Hamburg, August 10, 2020 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) reports on a successful first half of 2020. Lockdown measures related to the COVID-19 pandemic had only little impact on alstria’s operating business in the reporting period.
Revenues of EUR 87.2 m and FFO of EUR 54.4 m
Revenues and operating results (FFO) developed as planned in the first six months of 2020. Rental income amounted to EUR 87.2 million in the first half of 2020, compared to EUR 93.1 million for the first six months of the previous year. The EUR 5.9 million decline was primarily due to the sale of properties and planned lease terminations.
The direct impact on the revenues in the reporting period following the lockdown measures was limited to the voluntary rent waiver in favour of small tenants, which amounted to EUR 0.126 million and value adjustments on rent receivables in the amount of EUR 1.2 million.
The operating result (FFO after minorities) was EUR 54.4 million in the reporting period (H1 2019: EUR 55.7 million). The EUR 1.3 million decline in FFO is however significantly lower than the decline in revenues, as a reduction in property operating costs and an improvement in net financial result largely compensated for the lower rental income.
Revaluation loss of 2.0% driven by valuation adjustments mainly for hotel and retail assets
The consolidated result for the period under review amounted to EUR -33.3 million and was impacted by the valuation result of the property portfolio. A markdown of EUR 88.4 million (or 2.0% of the total portfolio value) was recognized during the first half of 2020. The office portfolio saw a limited impact on values of -1.6%, essentially reflecting more conservative reletting assumptions on future vacancy. Three properties, which are more exposed to the hotel and/or retail segment, have seen steeper value adjustments of more than 10%, as a result of the impact on the COVID-19 pandemic on the underlying tenant business.
As of the reporting date, alstria owned 111 properties valued at EUR 4.4 billion (average value per sqm: EUR 3,027) and a yield of 4.6%.
Net LTV at 26.3%, EPRA NTA per share at EUR 17.73
As of June 30, 2020, alstria’s cash and cash equivalents amounted to EUR 619.6 million (December 31, 2019: EUR 298.2 million), and its current financial assets amounted to EUR 249.7 million (December 31, 2019: EUR 199.8 million). The issuance of a capital market bond with a volume of EUR 350 million on June 16, 2020 contributed to the significant increase in cash and cash equivalents and short-term financial assets. The proceeds further improved the company’s financial flexibility. In addition, a promissory note (Schuldschein) with a volume of EUR 37 million was repaid during the reporting period.
alstria’s total equity decreased slightly by 1.0% (EUR 32.2 million) to EUR 3,143 million as of June 30, 2020 (December 31, 2019: EUR 3,176 million). This decrease was primarily due to the devaluation of the real estate portfolio (EUR 88.4 million), which more than compensated the positive operating result (EUR 54.4 million). alstria’s EPRA NTA per share stood at EUR 17.73 as per June 30, 2020. The strength of alstria’s balance sheet is demonstrated by a G-REIT equity ratio of 71.7% and a Net LTV of 26.3%. Net debt to EBITDA remained at a comfortable 8.1x multiple.
Letting volume of 80,100 sqm – EPRA vacancy rate dropped to 7.9%
In the first half of 2020 alstria signed new leases for a lettable area of 42,000 sqm (H1 2019: 81,800 sqm) and lease extension for 38,100 sqm (H1 2019: 66,700 sqm). The EPRA vacancy rate further improved by 20 bps to 7.9% as per June 30, 2020.
Confirmation of guidance for FY 2020
alstria confirms its guidance for the full year 2020, with expected revenues of around EUR 179 million and an operating result (FFO) of EUR 108 million.
“Nobody was prepared to face the speed and the depth of the economic shock that came with the COVID-19 lockdown. Our conservative financing structure and the strength of our portfolio and operational capabilities allowed us to adapt rapidly to the new environment”, says Olivier Elamine, CEO of alstria. “We have been able to capitalize on our balance sheet strength to reinforce our cash position which allows us to be even better prepared to navigate potentially future headwind, but also to be reactive to potential market opportunities to come. We are looking into the future with a mix of cautiousness and excitement as uncertainty will bring risks to manage while market changes will offer opportunities to seize”.
The H1 financial report is available on alstria.com/investor/#reports
Invitation to the conference call on August 11, 2020
The alstria management board, CEO Olivier Elamine and CFO Alexander Dexne, will present the H1 results during a conference call at 10:00 am (CET).
Please use one of the following dial-in numbers:
Germany: + 49 69 201 744 220
UK: + 44 20 300 92 470
PIN: 99596924#
Please note that you can watch the management’s presentation live as a webcast on our website www.alstria.com. As soon as the conference call begins, the presentation slides will be available for download on our website.
