alstria office REIT (AOX) Q2 2024 earnings summary

Executive summary

• Revenue increased to €98.6m in H1 2024, up 6.3% year-over-year, with net rental income rising to €86.1m and consolidated profit surging to €47.8m, driven by rent indexation, new leases, and bond repurchase gains.

• FFO after minorities declined 13.5% to €41.5m, and FFO per share fell to €0.23 from €0.27, mainly due to higher financing costs.

• Portfolio occupancy was 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, with net financial result deteriorating to -€36.4m from -€20.6m.

• 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; G-REIT equity ratio at 44.0%.

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

• SG&A expenses decreased by 10.5% to €9.2m for H1.

Outlook and guidance

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

• Expectation of continued increase in cost of debt as legacy debt is refinanced at higher rates.

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

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

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