– alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) reports on an operating business according to plan in the first nine months of 2020.
Revenues of EUR 131.5 million and FFO of EUR 83.4 million
The decline in economic output due to the COVID-19 pandemic had only a marginal impact on alstria’s financial figures in the first nine months of 2020. The third quarter of 2020 proceeded according to plan. Rent collection rate for the quarter was 100% and rents that were temporarily deferred during the second quarter were mostly recovered and paid. Rental income amounted to EUR 131.5 million in the reporting period, compared to EUR 140.5 million in the same period of the previous year. The decrease of EUR 9.0 million is mainly due to the sale of properties and scheduled lease expiries.
The FFO margin increased by 350 basis points to 63.5% (9M 2019: 60.0%), mainly as a result of a reduction in property operating costs, administrative expenses and improvement in net financial income, which largely offset the lower rental income. Therefore, the operating result (FFO after minorities) decline was limited to EUR 0.8 million (EUR 83.4 million vs. EUR 84.2 million 9M 2019).
Consolidated net income for the period under review amounted to EUR -3.0 million (9M 2019: EUR 302.7 million). The main reason for the income change was the valuation result of the real estate portfolio in the first half of 2020.
Disposal of eight buildings at a book gain of 7.2%
Year to date, alstria has sold eight non-core assets in separate transactions. The total value of all transactions amounted to EUR 126.5 million, with annual rental income from the properties sold totalling EUR 7.6 million. The properties were sold at an average book gain of 7.2% over the last valuation, generating a total book profit of EUR 8.5 million for the period.
Net LTV at 26.1%, net asset value (EPRA NTA) per share at EUR 17.91
The fair value of investment property as of September 30, 2020 was EUR 4,360,737 k, slightly below the level as of December 31, 2019 (EUR 4,438,597 k). There was no update in the portfolio valuation for the third quarter of 2020.
As of September 30, 2020, alstria’s cash and cash equivalents and additional current financial assets amounted to EUR 872.2 million (December 31, 2019: EUR 498.0 million). A EUR 350 million capital market bond issued on June 16, 2020 further improved the financial flexibility of the Company and contributed to the significant increase in cash and cash equivalents and short-term investments. In addition, a promissory note in the amount of EUR 37 million was repaid in the reporting period.
alstria’s equity remained stable at EUR 3,174 million as of September 30, 2020 (December 31, 2019: EUR 3,176 million). The net asset value (EPRA NTA) per share was EUR 17.91 as of September 30, 2020. The company’s balance sheet strength is also reflected in a G-REIT equity ratio of 71.9% and a net LTV of 26.1%. Net debt in relation to EBITDA remained in a comfortable range at 8.1x.
Letting volume of 92,400 sqm – EPRA vacancy rate at 8.0%
The letting market in Germany has slowed down as a result of the pandemic with overall take-up across German markets down by around 42% year on year1. alstria signed new leases for 48,500 sqm (9M 2019: 123,100 sqm) and lease extensions for 43,900 sqm (9M 2019: 81,300 sqm). The EPRA vacancy rate improved by 10 basis points to 8.0% in the course of 2020.
1 Source: Jones Lang Lasalle, Office Market Overview (Q1, Q2, Q3 2020)
Sustainability report 2019 / 2020 published
alstria published its annual sustainability report for the financial year 2019. The report provides insights into the decarbonization strategy of alstria and the environmental impact of its operations. It is prepared in accordance with the GRI Standards and EPRA real estate specific guidelines and has obtained a third-party assurance for all environmental and social KPIs.
Major sustainability accomplishments for the FY 2019 include:
