Result for the first half of 2024

• Revenues at EUR 98.6 million and funds from operations (FFO) at EUR 41.5 million  
• EPRA NTA at EUR 9.45 per share 
• Guidance 2024 confirmed 

Hamburg, August 19 2024 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) (“alstria”) announces its result for the first half of 2024.

Key Financial Highlights:

• Revenue Growth: Revenues rose to EUR 98.6 million in the first half of 2024, a 6.3% increase compared to EUR 92.8 million in H1 2023. The rise is attributed to rent indexation and the commencement of new leases, which more than offset the losses from terminated rental agreements. 

• Improved Net Income: Consolidated net income for the quarter stood at EUR 47.8 million, compared to EUR 9.2 million in the same period last year. The substantial improvement was mainly due to an improved valuation result of EUR -5.6 million compared to EUR -35.5 million in H1 2023. 

• Funds From Operations (FFO): FFO after minorities reached EUR 41.5 million. The decline of 13.5% from EUR 47.9 million in the previous year is due to higher financing costs from additional financial liabilities and higher refinancing costs. 

• EPRA NTA: EPRA Net Tangible Assets (NTA) per share increased to EUR 9.45, supported by a consolidated net income increase and fair value adjustments on financial derivatives.  

• New and extended financing: In the course of the first half of 2024 alstria entered into a new financing agreement for a total nominal amount of EUR 120 million, maturing on December 28, 2029. 100% of the proceeds are being used to refinance existing indebtedness. In addition, alstria extended a maturing loan of EUR 125 million by 7 years to June 30, 2031. 

• Bond buyback: In the course of H1 2024 alstria acquired a nominal amount of EUR 97.3 million of its outstanding bonds at an average price of 88.34%.  

• RCF Extension: alstria extended EUR 150 million of its RCF by another year to 2027.  

• Net LTV: The Company’s Net LTV reduced to 57.6% as of June 30, 2024 (58.3% as of December 31, 2023). As per the reporting date, alstria’s cash and cash equivalents amounted to EUR 104.8 million. As of the reporting date, alstria has complied with all its financial covenants.  

• G-REIT equity ratio: The G-REIT equity ratio improved to 44.0% (Dec. 31, 2023: 43.0%) but remains below the 45% REIT law requirement (to be restored by December 31, 2025). 

• G-REIT Free Float Covenant: The Company is actively involved in several workstreams to restore the free float to 15%, which is in line with the requirements of the REIT Law. However, the success or failure of these workstreams depends on uncertain future events that are not wholly within alstria’s control. As of the reporting date, the Company has no visibility on whether or not the REIT status will be upheld and is planning for both outcomes. Given the level of uncertainty and the Company’s lack of control over the outcome, no provision is recorded as of the reporting date. However, the Company has considered it appropriate to disclose the existence of contingent liabilities, which could have a material impact on the Group’s financial position and performance. For more detailed disclosure please refer to the contingent liability disclosure in the Company’s half-year report.

• Stable Portfolio Value: The fair value of investment property as of June 30, 2024, was EUR 4,032 million, slightly up from EUR 3,971 million as of December 31, 2023. This growth reflects capital expenditures invested in the real estate portfolio over the first six months of 2024.  

• Letting success: alstria signed leases for a lettable area of 52,400 sqm, comprising new leases for 32,000 sqm (vs. 10,100 sqm in H1 2023) and lease extensions for 20,400 sqm (vs. 53,300 sqm in H1 2023). The EPRA vacancy rate stood at 7.9% and was stable compared to December 31, 2023 (8.0%). 

Full-year guidance confirmed

Based on the results of the first half year, alstria reaffirms its full-year 2024 guidance with anticipated revenues of approximately EUR 195 million and an operating profit after minorities (FFO) of EUR 71 million.

Invitation to the conference call on August 20, 2024

CEO Olivier Elamine will detail these results and discuss future expectations during a conference call at 2:00 p.m. (CEST) on August 20, 2024. Interested parties are invited to join the call, which will include a Q&A session. Registration details and access to the live webcast are available on our website at www.alstria.com. Presentation slides will be available for download shortly before the call begins. 

Registration Link  
Dial in only  Link  

About alstria
alstria office REIT AG is the leading real-estate operator focusing solely on German office property in selected German markets. Our strategy is based on the ownership and an active management of our properties throughout their entire life cycle, strong added-value services to our customers and deep knowledge of the markets in which we operate. alstria strives for sustainable long-term value creation while taking advantage of short-term arbitrage of inefficiencies in the real estate markets. 

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.