alstria achieves strong operating result in Q1/2010, balance sheet further strengthened
- Revenues at EUR 23.1 million and Funds from operations at EUR 7.3 million in line with guidance
- All transactions announced at year end closed
- Improved balance sheet ratios: REITequity ratio up from 40.3% to 44.1%
- Strong asset management results
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 2010.
Revenues and FFO roughly 10% below Q1 2009 due to disposal of real estate assets
Revenues decreased by 9.9% year on year to EUR 23.1 million, mainly as a result of the disposal of real estate assets. The Funds from operations for the first quarter were EUR 7.3 million (vs. EUR 8.0 million in Q1/2009). alstria's operating margin remained stable at 31.4%. The lower revenue base was compensated mainly by lower property operating costs and interest expenses as a result of a further reduction of the syndicated loan.
As of March 31, 2010, alstria's investment property totalled EUR 1.4 billion. Following the execution of the asset sales and joint venture agreement announced previously, two more buildings located in Hamburg were sold and one property was transferred into a Joint Venture for repositioning. In this context alstria was able to generate a book gain of EUR 6.7 million. On the other hand the devaluation of interest derivatives caused a negative impact of EUR 5.4 million. In the first quarter 2010 the consolidated net profit amounted to EUR 8.4 million, which compares with a loss of EUR 5.5 million in the first quarter 2009.
Syndicated loan further reduced from EUR 1,103 million to EUR 646 million
alstria continued to reduce its syndicated loan to currently EUR 646 million. The decrease of the balloon of the syndicated loan was mainly driven by a new non recourse refinancing (EUR 76 million), as well as additional down payment following the execution of the asset sales. The LTV on its main syndicated loan facility remained below 60%.
Following the disposal of properties alstria's free cash increased to EUR 74 million. This substantially increases the flexibility of alstria, which can deploy this capital in order to execute the refinancing of the remainder balloon on the syndicated loan, to invest in its own portfolio, or to acquire assets on the market.
REITequity ratio at 44.1%
In Q1 alstria continued its stepbystep approach to further strengthen its balance sheet. Equity increased to EUR 642.7 million as a result of the positive net result in the first quarter. Following the planned disposal of real estate assets the G-REIT equity ratio is back at 44.1% (40.3% as per December 31, 2009), only a breath away from the required 45%.
Strong asset management results
alstria was able to lease up more than 5,800 sqm of space, including the successful lease up in the Alte Post redevelopment project in Hamburg, which is now 62% let, after less than 6 month of marketing. This represents around 10% of the total vacancy that was in the portfolio at year end 2009.
Following Q1/2010, alstria confirms its forecast for the 2010 financial year: annual revenues of EUR 89 million and EUR 27 million in FFO. "Our main focus is to refinance the remaining EUR 646 million of the syndicated loan, regardless of the fact that this facility will only mature in November 2011. Through our step by step approach, we have been able to free up a significant amount of cash, that allows us to seize opportunities within the market and within our portfolio if and as they appear".
Invitation to the conference call on May 11, 2010
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 dialin numbers:
Germany: +49 (0) 6103 485 3002
UK: +44 (0) 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 Q1 report under "Financial Publications") will be also available as a download.
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 forwardlooking 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 forwardlooking 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 forwardlooking 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 forwardlooking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
About alstria office REIT-AG
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 longterm real estate value creation.