan, Natixis and HSH Nordbank. At the moment, EUR 994.0 m of this facility is being utilised (December 31, 2008: EUR 995.4 m) to partially finance the current investment property base. The interest rate on this syndicated loan is based on the three-month EURIBOR floating rate plus a spread of 85 bps. Taking the deduction of transaction costs according to the IFRS effective interest rate method into account, the loan has a carrying value of EUR 988.2 m (December 31, 2008: EUR 992.0 m). The decrease in the carrying value is based on a EUR 1.3 m loan repayment and EUR 3.5 m in additionally accrued transaction costs due to the renegotiation of the loan's financial covenants and margins in the first quarter. The dissolution of accrued transaction costs according to the effective interest method led to an increase in the loan by EUR 1.0 m.
In addition to the loan facility, alstria also has a EUR 95 m, 7-year non-recourse loan with Deutsche Hypothekenbank on the Hamburg properties at Gaensemarkt 36 and Drehbahn 36. The interest rate on this loan is also based on the three-month EURIBOR floating rate plus a spread of 115 bps. Taking into account the deduction of transaction costs according to the IFRS effective interest rate method the loan has a carrying value of EUR 94.8 m. (December 31, 2008: EUR 94.8 m).
The following table shows the LTV on the balance sheet date June 30, 2009:
| Liabilities | Maturity | Loan amount | OMV | LTV |
|---|---|---|---|---|
| in EUR k | in EUR k | in % | ||
| Syndicated loan | Nov. 29, 2011 | 994,033 | 1,675,845 | 59.3% |
| Non-recourse loan | Oct. 19, 2015 | 95,000 | 124,810 | 76.1% |
| Unencumbered | n/a | - | 1,350 | 0.0% |
| Total | 1,089,033 | 1,802,005 | 60.4% |
alstria complied with all financial covenants as at June 30, 2009. Total net financing costs increased by EUR 3,204 k to EUR 26,187 k compared to the first half of 2008. This increase is based on the full accounting of loans taken out in the first quarter 2008, as well as increased interest spreads due to the refinancing and renegotiation of covenants. EUR 516 k relates to additional
Preface alstria Share Management Report Consolidated Financial Statement Confirmations Other Information Portfolio Overview Earnings Position Financial and Asset Position Risik and Opportunity Report Recent Developments and Outlook
capitalised transaction costs for the renegotiation of the terms for the syndicated loan to be allocated under the effective interest method. Another EUR 524 k arose from the resolution of transaction costs originally accrued in relation to the syndicated loan. EUR 814 k of the increase in net financial costs is based on a drop in financial income.
For a breakdown of the financial result, please refer to Chapter 6.3 of the notes to this interim report.
The resulting net loss amounts to EUR 2,286 k for the first half of 2009 (H1 2008: loss of EUR 10,392 k). The lower net loss compared to the same period in 2008 resulted mainly from decreased fair value adjustments to investment property and financial derivatives (H1 2009: EUR 17,867 k vs. H1 2008: EUR 27,870 k).
The loss per share is EUR -0.04 for the first six months of 2009, compared to a loss per share of EUR -0.19 in the same period of 2008.
15
The cash flow from operating activities for the six-month period amounted to EUR 14,789 k. The decline compared to the first half of 2008 (EUR 18.641 k) is mainly based on an increase in working capital.
The cash flow from investing activities mainly applies to a cash inflow resulting from the sale of a property in Hamburg (EUR 19,600 k) and the sale of a KfW bond (EUR 25,033 k). A cash outflow of EUR 8,452 k refers to payments for refurbishment measures, tenant incentives and subsequent acquisition costs.
The cash flow from financing activities reflects the payment of dividends (EUR 15,794 k), additional transaction costs for the restructuring of the loan facility (EUR 3,519 k) and a loan repayment of EUR 1,341 k.
As a result, alstria closed out the first six months of 2009 with a cash position of EUR 61,683 k.
The total investment property value amounts to EUR 1,758,445 k compared with EUR 1,805,265 k at the beginning of the year.
Three investment properties (EUR 38,605 k) have been reclassified as investments held for sale in Q2 2009.
Together with the fair value of the development property, the total fair value of all properties amounts to EUR 1,802,005 k. This figure must be used for the G-REIT equity ratio calculation.
| Investment properties as at 31. Dec. 2008 | 1,805,265 |
|---|---|
| Subsequent acquisition and production costs | 6,917 |
| Reclassification | -38,605 |
| Revaluations | -15,132 |
| Investment properties as at 30. June 2009 | 1,758,445 |
| Fair Value development properties | 4,955 |
| Fair Value properties held for sale | 38,605 |
| Fair Value of immovable assets | 1,802,005 |
The equity position was affected by the devaluation of investment properties and derivatives. The dividend distribution lowered the equity by EUR 28,423 k. The equity and liability side of the balance sheet reflects a total equity position of EUR 688,820 k with an equity ratio of 36.8%. This is 2.1 percentage points below the 38.9% at the end of 2008. The G-REIT equity ratio, which is tested once a year on December 31, and is defined as total equity divided by immovable assets, totals to 38.2%. According to the G-REIT Act, the minimum requirement for
Preface alstria Share Management Report Consolidated Financial Statement Confirmations Other Information Portfolio Overview Earnings Position Financial and Asset Position Risik and Opportunity Report Recent Developments and Outlook
compliance is a G-REIT equity ratio of 45% calculated at the end of the business year. The G-REIT status is unaffected as long as the G-REIT ratio at the end of the business year is not below 45% for three consecutive business years.
The long-term loan position amounts to EUR 1,083,047 k, down from EUR 1,086,801 k. The decrease was the result of a down payment of EUR 1,341 k and a change of EUR 2,413 k in the accrued amount according to the effective interest method. The change in the accrued amount according to the effective interest method mainly relates to the transaction costs paid for the loan restructuring.
Current liabilities amount to EUR 44,297 k. EUR 19,600 k relates to the prepayment received for the sale of a property with a transfer date of July 1, 2009. Dividend liabilities to shareholders account for EUR 7,064 k. The remainder is accrued interest, trade payables and other accruals.
The risks and opportunities to which alstria is exposed are described in detail in the 2008 annual report. In the second quarter of 2009, alstria began intensifying the implementation of major refurbishment projects. There is a greater deal of risk inherent to such projects, for example the risk of missed completion deadlines, budgeting risks and construction risks. Apart from this, no material changes to the status described in the 2008 annual report have occurred.
alstria has successfully completed the first ever German dividend exchange offer. The company gave its shareholders the opportunity to swap their dividend rights for up to 1,340,134 treasury shares. The offer was more than two times oversubscribed. Shares were offered at a price of EUR 4.16 per share. Due to the oversubscription, treasury shares had been allocated on a prorata basis to shareholders opting for the exchange. They received 44.14% of the tendered dividend claims in shares out of alstria's treasury shares. The remaining dividend claims had been paid out in cash. The distribution of the shares and the final payment were carried out on July 6, 2009. As at the balance sheet date, the balance sheet therefore showed EUR 7,064 k in dividend liabilities to shareholders. The EUR 5,565 k that reflects the share dividend entitlements is shown in retained earnings. EUR 15,794 k of the total dividend of EUR 28,423 k had been paid out on June 29, 2009 to shareholders not opting for the share dividend offer.
alstria entered into two new 5-year non-recourse loans as a further step towards decreasing the balloon payment of the syndicated loan facility.
The first loan facility is a EUR 42.7 m, 5.5-year non-recourse loan to repay the syndicated loan facility and refinance the refurbishment of the Hamburg asset at Steinstrasse 5-7, mainly related to the Hamburger Hochbahn AG lease agreement. The interest rate on this loan is based on the three-month EURIBOR floating rate plus a spread of 130 bps.
The second facility is a EUR 33.0 m, 5-year non-recourse loan to refinance three properties in Mannheim and Wiesbaden. The interest rate on this loan is a fixed rate of 4.6%.
Assuming the existing level of the three-month EURIBOR, alstria's overall average cost of debt rate would decrease from 4.8% to 4.4%.
| Total | 1,076,093 | 1,786,190 | 60.2% | 4.4% | |
|---|---|---|---|---|---|
| unencumbered | n/a | n/a | 6,440 | n/a | n/a |
| non-recourse loan #3 | 30.06.2014 | 33,000 | 55,775 | 59.2% | 4.6% |
| non-recourse loan #2 | 31.12.2014 | 37,283 | 55,470 | 67.2% | 2.3% |
| non-recourse loan #1 | 19.10.2015 | 95,000 | 124,810 | 76.1% | 5.5% |
| syndicated loan | 29.11.2011 | 910,810 | 1,543,695 | 59.0% | 4.3% |
| in EUR k | in EUR k | current | in % | ||
| Liabilities | Maturity | Loan amount | OMV | LTV in % | cost of debt1 |
1 Cost of debt calculated on 3-M-EURIBOR as at July 20, 2009
In order to improve its flexibility with respect to asset sales, alstria office REIT-AG agreed with JP Morgan Chase Bank N.A. to terminate EUR 59.0 m of the existing swap of EUR 80.9 m. The transaction became effective on July 20, 2009.
| Liabili ties |
Counterparty | Hedge Arrangements in EUR k |
Covered Rate | Effective Date | Maturity Date | Remaining period in yrs. |
|---|---|---|---|---|---|---|
| Swap | JP Morgan Chase Bank (UK) |
625,000 | 3.6165% | 20.10.2006 | 29.11.2011 | 2.3 |
| Swap | Natixis | 148,785 | 3.9087% | 21.04.2008 | 20.01.2012 | 2.4 |
| Swap | Natixis | 75,000 | 4.9000% | 20.10.2008 | 20.12.2012 | 3.4 |
| Swap | JP Morgan Chase Bank (UK) |
21,880 | 3.1925% | 02.01.2006 | 29.11.2011 | 2.3 |
| Swap | HSH Nordbank AG | 100,000 | 4.1160% | 10.07.2008 | 10.07.2013 | 3.9 |
| Cap | JPMorgan Chase Bank, N.A. |
75,000 | 4.9000% | 21.07.2008 | 20.12.2012 | 3.4 |
| Swap1 | HSH Nordbank AG | 95,000 | 4.6000% | 10.07.2013 | 20.10.2015 | |
| Total | 1,045,6652 | 3.8811%3 | 2.6 |
Not effective before July 10, 2013
Nominal without the 95,000 k not effective at June 30, 2009
3 Covered rate excluding the 95,000 k not effective as at 30 June 2009
Preface alstria Share Management Report Consolidated Financial Statement Confirmations Other Information Portfolio Overview Earnings Position Financial and Asset Position Risik and Opportunity Report Recent Developments and Outlook
alstria entered into a notarised binding sale and purchase agreement on April 29, 2009 for the sale of an office building located in Hamburg for a total consideration of EUR 19.6 m. This reflects a slight premium to the fair value of the asset as at December 31, 2008 and March 31, 2009. The property was transferred to the buyer on July 1, 2009.
Under the purchase agreement effective on June 8, 2009, alstria office REIT-AG, Hamburg, concluded the acquisition of a property in Hamburg with a purchase price of EUR 3,310 k. Possessions, benefits and burdens were transferred on July 31, 2009.
Under the sale agreement dated July 15, 2009, alstria office REIT-AG concluded the sale of a property in Berlin at a total price of EUR 12,950 k. Possessions, benefits and burdens are expected to be transferred in Q3 2009.
alstria has confirmed revenue expectations of around EUR 103 m and FFO of EUR 32 m for the year 2009. However, we would point out that a potential acceleration of the disposal plan could lead to lower financial year revenues and FFO as a consequence of a change in the portfolio perimeter.
The management report contains statements relating to anticipated future developments. These statements are based on current assessments and, by their very nature, are exposed to risks and uncertainty. Actual developments may differ from those predicted in these statements.
for the Period from January 1 to June 30, 2009
| in EUR k | Notes | Apr. 1 - | Apr. 1 - | Jan. 01 - | Jan. 01 - |
|---|---|---|---|---|---|
| Jun. 30, 2009 | Jun. 30, 2008 | Jun. 30, 2009 | Jun. 30, 2008 | ||
| Revenues | 25,990 | 26,084 | 51,647 | 49,632 | |
| Income less expenses from passed on | |||||
| operating expenses | 0 | -5 | 0 | -162 | |
| Real estate operating costs | -2,753 | -3,494 | -4,821 | -4,530 | |
| Net Rental Income | 23,237 | 22,585 | 46,826 | 44,940 | |
| Administrative expenses | -1,071 | -1,738 | -3,033 | -4,042 | |
| Personnel expenses | 6.1 | -1,133 | -1,474 | -2,323 | -2,627 |
| Other operating income | 341 | 915 | 695 | 2,468 | |
| Other operating expenses | -6 | 75 | -397 | -204 | |
| Net loss/gain from fair value adjustments | |||||
| on investment property | 6.2 | -3,149 | -29,249 | -15,132 | -29,816 |
| Net Operating Result | 18,219 | -8,887 | 26,636 | 10,719 | |
| Net financing costs | 6.3 | -13,629 | -11,383 | -26,187 | -22,983 |
| Net loss/gain from fair value adjustments on financial derivatives |
6.3 | -1,399 | 3,628 | -2,735 | 1,946 |
| Pre-Tax Result (EBT) | 3,191 | -16,642 | -2,286 | -10,318 | |
| Income tax income/expense | 6.4 | 0 | 0 | 0 | -75 |
| Consolidated Loss/Profit | |||||
| for the Period | 3,191 | -16,642 | -2,286 | -10,392 | |
| Profit/loss attributable to: | |||||
| Owners of the Company | 3,191 | -16,642 | -2,286 | -10,392 | |
| Earnings per Share for Loss/Profit of the Period in EUR |
|||||
| Basic earnings per share | 0.06 | -0.30 | -0.04 | -0.19 | |
| Diluted earnings per share | 0.06 | -0.30 | -0.04 | -0.19 |
Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Balance Sheet Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement Notes
for the Period from January 1 to June 30, 2009
| in EUR k | Apr. 1 - Jun. 30, 2009 |
Apr. 1 - Jun. 30, 2008 |
Jan. 01 - Jun. 30, 2009 |
Jan. 01 - Jun. 30, 2008 |
|---|---|---|---|---|
| Consolidated Loss/Profit for the Period | 3,191 | -16,642 | -2,286 | -10,392 |
| Fair value gains on available-for-sale financial assets, | ||||
| net of tax | -47 | 0 | 123 | 0 |
| Cash flow hedges, net of tax | 6,722 | 29,490 | -16,154 | 19,893 |
| Other Comprehensive Result for the Period, net | ||||
| of Tax: | 6,675 | 29,490 | -16,031 | 19,893 |
| Total Comprehensive Result for the Period: | 9,866 | 12,848 | -18,317 | 9,501 |
| Total Comprehensive Result Attributable to: | ||||
| Owners of the company | 9,866 | 12,848 | -18,317 | 9,501 |
| Earnings per Share for Total Comprehensive Result in EUR |
||||
| Basic earnings per share | 0.18 | 0.24 | -0.34 | 0.17 |
| Diluted earnings per share | 0.18 | 0.24 | -0.34 | 0.17 |
as of June 30, 2009
| ASSETS | Notes | June 30, 2009 | Dec. 31, 2008 |
|---|---|---|---|
| in EUR k | in EUR k | ||
| Non-Current Assets | |||
| Investment property | 7.1 | 1,758,445 | 1,805,265 |
| Property, plant and equipment | 3,956 | 3,923 | |
| Intangible assets | 327 | 336 | |
| Total Non-Current Assets | 1,762,728 | 1,809,524 | |
| Current Assets | |||
| Investment property held for sale | 38,605 | 0 | |
| Trade receivables | 5,204 | 4,099 | |
| Derivatives | 182 | 176 | |
| Tax receivables | 3 | 1 | |
| Other receivables | 3,604 | 28,267 | |
| Cash and cash equivalents (thereof restricted: EUR 24,052k) | 7.2 | 61,683 | 31,426 |
| Total Current Assets | 109,281 | 63,969 | |
Preface alstria Share Management Report Consolidated Financial Statements
| EQUITY AND LIABILITIES | Notes | Jun. 30, 2009 in EUR k |
Dec. 31, 2008 in EUR k |
|---|---|---|---|
| Equity | 8.1 | ||
| Share capital | 56,000 | 56,000 | |
| Capital surplus | 757,094 | 755,285 | |
| Hedging reserve | -65,733 | -49,579 | |
| Treasury shares | -14,597 | -14,983 | |
| Retained earnings | -43,944 | -17,056 | |
| Total Equity | 688,820 | 729,667 | |
| Non-Current Liabilities | |||
| Long-term loans, net of current portion | 8.2 | 1,083,047 | 1,086,801 |
| Derivatives | 55,581 | 28,626 | |
| Other liabilities | 264 | 70 | |
| Total Non-Current Liabilities | 1,138,892 | 1,115,497 | |
| Current Liabilities | |||
| Short-term loans | 4,927 | 12,609 | |
| Trade payables | 5,753 | 4,561 | |
| Profit participation rights | 207 | 53 | |
| Liabilities of current tax | 9 | 21 | |
| Other current liabilities | 33,401 | 11,085 | |
| Total Current Liabilities | 44,297 | 28,329 | |
| Total Liabilities | 1,183,189 | 1,143,826 | |
| Total Equity and Liabilities | 1,872,009 | 1,873,493 |
from January 1 to June 30, 2009
| in EUR k | Notes | Share capital |
Capital surplus |
Hedging reserve |
Treasury shares |
Retained earnings |
Total Equity |
|---|---|---|---|---|---|---|---|
| As of January 1, 2009 | 56,000 | 755,285 | -49,579 | -14,983 | -17,056 | 729,667 | |
| Changes in first half 2009 | |||||||
| Total comprehensive income | 0 | 123 | -16,154 | 0 | -2,286 | -18,317 | |
| Payment of Dividends | 9 | 0 | 0 | 0 | 0 | -28,423 | -28,423 |
| Intrinsic value of exchange option for treasury shares |
0 | 1,744 | 0 | 0 | -1,744 | 0 | |
| Exchange of cash dividend claims for shares in the company |
9 | 0 | 0 | 0 | 0 | 5,565 | 5,565 |
| Share-based payments | 0 | 191 | 0 | 0 | 0 | 191 | |
| Disposal of treasury shares | 0 | -249 | 0 | 386 | 0 | 137 | |
| As of June 30, 2009 | 8.1 | 56,000 | 757,094 | -65,733 | -14,597 | -43,944 | 688,820 |
Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Balance Sheet Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement Notes
from January 1 to June 30, 2008
| in EUR k | Notes | Share capital |
Capital surplus |
Hedging reserve |
Treasury shares |
Retained earnings |
Total Equity |
|---|---|---|---|---|---|---|---|
| As of January 1, 2008 | 56,000 | 754,647 | 0 | -7,115 | 67,344 | 870,876 | |
| Changes in the first half 2008 | |||||||
| Total comprehensive income | 0 | 0 | 19,893 | 0 | -10,392 | 9,501 | |
| Payment of dividends | 0 | 0 | 0 | 0 | -28,400 | -28,400 | |
| 0 | 436 | 0 | 0 | 0 | 436 | ||
| Share-based payments | |||||||
| Acquisition of treasury shares | 0 | 0 | 0 | -7,868 | 0 | -7,868 | |
| Other contributions to capital surplus |
0 | -8 | 0 | 0 | 0 | -8 |
25
for the period from January 1 to June 30, 2009
| in EUR k | Notes | Jan. 01 - June 30, 2009 |
Jan. 01 - June 30, 2008 |
|---|---|---|---|
| 1. Operating Activities | |||
| Consolidated loss/profit for the year | -2,286 | -10,392 | |
| Unrealized valuation movements | 6.2 | 17,866 | 27,870 |
| Interest income | 6.3 | -526 | -5,325 |
| Interest expense | 6.3 | 26,713 | 27,773 |
| Result from income taxes | 6.4 | 0 | 74 |
| Other non-cash income (-)/expenses (+) | 422 | 429 | |
| Depreciation and impairment of fixed assets | 172 | 254 | |
| Increase (-) in trade receivables and other assets that are not attribut ed to investing or financing activities |
-1,973 | 344 | |
| Decrease (-)/increase (+) in trade payables and other liabilities that are not attributed to investing or financing activities |
-1,391 | 1,967 | |
| Cash generated from operations | 38,996 | 42,994 | |
| Interest received | 526 | 5,325 | |
| Interest paid | -24,733 | -24,614 | |
| Income tax paid | 0 | -5,064 | |
| Cash flows from operating activities | 14,789 | 18,641 | |
| 2. Investing Activities | |||
| Acquisition of investment properties | 6.2 | -8,452 | -222,921 |
| Proceeds from sale of investment properties | 19,600 | ||
| Acquisition of other property, plant and equipment | -196 | -115 | |
| Proceeds from sale of financial assets | 25,033 | ||
| Acquisition of subsidiaries | 0 | -464 | |
| Cash flows used in investing activities | 35,985 | -223,500 |
Preface alstria Share Management Report Consolidated Financial Statements Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Balance Sheet Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement Notes
for the period from January 1 to June 30, 2009
| in EUR k Notes |
Jan. 01 - June 30, 2009 |
Jan. 01 - June 30, 2008 |
|---|---|---|
| 3. Financing Activities | ||
| Repurchase of own shares | 0 | -7,868 |
| Proceeds from the disposal of own shares | 137 | 0 |
| Proceeds from the issue of bonds and borrowings | 0 | 171,453 |
| Payments of dividends 9 |
-15,794 | -28,400 |
| Payment of the redemption of bonds and borrowings | -1,341 | 0 |
| Payment of transaction costs | -3,519 | 0 |
| Cash flows used in financing activities | -20,517 | 135,185 |
| 4. Cash and Cash Equivalents at the End of the Period Change in cash and cash equivalents (subtotal of 1 to 3) |
30,257 | -69,674 |
| Cash and cash equivalents at the beginning of the period | 31,426 | 103,036 |
| Cash and Cash Equivalents at the End of the Period (thereof restricted: EUR 24,052k) 7.2 |
61,683 | 33,362 |
| 5. Composition of Cash and Cash Equivalents | ||
| Cash (thereof restricted: EUR 24,052k) | 61,683 | 33,362 |
| Securities | 0 | 0 |
| Cash and cash equivalents at the end of the period | 61,683 | 33,362 |
27
alstria office REIT-AG, Hamburg, (hereinafter referred to as the "Company" or "alstria office REIT-AG" and together with its subsidiaries the "Group"), is a German stock corporation based in Hamburg. The Group's principal activities are described in detail in section 1 of the notes to the consolidated financial statements for the fiscal year ended December 31, 2008.
The condensed interim consolidated financial statements for the period from January 1, 2009 to June 30, 2009 (hereinafter referred to as the "condensed interim financial statements") were authorized for issue by resolution of the Company's management board on August 10, 2009.
These condensed interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting". They do not contain all the disclosures and explanations required in annual financial statements and should therefore be read in conjunction with the consolidated financial statements as of December 31, 2008.
These condensed interim financial statements have not been audited. They have been reviewed by PricewaterhouseCoopers AG Wirtschaftsprüfungsgesellschaft, Berlin branch.
Except as described below, the accounting policies applied are consistent with those of the Group's annual financial statements for the year ended December 31, 2008, as described in those annual financial statements.
The following new and revised standards are mandatory for the first time for the financial year beginning January 1, 2009:
IAS 1 (revised), 'Presentation of financial statements'. The revised standard prohibits the presentation of items of income and expenses (that is 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement.
Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income).
The group has elected to present two statements: an income statement and a statement of comprehensive income. The interim financial statements have been prepared under the revised disclosure requirements.
IFRS 8, 'Operating segments'. IFRS 8 replaces IAS 14, 'Segment reporting'. It requires a 'management approach' under which segment information is presented on the same basis as that used for internal reporting purposes. Since the type of services offered by alstria exclusively comprises lessor activities for commercial property tenants in Germany, there had been no reportable segments within the meaning of IAS 14. According to IFRS 8 one reporting segment can be identified that comprises the groups' total operations.
This reporting segment is reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the management board.
Preface alstria Share Management Report Consolidated Financial Statements Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Balance Sheet Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement Notes
The following entities have been established within the second quarter of 2009:
Being hundred percent affiliates to alstria office REIT-AG, these companies have been consolidated as part of alstria group. There have been no further changes to the consolidated group since the consolidated financial statements as of December 31, 2008.
The preparation of the consolidated financial statements in accordance with IFRS requires assumptions and estimates to be made for various items which have an effect on the amount and disclosure of the assets and liabilities as well as income and expenses. Actual amounts may differ from these estimates.
The personnel expenses shown in the profit and loss account in the amount of EUR 2,323 k (January 1 - June 30, 2008: EUR 2,627 k) include bonuses in the amount of EUR 644 k (January 1 - June 30, 2008: EUR 452 k). Furthermore, personnel expenses of EUR 82 k (January 1 - June 30, 2008: EUR 415 k) relating to stock options granted to the management are included as well as expenses for share-based compensation resulting from the convertible profit participation rights granted to the employees with an amount of EUR 162 k (January 1 - June 30, 2008: 29 k).
EUR 8,215 k fair value devaluation of investment properties arise from the increased transfer tax in Hamburg in the first quarter. Furthermore, an amount of EUR 6,917 k for capitalised tenant incentives and subsequent acquisition costs was treated as revaluation loss.
The following table shows the breakdown of the financial result:
| in EUR k | Jan. 01 - Jun. 30, 2009 | Jan. 01 - Jun. 30, 2008 |
|---|---|---|
| Syndicated loan - interest and similar costs | -16,443 | -28,215 |
| Interest loan Deutsche Hypo | -1,682 | 0 |
| Interest result derivatives | -7,927 | 4,206 |
| Financial expenses | -26,052 | -24,009 |
| Financial income | 526 | 1,340 |
| Other financial expenses | -661 | -314 |
| Net financing costs | -26,187 | -22,983 |
In consequence of the transformation into a G-REIT, alstria office REIT-AG is exempted from income taxes. For a detailed description of the transformation and tax related implications, please see section 12.10 of the consolidated financial statements as of December 31, 2008.
alstria office REIT-AG uses the fair value model pursuant to IAS 40.33 et seq. for subsequent measurement. External appraisals were obtained for measurement 2008. Management's review of the fair values as of the date of the condensed interim financial statements for June 30, 2009 resulted in the devaluation of investment properties of EUR 8,215 k. This devaluation has already been recognised in the consolidated interim financial statements as of March, 31 2009. For a detailed description of the valuation of assets, please see section 8 of the consolidated financial statements as of December 31, 2008.
Three properties have been categorised as "held for sale" in the consolidated interim financial statements as of June 30, 2009. For further information, please see section 12 of these notes.
At balance sheet date an amount of EUR 24,052 k out of Cash and Cash equivalents (EUR 61,683 k) is restraint on disposal. EUR 19,600 k thereof are dedicated to the repayment on a loan in relation to the disposal of one property. Further EUR 4,452 k are dedicated to the payment of interest. The amount corresponds to the accrued interests on the syndicated loan.
Please refer also to the consolidated statement of Changes in Equity.
In the balance sheet of the condensed interim financial statements as of June 30, 2009, the share capital of alstria office REIT-AG amounted to EUR 56,000 k. Captiva 2 Alstria Holding S.à r.l., Luxembourg, held, directly and indirectly, 61.0% of the shares in the Company, 36.6% of the shares were free float and the remaining 2.4% were treasury shares.
On June 30, 2009 the Company held 1,340,134 non-par value bearer shares of EUR 1 each. alstria office REIT-AG offered its shareholders to pay out these treasury shares instead of a cash dividend. As a result 1,337,760 treasury shares had been issued to the shareholders. Distribution date was on July 7, 2009 after the balance sheet date.
By resolution of the shareholder meeting on June 10, 2009, the authorization of the Company to acquire treasury shares has been renewed. According to the resolution alstria office REIT-AG is authorized to acquire up to 10% of the capital stock until December 9, 2010. For the time being it is not intended to make any use of this authorization.
Preface alstria Share Management Report Consolidated Financial Statements Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Balance Sheet Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement Notes
| in EUR k | June 30, 2009 (unaudited) | Dec. 31, 2008 (audited) |
|---|---|---|
| As of Jan. 1 | -49,579 | 0 |
| Net movement on cash flow hedges | -16,154 | -49,579 |
| As of Jun. 30 / Dec. 31 | -65,733 | -49,579 |
This reserve records the portion of the gain or loss on hedging instruments in cash flow hedge that are determined to be an effective hedge.
As of June 30, 2009, the loans used by alstria office REIT-AG are repayable with EUR 1,089,033 k (December 31, 2008: EUR 1,090,374 k). The lower carrying amount takes into account interest liabilities and transaction costs to be allocated under the effective interest method upon raising the liabilities.
For a detailed description of the loans, loan terms and grant securization, please see section 11.2 of the consolidated financial statements as of December 31, 2008.
The Annual General Meeting of alstria office REIT-AG on June 10, 2009 resolved to distribute a dividend of EUR 28,423 k (EUR 0.52 per share outstanding).
Shareholders had been entitled to exchange their cash dividend for a share dividend. EUR 15,794 k of the dividend have been distributed on June 29, 2009 as cash dividend to those shareholders who did not apply for the share dividend. The share dividends for an amount of EUR 5,565 k together with EUR 7,064 k cash dividend due to the oversubscription of the offer have been distributed on July 6, 2009.
The cash settlement due to the oversubscription distributed on July 6, 2009 (EUR 7,064 k) is shown under "other current liabilities" at balance sheet date. The EUR 5,565 k which reflect the share dividend entitlements are shown under retained earnings at balance sheet date.
During the period from January 1, 2009 to June 30, 2009, on an average thirty-one people (January 1, 2008 to June 30, 2008: on an average twenty-five people) were employed by the Company. The average was calculated by the sixth part of the total of employed people at the end of each month. On June 30, 2009, thirty-one people (December 31, 2008: twenty-nine people) were employed at alstria office REIT-AG, excluding the management board.
In line with the convertible profit participation rights program resolved by the supervisory board on September 5, 2007, 114,000 convertible profit participation certificates ("certificates") had been issued to the employees of alstria office REIT-AG with granting date June 11, 2009. The nominal amount of each certificate is EUR 1.00 and was payable on issuance. The fair values of the inherent options for conversion are estimated using a binary barrier option model based on the black-scholes-assumptions. The model takes into account the terms and conditions upon which the instruments were granted. For a detailed description of the convertible profit participation rights program, please see section 19 of the consolidated financial statements as of December 31, 2008.
The following table lists the inputs to the model used for the determination of the options for conversion granted on June 11, 2009:
| June 30, 2009 (unaudited) | |
|---|---|
| Dividend yield (%) | 8.68 |
| Risk-free interest rate (%) | 1.71 |
| Expected volatility (%) | 73.00 |
| Expected life option (years) | 2.00 |
| Exercise share price (EUR) | 2.00 |
| Labour turnover rate (%) | 10.00 |
| Stock price as of valuation date (EUR) | 5.99 |
The estimated fair value of one option for conversion at the granting date was EUR 4.01.
alstria entered into two new 5 years non-recourse loans as a further step to decrease the balloon payment of the syndicated loan facility.
The first loan facility of EUR 42,670 k is to repay the syndicated loan and to refinance the refurbishment of the Hamburg asset Steinstrasse 5-7, mainly related to the Hamburger Hochbahn AG lease agreement.
The second facility of EUR 33,000 k is used to refinance three properties in Mannheim and Wiesbaden.
With regard to the repayment of the syndicated loan alstria office REIT-AG agreed with JP Morgan Chase Bank N.A. to partially terminate the existing swap of EUR 80.880 k by EUR 59,000 k. The transaction became effective on July 20, 2009.
Under the sales agreement dated April 29, 2009, alstria office REIT-AG concluded the sale of a property in Hamburg with a total sales price value of EUR 19,600 k. The transfer of possession, benefits and burdens took place on July 1, 2009. alstria office REIT-AG received a prepayment (EUR 19,600 k) on June 30, 2009.
Preface alstria Share Management Report Consolidated Financial Statements Confirmations Consolidated Financial StatementOther Information Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Balance Sheet Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement Notes
Under the purchase agreement dated June 8, 2009, alstria office REIT-AG concluded the acquisition of a property located in Hamburg with a purchase price value of EUR 3,310 k. The property has been transferred to alstria office REIT-AG with effect of July 31, 2009.
Under the sales agreement dated July 14, 2009, alstria office REIT-AG concluded the sale of a property in Berlin with a total sales price value of EUR 12,950 k. The transfer of possession, benefits and burdens is expected to take place in Q3 2009.
As of June 30, 2009, the members of the Company's management board are:
| Mr. Olivier Elamine | (CEO) |
|---|---|
| Mr. Alexander Dexne | (CFO) |
Pursuant to the Company's articles of association (Section 9), the supervisory board consists of six members, which are elected by the general meeting of shareholders. The expiration of the term of office is identical for all members, i.e., the close of the annual general meeting of shareholders in the year 2010.
As of June 30, 2009, the members of the supervisory board are:
Mr. Alexander Stuhlmann (Chairman) Mr. John van Oost (Vice-Chairman) Dr. Johannes Conradi Mr. Roger Lee (elected on the Annual General Meeting June 10, 2009) Mr. Richard Mully Mr. Daniel Quai
Hamburg, Germany, August 10, 2009
Olivier Elamine Alexander Dexne
Chief Executive Officer Chief Financial Officer
"We confirm that, to the best of our knowledge, the consolidated financial statements give a true and fair view of the net assets, financial position and results of operations of the Group and the group management report gives a true and fair view of business performance including the results of operations and the situation of the Group, and describes the main opportunities and risks and anticipated development of the Group in accordance with the applicable financial reporting framework."
Hamburg, Germany, August 10, 2009
Olivier Elamine Alexander Dexne Chief Executive Officer Chief Financial Officer
Preface alstria Share Management Report Consolidated Financial Statement Confirmations Other Information
We have reviewed the condensed consolidated interim financial statements - comprising the condensed statement of financial position, condensed statement of comprehensive income, condensed cash flow statement, condensed statement of changes in equity and selected explanatory notes - and the interim group management report of alstria office REIT-AG, Hamburg, for the period from January 1 to June 30, 2009, which are part of the half-year financial report pursuant to § (Article) 37w WpHG ("Wertpapierhandelsgesetz": German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and of the interim group management report in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports is the responsibility of the parent Company's Board of Managing Directors. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim group management report based on our review.
We conducted our review of the condensed consolidated interim financial statements and the interim group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and analytical procedures and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot express an audit opinion.
Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU nor that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports.
Berlin, August 11, 2009
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft
Wirtschaftsprüfer Wirtschaftsprüfer
sgd. Gregory Hartman sgd. ppa. Markus Salzer (German Public Auditor) (German Public Auditor)
| Date | Event |
|---|---|
| Aug 17, 2009 | Roadshow, JPMorgan (London) |
| Sep 03-04, 2009 | EPRA Annual Conference (Brussels) |
| Sep 08-10, 2009 | Roadshow, JPMorgan (USA) |
| Sep 15, 2009 | Roadshow, JPMorgan (Paris) |
| Sep 17, 2009 | Pan European Real Estate Conference (New York) |
| Sep 22-23, 2009 | German Investment Conference (UniCredit) (Munich) |
| Oct 01, 2009 | Pan European Real Estate Conference (London) |
| Oct 05-07, 2009 | EXPO REAL (Munich) |
| Oct 12-13, 2009 | Roadshow, JPMorgan (Benelux) |
| Oct 20, 2009 | Initiative Immobilien Aktie (Frankfurt) |
| Oct 27, 2009 | Roadshow, JPMorgan (Switzerland) |
| Nov 04-06, 2009 | European Conference (Berenberg Bank) (Bagshot, Surrey) |
| Nov 13, 2009 | Publication of Q3 Report |
Bäckerbreitergang 75 20355 Hamburg Tel.:+49 (0) 40 22 63 41 - 300 Fax:+49 (0) 40 22 63 41 - 310 www.alstria.de
Tel.:+49 (0) 40 22 63 41 - 329 Fax:+49 (0) 40 22 63 41 - 310 E-Mail: [email protected] http://investor-relations.alstria.de
alstria office REIT-AG is a member of DIRK (Deutscher Investor Relations Verband, German Investor Relations Association)
This report is also available in German.
Other Reports issued by alstria office REIT-AG are posted on the Company's Homepage.
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