20355 Hamburg, de
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FFO continues to grow
- Revenues at EUR 43.7 million and Funds from operations at EUR 16.6 million
- EPRA-NAV per share at EUR 11.10
- Strong underlying operating performance
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, releases its financial result for the first six months of 2011.
Revenues of EUR 43.7 million and FFO of EUR 16.6 million in line with guidance
In the first six months of 2011 alstria's revenues decreased by 3.3% year-on-year to EUR 43.7 million, mainly as a result of the disposal of real estate assets in 2010. Despite declining revenues Funds from operations improved by 5.5% to EUR 16.6 million in the first six months of 2011, reflecting the improved capital structure of the Company and the recent acquisitions closed in spring 2011. alstria's net result for the first six months of 2011 amounted to EUR 18.8 million and was up by 62.1% compared to the first half of 2010. While the net result is mainly driven by successful underlying operations, it also benefited from positive non-cash valuation gains of interest derivatives amounting to EUR 2.4 million.
Strong balance sheet
As of June 30, 2011, alstria's investment property totalled EUR 1.4 billion and grew by 5.7% compared to year-end of 2010. The increase reflects the inclusion of the asset in Karlsruhe and three assets in Hamburg, acquired in November 2010 and January/February 2011 respectively. The recently acquired assets in Dusseldorf, Frankfurt and Stuttgart are expected to be consolidated towards the end of the third/beginning of the fourth quarter 2011. As of June 30, 2011, alstria's equity amounted to EUR 778.9 million. The decrease of EUR 29.8 million compared to the end of Q1 2011 is mainly resulting from the dividend of EUR 31.5 million that was paid out to shareholders on June 9, 2011. alstria's G-REIT equity ratio amounted to 53.2% as per end of June 2011, the company's net LTV at the reporting date was 47.3%.
Successful leasing activities
In the first six months of the year the Company has signed new leases1 of 15,000 sqm, or around 25% of the vacancy of the portfolio at the beginning of the year. The highlight in this respect was the early lease-up of the asset in the "Mertonviertel" in Frankfurt. The total physical vacancy rate in the portfolio as of June 30, 2011 stood at 7.7% or 62,500 sqm. The EPRA vacancy rate (excluding intended vacancy related to development projects) amounted to 5.1% or 38,200 sqm as of June 30, 2011 and was unchanged compared to December 31, 2010. "The first half of 2011 has seen a very strong asset management result for a year which is on track to bring us the strongest leasing result in the history of the Company", said Olivier Elamine, CEO of alstria. "In parallel, we have been able to source and acquire attractive properties in the German real estate office markets, as prices have come to a level where we see value potential again".
alstria confirms its forecast for the 2011 financial year, which disregards the recent acquisitions: annual revenues of EUR 87 million and EUR 32 million in FFO. The Company will update its revenue and FFO forecast once it has a better visibility on the closing date of the VastNed transaction.
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