DGAP-News: alstria office REIT-AG: Strong operating performance drives Net Asset Value growth, introduction of Green Dividend concept
DGAP-News: alstria office REIT-AG
/ Key word(s): Annual Results
alstria office REIT-AG: Strong operating performance drives Net Asset Value growth, introduction of Green Dividend concept
26.02.2020 / 17:40
The issuer is solely responsible for the content of this announcement.
Strong operating performance drives Net Asset Value growth, introduction of Green Dividend concept
- Result 2019: Revenues of EUR 187.5 million and FFO of EUR 112.6 million
- Historic letting year: 368,900 sqm letting volume, contractual rent (like-for-like) up by 9.7% to EUR 208.3 million
- Value accretion: EPRA NAV up by 18.3% to EUR 17.91 per share
- Financial debt on historic low: Net LTV down to 27.1%, net debt/EBITDA of 8.5x
- Management proposes increase of dividend to EUR 0.53 per share, of which 1 cent of "Green Dividend"
Hamburg, February 26, 2020 - alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) announces its result for the financial year 2019.
Strong letting year: Net absorption of 83,900 sqm, development portfolio 70% pre-let
In 2019 alstria capitalized on the strong letting market in its core investment centers. With 197,600 sqm of new leases and 171,300 sqm of lease extensions, the company increased its like-for-like contractual rent by 9.7% from EUR 189.9 million to EUR 208.3 million. Substantial long-term leases were signed with public tenants securing long-term cash flows and increasing the WAULT (weighted average unexpired lease-term) of the total portfolio to 6.3 years (2018: 4.8 years). alstria's development portfolio, comprising eight projects with a lettable space of 184,000 sqm, recorded a strong improvement of the pre-letting rate to 70% as per December 31, 2019. The secured rents of EUR 26.0 million on this sub-portfolio provide a secured source of alstria's top line growth going forward.
Demand for real estate assets drives capital values: Valuation gain of EUR 2.56 per share
The value of alstria's investment properties increased by 12.7% to EUR 4,439 million as per December 31, 2019. alstria's strong operational performance was the main reason for the revaluation gain amounting to EUR 454.8 million (EUR 2.56 per share). The valuation yield stood at 4.7% (2018: 4.9%) and represents a capital value of EUR 2,966 per sqm and is still well below replacement costs. alstria continued to take advantage of the strong investment market and pursued its strategy to further concentrate its portfolio on the main German office markets. In the course of the year, six assets located in secondary locations, were sold for a total consideration of EUR 139.7 million at an average book gain of 11.2% compared to the valuation as per December 31, 2018. In parallel, alstria bought five buildings in its core markets for EUR 49.3 million and continued to expand its refurbishment program. This selective capital recycling approach is allowing alstria to further improve the overall risk profile of the portfolio.
Strong balance sheet: EPRA NAV up to EUR 17.91 per share, LTV down to 27.1%
The consolidated net profit drove alstria's IFRS equity to EUR 3,176 million, representing an increase of EUR 429 million in 2019. The EPRA NAV per share amounted to EUR 17.91 and was up by 18.3% year-on-year (December 31, 2018: EUR 15.14). alstria's net LTV improved further to 27.1% (2018: 30.4%) and the net debt/EBITDA multiple was 8.5x. The Interest Coverage Ratio (ICR) stood at 5.8. alstria's G-REIT equity ratio improved to 70.9% (2018: 67.2%), underlining the company's balance sheet quality. alstria is rated BBB (positive outlook) by Standard & Poor's.
 Defined as total IFRS equity divided by immovable assets value on the balance sheet
Operations in-line with plan: Revenues at EUR 187.5 million and FFO at EUR 112.6 million
In 2019 revenues amounted to EUR 187.5 million (2018: EUR 193.2 million). The slight loss of rental income was mainly due to the disposal of non-core assets and the related loss of rental income, as well as the acceleration of the refurbishment pipeline. The 2019 FFO amounted to EUR 112.6 million and was in-line with the full-year guidance of EUR 112.0 million. alstria's FFO margin further improved to 60.0% (2018: 59.4%), which was mainly due to lower costs. The consolidated profit of EUR 581.2 million increased by 10% compared to the prior year period and was driven by the valuation uplift and the strong operating result.
Dividend proposal: EUR 0.53 per share, thereof EUR 1 cent "Green Dividend"
The Management Board will propose to the Annual General Meeting a dividend payment of EUR 0.53 per share, which represents an increase of 1 cent compared to 2018 (EUR 0.52). The increase of 1 cent per share is proposed as "Green Dividend".
alstria, which has been at the forefront of the sustainability discussion in the European real estate sector for a number of years, is proposing to its shareholders a new dividend concept (the "Green Dividend") of EUR 0.01 per share.
 The decision on the Green Dividend by the AGM has no influence whatsoever of the regular dividend payment of EUR 0.52 per share.
There seems to be a general understanding that it is unlikely that the target of the Paris Agreement will be reached with a "business as usual" approach. As a first step, alstria is earmarking EUR 1.8 million to accelerate the Company's pace of action in reducing its carbon footprint. alstria has identified the projects that could be implemented and has quantified the impact it could have. alstria will ask its AGM to take a majority vote that will decide whether the Company should pay the Green Dividend to all the shareholders or keep the funds. If shareholders decide to receive the Green Dividend, they will be able to invest the proceeds in a more efficient climate mitigation project. On the other hand, if shareholders ask the company to keep the Green Dividend, they will provide alstria with a clear mandate to invest outside of its financial norms. Whatever the AGM's decision is, alstria would have contributed around 2% of its dividend toward climate mitigation issues.
 For more information and a description of the "Green Dividend" please see www.green-dividend.com
Outlook 2020: Revenues of EUR 179 million, FFO of EUR 108 million
For the current year 2020, alstria expects revenues of EUR 179 million and funds from operations (FFO) of EUR 108 million. The decline compared to 2019 is due to the disposal of non-core properties.
"2019 has been and extra-ordinary strong year for the company", said Olivier Elamine, CEO of alstria. "Our operational teams have been able to take advantage of every opportunity available in our markets to the benefit of the company, and our financing team was yet again able to reduce our average cost of funding. While we need to celebrate this short-term performance, we shall also stress that this year's performance has delivered and secured a solid foundation for our top line growth in the future. This growth is now embedded in the refurbishment portfolio's strong pre-letting and will deliver constantly in the coming years. Looking beyond finance, we are also acutely aware of the challenges brought forward by climate change and are suggesting for the first time a "Green Dividend" as a new tool of funding for ecological projects and of communication between companies and shareholders. The "Green Dividend" is more concrete and more operational than any CSR reporting. We have no doubt that it will lead to controversial debates and are looking forward for the dialogue."
Invitation to the telephone conference on February 27, 2020
The alstria management board, CEO Olivier Elamine and CFO Alexander Dexne, will present the 2019 financial results and the outlook 2020 in a telephone conference at 10:00 am (CET) which will also be webcasted on our website (www.alstria.com). The full Annual report (Company report and Audited Financial Statements) will also be available for download on our website.
Please use one of the following dial-in numbers:
Germany: +49 69 2017 44 220
UK: +44 20 3009 2470
PIN: 934 86 465#
20095 Hamburg, Germany
Tel: +49 40 22 63 41-329
Email: [email protected]
More information on:
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. The portfolio comprises 116 buildings with a lettable area of 1.5 million sqm and a total portfolio value of EUR 4.5 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. 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.
26.02.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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||alstria office REIT-AG
||040-226 341 300
||040-226 341 310
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Quelle: boersengefluester.de und Firmenangaben
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1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de
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