DGAP-News: alstria office REIT-AG: Annual result 2013

DGAP-News: alstria office REIT-AG / Key word(s): Final Results alstria office REIT-AG: Annual result 2013 27.02.2014 / 17:36 --------------------------------------------------------------------- Press release Annual result 2013 - Revenues of EUR 104.2 m (+2.9%) and funds from operations (FFO) of EUR 45.3 m (+4.0%) - NAV per share up by 1.8% to EUR 10.69 - Strong letting result: EPRA-vacancy rate down by 120 bps to 6.8% and like-for-like contractual rent up by 2.3% - Management proposes to pay a stable dividend of EUR 0.50 per share for FY 2013 - Guidance for 2014: FFO expected to grow by 4% to EUR 47 m Hamburg, February 27, 2014 - alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, announces its result for the financial year 2013. Revenues of EUR 104.2 m and FFO of EUR 45.3 m in line with full-year guidance In 2013 alstria's revenues grew by 2.9% year-on-year to EUR 104.2 m. The increase was mainly driven by acquisitions and like-for-like rental growth, which compensated the effects from disposals related to alstria's portfolio streamlining-program. Funds from operations for the same period amounted to EUR 45.3 m (+4.0% compared to FY 2012). The increased revenue base and lower recurring financing expenses further improved alstria's FFO margin to 43.5% (FY 2012: 43.0%). The FFO per share increased by 4.0% to EUR 0.57 (2012: EUR 0.55). alstria's net profit for the year 2013 was EUR 38.9 m compared with EUR 39.9 m in 2012. The annual valuation led to a stable market value of alstria's real estate portfolio. In total, 45 buildings experienced a valuation gain of EUR 24 m, while 16 assets were marked down. The gross yield (contractual rent/market value) of alstria's portfolio remained stable at 6.5%. Early refinancing massively strengthened alstria's balance sheet In 2013, alstria refinanced more than two thirds of its debt. A milestone was the new credit agreement amounting to EUR 544 m, replacing the existing syndicated loan facility, which was due to mature on July 20, 2015. The new syndicated loan has a maturity of seven years. The early refinancing allows alstria to benefit from the attractive financing environment and significantly improved the overall debt maturity profile of the Company to around 5.3 years as of December 31, 2013 (vs. 3.0 years as of December 31, 2012). With the new syndicated loan in place, alstria has no major refinancing needs before mid-2018. Furthermore, alstria issued its first convertible bond in June 2013. The convertible bond improved the maturity profile and is a first step in diversifying the Company's sources of financing outside of straight mortgage debt. The Company's net LTV was 50.7% as of December 31, 2013. As per year-end 2013 alstria's balance sheet reflected a total equity position of EUR 844.1 m. The NAV per share therefore amounted to EUR 10.69 and was up by 1.8% compared to December 31, 2012. The G-REIT equity ratio, which is defined as total equity divided by immovable assets, was 50.9% (December 31, 2012: 50.0%). The G-REIT law requirement is a ratio 45%. Recycling capital alstria's total investment property value amounted to EUR 1,632 m as of December 31, 2013 (December 31, 2012: 1,623 m). The increase of investment property reflects the net effect of the 2013 transactions, as well as the capital expenditures that have been spent on the portfolio. In 2013 alstria initiated a disposal program of assets mainly located in smaller cities in Eastern Germany and sold eight assets for a total consideration of EUR 43.4 m at a book gain of 3.4% on average. The proceeds were reinvested in two properties located in Stuttgart and Düsseldorf. EPRA vacancy rate dropped to 6.8% alstria has taken advantage of the very liquid German letting market and substantially reduced its vacancy rate also in its recently acquired assets. A total of 35,600 sqm of new leases and an extension of existing leases of 49,000 sqm were signed throughout the year. The total vacancy rate therefore fell by 230 bps to 9.1% as of December 31, 2013. The EPRA vacancy rate in the portfolio - which disregards the development-related vacancy - dropped by 120 bps to 6.8%. The like-for-like contractual rent grew by 2.3%, mainly reflecting substantial rent increases in the assets in which alstria invested recently (either through acquisition or repositioning). "In 2013 alstria took advantage of the demand for office space in Germany. The combination of attractive buildings and competitive rents again proved to be the right business model in the current market environment," said Olivier Elamine, CEO of alstria. "Over the past four years our FFO per share on average increased by 8.2% per annum, demonstrating that there are growth opportunities for strong operators, even in a flat market environment." Stable dividend of EUR 0.50 per share The Company will propose to the next Annual General Meeting a dividend payment of EUR 0.50 per share, representing a 5.5% dividend yield based on a 2013 VWAP (Volume-weighted average price) of EUR 9.01. Outlook 2014: further increase of FFO expected Based on its current portfolio and the contractually agreed rent, alstria currently expects revenues of EUR 102 m and funds from operations (FFO) to grow by 4% to EUR 47 m in the financial year 2014. The revenue guidance reflects the recent disposal of properties as well as planned lease expires. The expected increase in FFO is mainly due to lower costs of debt after the recent refinancing. Invitation to the analyst and press conference on February 28, 2014 The alstria management board, CEO Olivier Elamine and CFO Alexander Dexne, will present the 2013 financial results in a press conference for analysts and journalists at 10:00 am (CET) in Frankfurt. Presentation slides and webcast will be available on alstria's website www.alstria.com. The first part of alstria's annual report (company report) is available on the Company's website (www.alstria.com). The second part of the annual report (financial report) will be released on March 27, 2014. About alstria: alstria office REIT-AG is an internally managed Real Estate Investment Trust (REIT) focused solely on acquiring, owning and managing office real estate in Germany. alstria was founded in January 2006 and was converted into the first German REIT in October 2007. Its headquarters are in Hamburg. The Company owns a diversified portfolio of properties across attractive German office real estate markets. As of December 31, 2013 its portfolio comprised 76 properties with an aggregate lettable space of approx. 894,400 sqm and was valued at approximately EUR 1.6 bn. The alstria office REIT-AG strategy is based on active asset and portfolio management as well as on establishing and maintaining good relationships with key customers and decision makers. alstria focuses on long-term real estate value creation. For further information, please contact: Ralf Dibbern, IR/PR Phone: +49 (0) 40 / 226 341-329 Email: rdibbern@alstria.de More information on: www.alstria.com www.alstria.blogspot.com www.twitter.com/alstria_REIT 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. alstria undertakes no obligation to publicly release any revisions or updates to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. End of Corporate News --------------------------------------------------------------------- 27.02.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: alstria office REIT-AG Bäckerbreitergang 75 20355 Hamburg Germany Phone: 040-226 341 300 Fax: 040-226 341 310 E-mail: info@alstria.de Internet: http://www.alstria.de ISIN: DE000A0LD2U1 WKN: A0LD2U Indices: SDAX, EPRA, German REIT Index Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 254880 27.02.2014