Earnings Release • May 11, 2010
Earnings Release
Open in ViewerOpens in native device viewer
News Details
Corporate | 11 May 2010 07:36
alstria office REIT-AG: alstria achieves strong operating result in Q1/2010, balance sheet further strengthened
alstria office REIT-AG / Quarter Results
11.05.2010 07:36
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
Hamburg, May 11, 2010 - alstria office REIT-AG (symbol: AOX, ISIN:
DE000A0LD2U1), an internally managed Real Estate Investment Trust (REIT)
focused solely on acquiring, owning and managing office real estate in
Germany, today announces its financial result for the first quarter of
2010.
Revenues and FFO roughly 10% below Q1 2009 due to disposal of real estate
assets
Revenues decreased by 9.9% year on year to EUR 23.1 million, mainly as a
result of the disposal of real estate assets. The Funds from operations for
the first quarter were EUR 7.3 million (vs. EUR 8.0 million in Q1/2009).
alstria's operating margin remained stable at 31.4%. The lower revenue base
was compensated mainly by lower property operating costs and interest
expenses as a result of a further reduction of the syndicated loan.
As of March 31, 2010, alstria's investment property totalled EUR 1.4
billion. Following the execution of the asset sales and joint venture
agreement announced previously, two more buildings located in Hamburg were
sold and one property was transferred into a Joint Venture for
repositioning. In this context alstria was able to generate a book gain of
EUR 6.7 million. On the other hand the devaluation of interest derivatives
caused a negative impact of EUR 5.4 million. In the first quarter 2010 the
consolidated net profit amounted to EUR 8.4 million, which compares with a
loss of EUR 5.5 million in the first quarter 2009.
Key financials at a glance
Syndicated loan further reduced from EUR 1,103 million to EUR 646 million
alstria continued to reduce its syndicated loan to currently EUR 646
million. The decrease of the balloon of the syndicated loan was mainly
driven by a new non recourse refinancing (EUR 76 million), as well as
additional down payment following the execution of the asset sales. The LTV
on its main syndicated loan facility remained below 60%.
Following the disposal of properties alstria's free cash increased to EUR
74 million. This substantially increases the flexibility of alstria, which
can deploy this capital in order to execute the refinancing of the
remainder balloon on the syndicated loan, to invest in its own portfolio,
or to acquire assets on the market.
REIT-equity ratio at 44.1%
In Q1 alstria continued its step-by-step approach to further strengthen its
balance sheet. Equity increased to EUR 642.7 million as a result of the
positive net result in the first quarter. Following the planned disposal of
real estate assets the G-REIT equity ratio is back at 44.1% (40.3% as per
December 31, 2009), only a breath away from the required 45%.
Strong asset management results
alstria was able to lease up more than 5,800 sqm of space, including the
successful lease up in the Alte Post redevelopment project in Hamburg,
which is now 62% let, after less than 6 month of marketing. This represents
around 10% of the total vacancy that was in the portfolio at year end 2009.
Outlook
Following Q1/2010, alstria confirms its forecast for the 2010 financial
year: annual revenues of EUR 89 million and EUR 27 million in FFO. 'Our
main focus is to refinance the remaining EUR 646 million of the syndicated
loan, regardless of the fact that this facility will only mature in
November 2011. Through our step by step approach, we have been able to free
up a significant amount of cash, that allows us to seize opportunities
within the market and within our portfolio if and as they appear'.
Invitation to the conference call on May 11, 2010
The alstria management board will present the Q1 results during a
conference call: 10.00 am (CET) - conference call for analysts and
journalists
Please use the following dial-in numbers:
Germany: +49 (0) 6103 485 3002
UK: +44 (0) 207 153 2027
Please note that you can watch Olivier Elamine and Alexander Dexne's
presentation live as a webcast on our website (under 'Investor Relations'
-'Presentations and Speeches') at: www.alstria.com. As soon as the
conference call begins, the presentation (and the Q1 report under
'Financial Publications') will be also available as a download.
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.
Disclaimer:
This release constitutes neither an offer to sell nor a solicitation of an
offer to buy any shares. 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.
For further information, please contact:
Ralf Dibbern, IR/PR
Phone: +49 (0) 40 / 226 341-329
Email: [email protected]
11.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English
Company: alstria office REIT-AG
Bäckerbreitergang 75
20355 Hamburg
Deutschland
Phone: 040-226 341 300
Fax: 040-226 341 310
E-mail: [email protected]
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
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.