alstria office REIT-AG

Earnings Release • May 25, 2007

News Details

Corporate | 25 May 2007 08:33

Alstria Office AG: alstria presents Q1 results and starts successfully into financial year 2007

Alstria Office AG / Quarter Results

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.

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alstria presents Q1 results and starts successfully into financial year
2007

• Revenues of Euro 17.3 million and EBITDA of Euro 19.8 million
• Positive outlook for 2007 with planned conversion into a G-REIT
• Expansion of management team with Alexander Dexne as CFO

Hamburg, 25 May 2007 – Alstria Office AG (alstria), a real estate company
solely focused on acquiring, owning and managing office real estate in
Germany, has today presented its first quarterly results.

Olivier Elamine, CEO: 'It is with great pleasure that I present the first
quarterly report of alstria to you today. Our financial results reflect the
exponential development of alstria, which has turned within one year from a
25,000 Euro company to one of the major real estate listed companies in
Germany. We are working in a positive market environment and are confident
about the future development throughout the year'.

Financial figures demonstrate alstria´s successful growth strategy

Having been founded in January 2006, alstria today owns a diversified
portfolio of properties across attractive German office real estate
markets. Its current portfolio comprises 71 properties with an aggregate
lettable space of approximately 774,000 sqm and is valued at Euro 1,601
million. This includes two residential real estate properties for which a
sale and purchase agreement has been executed in order to enable the
company to meet the requirements to convert into a G-REIT. The economic
transfer of these properties to the purchaser is expected to occur in July
2007. As a result of alstria´s exponential growth over the last twelve
months, the Q1 2007 figures cannot be analysed in the light of comparable
data for Q1 2006, as alstria did not carry out any activities over the same
period in 2006.

• Revenues amount to Euro 17.3 million and consist of rental income
received from the property portfolios alstria acquired in 2006.
• The consolidated net profit for the period amounts to Euro 6.3 million.
• EBITDA for the reporting period amounts to Euro 19.8 million.
• Funds From Operations (FFO) amount to Euro 2.9 million. The FFO has been
significantly impacted by non recurrent non cash items amounting to Euro
1.9 million, and is expected to increase significantly in the future.
• Net rental income for the reporting period amounts to Euro 16.56
million.
• Total assets for the reporting period amount to Euro 1.5 billion.

Recent developments

On 1 April 2007, the Aurora portfolio was economically transferred to
alstria. With this step the portfolio was recognized at its fair value in
the accounts of alstria so that the full economic benefit of this portfolio
will now be recognised in alstria´s books.

On 3 April 2007, alstria was listed on the Regulated Market (Prime
Standard) of the Frankfurt Stock Exchange. The offer price was set at EUR
16.00 per share and a total of 25.778 million shares were placed. alstria
received gross proceeds of Euro 256 million from the capital increase of 16
million shares. The free float of the company is approximately 46%.
Following its listing, alstria was included in the EPRA index under the
fast track rule on 4 April 2007.

On 4 May 2007, alstria signed a binding sale and purchase agreement for the
acquisition of an office building located in Munich (total lettable area
approximately 6,800 sqm and approximately 115 car spaces). The deal, which
is not closed yet, procures a three year rental guarantee provided by the
seller securing annual revenues of EUR 900,000 and representing a rent per
sqm of approximately EUR 11 per month. The estimated 'All in Cost' for the
transaction is approximately EUR 11.5 million, reflecting an initial yield
of 7.8%.

Outlook

On 28 March 2007, the extraordinary general meeting of shareholders of the
Company approved the conversion into a G-REIT in 2007 under certain
conditions. One of the first steps taken since then was the disposal of two
residential properties. alstria sees the G-REIT status as an attractive
opportunity. Apart from the corporate and trade tax exemption that the
G-REIT status would provide, this would allow alstria to benefit from the
exit tax provision. If needed for ongoing transactions, alstria will also
consider the application for the Pre-REIT status. This would allow alstria
to propose the exit tax advantage to sellers prior to the conversion. At
this moment in time alstria does not see any major drawbacks, which could
prevent a conversion into a G-REIT.

Olivier Elamine CEO of alstria: 'Germany is the largest and in our view
most dynamic European economy. It has the largest real estate marekt and
within this market office properties are the largest asset class. This is
what alstria is focused on and dedicated to. When looking into the future
we see a world of opportunities lying ahead of us. And with your support we
are willing to seize them'.

We are looking into the future with ambitions and confidence. alstria is a
stable company pursuing a strategy of profitable organic and acquisition
growth through its nationwide coverage and its objective to create new
valuable relationships with German corporates and tenants.

Alexander Dexne to assume office as CFO in June 2007

On 8 May 2007, alstria has announced the appointment of Alexander Dexne as
Chief Financial Officer (CFO) and member of the Management Board. Alexander
Dexne has a wide-ranging experience in Corporate Finance and Capital Market
activities and will assume office beginning of June 2007.

Olivier Elamine, CEO of alstria: 'We are delighted that Alexander Dexne has
decided to join our company as CFO. His broad experience in Corporate
Finance will be of major importance to alstria’s future development.
Furthermore, his record of dealing with the Capital Market will be of great
advantage to our Investor Relations activities'.

Webcast of the Conference Call

Olivier Elmaine, CEO alstria, will present the Company’s Q1 results in the
context of two Conference Calls on 25 May 2007:
• 10 am - Conference Call for analysts
• 12 pm - Conference Call for journalists
Dial-in number for both calls: +49 (0) 69 58 999 0804
The webcast can be accessed at the Company´s website at: www.alstria.com

About alstria

Alstria Office AG (alstria) is a real estate company which is solely
focused on acquiring, owning and managing office real estate in Germany.
alstria was founded in January 2006 and its headquarters are based in
Hamburg.

alstria owns a diversified portfolio of properties across attractive German
office real estate markets. Its current portfolio comprises 71 properties
with an aggregate lettable space of approximately 774,000 sqm and is valued
at Euro 1,601 million. This includes two residential real estate properties
for which a sale and purchase agreement has been executed in order to
enable the company to meet the requirements to convert into a G-REIT. The
economic transfer of these properties to the purchaser is expected to occur
in July 2007.

alstria intends to expand its portfolio significantly in the upcoming years
as part of a sustainable growth strategy 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

Contact:

Press Relations :
Utta Tuttlies
Phone: +49 - 40 - 22 63 41-340
E-Mail: ututtlies@alstria.de

Investor Relations :
Christian Falkowski
Phone : +49 – 40 –22 63 41 345
E-Mail: cfalkowski@alstria.de

Cautionary Note Regarding Forward-Looking Statements

The statements contained herein may include statements of future
expectations and other forward-looking statements that are based on
management's current views and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in such
statements. Actual results, performance or events may differ materially
from those in such statements due to, without limitation, general economic
conditions, including in particular economic conditions in the alstria's
core business and core markets, general competitive factors, the impact of
acquisitions, including related integration issues, and reorganization
measures. Furthermore, the development of financial markets, interest rate
levels, currency exchange rates, as well as national and international
changes in laws and regulations, in particular regarding tax matters, can
have a corresponding impact. Many of these factors may be more likely to
occur, or more pronounced, as a result of terrorist activities and their
consequences.

No duty to update

The company assumes no obligation to update any information contained
herein.

Contact:

Press Relations :
Utta Tuttlies
Phone: +49 - 40 - 22 63 41-340
E-Mail: ututtlies@alstria.de

Investor Relations :
Christian Falkowski
Phone : +49 – 40 –22 63 41 345
E-Mail: cfalkowski@alstria.de

DGAP 25.05.2007

Language: English
Issuer: Alstria Office AG
Fuhlentwiete 12
20355 Hamburg Deutschland
Phone: +49 (0)40 226 341 300
Fax: +49 (0)40 226 341 310
E-mail: info@alstria.de
www: www.alstria.de
ISIN: DE000A0LD2U1
WKN: A0LD2U
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Hamburg, München, Stuttgart

End of News DGAP News-Service

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