Earnings Release • May 20, 2008
Earnings Release
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Corporate | 20 May 2008 08:07
alstria office REIT-AG: Q1 2008 Financial Results and updated Outlook 2008
alstria office REIT-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.
Q1 2008 Financial Results and updated Outlook 2008
Hamburg, May 20, 2008 – alstria office REIT-AG (symbol: AOX, ISIN:
DE000AOSDZU1) 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 first quarter financial results for
2008 and the adjusted outlook for the fiscal year.
Key financials
In the first quarter of 2008 rental revenues increased by 36% from EUR 17.3
m to EUR 23.5 m. The corresponding net profit is EUR 6.2 m after EUR 6.3 m
in previous year’s period. However, whereas Q1 2007 incorporated a non cash
item of EUR 5.6 m linked to revaluation gains of both derivatives and
investment properties, the net profit of the first three months 2008 is
purely driven by the operational performance. The positive development of
the operational result is clearly reflected by the increase of the funds
from operations (FFO) which more than tripled from EUR 2.9 m in Q1 last
year to EUR 9.0 m in Q1 2008.
Improved transparency and comparability
In the second year of reporting as a publicly listed company, alstria is
looking to improve the comparability of its published numbers with other
leading European companies. It is also our aim to improve transparency by
publishing market accepted benchmark numbers, characterizing the
performance of our real estate operation:
As a result, alstria adopted hedge accounting according to IAS 39 for its
financial derivatives from 2008 on. Accordingly, valuation changes of the
effective part of our interest rate hedges will directly affect our equity
position without showing an effect on the income statement. Furthermore,
alstria will also start to regularly disclose its triple net asset value
according to the EPRA (European Public Real Estate Association) definition.
The EPRA NNNAV is adjusted for changes in derivative valuations, deferred
taxes and changes in the fair value of debt. Therefore it presents a better
proxy for the performance of the real estate assets than the IFRS NAV. In
the first quarter of 2008 the NNNAV for alstria moved to EUR 15.62 per
share after EUR 15.41 as of end 2007.
in EUR m Q1 2008 Q1 2007 Change
Revenues 23.5 17.3 36%
Net Profit 6.2 6.3 -2%
FFO 9.0 2.9 205%
FFO/share (in EUR) 0.16 0.05 205%
in EUR m Q1 2008 Year end 2008 Change
Investment Properties 1,901.6 1,693.7 12%
NAV/share (in EUR) 15.39 15.55 -1%
EPRA NNNAV/share (in EUR) 15.62 15.41 1%
Strong asset management result and small acquisition in Hamburg
Since the beginning of the year 2008, alstria’s asset management team has
leased more than 6,000 sqm of new space(1)(for comparison: 7,000 sqm total
lease-up in 2007), allowing the vacancy rate to remain stable at 6.5% of
the total portfolio. alstria also seized the opportunity to acquire a
vacant office building located in Hamburg for an AIC of approximately EUR
4.6 m which will increase the growth opportunities within the portfolio.
Outlook 2008
The acquisitions of the Bilfinger Berger, the HUK Coburg and the Deutsche
Rentenversicherung assets that we announced in Q4 2007 closed earlier than
we originally expected, bringing our total portfolio value at the 31st of
March 2008 to EUR 1,902 m. Hence, we increase our revenue expectations for
2008 from previously EUR 95 m to EUR 101 m. With funds from operations of
EUR 9.0 m in the first quarter we are well on track to achieve our annual
target. Accordingly, we take this opportunity to confirm our FFO guidance
of EUR 40 m for the full year and our intended pay out ratio of 90% of that
FFO.
Olivier Elamine alstria´s CEO comments: 'We have manoeuvred alstria
securely through the first quarter. The strong and stable cash flow of the
company allows us to stay on our successful track. We are very satisfied
with the great result of our asset management team on the lease-up side and
the progress we are making in the negotiation with a number of core
tenants'. With a view to the investment market, he added. 'The first
Quarter of 2008, with more than EUR 7.8 billion of real estate
transactions, proved to be very active from an investment market stand
point. Although the records of early 2007 have not been reached, the
investment markets still show liquidity at a level comparable with one of
2006 and significantly higher than 2005.'
(1) New leases signed on previously vacant space. No lease renewal taken
into consideration
About alstria:
alstria office REIT-AG 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 office REIT-AG owns a diversified portfolio of properties across
attractive German office real estate markets. Its current portfolio
comprises 91 properties with an aggregate lettable space of approximately
950,000 sqm and is valued at approximately EUR 1.9 billion.
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.
Media:
Simon Steiner
Phone: +49 - 40 - 226 341 340
Email: [email protected]
Investor Relations:
Brigitte Büchner
Phone: +49 - 40 - 226 341 319
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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