DGAP-News: alstria office REIT-AG: Significant progress on G-REIT equity ratio
(firmenpresse) - alstria office REIT-AG / Half Year Results
11.08.2010 07:47
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Press release
FIRST HALF 2010
Significant progress on G-REIT equity ratio driven by further disposals and
strong operating business
- Revenues at EUR 45.2 million and Funds From Operations at EUR 15.7
million in line with guidance
- Disposal of four properties for EUR 81.7 million at 5% premium to book
value
- Improved balance sheet ratios: G-REIT equity ratio (post transactions)
back at 45.2%, net LTV at 56.7%
Hamburg, August 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 six months of
2010.
Revenues of EUR 45.2 million in line with guidance, FFO of EUR 15.7 million
benefits from lower financing costs
In the first six months of 2010 revenues decreased by 12.5% year-on-year to
EUR 45.2 million, mainly as a result of the disposal of real estate assets.
The Funds From Operations for the first half of 2010 were EUR 15.7 million
(vs. EUR 16.2 million in H1 2009). alstria's operating margin improved to
34.7% (31.3% in H1 2009) due to seasonal lower real estate operating
expenses and reduced financing costs. A negative non-cash impact from
interest derivatives amounting to EUR 9.2 million was partly compensated by
a cash disposal gain in the first quarter. alstria's consolidated net
profit for the first six months therefore amounted to EUR 11.6 million,
which compares with a loss of EUR 2.3 million in the first half of 2009.
Strong balance sheet
As of June 30, 2010, alstria's investment property totalled EUR 1.36
billion. In July 2010 another four buildings located in Hamburg with a
combined book value of EUR 77.9 million were sold and therefore transferred
to assets held for sale. alstria's equity amounted to EUR 622.9 million as
of June 30, 2010. The decline compared to Q1 2010 was mainly due to the
dividend payment of EUR 28 million in the second quarter. The company's net
LTV at reporting date was 56.7%.
alstria takes advantage of high demand for long-term leased assets
In July 2010 alstria sold four assets located in Hamburg, taking advantage
of the continuing high demand for long-term leased assets. The properties
located in residential areas or secondary office locations in Hamburg were
sold at a total sum of EUR 81.7 million. Considering the contractual rental
income of EUR 4.3 million per year these sales reflect an estimated average
NOI yield on cost of 4.8% . The disposals were executed at a premium of 5%
to the latest appraised values as of December 31, 2009. The closings of the
transactions, which are subject to customary conditions precedents, are
expected to take place in the fourth quarter 2010.
Disposals lift G-REIT equity ratio
Everything else being equal and taking the property disposals into account,
alstria's G-REIT equity ratio is back at 45.2% . The gain on sale will
further strengthen the company's equity. On this background alstria is well
positioned to meet the G-REIT equity ratio of 45% at year-end, as required
by the German REIT law.
Strong operating performance
In the first 6 months of the year the company has leased up 8,300 sqm of
space, or around 10% of the vacancy of the portfolio at the beginning of
the year. The total vacancy rate in the portfolio has increased from 6.5%
to 7.7%, mainly reflecting the sale of fully let assets, as well as the
acceleration of the refurbishment plan on the company's assets. The
strategic vacancy is now at 32,400 sqm, while operational vacancy is stable
at 31,000 sqm. The cash flow profile has been further strengthened, as
asset management activities have allowed the reduction of the percentage of
leases due to break in the next 24 months down from 10.6% to 7.3%.
'With the successful refinancing of our syndicated loan and by taking
advantage of the strong demand for long term leased assets, alstria has
mainly concluded its step-by-step approach to strengthen its balance
sheet,' said Olivier Elamine, CEO of alstria. 'In the course of the past 24
months the company has managed the severe financial and economic crisis
without any diluting capital measures, which we see as a real success.
Today alstria is in an ideal position to benefit from possible investment
opportunities that will come to the market, as a consequence of the
expected difficult refinancing environment in the next two to three years.'
Outlook
alstria confirms its forecast for the 2010 financial year: annual revenues
of EUR 89 million and EUR 27 million in FFO.
Key financials at a glance
H1/10 H1/09 Variation in %
Revenues (EUR m) 45.2 51.6 -12.5%
Net result (EUR m) 11.6 -2.3 na
FFO(EUR m) 15.7 16.2 -2.9%
FFO per share (EUR) 0.28 0.29 -2.9%
2010-06-30 2009-12-31 Variation in %
Inv.prop. (EUR m) 1,357 1,425 -4.8%
Cash at hand (EUR m) 64.6 146.8 -56.0%
NNNAV per share (EUR) 11.12 11.32 -1.8%
G-REIT equity ratio (%) 42.5 40.3 2.2 Pp
Net LTV ratio (%) 56.7 na na
Invitation to the conference call on August 11, 2010
The alstria management board will present the H1 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 3001 or UK: +44-207-153-2027
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 H1 report under
'Financial Publications') will be also available for 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: rdibbern(at)alstria.de
11.08.2010 07:47 Ad hoc announcement, Financial News and Press 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 Hamburg, München, Berlin, Stuttgart
End of News DGAP News-Service
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Datum: 11.08.2010 - 07:47 Uhr
Sprache: Deutsch
News-ID 31948
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