Alstria office REIT-AG: First quarter 2018

Press release

First quarter 2018

- Revenues at EUR 48.3 m and funds from operations (FFO) at EUR 29.8 m

- Strong balance sheet: Net LTV at 35% (after dividend payment) and REIT equity ratio at 65.4%

- Guidance 2018 confirmed: Revenues of EUR 187 million and FFO of EUR 110 million

HAMBURG, May 2, 2018 - alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) ("alstria") announces its result for the first three months of 2018.
 

Revenues of EUR 48.3 m and FFO of EUR 29.8 m

alstria's rental revenues amounted to EUR 48.3 m in the first quarter of 2018 and are in line with the Company's full year guidance of EUR 187 m. The increase by 6.3% compared to the prior years' level of EUR 45.4 m reflects the impact of new leasing contracts and the acquisition of new properties in the course of 2017.

Funds from operations (after minorities) amounted to EUR 29.8 m (EUR 0.17 per share) and were 6.6% higher compared to the first three months of 2017. The FFO margin stood at 61.7% (prior year: 61.5%) and is testimony to the high profitability of the real estate operations. alstria's consolidated net result amounted to EUR 32.4 m and was up by 4.7% compared to EUR 30.9 m in the prior year period.

EPRA NAV per share up to EUR 12.85

Within the first three months of 2018 alstria's equity increased by 16.5% to EUR 2,278 m, reflecting the capital increase in January 2018, the positive profit contribution in the first quarter of 2018 and the conversion of a substantial part of the convertible bond. The strengthening of the equity base of the Company was executed while improving the EPRA NAV per share by 1.1% to EUR 12.85. The G-REIT equity ratio amounted to 65.4% and the Company's Net LTV improved to 32.5% as per March 31, 2018. As of the date of this release and considering the dividend pay-out of EUR 0.52 per share for FY 2017, the net LTV stands at around 35%.

Operating performance

In the operating business alstria took profit from the continuing strong leasing market in Germany. The Company signed new leases^[1] of 14,100 sqm, as well as lease extensions of around 18,500 sqm. The EPRA vacancy rate^[2] stood at 11.2%. In the course of the first quarter alstria sold two buildings for a total consideration of EUR 13.6 m and realized a gain to the most recent appraised value of 5.8%.

Full-year guidance confirmed

Based on the results of the first quarter alstria confirms its guidance for the FY 2018: revenues of EUR 187 m and FFO of EUR 110 m (after minorities).

"alstria had a good start into the year 2018 and is operating on solid ground", said Olivier Elamine, CEO of alstria. "We have continued to work on the de-risking of our balance sheet and the optimisation of portfolio. Our leasing pipeline continues to be promising and the demand for up-to-date space remains strong as demonstrated by our recent leasing successes on the Momentum asset in Düsseldorf".

Key financials at a glance