alstria office REIT (AOX) Q3 2024 earnings summary

Executive summary

• Operational business developed in line with expectations, with strong leasing results and an active leasing market driving performance for the first nine months of 2024.

• Portfolio comprised 106 assets with 1.395 million sqm lettable area and 80% occupancy as of September 30, 2024.

• Revenues increased by 4.6% year-over-year to €148.6m, driven by rent indexation and new leases, offsetting terminated agreements.

• Consolidated profit fell sharply to -€154.6m due to a one-time deferred tax expense linked to the expected loss of REIT status.

• Squeeze-out process initiated by majority shareholders, leading to expected delisting and exit from the REIT regime by year-end 2024.

Financial highlights

• Revenues for the nine months ended September 30, 2024, were €148.6 million, up from €142.1 million year-over-year.

• Net rental income rose to €129.3 million from €121.3 million year-over-year.

• EPRA NTA per share decreased to €8.89, mainly due to booking a deferred tax liability.

• Net LTV improved to 57.1% from 58.3% at end-2023, reflecting CapEx investments.

• FFO per share at €0.35, down year-over-year due to higher financial costs from refinancing.

Outlook and guidance

• Leasing market expected to remain strong, with liquidity and tenant movement continuing.

• Investment market activity expected to stay low in 2024, with potential recovery in 2025 and normalization in 2026.

• Refurbishment pipeline fully funded through 2025.

• Full-year 2024 revenue forecast confirmed at approximately €195m and FFO at €71m.