Earnings Release • Mar 4, 2011
Earnings Release
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Corporate | 4 March 2011 07:45
alstria office REIT-AG: Ready to seize opportunities
alstria office REIT-AG / Key word(s): Final Results/Real Estate
04.03.2011 / 07:45
Financial year 2010
Ready to seize opportunities
Hamburg, March 04, 2011 - alstria office REIT-AG (symbol: AOX, ISIN:
DE000A0LD2U1), an internally managed Real Estate Investment Trust (REIT)
focused predominately on acquiring, owning and managing office real estate
in Germany, today announces its result for the financial year 2010.
Revenues of EUR 89.1 million and FFO of EUR 27.5 million in line with full
year guidance
In the 2010 financial year alstria generated revenues of EUR 89.1 million.
The decline of 13.1% year-on-year was mainly attributable to the disposal
of real estate assets. Funds from operations for the same period amounted
to EUR 27.5 million and were slightly higher compared to the 2010 guidance
of EUR 27 million. The 2010 profit and loss account was on the one hand
burdened by a EUR 35.7 million non-cash loss on financial derivatives, on
the other hand alstria benefited from realised capital gains amounting to
EUR 9.3 million in context with the successful disposal of real estate
assets. alstria's net profit for the year 2010 amounted to EUR 0.2 million
(2009: EUR -79.7 million). The substantial improvement of alstria's IFRS
net profit was mainly driven by lower net devaluations on the properties
(EUR 0.7 million in 2010 vs. EUR -86 million in 2009).
Further improvement of balance sheet ratios
Following the refinancing of the syndicated loan in summer 2010, alstria
has no refinancing needs before mid 2014. Its average debt maturity was
extended from 2.6 years at the end of 2009 to 4.6 years at the reporting
date, while its cost of debt remained stable at around 4.3%.
alstria's equity increased by 9.2% to EUR 692.4 million as of year-end
2010, mainly as a result of the successful capital increase in September
2010. alstria's G-REIT equity ratio amounted to 49.8% as per December 31,
2010, the company's net LTV at the reporting date was 50.1%.
Disposals of EUR 166 million of assets at an average premium of 8% above
book value substantiate current portfolio valuation
alstria took advantage of the strong demand for core assets and disposed
real estate assets worth EUR 166 million in 2010 at an average premium of
8% to book value and an average disposal yield of 4.9%.
As of December 31, 2010, alstria's investment property totalled EUR 1.35
billion. The decline by approximately 5% compared to December 31, 2009 is
mainly attributable to the successful asset disposals realised during 2010.
The valuation reflects an overall valuation yield of 6.4%. The overall
valuation loss in the portfolio of EUR 12.8 million was mainly attributable
to assets with short remaining lease maturities. This loss was almost
entirely compensated by the value gain on alstria's main development
projects of EUR 12.1 million.
Successful leasing activities
In 2010 alstria has signed new leases of approximately 20,000 sqm. A major
success was the long-term letting of 6,500 sqm in the famous 'Alte Post'
building to prime national and international tenants. The early lease-up of
45% (4,000 sqm) in alstria's development project Mundsburg Office Tower was
another milestone in the company's leasing activities in 2010. The total
vacancy rate in the portfolio as per year end of 2010 was 7.6% (or 59,300
sqm) and therefore increased by 1.9pp compared to December 31, 2009. The
increase is mainly attributable to a higher strategic vacancy related to
alstria's development projects as well as the disposal of fully let assets.
The strategic vacancy as per year-end 2010 was 26,600 sqm, while
operational vacancy was largely stable at 32,700 sqm. Like-for-like
contractual rental growth on the overall portfolio was 2.3%, reflecting the
strong leasing result of the company during the year.
Back on growth track
Following the 10% capital increase in September 2010 alstria was able to
fully invest the proceeds of EUR 49 million by end of January 2011. The
sale-and-leaseback transaction with Württembergische Lebensversicherungs AG
and the acquisition of three multi-tenant properties in Hamburg allowed
alstria to generate an average gross yield of close to 7% and laid the
foundation for accretive growth of the company's FFO in 2011.
Dividend for 2010
In order to limit the dilution effect of the capital increase on the 2010
dividend, alstria plans to propose at the next AGM that almost 100% of the
2010 FFO is paid out. For the financial year 2010, the management board
plans to propose to the annual general meeting a dividend of EUR 0.44 per
share. The total dividend therefore will amount to EUR 27.1 million and is
fully covered by alstria's Funds from operations.
'In the past two years we have successfully focused on strengthening our
balance sheet and our operational platform. Today we are well positioned,
having no legacy issue and being stronger compared to the pre-crisis
situation' said Olivier Elamine, CEO of alstria. 'The recent acquisitions
proved our ability to identify and execute accretive acquisitions. We
firmly believe that there are attractive market opportunities coming up and
the beneficiaries will be well-capitalized companies with strong
operational focus like alstria'
Outlook
Based on the recent transactions and the contractually agreed rent, alstria
currently expects revenues of EUR 86 million and a Funds from operations
(FFO) of EUR 30 million for the financial year 2011.
Key financials
2010 2009 Variation
Revenues (EUR m) 89.1 102.5 -13.1%
Net profit for the period (EUR m) 0.2 -79.7 n/m
Funds from operations (EUR m) 27.5 32.7 -15.9%
FFO per share (EUR) 0.45 0.58 -23.0%
2010 2009 Variation
Investment properties (EUR m) 1,348 1,425 -5.4%
Cash (EUR m) 120.8 146.8 -17.7%
NNNAV per share (EUR) 11.24 11.32 -0.7%
G-REIT equity ratio (%) 49.8 40.3 9.5pp
Net LTV (%) 50.1 57.3 -7.2pp
Part I of our annual report 2010 - Company report - can be found on our
website www.alstria.com. Part II of our annual report 2010 - Financial
report - will be published on March 30, 2011.
Invitation to analyst- and press conference on March 04, 2011
The alstria Management Board will present the 2010 financial results during
a press conference for analysts and journalists at 10:00 a.m. in Frankfurt.
The conference can be followed via webcast on www.alstria.com
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. alstria office REIT-AG 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. 820,800
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]
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
04.03.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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The issuer is solely responsible for the content of this announcement.
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Language: English
Company: alstria office REIT-AG
Bäckerbreitergang 75
20355 Hamburg
Deutschland
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
114400 04.03.2011
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