alstria office REIT-AG

Capital/Financing Update • Jul 20, 2010

News Details

Ad-hoc | 20 July 2010 12:23

alstria office REIT-AG: alstria successfully refinanced EUR 646 million

alstria office REIT-AG / Miscellaneous

20.07.2010 12:23

Dissemination 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.

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alstria successfully refinanced EUR 646 million

• alstria replaces syndicated loan and takes advantage of attractive
  market conditions

• New loan of EUR 630 million solely arranged by UniCredit

• Average cost of total debt will remain stable at 4.3%

• Long term leases and secured financing provide stable cashflow for the
  next 5 years

HAMBURG, July 20, 2010 - alstria office REIT-AG, an internally managed Real
Estate Investment Trust (REIT), has successfully refinanced its main
corporate credit facility. A new syndicate consisting of 5 banks has
provided a new corporate loan with total proceeds of EUR 630 million
allowing for the full refinancing of the previous syndicated loan, which
was due to mature at the end of November 2011. The additional EUR 16
million will be paid out of alstria's available cash. This refinancing
allows alstria to significantly improve its overall debt maturity profile
with an average debt maturity that increases from 2.4 years to 5.1 years.
The new loan was solely arranged by UniCredit Bank AG and underwritten by
Berlin-Hannoversche Hypothekenbank AG, Eurohypo Aktiengesellschaft, HSH
Nordbank AG and Natixis.

The new credit agreement has a maturity of five years. The starting margin
on the new loan will be 160 bps and is dependent on the Loan-To-Value-Ratio
(LTV). The current LTV for the new credit agreement is 58.4%.

Margin grid

LTV Spread
65% < LTV ≤ 70% 200 bps per annum
61% < LTV ≤ 65% 175 bps per annum
56% < LTV ≤ 61% 160 bps per annum
51% ≤ LTV ≤ 56% 150 bps per annum
LTV < 51% 135 bps per annum

alstria has taken advantage of the low interest rate environment in order
to restructure its overall interest rate swaps. Under the new structure the
overall financing costs of the company will remain stable at around 4.3%.

In line with its overall hedging strategy around 25% of the new loan amount
has not been hedged and remains floating.

Taking alstria's long term lease profile into account, the new credit
facility significantly improves the visibility of alstria's cashflow for
the next 5 years. With the new syndicated loan in place alstria has no
refinancing needs before mid 2014.

This transaction puts an end to the refinancing exercise that was
undertaken by alstria since September 2008. Following a staggered approach,
alstria has now totally refinanced the EUR 1.1 billion initial corporate
loan which was put in place at the genesis of the company. In the process,
alstria successfully managed its LTV covenants and kept its overall cost of
financing stable.

Including the existing non-recourse loans alstria's total debt amount
currently stands at EUR 856 million - the LTV ratio therefore is 59.9%
(syndicated loan: 58.4%). Taking into account the company's free cash of
EUR 46 million the net LTV currently is around 56.7%.

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. 821,000
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 see:

www.alstria.com
alstria.blogspot.com

Disclaimer:

This release constitutes neither an offer to sell nor a solicitation of an
offer to buy any securities.

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:

Ralf Dibbern
IR | PR
Tel: +49 - 40 - 226 341 329
Email: rdibbern@alstria.de

20.07.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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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: info@alstria.de
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, München, Hamburg, Stuttgart

End of News DGAP News-Service

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