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

Press Release

Result for the first quarter of 2022

• Revenues at EUR 45.9 million and funds from operations (FFO) at EUR 27.5 million 
• EPRA NTA at EUR 19.09 per share 
• New three years EUR 200 million Revolving Credit Facility (RCF) 

Hamburg, May 2, 2022 - alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) ("alstria") announces its result for the first three months of 2022.

Revenues of EUR 45.9 million and FFO at EUR 27.5 million 
alstria's revenues developed as planned in the reporting period and reached EUR 45.9 million in the first quarter of 2022 (3M 2021: EUR 44.7 million). The increase by 2.8% is mainly due to the net impact of transactions that took place in 2021. 

The operating result (FFO after minorities) was EUR 27.5 million in the reporting period (3M 2021: EUR 29.4 million). The higher rental income was offset by higher real estate operating costs driven by increased activity on the assets. Consolidated net income for the period under review amounted to EUR 20.7 million (3M 2021: EUR 26.2 million). 

EPRA NTA up to EUR 19.09 per share
The fair value of investment property amounted to EUR 4,767 million as of March 31, 2022, compared to EUR 4,776 million as of December 31, 2021. The slight decrease resulted from a property in Düsseldorf being sold. As of March 31, 2022, alstria's cash and cash equivalents amounted to EUR 378 million (December 31, 2021: EUR 314 million). 

Within the first three months of 2022, alstria's equity increased by 0.6% to EUR 3,388 million, reflecting the positive profit contribution in the first quarter of 2022. Accordingly, the company's EPRA NTA improved to EUR 19.09 per share. The G-REIT equity ratio amounted to 70.4% and the Company's Net LTV stood at 27.7% as per March 31, 2022. 

Increased letting results 
alstria letting performance improved from 16,900 sqm in Q1 2021 to 34,100 sqm in the reporting period. This represents signed new leases for 11,600 sqm, as well as lease extensions of around 22,500 sqm. The EPRA vacancy rate stood at 7.7% (December 31, 2021: 6.9%). The improvement of the leasing performance partially reflects the improved sentiment in the letting market in the first quarter of 2022 following the reduced perceived uncertainty around the Covid-19 pandemic. 

Intention to adjust the capital structure - New revolving credit facility
Following the review of the Company's capital structure, alstria's management board intends to take up debt in the amount of presumably up to EUR 850 million. The Company intends 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 additional debt may occur through the issuance of secured or unsecured debt instruments, such as for example corporate bonds and/or through bank financing.

The expected proceeds shall be used to return approx. EUR 1 billion of capital to the shareholders in the form of a share buyback in accordance with the existing authorization or - subject to a decision by a General Meeting of the Company - in the form of a special dividend payment.
 
alstria has recently signed a new three years Revolving Credit Facility (RCF) in the amount of EUR 200 million to improve its already strong liquidity position.

Full-year guidance confirmed
Based on the results of the first quarter, 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. 

"While the impact of the Covid pandemic is slowly normalizing and positively impacting letting markets, other major macro-events have increased overall uncertainty in the market," says Olivier Elamine, CEO of alstria. "The economic impact of the war in Ukraine is being felt across industries with German CPI increasing dramatically. Our portfolio of CPI linked income combined with strong real assets, and hands-on management offer a solid basis that will allow the company to safely navigate the current environment."

Invitation to the conference call on May 3, 2022
The alstria management board, CEO Olivier Elamine and CFO Alexander Dexne, will present the Q1 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:              36929050#

Please note that you can watch the management's 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 March 31, 2022, the portfolio comprises 110 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 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.