Capital/Financing Update • Feb 11, 2009
Capital/Financing Update
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Corporate | 11 February 2009 21:16
alstria office REIT-AG: alstria successfully renegotiated its debt covenants and confirms LTV at year end below 60%
alstria office REIT-AG / Miscellaneous
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.
alstria successfully renegotiated its debt covenants and confirms LTV at
year end below 60%
HAMBURG, February 11, 2009 – 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, has successfully amended its main corporate loan
facility agreement increasing its LTV covenant from 60% to 65% and
decreasing its Interest Cover Ratio covenant from 160% to 130%. The
amendment was supported by more than 87% of the syndicate members
demonstrating the good relationship of alstria with its banks as well as
the confidence its banking partners have in the quality of its assets and
the long-term outlook for its business.
New attractive margin grid
Under the amended terms, a new margin grid was agreed with the banking
syndicate. This new margin grid improves the immediate cash position of the
lenders, but remains favourable to alstria when compared to the current
credit market condition:
LTV – Covenant Spread post amendment Spread prior to amendment
LTV ≤ 60% 85 bps 65 bps
60% < LTV ≤ 62,5% 135 bps Not permitted
62,5% < LTV ≤ 65% 210 bps Not permitted
'We work equally well with our lenders as we do with our tenants,' comments
Alexander Dexne, CFO of alstria. 'We agreed a deal that improves the
position of all the parties involved. Under this transaction, we improve
the situation of our lenders, and narrow the gap between the spread we pay
and the refinancing cost. It also allows us to implement the first step in
our overall deleveraging plan at the cost of a very reasonable increase in
margin if compared to the potential cost of a global refinancing in current
markets which we estimate at around 250 bps. In the current environment a
strong relationship with key clients and banks is essential and alstria´s
long term partnership approach is a clear advantage in that respect.'
The maturity of the syndicated credit agreement remains unaffected by this
amendment and ends on November 29, 2011.
Year end LTV confirmed below 60%
With the adaptation of its covenants alstria reconfirms its previous
guidance and its intention not to exceed the current LTV of 60% in the
future. Year end valuation numbers show a total value for the portfolio of
EUR 1.810 bn. On a like for like basis, this value is down EUR 58 m over
the last quarter of 2008.
In 2008, the total gross write down by alstria on its portfolio in 2008
accounts for more than EUR 145 m, or around 8% of the total value of the
portfolio, which was partially offset by EUR 57 m of value increase through
asset management activities. The write down on the real estate portfolio
for the full year 2008 amounts to EUR 88 m.
Reconciliation of Investment Property movement in the Financial Year 2008
(in EUR m)
Investment properties as at 31 Dec. 2007 1,694
Acquisitions 219
Disposals (17)
Reclassification (3)
Revaluations (88)
thereof down: (145)
thereof up: 57
Investment properties as at 31 Dec. 2008 1,805
Fair Value of Development Properties 5
Total 1,810
The 2008 year end valuation reflects a yield of around 5.9% compared to a
yield of 5.4% over the same period of the previous year. Based on the
valuation at year end, the LTV of alstria under the main syndicated loan
facility agreement comes up at 59.1% from 58%.
'Since the first quarter 2008, alstria has been working on managing its
balance sheet in anticipation of the market development,' says Olivier
Elamine, CEO of alstria. 'A deleveraging process can be highly destructive
of value for shareholders if implemented too quickly or in a disorganized
manner. We have built up in 2008 through selective asset sales and
refinancing the room necessary in order to meet our covenants at year end.
The signing of the loan amendment that we announced today allows us start
2009 with a greater flexibility, taking significant covenant pressure off
the balance sheet. These were essential steps that allow us to be
pro-active in the deleveraging process that alstria intends to implement
prior to our next refinancing obligation at the end of 2011. Combined with
the stability of our cash-flow, as well as the high quality of our assets,
we feel that alstria is well prepared to face what we expect will be a
difficult economic environment in 2009.'
Invitation for the conference call on February 12, 2009
CEO Olivier Elamine and CFO Alexander Dexne will present the results during
a conference call:
Please use the following dial-in numbers:
- Germany: +49 – 69 – 58 999 0805
- UK: +44 – 207 – 153 2027
Please note that you will be able to follow the presentation to be held by
Olivier Elamine and Alexander Dexne live via webcast on our website (under
'Investor-Relations' - 'Presentations and Speeches') at: www.alstria.com.
At the start of the conference call, the presentation will be also
available as a download.
About alstria:
alstria office REIT-AG (alstria) is an internally managed Real Estate
Investment Trust (REIT) solely focused 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
based in Hamburg.
alstria owns a diversified portfolio of properties across attractive German
office real estate markets. Its current portfolio comprises 89 properties
with an aggregate lettable space of approximately 944,000 sqm and is valued
at approximately EUR 1.8 bn.
alstria intends to expand its portfolio significantly in the upcoming years
as part of a sustainable growth strategy. This strategy is based on
selective investments and active asset and portfolio management as well as
on establishing and maintaining good relationships with its key customers
and decision makers.
For further information, please see: www.alstria.com
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 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.
Contact alstria office REIT-AG:
André Bense
IR | PR Manager
Tel: +49 - 40 - 226 341 329
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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