Hamburg (pta/09.08.2021/17:40 UTC+2)
alstria with revenue and FFO growth in the first half of 2021
Hamburg, August 9, 2021 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) ("alstria") announces its result for the first six months of 2021.
Revenues at EUR 90.0 million and FFO at EUR 58.5 million
Revenues developed according to plan in the first half of 2021 with a rent collection rate at pre-pandemic levels of 99.5%. Rental income increased by 3.2% yoy to EUR 90.0 million (H1 2020: EUR 87.2 million), mainly due to additional revenues from new leases.
The operating result (FFO after minorities) grew by 7.5% yoy and amounted to EUR 58.5 million in the reporting period (H1 2020: EUR 54.4 million). In addition to higher rental income, the FFO was positively impacted by lower real estate operating expenses, also driving up the FFO margin to 64.9% (H1 2020: 62.3%). However, parts of the lower operating expenses are temporary, as some maintenance works were postponed due to the pandemic to the second half of 2021. As such, the FFO is expected to adjust toward year end in line with the company’s guidance.
Consolidated net income for the period under review reached EUR 53.6 million (H1 2020: EUR -33.3 million).
Investment properties up by EUR 94 million, EPRA NTA at EUR 18.10 per share
The fair value of investment property amounted to EUR 4,650 million as of June 30, 2021, compared to EUR 4,556 million as of December 31, 2020. The increase by EUR 94 million mainly resulted from the acquisition of an asset in Frankfurt (AIC: EUR 32.4 million) and the capex into the portfolio (EUR 58.4 million) within the first half of 2021. As of June 30, 2021, alstria's cash and cash equivalents amounted to EUR 342 million (December 31, 2020: EUR 461 million). The change in the cash position is mainly due to the dividend payment of EUR 94 million (EUR 0.53 per share) and investments in the real estate portfolio.
Within the first half of 2021, alstria’s equity slightly decreased by 1.2% to EUR 3,214 million, reflecting the dividend payment in May 2021. On June 30, 2021, the company’s EPRA NTA per share stood at EUR 18.10. The G-REIT equity ratio amounted to 68.8% and the company’s Net LTV was 29.5% as per June 30, 2021, demonstrating alstria’s strong balance sheet.
Executing our "sell the periphery, buy the center" strategy
The company has signed a disposal agreement for a retirement home in Trier for a total consideration of EUR 24.8 million (Fair Value as per December 31, 2020: EUR 25.4 million). The transaction is expected to close in the third quarter of 2021.
Following the acquisition of two assets in the center of Frankfurt and Düsseldorf, the company has acquired a mix-used office asset in Berlin. The multi-tenant property is located in the heart of Berlin-Kreuzberg (Mehringdamm 32-34) and comprises a lettable area of 10,600 square meters. The current annual rental income amounts to EUR 1.2 million (EUR 9.60 per sqm/month). The building comprises 3,580 square meters of office space, 3,130 square meters of hospitality space, currently rented as a hostel, and 3,160 square meters of ground floor retail and entertainment space. alstria intends to upgrade the building overtime in order to meet the strong office demand in the Kreuzberg area. In total, alstria acquired three assets in Berlin, Düsseldorf and Frankfurt for a total of EUR 93.7 million (all-in cost) over the last months.
Leasing market momentum improving
From the low levels seen during last year's lockdowns, letting results are slowly recovering and overall momentum in letting markets is improving. However, in line with the company’s guidance, the letting activities, especially for larger spaces, are still well below the level prior to the start of the pandemic. In the first half of 2021, alstria signed new leases for 13,300 square meters as well as lease extensions of around 24,100 square meters. The EPRA vacancy rate stood at 8.7% (December 31, 2020: 7.6%). The increase is mainly based on the acquisition of the Frankfurt asset with a vacancy rate of 55% (vacant space: 5,800 sqm). alstria does not expect a full recovery of the letting market until there is a clear path out of the pandemic and is planning for low letting activities in 2021.
Full-year guidance for 2021 confirmed
Based on the results of the first half of 2021, alstria confirms its guidance for the full year 2021 with expected revenues of around EUR 177 million and an operating profit (FFO) of around EUR 108 million.
"Our refurbishment program is being delivered to occupiers and fostered revenue and FFO growth in the first half of 2021," says Olivier Elamine, CEO of alstria. "While overall lease enquiries remain at pre-pandemic levels, companies are still less prone to sign new leases. This is particularly true for larger leases. We are assuming a pick-up in demand as soon as larger companies have more clarity on the exit from the pandemic and on the future of their office needs as well as their economic situation. alstria’s guidance for 2021 is safely based on cash flow which assumes limited new leasing activities. Hence, we see the company fully on track to achieve its full year guidance."
Invitation to the conference call on August 10, 2021
The alstria management board, CEO Olivier Elamine and CFO Alexander Dexne, will present the H1 2021 results during a conference call at 2:00 p.m. (CEST).
Please use one of the following dial-in numbers:
Germany: +49 69 201 744 220
UK: +44 203 009 2470
Please note that you can watch the management’s presentation live via webcast on our website www.alstria.com. Briefly before the conference call begins, the presentation slides will be available for download.
20095 Hamburg, Germany
Tel: +49 40 22 63 41 - 344
20095 Hamburg, Germany
alstria office REIT AG is the leading real-estate operator focusing solely on German office property in selected German markets. Our strategy is based on the ownership and an active management of our properties throughout their entire life cycle, strong added-value services to our customers and deep knowledge of the markets in which we operate. alstria strives for sustainable long-term value creation while taking advantage of short-term arbitrage of inefficiencies in the real estate markets. As of June 30, 2021, the portfolio comprises 110 buildings with a lettable area of 1.4 million square meters and a total portfolio value of EUR 4.6 billion.
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.
The current COVID-19 outbreak is creating substantial uncertainty in the marketplace. Although alstria has diligently reviewed the information contained in this release it is based on its own analysis and estimate, as well as available public sources and not on active discussion with tenants. As such the current liquidity risk of the tenants can materially differ from alstria’s own estimate, and the actual impact of the COVID 19 outbreak may differ substantially from the current previsions.
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.
alstria office REIT-AG
|Contact Person:||alstria office REIT-AG|
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