DGAP-News: alstria office REIT-AG: Nine months 2019 - Leasing volume hits record level

Press release

Nine months 2019 - Leasing volume hits record level

- Revenues at EUR 140.4 m and funds from operations (FFO) at EUR 84.2 m

- EPRA NAV per share up by 7.9% to EUR 16.33

- Net LTV at 29.0% and REIT equity ratio at 69.1%

- Like for like rental growth of 6.4%
 

Hamburg, November 4, 2019 - alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) reports on a successful result for the first nine months of 2019.

Revenues and FFO in line with plan

In the first nine months of 2019, alstria's revenues amounted to EUR 140.4 million and developed in line with expectations. The decline by 3.1% compared to the prior year period was due to asset disposals in the periphery of alstria's markets. Funds from operations (FFO) in the same period amounted to EUR 84.2 million, representing an operating margin of 60.0% (FY 2018: 59.4%). alstria's consolidated net result was EUR 302.7 million as per September 30, 2019 and compares to EUR 94.5 million in the prior year period. The steep increase of the net profit is mainly due to a EUR 199.3 million valuation uplift on alstria's investment properties in its half-year revaluation.

Net LTV at 29.0%, EPRA NAV per share at EUR 16.33

In the first nine months of 2019, alstria's equity position improved by 7.9% to EUR 2,896 million. The increase by EUR 212 million compared to December 31, 2018 was driven by the net profit and reflected the dividend payment of EUR 92.2 million (EUR 0.52 per share) in the second quarter of 2019. alstria's EPRA NAV per share improved accordingly and stood at EUR 16.33 as per September 30, 2019. The G-REIT equity ratio of 69.1% and the Company's net LTV of 29.0% are testimony to alstria's balance sheet quality.

In the third quarter of 2019, alstria issued a Euro bond with a nominal value of EUR 400 million at a coupon of 0.5%, which serves to refinance the Company's debt maturing in 2020 and 2021. The replacement of the maturing debt further improved the debt structure and will reduce alstria's cost of debt by more than EUR 5 million p.a. going forward.

Record letting volume will generate around EUR 224.8 m of future income

Based on a strong demand for modern and efficient office space in Germany, alstria signed new leases for a lettable area of 123,100 qm, as well as lease extensions of around 81,300 qm in the first nine months of 2019. As per September 30, 2019 the EPRA vacancy rate improved by 230 bps to 7.4% compared to December 31, 2018. The new leases signed in the first nine months of 2019 reflect an additional annual rental income of EUR 12.2 million on a full year basis, which translates into a like-for-like rental growth of 6.4%. The aggregated future income from new signed leases and extended leases signed in the first months of 2019 amounts to EUR 224.8 million.

Stable portfolio value of EUR 4.2 billion in the third quarter 2019

The value of alstria's real estate portfolio amounted to EUR 4.2 billion as per September 30, 2019 (EUR 4.0 bn as per Dec. 31, 2018). The valuation yield (contractual rent/open market value) was stable at 4.9% compared to December 31, 2018. As of the reporting date, alstria owned 117 properties (average size: 13,100 qm, average value: EUR 35.5 million, average value per qm: EUR 2,723), located in Germany's major office markets.

Selling the periphery - Investing into the core.

In the third quarter of 2019 alstria continued to execute on its plan to further concentrate its portfolio on Germany's main office markets and sold an asset in Kaiserslautern. Over the first nine month of the year, the Company sold four assets for a total consideration of EUR 120.2 million (annual in-place rent: EUR 6.8 million) and realized a gain of 16.1% (EUR 19.4 million). In addition to its refurbishment program, alstria continued to strengthen its portfolio with selected acquisitions. During the reporting period, the Company agreed on the acquisition of four assets located in Berlin and Düsseldorf for a total amount of EUR 45.9 million, offering substantial rental reversion (annual rent of EUR 1.5 million, ERV of EUR 2.4 million).

Guidance for FY 2019 confirmed

Based on the results of the first nine months, alstria confirms its guidance for the FY 2019. Revenues are expected to amount to EUR 190 million and the FFO is expected to reach EUR 112 million.

Sustainability report 2018 / 2019 published

alstria has published its 10^th sustainability report for the financial year 2018. To mark this anniversary, the company updated the visual appearance of the report and decided to release a digital product exclusively. The report has been prepared according to GRI Standards and EPRA real estate specific guidelines. It has also obtained a third-party assurance for all environmental and social KPIs, which demonstrates alstria's commitment to transparency.

Major accomplishments towards the decarbonization of the portfolio in 2018:

- 100% renewable electricity supply for alstria's corporate offices and common areas of multi-let buildings - RE100 target achieved

- 88% fuel-based heating procured by alstria was CO₂-compensated

- alstria reduced 20 times more CO₂ emissions compared to base year 2013

Going forward, alstria has almost completed the rollout of smart meters across its portfolio and plans to extend the rollout for tenant areas in the next years. This development can uncover inefficiencies in the operation of buildings allowing to enhance comfort and productivity for tenants. Furthermore, alstria has launched several pilot projects for EV-charging systems and flexible energy solutions.

Invitation to the conference call on November 5, 2019
The alstria Management Board, CEO Olivier Elamine and CFO Alexander Dexne, will present the 9M results during a conference call at 10:00 am (CET).

Please use one of the following dial-in numbers:
Germany: + 49 69 201 744 220
UK: + 44 203 009 2470
PIN: 6033 9514 #

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 slides will be available for download on our website.

Contact IR/PR: 
Ralf Dibbern
Steinstr. 7
20095 Hamburg, Germany
Tel: +49 (0) 40 226 341 329
Email: [email protected]

More information on:
www.alstria.com
www.beehive.work
www.twitter.com/alstria_REI

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 117 office buildings comprising 1.5 million sqm of lettable space and representing a total portfolio value of approximately EUR 4.2 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.

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.