Corporate | 15 May 2009 07:21
alstria office REIT-AG / Quarter Results
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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The issuer / publisher is solely responsible for the content of this announcement.
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* Revenues up 9% year-on-year to EUR 25.7 million
* Funds from operations (FFO) at EUR 8 million in line with guidance
* Disposal of a EUR 19.6 million asset
Hamburg, May 15, 2009 - 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
2009. alstria came up to its forecasts on all key financials.
Revenues and FFO in accordance with company's guidance
Revenues increased 9% year on year to 25.7 million, mainly as a result of
full year consolidation of assets acquired in the first quarter 2008. The
Funds from operations for the first quarter was EUR 8 million (vs. EUR 9
million in Q1/2008). The expected decline in FFO is attributable to
increased financing costs and additional real estate operating costs (8.1%
of revenues in Q1/2009 vs. 4.4% of revenues in Q1/2008). The main drivers
for the increased real estate operating expenses were tenant improvement
measures which resulted from the lease-ups executed in the last quarter of
2008.
Key financials at a glance
Q1/09 Q1/08 Variation in %
Revenues (EUR m) 25.7 23.5 9.0%
Net result for the period (EUR m) -5.5 6.3 -187.6%
Funds from operations (FFO) (EUR m) 8.0 9.0 -10.5%
FFO per share (EUR) -0.10 0.11 -187.6%
31/03/09 31/12/08 Variation in %
Investment properties (EUR m) 1,802.0 1,810.3 -0.5
Cash at hand (in EUR m) 27.8 31.4 -11.7
NNNAV per share (EUR) 12.56 13.03 -3.6
G-REIT equity ratio (in %) 38.9 40.3 -1.4 pp
Syndicated loan LTV ratio (in %) 59.3 59.1 0.2 pp
As of March 31, 2009, alstria's investment property totalled EUR 1.8
billion. As mechanical consequence of a change in the real estate transfer
tax rate in Hamburg, alstria has recorded a non-cash devaluation which has
been the main driver for the EUR 12 million valuation loss recorded in this
quarter. EBITDA in Q1/2009 was at EUR 7.3 million (EUR 18.3 million in
Q1/2008). The non cash devaluation of the portfolio as well as losses on
derivatives (EUR 13.3 million) lead the company to report a net loss of EUR
5.5 million in Q1/2009 compared to a profit of EUR 6.3 million in Q1/2008.
Equity declined to EUR 701.8 million as a result of valuation losses on
real estate and financial instruments. The equity ratio is now 37.6%, down
1.3 percentage points from the value at year-end 2008. The REIT equity
ratio amounts to 38.9%.
In Line with all financial covenants
As of March 31, 2009, alstria is in line with all its financial covenants.
The LTV on its main syndicated loan facility is close but below 60%.
Following a successful covenant renegotiation in the course of Q1/2009 the
LTV covenant of this main facility has been increased from 60% to 65%.
Sale of one asset in Hamburg
alstria entered into a binding notarized agreement for the sale of an asset
located in Hamburg for a total consideration of EUR 19.6 million. This sale
shows a premium to both December 31, 2008, and March 31, 2009, fair values.
The asset was sold on an implied net yield on cost of around 4.6%. The sale
is expected to close in the second or third quarter of 2009. The proceeds
of the sale will mainly be used in order to reduce leverage giving the
company additional room with regards to its key LTV covenant.
Outlook
Following Q1/2009, alstria confirms its forecast for the 2009 financial
year: annual revenue of EUR 103 million and EUR 32 million in FFO. 'The
first quarter of the year has brought more clarity in the overall
investment market environment' said Olivier Elamine, CEO of alstria. 'It is
now generally accepted by the market players that lack of transaction
reflects more a lack of available liquidity rather than a significant
spread between bid and ask prices. The recent transaction that we have
executed, as well as the little activity in the market strongly support
this analysis. We are clearly seeing a strong dichotomy in the market
between assets that are resisting well and are still traded, and assets for
which there is no market regardless of pricing. As far as we can see,
smaller lot size, well located and with mid to long term cash-flow
represent the bulk of the existing demands'.
Invitation to the conference call on May 15, 2009
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 - 69 - 58 999 0806
* UK: +44 - 207 - 153 2027
The conference ID is 4059379.
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 89 properties with an aggregate lettable space of approx. 944,000
sqm and is valued at approximately EUR 1.8 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.
For further information, please see: www.alstria.com
http://alstria.blogspot.com
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.
André Bense
Manager PR | IR
Tel: +49 - 40 - 226 341 329
Fax: +49 - 40 - 226 341 310
E-Mail: pr@alstria.de
15.05.2009 Financial News transmitted by DGAP
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Language: English
Issuer: alstria office REIT-AG
Bäckerbreitergang 75
20355 Hamburg
Deutschland
Phone: 040-226 341 300
Fax: 040-226 341 310
E-mail: info@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, Hamburg, München, Stuttgart
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