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Annual Result 2011
- Financial result 2011 in line with guidance: Revenues of EUR 90.8 m (+1.9%) and funds from operations (FFO) at EUR 34.7 m (+25.9%)
- Strong balance sheet ratios: G-REIT equity ratio at 48.7% and net LTV at 50.2%
- Management proposes to pay a dividend of EUR 0.44 per share for FY 2011
- Guidance for 2012: Solid growth due to accretive acquisitions
alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, announces its result for the financial year 2011.
Revenues of EUR 90.8 m and FFO of EUR 34.7 m in line with full-year guidance
In the financial year 2011, alstria generated revenues of EUR 90.8 m. The increase of 1.9% year on year was mainly attributable to the acquisition of real estate assets in the course of the year. Funds from operations for the same period amounted to EUR 34.7 m and were slightly higher than the 2011 guidance of EUR 34 m. The substantial increase of alstria's FFO margin from 30.9% (FY 2010) to 38.2% (FY 2011) was driven by accretive acquisitions and the deleveraging process of the Company. alstria's operating success is also shown by the FFO per share, which increased by 7% to EUR 0.48 compared with EUR 0.45 in the same period last year. Considering the increase in the number of shares following the capital increase executed in March 2011, the increase in FFO per share is testimony to alstria's ability to raise capital and invest it in an accretive manner for all its shareholders.
The net loss from fair value adjustments on financial derivatives was EUR -3.2 m and improved substantially compared with the prior year period (EUR -35.7 m). alstria's net profit for the year 2011 therefore was EUR 27.4 m compared with EUR 0.2 m in 2010.
As a result of the annual valuation process, the portfolio value decreased by EUR 16.7 m (2010: EUR -12.8 m) to EUR 1.53 bn. The negative valuation impact is mainly due to the increase in transfer tax in some German states (EUR -7.5 m) as well as to the devaluation of a specific number of short-dated assets. The negative valuation result was almost compensated by a positive result from joint ventures amounting to EUR 13.1 m (2010: EUR 12.1 m), mainly related to the successful disposal of the prime development project 'Alte Post'.
Strongest balance sheet in alstria's history
In the course of 2011, alstria was able to further strengthen its balance sheet. The average debt maturity as per December 31, 2011 was 3.8 years, while cost of debt remained stable at around 4.3%. The Company's net LTV at the reporting date was 50.2%. alstria has no refinancing needs until mid-2014.
alstria's equity increased by 10.9% to EUR 768.2 m as per year-end 2011, mainly as a result of the successful capital increase in March 2011. The number of shares outstanding grew by 16% to 71.7 m shares as per December 31, 2011. The EPRA NAV per share amounted to EUR 11.32 vs. EUR 11.68 (FY 2010). alstria's G-REIT equity ratio was 48.7% as per year-end.
Acquisitions of EUR 169 m of assets offer opportunities
In 2011, alstria took advantage of market opportunities and acquired assets worth EUR 169 m. Some of the assets have a value-add profile and offer substantial value creation potential through refurbishment and letting measures.
As of December 31, 2011, alstria's investment property totalled EUR 1.53 bn. The increase by approximately 13% compared to December 31, 2010 was driven by the acquisition of ten properties in the course of the year. The valuation reflects an overall valuation yield of 6.5%(1).
Successful leasing activities
In 2011, alstria achieved the best letting result in its history. A total of 30,000 sqm of new leases and an extension of existing leases of 20,000 sqm were signed throughout the year. The contractual vacancy rate in the portfolio as per year-end 2011 was 8.6% and therefore increased by 1.0pp compared to December 31, 2010. The increase is mainly attributable to the acquisition of assets characterised by a higher vacancy.
The Company will propose to the next AGM a dividend payment of EUR 0.44 per share.
Based on its current portfolio and the contractually agreed rent, alstria currently expects revenues of EUR 95 m and funds from operations (FFO) of EUR 37 m for the financial year 2012.
Invitation to the conference call on February 21, 2012
The alstria management board, CEO Olivier Elamine and CFO Alexander Dexne, will host a conference call on February 21, 2012 at 6:30 pm (CET). Presentation slides and webcast will be available on alstria's website www.alstria.com.
Please use the following dial-in numbers:
Germany: + 49 (0) 6103 485 3001
UK: + 44 - 207 153 2027
(1) Defined as contractual rent in relation to open market value
alstria's financial report 2011, including full IFRS notes and disclosures will be published on March 30, 2012.
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 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 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.
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