Alstria office REIT posts 170% increase in revenues

Hamburg-based Alstria office REIT reported a 170% increase in revenues to EUR 82.6 mln in its preliminary financial results for 2007. The company also reported a rise in net asset value to EUR 871 mln, which is up around EUR 473 mln (or 119%) compared to the previous year. According to the company statement, the NAV per share was EUR 15.55 at end-December 2007.

The company said that a substantial growth in investment properties from EUR 1.3 bn to EUR 1.7 mln, led to an increase in revenues from EUR 30 mln in 2006 to EUR 83 mln in 2007. As a result, operating income (FFO) rose from EUR -3.5 mln to EUR 31.5 mln in 2007. On the basis of this FFO, the company said it will propose a pay-out of EUR 28.4 mln to shareholders at the AGM on 5 June 2008. The pay-out per share will be about 52 cents.

The company was also positive about the outlook for 2008 and expects revenues to grow by around 15% to EUR 95 mln in 2008. FFO are expected to increase by more than 25% to approx. EUR 40 mln. The company will continue with its high pay-out policy and said it remains company objective to pay out 90% of the FFO generated in the respective year, which reflects a dividend pay out significantly higher than its legal obligation under the G-REIT Law.

Olivier Elamine, CEO of Alstria commented: 'The full year results of Alstria in 2007 demonstrate the strength of the company and its unique profile in Germany. We have benefit in full of the unique competitive advantage of the G-REIT, using the exit tax benefit in order to enhance the benefit of the transactions to both the sellers and Alstria.'

'Operations are going to be the main focus of the company in 2008, as we will start refurbishment projects and increase our leasing activities on the newly acquired assets. We also plan to sell between EUR 50 mln and 100 mln, as part of our active buy and manage strategy,' Elamine added.