alstria office REIT-AG: Revenues and FFO in line with company guidance

alstria's strong focus on asset management allowed the company to make significant progress on its refurbishment projects. The building permit on the landmark Alte Post building in Hamburg was obtained allowing the leasing process to start, and the vacant building acquired in Hamburg in mid-2009 has been fully refurbished and let on a long-term lease basis. Although alstria has only disposed fully let buildings the vacancy rate remains stable at around 5.7%. The 2009 like-for-like rental growth on the investment portfolio of alstria was at 1.4% for the year.

Post closing events: New portfolio sale and refinancing
alstria signed a binding agreement for the sale of a real estate portfolio located in Hamburg for a total consideration of €84.2 million. The agreed purchase price values the portfolio at a premium of 11% and 4% above 2009 and 2008 book values respectively. The portfolio represents a gross rental income of €3.86 million per year secured for 15 years.

Following the signature of the new joint venture that was announced on February 22, alstria repaid €28 million on its main syndicated loan facility. Also, alstria entered into a new non-recourse credit facility of €76 million and a 7-years maturity to refinance four properties in Hamburg, Essen and Leipzig with an average lease term of 8 years. The interest rate on this loan is fixed until maturity at 4.62%. After this refinancing and the above mentioned disposals, the remaining main syndicated loan facility exposure is €651 million with an average cost of debt for alstria at 4.3%.

G-REIT equity ratio significantly improved
The G-REIT equity ratio for FY2009 remained at 40.3% unchanged from FY2008 despite the net loss, and below the 45% requirement of the REIT law. However, this does not challenge the tax free status of alstria, as the REIT law provides for a 3-year cure period (i.e. December 31, 2010). Taking into consideration the closing of the transactions in the first months of 2010 the G-REIT equity ratio is expected to significantly increase from 40.3% to more than 43%.

Outlook
On the basis of the most recent transactions and the rent that has already been contractually agreed, alstria expects revenues of €89 million and an operational result (FFO) of €27 million in the financial year 2010.