Hamburg, November 4, 2019 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) reports on a successful result for the first nine months of 2019.
Revenues and FFO in line with plan
In the first nine months of 2019, alstria’s revenues amounted to EUR 140.4 million and developed in line with expectations. The decline by 3.1% compared to the prior year period was due to asset disposals in the periphery of alstria’s markets. Funds from operations (FFO) in the same period amounted to EUR 84.2 million, representing an operating margin of 60.0% (FY 2018: 59.4%). alstria’s consolidated net result was EUR 302.7 million as per September 30, 2019 and compares to EUR 94.5 million in the prior year period. The steep increase of the net profit is mainly due to a EUR 199.3 million valuation uplift on alstria’s investment properties in its half-year revaluation.
Net LTV at 29.0%, EPRA NAV per share at EUR 16.33
In the first nine months of 2019, alstria’s equity position improved by 7.9% to EUR 2,896 million. The increase by EUR 212 million compared to December 31, 2018 was driven by the net profit and reflected the dividend payment of EUR 92.2 million (EUR 0.52 per share) in the second quarter of 2019. alstria’s EPRA NAV per share improved accordingly and stood at EUR 16.33 as per September 30, 2019. The G-REIT equity ratio of 69.1% and the Company’s net LTV of 29.0% are testimony to alstria’s balance sheet quality.
In the third quarter of 2019, alstria issued a Euro bond with a nominal value of EUR 400 million at a coupon of 0.5%, which serves to refinance the Company’s debt maturing in 2020 and 2021. The replacement of the maturing debt further improved the debt structure and will reduce alstria’s cost of debt by more than EUR 5 million p.a. going forward.
Record letting volume will generate around EUR 224.8 m of future income
Based on a strong demand for modern and efficient office space in Germany, alstria signed new leases for a lettable area of 123,100 sqm, as well as lease extensions of around 81,300 in the first nine months of 2019. As per September 30, 2019 the EPRA vacancy rate improved by 230 bps to 7.4% compared to December 31, 2018. The new leases signed in the first nine months of 2019 reflect an additional annual rental income of EUR 12.2 million on a full year basis, which translates into a like-for-like rental growth of 6.4%. The aggregated future income from new signed leases and extended leases signed in the first months of 2019 amounts to EUR 224.8 million.
Stable portfolio value of EUR 4.2 billion in the third quarter 2019
The value of alstria’s real estate portfolio amounted to EUR 4.2 billion as per September 30, 2019 (EUR 4.0 bn as per Dec. 31, 2018). The valuation yield (contractual rent/open market value) was stable at 4.9% compared to December 31, 2018. As of the reporting date, alstria owned 117 properties (average size: 13,100 sqm, average value: EUR 35.5 million, average value per sqm: EUR 2,723), located in Germany’s major office markets.
Selling the periphery – Investing into the core
In the third quarter of 2019 alstria continued to execute on its plan to further concentrate its portfolio on Germany’s main office markets and sold an asset in Kaiserslautern. Over the first nine month of the year, the Company sold four assets for a total consideration of EUR 120.2 million (annual in-place rent: EUR 6.8 million) and realized a gain of 16.1% (EUR 19.4 million). In addition to its refurbishment program, alstria continued to strengthen its portfolio with selected acquisitions. During the reporting period, the Company agreed on the acquisition of four assets located in Berlin and Düsseldorf for a total amount of EUR 45.9 million, offering substantial rental reversion (annual rent of EUR 1.5 million, ERV of EUR 2.4 million).
Guidance for FY 2019 confirmed
Based on the results of the first nine months, alstria confirms its guidance for the FY 2019. Revenues are expected to amount to EUR 190 million and the FFO is expected to reach EUR 112 million.
Sustainability report 2018 / 2019 published
alstria has published its 10th sustainability report for the financial year 2018. To mark this anniversary, the company updated the visual appearance of the report and decided to release a digital product exclusively. The report has been prepared according to GRI Standards and EPRA real estate specific guidelines. It has also obtained a third-party assurance for all environmental and social KPIs, which demonstrates alstria’s commitment to transparency.
Major accomplishments towards the decarbonization of the portfolio in 2018:
