Earnings Release • Nov 5, 2013
Earnings Release
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Corporate | 5 November 2013 07:24
alstria office REIT-AG: Q1-Q3 2013 Strong operating business drives revenues and FFO
alstria office REIT-AG / Key word(s): Quarter Results
05.11.2013 / 07:24
Press release
Q1-Q3 2013
Strong operating business drives revenues and FFO
– Revenues at EUR 78.1 m (+4.0%) and FFO at EUR 34.4 m (+7.5%)
– EPRA vacancy rate drops by 90 bps to 7.1%
– Financial guidance 2013 confirmed
– Publication of Sustainability Report 2013
Hamburg, November 5, 2013 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, announces its result for the first nine months of 2013.
Revenues of EUR 78.1 m and FFO of EUR 34.4 m
In the first nine months of 2013, alstria’s revenues increased by 4.0% year-on-year to EUR 78.1 m, mainly as a result of the acquisition of real estate assets. The funds from operations (FFO) improved by 7.5% to EUR 34.4 m in the first nine months of 2013, driving the FFO margin by 1.4 percentage points to 44.0%. This development was positively impacted by an increased revenue base and lower real estate operating expenses. On the other hand the early refinancing of alstria’s syndicated loan caused a one-off burden of EUR 2.7 m, which was also recognised in the operating result. alstria’s FFO per share increased by 7.5% to EUR 0.44 (Q1-Q3 2012: EUR 0.41) and continued its steady upward trend. The net profit for the first nine months of 2013 amounted to EUR 24.1 m and was negatively impacted by a non-cash valuation result from financial derivatives.
Successful refinancing strengthens alstria’s balance sheet
As of September 30, 2013, alstria’s investment property totalled EUR 1.6 bn and was largely stable compared to December 31, 2012. The proceeds from the disposal of smaller assets mainly located in Eastern Germany were immediately reinvested in alstria’s core areas of Düsseldorf and Stuttgart. As of September 30, 2013 alstria’s equity amounted to EUR 827.3 m and was almost unchanged compared to December 31, 2012. The ERPA NNNAV per share therefore amounted to EUR 10.46 as of end of September 2013. The G-REIT equity ratio stood at 49.6%, the Company’s net LTV at the reporting date was 51.2%. The successful refinancing in the first nine months of 2013, comprising the issuance of a convertible bond in the amount of EUR 79.4 m and the refinancing of the syndicated loan amounting to EUR 544 m massively strengthened alstria’s balance sheet. The average debt maturity more than doubled to 5.5 years and thus secures the current favourable financing conditions.
Leasing success all across the portfolio
Since the beginning of the year, alstria has signed new leases for a total lettable area of 25,200 sqm and extended 14,700 sqm of expiring leases. The EPRA vacancy rate stood at 7.1% and was down by 90 bps compared to December 31, 2012. alstria was able to sign major new leases in Hamburg, Düsseldorf, Hanover, Stuttgart and Frankfurt.
Disposal of an asset in Norderstedt
On October 31, 2013 alstria signed a binding a notarised agreement on the sale of an asset in Norderstedt. The building was acquired in 2012 for a total consideration of EUR 5.5 m. After investing EUR 0.9 m and substantially reducing the vacancy the assets was sold for EUR 10.3 m, generating an IRR of 36% for alstria. The transfer on benefits and burden is expected for the end of 2013.
‘In the first nine months of 2013 we have made significant progress in terms of leasing and streamlining our portfolio,’ said Olivier Elamine, CEO of alstria. ‘On top of that the early and successful refinancing of two thirds of our corporate debt massively improved our balance sheet quality. The combination of our secured funding base with our long-term leases creates one of the most attractive and reliable cash flow profiles in the European real estate sector.’
Outlook
alstria confirms its forecast for the 2013 financial year with annual revenues of EUR 103 m and EUR 45 m in FFO.
New sustainability report published
Today alstria has published its new Sustainability Report for the year 2013. The report, which has a GRI self-declared B application level, demonstrates the high level in terms of sustainability reporting by the Company.
Key financials at a glance
| Q1-Q3 2013 | Q1-Q3 2012 | Change | |
| Revenues (EUR m) | 78.1 | 75.1 | 4.0 % |
| Net result for the period (EUR m) | 24.1 | 32.5 | -25.9 % |
| Funds from operations (FFO) (EUR m) | 34.4 | 32.0 | 7.5 % |
| FFO per share (EUR) | 0.44 | 0.41 | 7.5 % |
| Sep. 30, 2013 | Dec. 31, 2012 | Change | |
| Investment properties (EUR m) | 1,636 | 1,623 | 0.8 % |
| Cash at hand (EUR m) | 69.1 | 118.5 | -41.7 % |
| EPRA NNNAV per share (EUR) | 10.46 | 10.50 | -0.4 % |
| G-REIT equity ratio (%) | 49.6 | 50.0 | -0.4 pp |
| Net LTV (%) | 51.2 | 47.8 | 3.4 pp |
Invitation to the conference call on November 05, 2013
The alstria Management Board will present the results of the first nine months 2013 during a conference call at 10.00 am (CET).
Please use the following dial-in numbers:
Germany: +49 6103 485 3001
UK: + 44-207-153-2027
Please note that you can watch the management’s presentation live as a webcast on our website www.alstria.com. As soon as the conference call begins, the presentation and the interim report, as well as the Sustainability Report, will be available for download.
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 September 30, 2013 the portfolio comprises 79 properties with an aggregate lettable space of 911,800 sqm and is 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: [email protected]
More information on:
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.
End of Corporate News
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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: | [email protected] |
| 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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| 237787 05.11.2013 |
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