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alstria office REIT-AG
Earnings Release • Nov 5, 2015
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Earnings Release
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Corporate | 5 November 2015 17:35
alstria office REIT-AG: First nine month 2015 | FFO margin improves to 50.7%
DGAP-News: alstria office REIT-AG / Key word(s): Quarter Results
2015-11-05 / 17:35
Press release
First nine month 2015
FFO margin improves to 50.7%
– Revenues at EUR 72.8 m and funds from operations (FFO) at EUR 36.9 m
– Full-year guidance confirmed (including 2 months of Deutsche Office): Revenues EUR 116 m and FFO of EUR 59 m
– Sustainability report 2015 shows strong improvement of non-financial KPI’s
Hamburg, November 5, 2015 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, announces its results for the first nine months of 2015.
Revenues of EUR 72.8 m and FFO of EUR 36.9 m
In the first nine months of 2015 alstria’s revenues amounted to EUR 72.8 m. The decrease by 5.2% compared to the first nine months of 2014 was mainly due to asset sales as well as planned expiries of rental contracts. The funds from operations (FFO) reached EUR 36.9 m in the first nine months of 2015, showing a clear upward tendency in the third quarter as a result of expected lower financing costs. The FFO per share stood at EUR 0.42 (EUR 0.48 in 9M 2014). alstria’s net profit for the first nine months of 2015 amounted to EUR 24.1 m and was impacted by one-off costs related to the takeover of DO Deutsche Office AG and negative valuation movements of financial derivatives.
EPRA NAV per share at EUR 11.19
As at September 30, 2015, alstria’s investment property totalled EUR 1,608 m and was down by 2.3% compared to December 31, 2014. The change on investment property reflects capitalised expenditure (EUR 17.5 m), mainly related to development projects, and the acquisitions of an asset in Düsseldorf (EUR 12.7 m) on the one hand and the disposal of five properties and one plot of land for a total of EUR 68.5 m on the other hand. Within the first nine months of 2015, alstria’s equity increased by 10.1% to EUR 932.3 m, reflecting the capital increase in March 2015, the dividend payment to alstria’s shareholders in the second quarter and the positive net profit contribution of the first nine months of 2015. As at September 30, 2015, alstria’s G-REIT equity ratio amounted to 54.2% and the Company’s net LTV stood at 46.0%.
Operational performance
In the first nine months of the year alstria signed new leases of 28,800 sqm, as well as lease extensions of around 25,000 sqm. The EPRA vacancy rate stood at 10.4%, and was down by 10 bps compared to June 30, 2015.
Full-year guidance 2015 confirmed
‘In the first nine months of 2015 alstria’s operating development was in line with our plans and we can confirm our financial guidance (revenues EUR 116 m, FFO: 59 m), which includes two months of Deutsche Office’ said Olivier Elamine, CEO of alstria. ‘The strong support of shareholders from both sides with respect to the takeover of Deutsche Office is an excellent basis to establish Germany’s leading listed office company. After the implementation of a new corporate governance structure at the DO level and achieving a preliminary BBB-rating by S&P we are now, as planned, focusing on the early refinancing of Deutsche Office’s debt and the consolidation of Deutsche Office.’
Key financials at a glance
| P&L | 9M 2015 | 9M 2014 | Change (%) |
| Revenues (EUR m) | 72.8 | 76.8 | – 5.2 |
| Net result for the period (EUR m) | 24.1 | 18.9 | 27.5 |
| Funds from operations (FFO) (EUR m) | 36.9 | 37.9 | – 2.7 |
| FFO per share 3 (EUR) | 0.42 | 0.48 | – 12.5 |
| Balance sheet | Sep. 30, 2015 | Dec. 31, 2014 | Change (%) |
| Investment properties (EUR m) | 1,608 | 1,646 | -2.3 |
| Cash at hand (EUR m) | 92.3 | 63.1 | 46.3 |
| EPRA NAV per share (EUR) | 11.19 | 11.22 | -0.3 |
| G-REIT equity ratio (%) | 54.2 | 50.2 | 4.0 pp |
| Net LTV ratio (%) | 46.0 | 50.4 | -4.4 pp |
New sustainability report published
Today alstria has published its new Sustainability Report for the year 2015. The report, which is organized and presented based on the GRI G4 reporting framework (‘Core’ option), demonstrates the Company’s high level of commitment to CSR reporting and substantial improvements in the non-financial KPI’s. Furthermore, alstria has achieved the set-up of its energy management system and has achieved an ISO 50001 4 certification for its operational processes.
| Intensity indicators of alstria’s portfolio | 2014 | 2013 | Change (%) |
| GHG emissions (kg CO 2 e/sqm/year) | 61.8 | 64.9 | – 4.8 |
| Energy intensity (kWh/sqm/year) | 143 | 205 | -30.0 |
| Water intensity (cbm/sqm/year) | 0.30 | 0.40 | -23.4 |
| Waste intensity (kg/sqm/year) | 2.50 | 2.18 | 14.6 |
| Ratio of electricity procured from renewable sources | 2014 | 2013 | Change |
| Common areas | 87% | 23% | 64pp |
Invitation to the conference call on November 6, 2015
The alstria management board, CEO Olivier Elamine and CFO Alexander Dexne, will present the results of the first nine months during a conference call at 10.00 am (CET).
Please use one of the following dial-in numbers:
Germany: +49 69 222 22 9043
UK: +44 203 009 2452
PIN: 242 65 914 #
Please note that you can watch the management’s presentation live as a webcast on our website www.alstria.com. As soon as the conference call begins, the presentation will be available for download.
Contact IR/PR:
Ralf Dibbern
Phone: +49 40 226 341329
Email: [email protected]
For further information:
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. The combination of alstria and Deutsche Office creates the leading listed German office real estate company with a combined portfolio of 125 office buildings comprising 1.8 million sqm of lettable space and representing a total portfolio value of approximately EUR 3.4 billion (as of September 30, 2015). 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.
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| Language: | English |
| Company: | alstria office REIT-AG |
| Bäckerbreitergang 75 | |
| 20355 Hamburg | |
| Germany | |
| 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: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Munich, Stuttgart |
| End of News | DGAP News Service |
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| 409549 2015-11-05 |