alstria office REIT (AOX) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 reached EUR 198.4 million, with FFO at EUR 81.2 million, both exceeding guidance; FFO per share was EUR 0.49.

• Leasing activity was strong, with new leases up 19% year-over-year, totaling 52,100 sq m of new leases and 106,500 sq m of extensions.

• Property values stabilized, with a 4% year-over-year increase and portfolio valuation at EUR 4.1 billion.

• EPRA NTA remained stable at EUR 9.15 per share; LTV decreased to 56.5% as part of ongoing deleveraging.

• The company exited the REIT regime at year-end 2024, triggering compensation payments and initiating a squeeze-out process to become private under Brookfield.

Financial highlights

• Revenue of EUR 198.4 million and FFO of EUR 81.2 million, both above guidance.

• Net rental income increased to EUR 171.9 million from EUR 163.9 million year-over-year.

• Net financial debt stable at EUR 2.3 billion; equity down 7% due to deferred tax liability from REIT exit.

• Net LTV reduced from 58.3% to 56.5%.

• Average rent per sq m increased to just under EUR 15.

Outlook and guidance

• 2025 revenue guidance is EUR 192 million, slightly below 2024, due to asset vacancies for refurbishment.

• FFO guidance for 2025 is EUR 52 million, reflecting higher refinancing costs.

• Investment markets expected to remain weak in 2025, with gradual recovery and normalization anticipated in 2026.

• Leasing market remains positive, with strong tenant demand for quality, modern office space.

• No dividend proposed for 2024 due to lack of distributable profit; future dividend subject to liquidity changes.