Earnings Release • Nov 19, 2008
Earnings Release
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News Details
Ad-hoc | 19 November 2008 07:15
alstria office REIT-AG: Financial Results for the first nine months of 2008
alstria office REIT-AG / Quarter Results/Dividend
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
Revenues increase by 25% to EUR 75.8m
Funds from operations (FFO) increase by 35% to EUR 29.9m
Sale of non-core asset in Leipzig at a premium of 4% to half year book
value
Full year financial guidance confirmed
Dividend guidance at same level as FY07
Hamburg, November 19, 2008 – alstria office REIT-AG (symbol: AOX, ISIN:
DE000A0LD2U1), an internally managed Real Estate Investment Trust (REIT)
which is solely focused on acquiring, owning and managing office real
estate in Germany, today reports its financial results for the first nine
months of 2008.
Key financials – strong cash generation
In the reporting period, rental revenues increased by 25% from EUR 60.8m to
EUR 75.8m. The corresponding Funds from Operations (FFO) increased from EUR
22.1m to EUR 29.9m. Major contributors behind this growth were acquisitions
made under the REIT regime at the end of 2007 resulting in a larger
portfolio. Strong operating cash flow led to a significant increase in FFO.
Due to a non-cash valuation loss on investment properties of EUR 29.8m in
addition to EUR 1.2m non-cash loss from financial derivatives, alstria
reports a consolidated loss of EUR 5.7m for the first nine months of 2008
(vs. a consolidated gain of EUR 55.5m in 9M 2007).
NNNAV per share decreased from EUR 15.1 in Q2 2008 to EUR 14.8 in Q3 2008
due to a strong decrease in value of the financial derivatives (minus EUR
0.30 per share).
in EUR m 9M 2008 9M 2007 Change
Revenues 75.8 60.8 24.7%
Net profit for the period -5.7 55.5 -110.2%
FFO 29.9 22.1 35.1%
FFO/share (in EUR) 0.53 0.39 35.1%
in EUR m Sep. 30, 2008 Dec. 31, 2007 Change
Investment Properties 1.875.8 1.693.7 10.8%
Development Properties 3.1 0.0 n.a.
Cash at hand 54.6 103.0 -47.0%
NNNAV/share (in EUR) 14.81 15.55 -4.7%
G-REIT Equity Ratio 44.2% 51.4% -7.2 pp
Company LTV Ratio 58.7% 55.2% 3.5 pp
Syndicated Loan LTV-ratio 57.5% 55.2% 2.3 pp
Post closing events underscore the strong business case of alstria
In October 2008, alstria announced the letting of more than 12,000 sqm to
Hamburger Hochbahn AG on a 20 year lease basis. The premises at Steinstraße
5-7, which were vacated earlier this year by BKK Mobil Oil, will undergo
significant reconstruction before being handed over to the new tenant in
April 2010. The building, which is located near the main train station in
an area highly demanded by tenants, is now fully let after only several
months of being vacated. With this new lease signed, the vacancy rate of
alstria’s portfolio stands at 6.5% (down from 7.7%).
Since the beginning of the year, alstria has signed contracts on more than
27,000 sqm of new leases, which represent more than 50% of the total vacant
space available at the beginning of the year.
As part of its long term refinancing plan, alstria has refinanced EUR 95m
of debt, using part of the proceeds from its asset sale to repay the main
syndicated loan facility. Following this EUR 107.5m repayment, the LTV
under the main credit facility fell to 57.5% (vs. covenant of 60%).
Anticipated development and financial goals
alstria’s strong cash flow position as well as the quality of its assets
and clients allow the company to look positively to the FFO generation
expected for the last quarter. Due to its strong operating performance,
alstria is well on track to achieve its financial goals for 2008 which were
based on revenues of EUR 101m and FFO of EUR 40m at the beginning of the
year.
The main uncertainty remaining for real estate companies lies in the
further devaluation of real estate portfolios. Recent sales which alstria
closed this quarter at premium to half year valuations, the refinancing of
two of the company’s assets as well as the high quality of the portfolio
makes the management confident, that alstria – although not immune to – is
well prepared to resist excessive downward pressure.
Review of dividend policy
In light of recent developments in the capital markets, and in order to
retain operational flexibility, alstria has decided not to increase the
dividend for the year 2008. Although the strong operational result of the
company would have allowed to do so, the management feels that it is in the
best interest of the company and its stakeholders, and subject to market
conditions, to maintain FY08 dividend to the level paid last year (i.e. EUR
28.4m).
Information and Explaination of the Issuer to this News:
Disclaimer:
This release constitutes neither an offer to sell nor a solicitation of an
offer to buy any securities. The securities have already been sold.
As far as this 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.
Contact alstria office REIT-AG:
Media: Investor Relations:
Simon Steiner Brigitte Büchner
Phone: +49 - 40 - 226 341 340 Phone: +49 - 40 - 226 341 319
Email: [email protected] Email: [email protected]
Language: English
Issuer: alstria office REIT-AG
Fuhlentwiete 12
20355 Hamburg
Deutschland
Phone: +49 (0)40 226 341 300
Fax: +49 (0)40 226 341 310
E-mail: [email protected]
Internet: 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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