DGAP-News: alstria office REIT-AG: Result for the first half of 2022

Press Release

Result for the first half of 2022

• Revenues at EUR 91.6 million and funds from operations (FFO) at EUR 59.5 million 
• EPRA NTA at EUR 19.20 per share 
• New debt amounting to EUR 537 million as part of the intention to take up EUR 850 million
• EGM to distribute special dividend of EUR 550 million, pursuing the intention to return a total of EUR 1 billion to shareholders

Hamburg, August 8, 2022 alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) (alstria) announces its result for the first six months of 2022.

Revenues of EUR 91.6 million and FFO at EUR 59.5 million 
alstria's revenues developed as planned in the reporting period and reached EUR 91.6 million in the first half of 2022 (6M 2021: EUR 90.0 million). The increase by 1.7% is mainly due to revenues from new leases, indexations as well as revenues from leases of the properties acquired in 2021. 

The operating result (FFO after minorities) was EUR 59.5 million in the reporting period (6M 2021: EUR 58.5 million). The higher rental income and other operating income was partly offset by higher SG&A and a lower net financial result. Consolidated net income for the period under review amounted to EUR 47.3 million (6M 2021: EUR 53.6 million). 

EPRA NTA up to EUR 19.20 per share
The fair value of investment property amounted to EUR 4,789 million as of June 30, 2022, compared to EUR 4,776 million as of December 31, 2021. The slight increase resulted from investments made in the portfolio during the first half of 2022. As of June 30, 2022, alstria's cash and cash equivalents amounted to EUR 331 million (December 31, 2021: EUR 314 million).

Within the first six months of 2022, alstrias equity increased by 1.2% to EUR 3,409 million, reflecting the positive profit contribution in the first half of 2022. Accordingly, the companys EPRA NTA improved to EUR 19.20 per share. The G-REIT equity ratio amounted to 70.9% and the Companys Net LTV stood at 27.6% as per June 30, 2022. 

Increased letting results 
alstria letting performance improved from 37,400 sqm in H1 2021 to 55,400 sqm in the reporting period (+48% yoy). This represents signed new leases for 25,000 sqm, as well as lease extensions of around 30,400 sqm. The EPRA vacancy rate stood at 7.9% (December 31, 2021: 6.9%). The improvement of the leasing performance partially reflects the pent-up demand from the lockdowns during the Covid-19 pandemic.

First steps to adjust the capital structure and distribute special dividend
Following the review of the Companys capital structure, alstrias management board intends to take up debt in the amount of presumably up to EUR 850 million. The Company plans to operate with a leverage meeting the minimum criteria consistent with an investment-grade rating resulting in a company leverage of around 50% LTV. 

The expected proceeds shall be used to return approx. EUR 1 billion of capital to the shareholders in the form of a special dividend payment subject to a decision by a General Meeting of the Company and/or in the form of a share buyback in accordance with the existing authorization.

As previously announced, alstria has recently signed a secured loan agreement of EUR 500 million. The loan with a fixed interest rate of 3.25% matures in 2027.

alstria also agreed to increase the available loan amount under one of its current loans by an additional EUR 37 million.  
Pending on the decision of the EGM on August 31, 2022, the company intends to distribute a special dividend of EUR 550 million as a first step of its plan to return EUR 1 billion of capital to shareholders.

Full-year guidance confirmed
Based on the results of the first half of 2022, alstria confirms its guidance for the full year 2022 with expected revenues of around EUR 183 million and an operating profit (FFO) of EUR 106 million. 

Invitation to the conference call on August 9, 2022
The alstria management board, CEO Olivier Elamine and CFO Alexander Dexne, will present the H1 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
PIN:              68474395#

Please note that you can watch the managements presentation live via webcast on our website www.alstria.com. As soon as the conference call begins, the presentation slides will be available for download.

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alstria office REIT-AG
Steinstr. 7
20095 Hamburg
Germany

Investor Relations             
Julius Stinauer                 
Tel.: +49 40 22 63 41-344             
Email: jstinauer@alstria.de

Press Contact
Philip Angrabeit
Tel.: +49 40 22 63 41-389
Email: pangrabeit@alstria.de

Further Information
www.alstria.com
www.beehive.work
www.linkedin.com/company/alstria-office-reit-ag
www.green-dividend.com

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About alstria
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, 2022, the portfolio comprises 109 buildings with a lettable area of 1.4 million square meters and a total portfolio value of EUR 4.8 billion.

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 alstrias 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.