Earnings Release • Aug 8, 2011
Earnings Release
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Corporate | 8 August 2011 07:32
alstria office REIT-AG: FFO continues to grow
alstria office REIT-AG / Key word(s): Half Year Results
08.08.2011 / 07:32
Press release
First Half 2011
FFO continues to grow
– Revenues at EUR 43.7 million and Funds from operations at EUR 16.6 million
– EPRA-NAV per share at EUR 11.10
– Strong underlying operating performance
Hamburg, August 8, 2011 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), an internally managed Real Estate Investment Trust (REIT) focused solely on acquiring, owning and managing office real estate in Germany, releases its financial result for the first six months of 2011.
Revenues of EUR 43.7 million and FFO of EUR 16.6 million in line with guidance
In the first six months of 2011 alstria's revenues decreased by 3.3% year-on-year to EUR 43.7 million, mainly as a result of the disposal of real estate assets in 2010. Despite declining revenues Funds from operations improved by 5.5% to EUR 16.6 million in the first six months of 2011, reflecting the improved capital structure of the Company and the recent acquisitions closed in spring 2011. alstria's net result for the first six months of 2011 amounted to EUR 18.8 million and was up by 62.1% compared to the first half of 2010. While the net result is mainly driven by successful underlying operations, it also benefited from positive non-cash valuation gains of interest derivatives amounting to EUR 2.4 million.
Strong balance sheet
As of June 30, 2011, alstria's investment property totalled EUR 1.4 billion and grew by 5.7% compared to year-end of 2010. The increase reflects the inclusion of the asset in Karlsruhe and three assets in Hamburg, acquired in November 2010 and January/February 2011 respectively. The recently acquired assets in Dusseldorf, Frankfurt and Stuttgart are expected to be consolidated towards the end of the third/beginning of the fourth quarter 2011. As of June 30, 2011, alstria's equity amounted to EUR 778.9 million. The decrease of EUR 29.8 million compared to the end of Q1 2011 is mainly resulting from the dividend of EUR 31.5 million that was paid out to shareholders on June 9, 2011. alstria's G-REIT equity ratio amounted to 53.2% as per end of June 2011, the company's net LTV at the reporting date was 47.3%.
Successful leasing activities
In the first six months of the year the Company has signed new leases of 15,000 sqm, or around 25% of the vacancy of the portfolio at the beginning of the year. The highlight in this respect was the early lease-up of the asset in the 'Mertonviertel' in Frankfurt. The total physical vacancy rate in the portfolio as of June 30, 2011 stood at 7.7% or 62,500 sqm. The EPRA vacancy rate (excluding intended vacancy related to development projects) amounted to 5.1% or 38,200 sqm as of June 30, 2011 and was unchanged compared to December 31, 2010.
'The first half of 2011 has seen a very strong asset management result for a year which is on track to bring us the strongest leasing result in the history of the Company', said Olivier Elamine, CEO of alstria. 'In parallel, we have been able to source and acquire attractive properties in the German real estate office markets, as prices have come to a level where we see value potential again'.
Outlook
alstria confirms its forecast for the 2011 financial year, which disregards the recent acquisitions: annual revenues of EUR 87 million and EUR 32 million in FFO. The Company will update its revenue and FFO forecast once it has a better visibility on the closing date of the VastNed transaction.
Key financials at a glance
| H1 2011 | H1 2010 | Change in % | ||
| Revenues (EUR m) | 43,7 | 45,2 | -3,3% | |
| Net profit for the period (EUR m) | 18,8 | 11,6 | 62,1% | |
| Funds From Operations (EUR m) | 16,6 | 15,7 | 5,5% | |
| FFO per share (EUR) 2 | 0,23 | 0,28 | -17,9% | |
| 30.6.11 | 31.12.10 | Change in % | ||
| Investment properties (EUR m) | 1.425 | 1.348 | 5,7% | |
| Cash (EUR m) | 130 | 121 | 8,0% | |
| EPRA-NAV per share (EUR) 3 | 11,10 | 11,68 | -5,0% | |
| G-REIT equity ratio (%) | 53,2 | 49,8 | 3.4 pp | |
| Net LTV (%) | 47,3 | 50,1 | -2.8 pp | |
| 2 H1 2011 based on 71.7 million shares and H1 2010 based on 56.0 million shares | ||||
| 3 Figures as per June 30, 2011 based on 71.7 million shares, as per Dec 31, 2010 based on 61.6 million shares |
Invitation to the conference call on August 8, 2011
The alstria management board, CEO Olivier Elamine and Alexander Dexne, will present the H1 results during a conference call at 10.00 am (CET) – conference call for analysts and journalists.
Please use the following dial-in numbers:
Germany: + 49 (0) 6103 485 3001
UK: + 44 – 207 – 153 2027
Please note that you can watch the presentation of Olivier Elamine and Alexander Dexne live as a webcast on our website www.alstria.com. As soon as the conference call begins, the presentation and the H1 report will be also available to 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. Its current portfolio comprises 74 properties with an aggregate lettable space of approx. 814,000 sqm and is valued at approximately EUR 1.4 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 |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, München, Stuttgart |
| End of News | DGAP News-Service |
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| 134702 08.08.2011 |
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