Lower financing costs and a €23.3 mln profit from the sale of the Kaisergalerie in Hamburg in the first six months of the year helped Frankfurt-listed office specialist Alstria lift net profit by 49% over the period.
Rental revenues were down 9% at €93.3 mln, but this reflected the disposal of non-core properties in the second half of 2016, the company said in a press release. Despite lower revenues funds from operations (FFO) were down only slightly by 1.3% to €56.6 mln.
Following the strong H1 performance, the company is upgrading its full-year forecast and now expects 2017 revenues of €193 mln (previous guidance: €185 mln) and FFO of €113 mln (previous guidance: €108 mln).
‘In the first six months of 2017 we have been able to re-invest the proceeds from the sale of the Treptowers into a diversified portfolio offering a stronger risk-return profile,’ CEO Olivier Elamine said. ‘This, combined with strong lease-up results allows us to update our guidance to the 2016 levels. The investment market remains very competitive and it is our intention to continue to capitalize on its dynamic and crystalize the value creation as demonstrated by the recent sale of the Kaisergalerie in Hamburg.’
Hamburg-based Alstria is primarily active in northern and central Germany and has a portfolio of 199 office properties valued at €3.2 bn as at 30 June 2017.
