alstria office REIT (AOX) Q2 2024 earnings summary

Executive summary

• Revenue increased to €98.6M in H1 2024, up 6.3% year-over-year, driven by new leases and indexation on existing leases.

• Net rental income rose to €86.1M, with consolidated profit surging to €47.8M from €9.2M, aided by bond repurchase gains and improved valuation results.

• FFO after minorities declined 13.5% to €41.5M, mainly due to higher financing costs, with FFO per share down to €0.23 from €0.27.

• Portfolio occupancy stood at 81% as of June 30, 2024, with stabilized assets at 92% and development assets at 45%.

• No real estate transactions occurred in H1 2024; portfolio metrics remained stable with 106 properties and a market value of €4.0bn.

Financial highlights

• Gross rental income rose 6.3% year-over-year, reflecting new leases and indexation.

• Net financial result deteriorated to -€36.4M from -€20.6M year-over-year.

• Net asset value per share increased 4.0% to €9.42; EPRA NTA per share up 3.8% to €9.45.

• Net LTV improved to 57.6% from 58.3% at year-end 2023.

• Cash and cash equivalents stood at €104.8M at period end, down from €116.3M at year-end.

Outlook and guidance

• Expectation of continued increase in cost of debt as legacy debt is refinanced in a higher interest rate environment.

• No material change anticipated in subdued investment market activity for the remainder of 2024.

• Full-year 2024 revenue guidance confirmed at approximately €195M, with FFO expected at €71M.

• Focus remains on asset refurbishment and leveraging strong tenant demand.

• Forward-looking statements highlight risks from economic conditions, interest rates, and regulatory changes.