DGAP-News: alstria office REIT-AG: Strong operations, 5% devaluation of portfolio
(firmenpresse) - alstria office REIT-AG / Preliminary Results
04.03.2010 07:17
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* Revenues and FFO in line with company guidance
* Syndicated loan amount reduced by 35% to EUR 651 million
* Additional sale of portfolio worth EUR 84.2 million at 11% premium
* G-REIT equity ratio significantly improved in Q1 2010
* Dividend of EUR 0.50 per share to be proposed to AGM
Hamburg, March 4, 2010 - alstria office REIT-AG, an internally managed Real
Estate Investment Trust (REIT), successfully managed to strengthen the
balance sheet and to keep revenues and funds from operations (FFO) in line
with the guidance in 2009. By selectively refinancing and selling assets
the company kept the Loan-to-Value Ratio (LTV) of the syndicated loan close
but below 60%, while reducing the balloon payment from EUR 1.1 billion to
EUR 651 million.
'Through our strong focus on operations, selective sales and refinancing
alstria was able to successfully navigate through a very challenging
environment in 2009,' comments Olivier Elamine, Chief Executive Officer of
alstria. 'We have today one of the strongest balance sheets in the German
real estate industry, with more than EUR 50 million of free cash that we
could deploy rapidly if we would identify attractive opportunities in the
market,' adds Alexander Dexne, Chief Financial Officer of alstria.
Revenue development, funds from operations and net income
Revenues and funds from operations (FFO) in the 2009 financial year were in
line with the company's full year guidance: Revenues amounted to EUR 102.5
million (2008: EUR 102.1 million). Net rental income in 2009 totalled about
EUR 92 million (2008: EUR 93.2 million). As expected the FFO which came in
at EUR 32.7 million (2008: EUR 39.4 million) was impacted by higher
financial costs, as well as an acceleration in asset management activities.
The consolidated loss amounted to EUR 79.7 million (2008: consolidated loss
of EUR 56 million), or EUR 1.44 per share. This loss is attributable
primarily to a non-cash devaluation of the real estate portfolio (EUR 86
million), as well as devaluation and termination of interest rate hedges
(EUR 23 million).
Financial and asset position
At year-end 2009, alstria's portfolio was valued at EUR 1.6 billion, which
reflects a valuation yield of 6.2% (5.9% in 2008). Net asset value (NAV)
decreased year on year by approx. 13.1% to EUR 634 million. This decrease
was mainly driven by the non-cash devaluation of investment properties and
the impact of the mark-to-market of hedge instruments. The NAV per share
stood at EUR 11.32 down from EUR 13.03 in 2008.
alstria was in line with all its debt covenants at year-end with an LTV on
its main credit facility at 59.8% versus a covenant at 65%.
Dividend for 2009
For the financial year 2009, the management board will propose to the
Annual General Meeting a dividend of EUR 0.50 per share.
Operational achievements
In one of the most challenging investment markets on record, alstria was
able to dispose EUR 141 million of assets in line with the 2008 year end
valuation. Despite this strong disposal track record, and evidence of the
high quality of alstria's portfolio, alstria had to book a non-cash
portfolio valuation loss of EUR 86 million. This devaluation was mainly
driven by writedown on assets which are larger than EUR 50 million, and/or
with lease maturities which are shorter than 10 years. 19 assets
representing 25% of the portfolio in terms of asset numbers have caused
more than 80% of the total devaluation.
alstria's strong focus on asset management allowed the company to make
significant progress on its refurbishment projects. The building permit on
the landmark Alte Post building in Hamburg was obtained allowing the
leasing process to start, and the vacant building acquired in Hamburg in
mid-2009 has been fully refurbished and let on a long-term lease basis.
Although alstria has only disposed fully let buildings the vacancy rate
remains stable at around 5.7%. The 2009 like-for-like rental growth on the
investment portfolio of alstria was at 1.4% for the year.
Post closing events: New portfolio sale and refinancing
alstria signed a binding agreement for the sale of a real estate portfolio
located in Hamburg for a total consideration of EUR 84.2 million. The
agreed purchase price values the portfolio at a premium of 11% and 4% above
2009 and 2008 book values respectively. The portfolio represents a gross
rental income of EUR 3.86 million per year secured for 15 years.
Following the signature of the new joint venture that was announced on
February 22, alstria repaid EUR 28 million on its main syndicated loan
facility. Also, alstria entered into a new non-recourse credit facility of
EUR 76 million and a 7-years maturity to refinance four properties in
Hamburg, Essen and Leipzig with an average lease term of 8 years. The
interest rate on this loan is fixed until maturity at 4.62%. After this
refinancing and the above mentioned disposals, the remaining main
syndicated loan facility exposure is EUR 651 million with an average cost
of debt for alstria at 4.3%.
G-REIT equity ratio significantly improved
The G-REIT equity ratio for FY2009 remained at 40.3% unchanged from FY2008
despite the net loss, and below the 45% requirement of the REIT law.
However, this does not challenge the tax free status of alstria, as the
REIT law provides for a 3-year cure period (i.e. December 31, 2010). Taking
into consideration the closing of the transactions in the first months of
2010 the G-REIT equity ratio is expected to significantly increase from
40.3% to more than 43%.
Outlook
On the basis of the most recent transactions and the rent that has already
been contractually agreed, alstria expects revenues of EUR 89 million and
an operational result (FFO) of EUR 27 million in the financial year 2010.
Full financial figures and annual report of the company will be published
on March 31, 2010.
Tables
Key financials FY09
2009 2008 Change in %
Revenues (EUR m) 102.5 102.1 0.4%
Net income (EUR m) -79.7 -56.0 -42.3%
Funds from operations (FFO) (EUR m) 32.7 39.4 -17.0%
FFO per share (EUR) 0.58 0.70 -17.0%
Investment property (EUR m) 1,566.3 1,805.2 -13.2%
Net asset value (NAV) (EUR m) 634.2 729.7 -13.1%
NAV per share (EUR) 11.32 13.03 -13.1%
alstria's portfolio
Metrics Post closing (estimate) FY2009 FY2008
Number of properties 74 77 89
Number of joint ventures (off balance) 2 1 0
Market value (EUR bn) 1.4 1.6 1.8
Contractual rent (EUR m) 90.8 97.5 106.5
Valuation yield 6.4% 6.2% 5.9%
Approx. lettable area (sqm) 821,000 867,000 944,000
Vacancy (% of lettable area) 6.0% 5.7% 5.9%
Average lease length (years) 9.4 9.6 10.0
Average value per sqm (EUR) 1,743 1,845 1,918
Average rent per sqm (EUR per month) 9.81 9.93 9.41
G-REIT equity ratio>43% 40.3% 40.3%
Exposure syndicated loan (EUR m) 651 843 995
About alstria:
alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) 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.
It is based in Hamburg.
alstria owns a diversified portfolio of properties across attractive German
office real estate markets. Its currentportfolio comprises 74 properties
with an aggregate lettable space of approximately 821,000 sqm and is valued
at approximately EUR 1.4 billion.
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.
Media:
Janina Wismar
Phone: +49 - 40 - 226 341 340
Email: pr(at)alstria.de
Investor Relations:
Brigitte Büchner
Phone: +49 - 40 - 226 341 329
Email: ir(at)alstria.de
04.03.2010 07:17 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.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: info(at)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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Datum: 04.03.2010 - 07:17 Uhr
Sprache: Deutsch
News-ID 17143
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