Alstria office REIT : Q1 results

- alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) ('alstria') announces its result for the first three months of 2021.

Revenues of EUR 44.7 m and FFO at EUR 29.4 m
alstria's portfolio has proven its resilience in the first quarter 2021 with a rent collection rate at 99%. Rental income amounted to EUR 44.7 million in the reporting period, compared to EUR 44.3 million in the same period of the previous year. The increase in rental income is mainly due to the start of new leases, which overcompensated the loss of rental income resulting from the sale of properties in 2020.
The operating result (FFO after minorities) amounted to EUR 29.4 million in the reporting period and remained at the previous year's level (3M 2020: EUR 29.4 million). In line with previous years reporting, the first quarter FFO is positively impacted by lower real estate operating expenses. The FFO margin remained at a high level with 65.7% (3M 2020: 66.3%). Consolidated net income for the period under review amounted to EUR 26.2 million (3M 2020: EUR 28.2 million).

EPRA NTA per share up to EUR 18.49
The fair value of investment property amounted to EUR 4,614 million as of March 31, 2021, compared to EUR 4,556 million as of December 31, 2020. The increase by EUR 58 million resulted from the acquisition of an asset in Frankfurt (AIC: EUR 32.3 million) and the capex into the portfolio (EUR 25.4 million) within the first quarter of 2021. As of March 31, 2021, alstria's cash and cash equivalents amounted to EUR 453 million (December 31, 2020: EUR 461 million). Taking into consideration the dividend payment of 0.53 cent per share, the cash position of the company net of dividend is EUR 359 million.
Within the first three months of 2021, alstria's equity increased by 0.8% to EUR 3,279 million, reflecting the positive profit contribution in the first quarter of 2021. Accordingly, the company's EPRA NTA per share improved to EUR 18.49. The G-REIT equity ratio amounted to 70.8% and the Company's Net LTV stood at 27.3% as per March 31, 2021.
With the planned dividend payment of EUR 0.53 per share after the AGM on May 6, 2021, the EPRA NTA will adjust to EUR 17.96 per share and the Net LTV will adjust to around 29%.

Letting results in line with expectations
In line with the company's guidance, the leasing performance recorded a slow start in 2021. This reflects the overall loss of momentum in the leasing market as a result of the lockdowns. alstria signed new leases for 4,300 square meters, as well as lease extensions of around 12,600 square meters in the first three months of 2021. The EPRA vacancy rate stood at 8.2% (December 31, 2020: 7.6%). The increase is mainly the result of the acquisition of the Frankfurt asset with a vacancy rate of 55% (5,800 sqm of vacancy). alstria does not expect that the letting market will be restarting prior to the clear end of the pandemic emergency and is planning for low letting activities in 2021.

Full-year guidance confirmed
Based on the results of the first quarter, alstria confirms its guidance for the full year 2021 with expected revenues of around EUR 177 million and an operating profit (FFO) of EUR 108 million.
'2021 has developed according to our plans' says Olivier Elamine, CEO of alstria. 'We are assuming that the letting market will remain subdue as long as there is no clear visibility on the end of the health crisis. Despite the lockdowns, alstria's portfolio remains resilient with a rental payment rate close to 100%. Investment markets, albeit on lower volume, continue to show strong momentum with yields remaining at historical lows and showing little signs of easing.'

Invitation to the conference call on May 4, 2021
The alstria management board, CEO Olivier Elamine and CFO Alexander Dexne, will present the Q1 results during a conference call at 10:00 a.m. (CEST).

Please use one of the following dial-in numbers:
Germany: + 49 69 201 744 220
UK: + 44 203 009 2470
PIN: 2215 6649#

Please note that you can follow the management's presentation live via webcast on our website www.alstria.com. The presentation slides will be available for download on our website, shortly before the conference call begins.