2025
ANNUAL
REPORT
alstria Annual Report 2025
KEY FIGURES
FIVE-YEAR OVERVIEW
Revenues and earnings
2025
2024
2023
2022
2021
Revenues (EUR k)
195,073
198,441
192,026
182,819
183,670
Net rental income (EUR k)
166,624
173,639
163,936
158,946
163,271
Consolidated profit for the period
(EUR k)
138,538
-104,545
−653,374
−74,614
209,678
FFO (EUR k)1)
57,687
71,057
87,972
106,562
116,455
Earnings per share (EUR)2)
1.14
-0.86
−5.39
−0.62
1.73
FFO per share (EUR)2)
0.48
0.59
0.73
0.88
0.96
1) Excluding minorities.
Balance sheet
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Investment property (EUR k)
4,249,307
4,127,431
3,971,253
4,606,848
4,775,801
Total assets (EUR k)
4,768,670
4,348,967
4,237,518
5,163,774
5,234,372
Equity (EUR k)
1,656,985
1,506,869
1,617,547
2,571,400
3,367,083
Liabilities (EUR k)
3,111,684
2,842,098
2,619,971
2,592,374
1,867,290
Net asset value (NAV) per
share (EUR)
13.68
12.44
13.35
21.22
27.79
Net loan-to-value (balance sheet,
%)
54.9
54.8
56.4
42.4
28.8
EPRA figures3)
2025
2024
2023
2022
2021
EPRA earnings per share (EUR) 1)2)
0.52
0.48
0.75
0.92
0.81
EPRA cost ratio A (%)4)
30.5
26.1
23.6
32.1
25.0
EPRA cost ratio B (%)5)
23.4
20.1
18.3
27.0
21.1
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
EPRA NRV per share (EUR) 2)
16.16
15.75
16.01
24.14
30.65
EPRA NTA per share (EUR) 2)
13.85
13.49
13.42
21.30
27.87
EPRA NDV per share (EUR) 2)
13.79
13.08
15.21
23.09
27.66
EPRA net initial yield (%)
3.9
4.1
4.2
3.5
2.9
EPRA ‘topped-up’ net initial
yield (%)
4.4
4.5
4.4
3.7
3.4
EPRA vacancy rate (%)
8.6
7.9
8.0
7.2
6.9
1) FY 2024 rebased to reflect the change in accounting policy. Published FFO number was EUR 81,173 k. For more information, please refer to
alstria’s 2025 annual report.
2) All share-related figures are based on the current number of shares (121,166,781). Previous fiscal years have been adjusted accordingly.
3) For further information, please refer to EPRA Best Practices Recommendations, www.epra.com.
4) Including vacancy costs.
5) Excluding vacancy costs.
CONTENT
A.
COMBINED MANAGEMENT REPORT ......................................................... 6
I.
ECONOMICS AND STRATEGY ........................................................................... 6
II.
FINANCIAL ANALYSIS .................................................................................. 13
III.
EXPECTED DEVELOPMENTS ........................................................................... 25
IV.
REPORT REGARDING ALSTRIA S.À R.L. .............................................................. 26
V.
RISK AND OPPORTUNITY REPORT .................................................................... 32
VI.
SUSTAINABILITY INFORMATION ...................................................................... 64
VII.
ADDITIONAL GROUP DISCLOSURE .................................................................... 65
B.
CONSOLIDATED FINANCIAL STATEMENTS ................................................ 68
I.
CONSOLIDATED INCOME STATEMENT ............................................................... 68
II.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ....................................... 69
III.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................................ 70
IV.
CONSOLIDATED STATEMENT OF CASH FLOWS ..................................................... 72
V.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY............................................. 74
VI.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ......................................... 75
C.
RESPONSIBILITY STATEMENT ............................................................. 165
D.
INDEPENDENT AUDITOR’S REPORT ...................................................... 166
E.
SUSTAINABILITY STATEMENT ............................................................. 175
F.
FINANCIAL CALENDAR ..................................................................... 213
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alstria Annual Report 2025
DETAIL INDEX COMBINED MANAGEMENT REPORT
G
A.
COMBINED MANAGEMENT REPORT ......................................................... 6
I.
ECONOMICS AND STRATEGY ........................................................................... 6
1. CORPORATE CHANGES ................................................................................... 6
1. STRATEGY .................................................................................................. 7
2. CORPORATE MANAGEMENT .............................................................................. 8
3. ECONOMY AND OFFICE MARKETS ....................................................................... 9
4. PORTFOLIO ANALYSIS ................................................................................... 10
II.
FINANCIAL ANALYSIS .................................................................................. 13
1. EARNINGS POSITION ..................................................................................... 13
2. FINANCIAL AND ASSET POSITION ....................................................................... 18
3. OVERALL ASSESSMENT OF THE FINANCIAL YEAR BY THE BOARD OF MANAGERS (CONSEIL DE
GÉRANCE) ................................................................................................. 25
III.
EXPECTED DEVELOPMENTS ........................................................................... 25
1. EXPECTED ECONOMIC DEVELOPMENT ................................................................. 25
2. DEVELOPMENT OF THE REAL ESTATE MARKET: OUTLOOK FOR 2026 .............................. 25
3. OUTLOOK FOR THE ALSTRIA GROUP .................................................................. 25
IV.
REPORT REGARDING ALSTRIA S.À R.L. .............................................................. 26
1. EARNINGS POSITION ..................................................................................... 26
2. FINANCIAL AND ASSET POSITION ....................................................................... 29
3. ADDITIONAL DISCLOSURE REGARDING ALSTRIA S.À R.L. ............................................ 31
V.
RISK AND OPPORTUNITY REPORT .................................................................... 32
1. RISK REPORT.............................................................................................. 32
2. REPORT ON OPPORTUNITIES ........................................................................... 61
VI.
SUSTAINABILITY INFORMATION ...................................................................... 64
VII.
ADDITIONAL GROUP DISCLOSURE .................................................................... 65
1. CORPORATE GOVERNANCE GROUP DECLARATION PURSUANT TO SECTIONS 289F AND
315D HGB (“HANDELSGESETZBUCH”: GERMAN COMMERCIAL CODE) .............................. 65
2. EMPLOYEES ............................................................................................... 65
3. GROUP AND DEPENDENT-COMPANY REPORT ......................................................... 65
4. DIVIDEND .................................................................................................. 65
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6
A. COMBINED MANAGEMENT REPORT
I.
ECONOMICS AND STRATEGY
1. CORPORATE CHANGES
In the course of 2025 the following corporate changes took place:
Change of legal form: On December 31, 2024, the company's REIT status ended as the company no
longer met the requirements for a REIT stock corporation under the German Real Estate Stock
Corporation Act (REITG) due to its shareholder structure. As a result, the extraordinary general
meeting resolved on February 11, 2025 to amend the articles of association by changing the company's
name to alstria office AG. This became effective upon entry in the commercial register on
May 23, 2025. On August 26, 2025, a further extraordinary general meeting resolved to change the
legal form of the company from a German stock corporation to a Luxembourg S.à r.l. and to relocate
the company's registered office to Luxembourg. The change of registered office and form took place
after the balance sheet date on 21 January 2026. In the course of a cross-border change of legal form,
the company's legal form was changed from a German stock corporation (‘alstria office AG’) to a
Luxembourg S.à r.l. (‘alstria S.à r.l.’, hereinafter referred to as ‘alstria’ or ‘the company’). As part
of the corporate restructuring, the properties previously held by alstria office AG were transferred to
domestic subsidiaries (Tochter-Kommanditgesellschaften) at the end of the financial year 2025. In
addition, the company's share capital was reduced from EUR 178,562 k to EUR 121,167 k.
Squeeze-out and delisting: The Extraordinary General Meeting on February 11, 2025 resolved to
transfer the shares of the minority shareholders to the main shareholder BPG Holdings Bermuda
Limited (Hamilton, Bermuda) in return for an appropriate cash compensation in accordance with
Sections 327a et seq. of the German Stock Corporation Act (squeeze-out of minority shareholders).
The transfer of the shares and the corresponding compensation payment to the minority shareholders
took place in early June 2025. As a result of the squeeze-out, Deutsche Börse, in consent with the
company, discontinued trading in the shares of alstria office AG and the stock exchange listing.
Irrespective of this, as an issuer of corporate bonds, alstria remains capital market orientated and
thus a company of public interest.
Spin-off of alstria advisors GmbH: On September 18, 2025, alstria's operating activities (asset
management and financing) were spun off into the newly founded alstria advisors GmbH, based in
Hamburg, and deconsolidated with effect from December 8, 2025 and has been accounted for using
the equity method since then. From this date onwards, alstria advisors GmbH acts as a consultant to
alstria in relation to asset management and the financing of the real estate portfolio. The spin-off of
alstria advisors GmbH has changed the structure of the consolidated balance sheet and income
statement, limiting comparability with previous periods. The main change resulting from the
deconsolidation can be found in the operating expense items in the consolidated income statement.
Going forward, the remuneration paid by alstria to alstria advisors GmbH will be reported under the
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alstria Annual Report 2025
new item ‘Consulting and asset management expenses’. Due to the deconsolidation during the year
2025, both personnel and administrative costs (EUR 31,107 k) and advisory and asset management
expenses (EUR 2,644 k) are reported on a pro rata basis in the 2025 financial year. In fiscal year 2025,
a one-time valuation gain of EUR 6,008 k was also recognized, corresponding to the difference
between the acquisition cost and the fair value of the investment in alstria advisors GmbH accounted
for using the equity method. The valuation gain was recognized in other operating income. In addition,
the item ‘Income from investments accounted for using the equity method’ (2025: EUR 146 k) is
reported in alstria's consolidated income statement. As the real estate assets remain with alstria and
its subsidiaries, the deconsolidation of alstria advisors GmbH has only a limited impact on the balance
sheet. On the assets side, the space previously reported as property, plant, and equipment and now
leased from alstria advisors GmbH is reported as investment property (2025: EUR 23,499 k). This
resulted in a revaluation gain of EUR 7,105 k on alstria's equity, as the space used by the company
itself was previously recognized at its book value. Finally, receivables (EUR 3,727 k) and liabilities
(EUR 8 k) relating to alstria advisors GmbH are included in alstria's balance sheet for the 2025 financial
year.
2. STRATEGY
Since January 21, 2026, alstria has been a Luxembourg-based S.à r.l., but its strategy remains
unchanged despite restructuring and migration. The company invests in office properties in German
economic centers and focuses on implementing value-enhancing modernization and repositioning
measures with sustainable value creation potential in order to future-proof the portfolio and continue
the ongoing decarbonization process.
As of December 31, 2025, the alstria Group consisted of the parent company alstria and 122 direct
and indirect subsidiaries (hereinafter referred to as “alstria” or the “Group”). Operational decisions
are made at the parent company. As of December 31, 2025, alstria's real estate portfolio comprised
103 buildings with a lettable area of 1.4 million square meters and a total value of EUR 4.2 billion.
The properties are predominantly located in the German office centers of Hamburg, Düsseldorf,
Frankfurt, Stuttgart and Berlin, which alstria defines as its core markets. alstria is advised by alstria
advisors GmbH in the area of asset management and financing.
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8
alstria’s corporate strategy is based on the following principles:
- Access to capital and the operational expertise of alstria advisors GmbH are fundamental success
factors for alstria.
- By concentrating the real estate portfolio on the major German office markets and by focusing on
solvent tenants, alstria generates steady income primarily used for reinvesting in the portfolio.
- Continuous investments in the quality of the real estate portfolio secure and increase rental
income and property values and improve the portfolio’s energy efficiency.
- Depending on the assessment of the market situation, properties are bought or sold. The goal is
risk-adjusted corporate growth and achieving a return in line with the market over the real estate
cycle.
3. CORPORATE MANAGEMENT
alstria proactively controls the Company based on two key financial performance indicators: revenues
and funds from operations (FFO). Revenues mainly comprise rental income derived from the
Company’s leasing activities. FFO is the operating result from property management, excluding
valuation effects, capital gains and other non-cash income/cost items or income/cost items that are
not expected to recur annually. Adjustments are also made for income/cost items relating to other
periods and income/cost items not attributable to the operating business. The impact of financial
derivatives and tax effects are also adjusted.**
The revenue and FFO forecast published by alstria at the beginning of 2025 was exceeded in the 2025
financial year. The Group's revenue amounted to EUR 195.1 million (guidance: EUR 192 million) and
FFO reached EUR 57.6 million in the reporting year (guidance: EUR 52 million). The reasons for the
above-plan revenue is higher rental income from existing leases. The higher rental income also had a
positive effect on FFO.
The company also monitors the development of net LTV**, net debt to EBITDA and cash and cash
equivalents, although these are not the most important performance indicators for the Group's
internal management. As per December 31, 2025, the net LTV ratio was 54.9%, compared to 54.8% at
the end of the 2024 financial year. EBITDA and cash and cash equivalents developed according to
plan.
The management at the level of the Company primarily focuses on the total operating performance.
alstria S.à r.l. strives for stable results with low volatility.
* For further details, please refer to page 13f.
** Net debt in relation to total balance sheet less cash
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alstria Annual Report 2025
4. ECONOMY AND OFFICE MARKETS
4.1.
Economic development*
With gross domestic product growth of 0.2%, the German economy once again showed weak
performance in 2025. In addition to ongoing structural weakness in private investment, this is due to
the erratic tariffs policy of the US, which is unsettling the strongly export-oriented German economy.
On the other hand, the German economy is receiving support from government programs to strengthen
defense and infrastructure. Consumer prices rose by 2.2% in 2025, approaching the European Central
Bank's target range.
4.2.
Office markets**
4.2.1. Vacancy rate, office lettings and rents
In 2025, the persistently weak economic development and the economic uncertainty of many
companies had a direct impact on demand for office space. In the seven major office markets (the
‘Big 7’ cities: Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Cologne, Munich and Stuttgart), a total
of around 2.6 million square metres was transacted in 2025, around 1% more than in the same period
of the previous year.
The vacancy rate rose further by 1.5 percentage points to 8.8% over the course of the year. Average
rents per sqm in the markets relevant to alstria varied from region to region. While higher rents were
recorded in Frankfurt (+24% to EUR 31.50/m²/month), rents fell particularly in Berlin (-18% to EUR
25.45/m²/month) and Stuttgart (-17% to EUR 18.50/m²/month). In Hamburg and Düsseldorf, rent
levels remained largely stable. The prime yield for office properties stabilised at 4.41%.
4.2.2. Transactions
As a result of the continuing weak economic development, the transaction volume in the office
property segment of the ‘Big 7’ fell by 12% year-on-year to EUR 10.7 billion. The individual markets
relevant to alstria developed as follows: Hamburg: EUR 1.9 billion (-14%), Düsseldorf: EUR 0.7 billion
(-31%), Frankfurt: EUR 0.6 billion (-57%), Stuttgart: EUR 0.4 billion (-20%) and Berlin: EUR 3.3 billion
(+2%).
* Source: German Government- Jahreswirtschaftsbericht 2025.
** Source: Top 7 locations market report Q1-4 2025, German Property Partners.
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5. PORTFOLIO ANALYSIS
5.1.
Key metrics of the portfolio and investment locations
alstria owns, manages, and develops office buildings with a total lettable area of 1.4 million m². At
the end of 2025, 90.0 % of this was office and storage space and 10.0 % included other types of use
(retail, hotel, and other). By focusing on the large and liquid German office markets, the management
board believes that alstria can secure its competitive position by efficiently managing substantial sub-
portfolios even in economically difficult times. Rather than large buildings, alstria typically prefers
smaller, geographically close properties. alstria’s management believes that such a portfolio design
allows the company to spread the operational risk over a larger number of buildings and thus reduce
the overall risk of the real estate portfolio. The buildings in the alstria portfolio have an average
lettable area of 13,500 m² and an average market value of EUR 41.2 million.
Key metrics
Dec. 31, 2025
Dec. 31, 2024
Number of properties
103
106
Market value (EUR bn)
4.2
4,1
Annual contractual rent (EUR m)
200.6
203.2
Valuation yield (%, contractual rent / market value)
4.7
4.9
Lettable area (m²)
1,386,000
1,395,000
EPRA vacancy rate (%)
8.6
7.9
WAULT (weighted average unexpired lease term in years)
5.8
5.2
Average value per m² (EUR)
3,100
2,970
Average rent/m² (EUR / month)1)
15.48
15.23
1) Average rent for the office space.
Total portfolio by region
(% of market value)
Dec. 31, 2025
Dec. 31, 2024
Change (pp)
Hamburg
32
33
-1
Düsseldorf
26
27
-1
Frankfurt
22
22
-
Stuttgart
12
10
2
Berlin
8
8
-
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alstria Annual Report 2025
5.2.
Tenants and leases
Public tenants and large national and international companies in particular characterize alstria’s
tenant structure. The following table shows the ten largest tenants as of December 31, 2025:
alstria’s main tenants
(% of secured rent1)
Dec. 31, 2025
Dec. 31, 2024
City of Hamburg
19
14
BIMA (German Federal Government)
13
5
City of Frankfurt
10
4
ACS SA
4
2
Wella Germany GmbH
3
-
IHR Vermögen & Immobilien GmbH
3
-
Deutsche Post AG
2
2
Commerzbank AG
2
2
RMV GmbH
1
1
Hans-Böckler-Stiftung
1
1
1) The secured annual rent is calculated by multiplying the annual rent by contract’s remaining lease term. The previous year's figure is therefore
only comparable to a limited extent, as it represents the proportion of the basic annual rent.
1) Total leasing volume including option drawings of existing tenants.
Commercial leases usually have a limited term agreed in the respective lease. The following table
summarizes the share of expiring leases as a share of the total portfolio over the next three years:
Lease expiry profile
(% of annual rent)
Dec. 31, 2025
Dec. 31, 2024
Change (pp)
2026
8.2
20.9
-12.7
2027
15.0
11.8
3.2
2028
12.0
10.1
1.9
Letting metrics1) (m2)
2025
2024
Change
New leases
107,200
52,100
55,100
Renewals of leases
128,900
106,500
22,400
Total
236,100
158,600
77,500
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5.3.
Capital expenditure into the existing portfolio
In 2025, EUR 83.5 million was invested in the existing portfolio. The current development portfolio
comprises six projects with a total lettable area of approx. 60,600 m².
Project
Lettable area
(m²)
Status
Platz der Einheit 1, Frankfurt
29,400
Under construction
Uhlandstr. 85, Berlin
11,100
Under construction
Epplestr. 225 (Building 10), Stuttgart
9,800
Under construction
Epplestr. 225 (Building 20), Stuttgart
3,000
Under construction
Epplestr. 225 (Data Center), Stuttgart
5,000
Under construction
Lehrter Str. 17, Berlin
2,300
Planning
Total
60,600
5.4.
Transactions
In the reporting period, alstria carried out the following transactions.
Disposals
Adress
City
Disposal price
(EUR k)
Gain/loss to
book value
(EUR k)1)
Signing
SPA
Transfer of
benefit and
burdens
Borsteler Chaussee 111-113 Hamburg
11,550
-280
14.03.2025
01.05.2025
Kampstr. 36
Dortmund
5,000
-2.875
14.03.2025
01.05.2025
Maxstr. 3a
Berlin
8,300
148
22.07.2025
31.12.2025
Lehrter Str. 17
Berlin
14,500
2.750
11.12.2025
01.01.2027
Total disposals
39,350
-257
1) Different from the position ‘Net result from the disposal of investment property’ in the income statement.
5.5.
Portfolio valuation
alstria's entire real estate portfolio was valued at fair value as per December 31, 2025 in accordance
with the requirements of IAS 40 in conjunction with IFRS 13. For the portfolio as a whole, the valuation
as per December 31, 2025 resulted in an appreciation of EUR 42.2 million (previous year:
EUR 52.8 million) after deduction of investments and transactions. Based on the established market
value as per December 31, 2025, this results in an average value of EUR 3,100 per sqm and a yield of
4.7 %, based on the ratio of contractual rent to market value, for the portfolio as a whole.
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alstria Annual Report 2025
II. FINANCIAL ANALYSIS
1. EARNINGS POSITION
As a result of the acquisition of the majority of shares in alstria office AG and the associated
consolidation in the Brookfield Group, alstria's reporting was adjusted to the Brookfield Group
guidelines starting in the first quarter of 2023. Following the deconsolidation of alstria from the
Brookfield Group in the course of 2024, alstria returned to the previous reporting (up to December
31, 2022) as of the first quarter of 2025. For this reason, the figures shown in this report for the full
year 2024 differ in parts from the data published in the 2024 annual report. An explanation of the
adjustments can be found in this interim report under section VI. 2.2 ‘Disclosure of changes in
accounting policies’.
EUR k
2025
2024
Revenues
195,073
198,441
Net rental income
166,624
173,639
Administrative and personnel expenses
-33,752
-30,826
Other operating result
8,945
-24,560
Operating income
141,817
118,253
Net result from fair value adjustments to investment property
42,224
63,496
Net result from disposal of investment property
-1,627
-
Net operating result
182,414
181,749
1.1.
Net operating result
alstria closed the 2025 financial year with a net operating result before financing costs and taxes of
EUR 182,414 k, compared with EUR 181,749 k in 2024. A significant improvement in other operating
income was offset by a decline in net income from the valuation of investment property.
1.2.
Revenues
Revenues amounted to EUR 195,073 k in the 2025 financial year (2024: EUR 198,441 k), which
corresponds to a decline of 1.7% or EUR 3,368 k. This is due to the loss of rental income as a result of
expiring leases and the sale of real estate. Indexation of current contracts and the commencement
of new rental agreements only partially offset this development. Overall, revenue was slightly higher
than the forecast of EUR 192 million published at the beginning of 2025.
1.3.
Real estate operating expenses
Property operating expenses comprise the sum of apportionable and non-apportionable operating
costs and amounted to EUR 68,315 k in the reporting period (2024: EUR 65,537 k). The proportion of
non-apportionable operating costs increased from 12.5% in 2024 to 14.6% in 2025. As a result, the net
rental income of the Group fell by EUR 7,015 k to EUR 166,624 k in 2025 (2024: EUR 173,639 k).
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1.4.
Administrative and personnel expenses
alstria advisors GmbH was deconsolidated with effect from December 8, 2025. Until the date of
deconsolidation, administrative expenses amounted to EUR 8,605 k (2024: EUR 9,260 k) and personnel
expenses amounted to EUR 22,503 k (2024: EUR 20,853 k). The increase in personnel costs is primarily
attributable to one off personnel costs triggered by the migration of the company to Luxembourg.
With the deconsolidation of alstria advisors GmbH, alstria now incurs consulting and asset
management expenses, which it pays to alstria advisors GmbH under a service agreement. These
expenses amount to EUR 2,644 k for 2025. As total costs rose slightly and revenues fell year-on-year,
the total administrative expense ratio increased to around 17.3% of revenues and 0.8% of the fair
value of the portfolio (2024: 15.5% and 0.7%).
1.5.
Other operating result
In the 2025 financial year, other operating income amounted to EUR 8,945 k (2024: EUR -24,560 k).
The significant improvement of EUR 33,505 k is primarily attributable to a decline in other operating
expenses from EUR -32,528 k in 2024 to EUR -8,456 k in 2025. This was mainly due to the recognition
of a liability for the special payment of EUR 23,239 k made to free float shareholders in January 2024
in accordance with Section 20 of the Articles of Association for the loss of REIT status. At the same
time, other operating income improved from EUR 7,968 k (2024) to EUR 17,400 k in the reporting
period. The main contributor to this improvement was an amount of EUR 6,008 k resulting from the
difference between the acquisition cost and the fair value of the investment in alstria advisors GmbH,
which is accounted for using the equity method. In addition, government subsidies related to
investment measures amounting to EUR 7,236 k contributed to other operating income.
1.6.
Net result from fair value adjustments to investment property
The net result from the fair value adjustments to investment property reported in the 2025 financial
year amounted to EUR 42,224 k (2024: EUR 63,496 k) and reflects the revaluation of the property
portfolio by the external valuer BNP Paribas Real Estate Consult GmbH, Frankfurt. The revaluation by
around 1% was a result of the stability of the portfolio and a slightly improved market environment.
The result of the portfolio valuation as per December 31, 2025 was comprehensively reviewed by the
company's legal representatives and adopted unchanged.
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alstria Annual Report 2025
1.7.
Net result from the disposal of investment property
During the 2025 financial year, alstria sold four smaller properties with a total value of EUR 39,350 k.
This resulted in a negative disposal result of EUR 1,627 k. No property transactions took place in the
2024 financial year.
1.8.
Net financial result
EUR k
2025
2024
Interest expenses, corporate bonds
-36,789
-13,764
Interest expenses bank loans
-61,701
-77,672
Interest result Schuldschein
-1,116
-1,116
Interest result from derivatives
17,726
13,889
Other interest expenses
-10
-386
Financial expenses
-81,890
-79,049
Income from financial instruments
24,044
19,196
Other financial expenses
-1,523
-978
Net financial result
-59,369
-60,831
Financial expenses rose by EUR 2,841 k to EUR 81,890 k in the reporting period. The increase reflects
the rise in market interest rates. As a result of the high refinancing volume in the area of capital
market bonds, interest expenses rose to EUR 36,789 k in the reporting period (2024: EUR 13,764 k).
Bank loans, on the other hand, were reduced, which is why financing costs in this area fell to
EUR 61,701 k (2024: EUR 77,672 k).The new loans and bonds issued were mainly used to refinance
existing financial debt, primarily in the form of a partial repurchase/repayment of bonds, but also to
repay bank loans. Proceeds from financial instruments and other interest income include interest-like
income of EUR 16,908 k arising in connection with the repurchase of own bonds below their issue
value. For details of the debt portfolio, please refer to the section ‘Long-term and short-term
financial liabilities’.
1.9.
Share of the result of companies accounted for at equity
Investments and joint ventures included in the consolidated financial statements using the equity
method contributed EUR 146 k to earnings in 2025.
1.10. Net result from fair value adjustments on financial derivatives
As a result of a change in market interest rates, the 2025 financial year concluded with a negative
net result from the valuation of derivative financial derivatives amounting to EUR 21,045 k (2024:
EUR 2,062 k).
1.11. Consolidated profit
Consolidated
net
income
for
the
2025
financial
year
amounted
to
EUR 138,538 k
(2024: EUR −104,545 k), an improvement of EUR 243,038 k over the previous year. The main driver of
this development was the deferred tax result, which amounted to EUR −225,296 k in the previous year
and improved to EUR 53,196 k in the reporting period. While the loss of REIT status as of
Combined Management Report
alstria Annual Report 2025
16
December 31, 2024 necessitated the initial recognition of a deferred tax liability in 2024, alstria
benefited in the reporting period from the reversal of deferred tax liabilities as a result of the
anticipation of future corporate tax relief.
1.12. Funds from operations (FFO)
FFO after minority interests amounted to EUR 57,613 k (2024: EUR 71,057 k, adjusted to changed
reporting standards) and was thus above the forecast of EUR 52 million published at the beginning of
2025. This was primarily due to higher-than-expected revenues. However, due to lower net rental
income and higher personnel, advisory and financing costs, FFO for the 2025 financial year was
EUR 13,445 k below the previous year's figure of EUR 71,057 k. The FFO margin (FFO/revenue) fell
accordingly to 29.5% in 2025 (previous year: 35.8%).
The reconciliation from consolidated net profit/loss for the period to FFO is based on the elimination
of non-cash income/cost figures that are not expected to recur annually, relate to other periods and
are not attributable to the operating business. The adjustments between the income/cost figures in
the income statement and FFO are shown in the table on the next page. The main adjustments
(> EUR 1,000 k) related to one-off other operating income of EUR 13,221 k (of which EUR 7,236 k
related to one-off government investment grants and EUR 6,008 k to the difference between the
acquisition cost and the fair value of the investment in alstria advisors GmbH accounted for using the
equity method). In the context of the company's reorganisation, one-off expenses amounting to
EUR 5,838 k were adjusted (of which EUR 2,389 k related to personnel expenses and EUR 3,449 k to
other operating expenses). Adjustments were also made to non-cash expense in connection with the
valuation of minority interests in alstria office Prime Portfolio GmbH & Co. KG (EUR 1,679 k).
Consolidated net income was also adjusted for a one-off impact on earnings from the sale of
investment property (EUR -1,627 k) and income from financial activities not attributable to operating
activities (EUR 16,908 k). The latter arose in connection with the acquisition of own bonds on the
capital market and represent the difference between the purchase price and the nominal value of
the bonds acquired. The non-cash effects from the valuation of investment property (EUR 42,224 k
and financial derivatives (EUR 21,045 k) as well as tax effects (EUR 36,392 k) were also adjusted.
Combined Management Report
17
alstria Annual Report 2025
EUR k1)
IFRS P&L
Adjustments
FFO
2025
FFO
2024
Revenues
195,073
-
195,073
198,441
Revenues from service charge income
39,866
-
39,866
40,735
Real estate operating expenses
-68,315
-
-68,315
-65,777
Net rental income
166,624
-
166,624
173,399
Administrative expenses
-8,605
959
-7,646
-7,547
Personnel expenses
-22,503
2,389
-20,114
-20,853
Advisory expenses
-2,644
-2,644
-
Other operating income
17,400
-13,397
4,003
3,358
Other operating expenses
-8,456
5,128
-3,328
-973
Net result from fair value adjustments to
investment property
42,224
-42,224
-
-
Net result from the disposal of investment
property
-1,627
1,627
-
-
Net operating result
182,414
-45,517
136,897
147,384
Net financial result
-59,369
-16,908
-76,277
-72,622
Share of the result of companies accounted
for at equity
146
-
146
-
Net result from the valuation of derivative
financial instruments
-21,045
21,045
-
-
Pretax income
102,146
-41,380
60,766
74,762
Income tax expenses
-16,804
16,804
-
-
Deferred tax expenses
53,196
-53,196
-
-
Consolidated profit
138,538
-77,772
60,766
74,762
Minority interests
-
−3,153
-3,153
-3,705
Consolidated profit / FFO (after minorities)2)
138,538
-80,925
57,613
71,057
1) Numbers may not sum up due to rounding.
2) FFO is not a measure of operating performance or liquidity under generally accepted accounting principles, in particular IFRS, and it should
not be considered an alternative to the Company’s income or cash flow measures as determined in accordance with IFRS. Furthermore, there is
no standard definition for FFO. Thus, alstria’s FFO values and the measures with similar names presented by other companies may not be
comparable.
Combined Management Report
alstria Annual Report 2025
18
2. FINANCIAL AND ASSET POSITION
2.1.
Investment properties
The total value of investment properties as of December 31, 2025 was EUR 4,249,307 k, compared to
EUR 4,127,431 k at the beginning of the reporting period. The increase is largely due to investments
in the existing portfolio during the year. Property disposals, on the other hand, led to a reduction of
EUR 27,400 k. Investment property increased by EUR 23,499 k due to the deconsolidation-related
reclassification of owner-occupied properties that were previously reported under property, plant
and equipment. In addition, the year-end valuation resulted in an increase in value of investment
property amounting to EUR 42,224 k.
EUR k
Investment property as of December 31, 2024
4,127,431
Investments
83,535
Acquisitions
18
Acquisition costs
-
Disposals
-27,400
Transfer to assets held for sale
-
Transfer to property, plant, and equipment (owner-occupied properties)
-
Transfer from property, plant, and equipment (owner-occupied properties)
23,499
Net loss / gain from fair value adjustments to investment property
42,224
Investment property as of December 31, 2025
4,249,307
2.2.
Equity accounted investments
As a result of the deconsolidation of alstria advisors GmbH and its subsequent recognition at equity,
a value of EUR 8,170 k was recognised for the first time under the item ‘Equity accounted
investments’.
2.3.
Cash and cash equivalents
Cash and cash equivalents increased by EUR 234,881 k from EUR 80,233 k to EUR 315,114 k in the
reporting period. A positive cash flow of EUR 62,436 k was generated from operating activities.
Financing activities showed net cash inflows of EUR 228,992 k. Investing activities resulted in cash
outflows totalling EUR 56,547 k, mainly due to investments in the existing portfolio.
Combined Management Report
19
alstria Annual Report 2025
2.4.
Equity
Dec. 31, 2025
Dec. 31, 2024
Change
Equity (EUR k)
1,656,985
1,506,869
10.0%
Equity ratio (%)
34.7
34.6
0.1pp
Compared to December 31, 2024, equity rose by EUR 150,116 k to EUR 1,656,985 k as per
December 31, 2025. This was mainly due to the positive consolidated net income for the year of
EUR 138,538 k. A valuation gain in connection with the reclassification of previously owner-occupied
properties (EUR 7,105 k) and a positive development in the hedging reserve (EUR 4,473 k) also had a
positive effect.
2.5.
Limited partnership capital non controlling interests
Liabilities due to minority interests represent the limited-partner capital of non controlling
shareholders in the alstria office Prime Portfolio GmbH & Co. KG. In line with IFRS requirements, the
share capital that minority shareholders in German partnerships owned is treated as a liability on the
Company’s balance sheet. This balance sheet item changed only slightly during the fiscal year to
EUR 98,558 k (2024: EUR 101,038 k). As the partnership agreement allows for the limited partnership
capital to be terminated as of December 31, 2026, the item was reclassified from non-current to
current liabilities.
2.6.
Non current and current financial liabilities
alstria’s loans and corporate bonds are taken out at the property and the portfolio levels. alstria’s
main financial goal is to establish a sustainable long-term financial structure. Therefore, alstria
diversifies its financing sources and strives for a balanced maturity profile to enable coordinated and
constant refinancing (see the following overview of the loan facilities and maturity profile of financial
debt on the page after next).
During the reporting period, alstria carried out extensive financing transactions. In March and October
2025, new capital market bonds were issued in the amount of EUR 500,000 k each (Bonds VI and VII).
In addition, new secured loans (loans #10-#13) with a total volume of EUR 317,500 k were drawn down
during the reporting period. The proceeds from the new financing were used to repay Bond IV and
partially repurchase the outstanding Bonds III and V with a total volume of EUR 736,100 k, resulting
in a total outstanding bond volume of EUR 1,244,600 k as per December 31, 2025. The funds received
were also used for the partial or full repayment of secured loans (loans #1, #4, #5 and #7) with a total
volume of EUR 244,463 k. In total, secured mortgage debt increased by EUR 73,038 k in the reporting
period and the volume of unsecured capital market instruments by EUR 263,900 k, bringing total
financial liabilities as per December 31, 2025 to EUR 2,764,638 k (2024: EUR 2,427,700 k). The
financial derivatives concluded in connection with the financing are presented in detail in the notes
to the consolidated financial statements (section 6.5) of this report.
Combined Management Report
alstria Annual Report 2025
20
The loan facilities in place as of December 31, 2025 are in the following table.
Liabilities
Maturity
Principal amount
drawn as of
Dec. 31, 2025
(EUR k)
LTV1) as of
Dec. 31, 2025
(%)
LTV
covenant
(%)
Principal amount
drawn as of
Dec. 31, 2024
(EUR k)
Loan #1
Jun 30, 2031
115,000
54.0
63.0
125,000
Loan #2
Mar 29, 2030
90,000
n/a
-
90,000
Loan #3
Sep 29, 2028
97,000
52.9
65.0
97,000
Loan #4
Sep 30, 2027
357,538
63.7
70.0
480,000
Loan #5
Aug 29, 2025
-
n/a
-
107,000
Loan #6
Apr 26, 2030
188,000
62.4
65.0
188,000
Loan #7
Aug 31, 2028
95,000
61.4
65.0
100,000
Loan #8
Jun 30, 2028
100,000
56.4
70.0
100,000
Loan #9
Dec 28, 2029
120,000
61.4
70.0
120,000
Loan #10
Sep 30, 2031
94,500
51.6
70.0
-
Loan #11
Dec 31, 2029
70,000
50.7
60.0
-
Loan #12
Sep 30, 2030
45,000
58.2
63.0
-
Loan #13
Sep 17, 2032
108,000
53.7
70.0
-
Total secured loans
1,480,038
-
-
1,407,000
Bond #3
Nov 15, 2027
91,300
-
-
311,400
Bond #4
Sep 26, 2025
-
-
-
335,200
Bond #5
Jun 23, 2026
153,300
-
-
334,100
Bond #6
Mar 20, 2031
500,000
-
-
-
Bond #7
May 15, 2029
500,000
-
-
-
Schuldschein 10y/fixed
May 06, 2026
40,000
-
-
40,000
Revolving credit line
Apr 29, 2029
-
-
-
-
Total unsecured loans
1,284,600
-
-
1,020,700
Total
2,764,638
-
2,427,700
Net LTV (balance sheet)
54.9
1) Calculation based on the market values (as per December 31, 2025) of the properties serving as collateral in relation to the loan amount drawn
down.
Combined Management Report
21
alstria Annual Report 2025
Maturity profile of financial debt in EUR m
During 2025, alstria purchased a total of EUR 651,700 k of its outstanding bonds at an average price
of 97.41 %. The acquired bonds were subsequently cancelled and derecognised. The following table
summarises the acquisitions made during the year.
Bond
Maturity
Notional amount
acquired (EUR m)
Average
price (%)
Bond #3
Nov 15, 2027
220,100
95.03
Bond #4
Sep 26, 2025
250,800
99.00
Bond #5
Jun 23, 2026
180,800
98.08
Total
651,700
97.41
2.7.
Cost of debt
Cash cost of debt
Dec. 31, 2025
Dec. 31, 2024
Nominal amount
(EUR k)
Ø cost of
debt
(%)
Ø
maturity
(years)
Nominal amount
(EUR k)
Ø cost
of debt
(%)
Ø
maturity
(years)
Bank debt
1,480,038
2.5
3.7
1,407,000
3.9
3.8
Bonds
1,244,600
2.3
3.8
980,700
1.2
1.7
Schuldschein
40,000
2.8
0.4
40,000
2.8
1.4
Total
2,764,638
2.4
3.7
2,427,700
2.8
2.9
0
100
200
300
400
500
600
700
800
2026
2027
2028
2029
2030
2031
2032
Combined Management Report
alstria Annual Report 2025
22
2.8.
Compliance with and calculation of the Covenants, referring to § 11 of the Terms
2.8.1.
and Conditions*
In case of the incurrence of new Financial Indebtedness for purposes other than the refinancing of
existing liabilities, alstria needs to comply with the following covenants:
▪
The ratio of Consolidated Net Financial Indebtedness to Total Assets will not exceed 60 %
▪
The ratio of Secured Consolidated Net Financial Indebtedness to Total Assets will not exceed
45 %
▪
The ratio of Unencumbered Assets to Unsecured Consolidated Net Financial Indebtedness will
be more than 150 %
* The following section refers to the Terms and Conditions of the Fixed Rate Notes, as well as to the Terms and Conditions of the Schuldschein
(for further information, please refer to www.alstria.com). Capitalized terms have the meanings defined in the Terms and Conditions.
Combined Management Report
23
alstria Annual Report 2025
EUR k
Dec 31, 2025
Consolidated Net Financial Indebtedness as of the reporting date
2,443,135
Net Financial Indebtedness incurred since the reporting date
-
Sum Consolidated Net Financial Indebtedness (I)
2,443,135
Total Assets as of the reporting date (less cash)
4,453,556
Purchase price of any Real Estate Property acquired or contracted for acquisition since the
reporting date
-
Proceeds of any Financial Indebtedness incurred since the reporting date that were not used
to acquire Real Estate Property or to reduce Financial Indebtedness
-
Total (II)
4,453,556
Ratio of the Consolidated Net Financial Indebtedness over Total Assets (max. 60 %) (I/II)
55 %
EUR k
Dec 31, 2025
Secured Consolidated Net Financial Indebtedness as of the reporting date
1,455,510
Secured Net Financial Indebtedness incurred since the reporting date
-
Sum Secured Consolidated Net Financial Indebtedness (I)
1,455,510
Total Assets as of the reporting date (less cash attributable to secured debt)
4,758,801
Purchase price of any Real Estate Property acquired or contracted for acquisition since the
reporting date
-
Proceeds of any Financial Indebtedness incurred since the reporting date that were not used
to acquire Real Estate Property or to reduce Financial Indebtedness
-
Total (II)
4,758,801
Ratio of the Secured Consolidated Net Financial Indebtedness over Total Assets
(max. 45 %) (I/II)
31 %
EUR k
Dec 31, 2025
Value of Unencumbered Real Estate Property
1,691,217
Value of all other assets
207,946
Unencumbered Assets as of the reporting date
1,899,163
Net Unencumbered Assets recorded since the reporting date
-
Sum Unencumbered Assets
1,899,163
Unsecured Consolidated Net Financial Indebtedness as of the reporting date
987,625
Net Unsecured Financial Indebtedness incurred since the reporting date
-
Sum Unsecured Consolidated Net Financial Indebtedness
987,625
Ratio of Unencumbered Assets over Unsecured Consolidated Net Financial Indebtedness
(min. 150 %)
192 %
Combined Management Report
alstria Annual Report 2025
24
Furthermore, alstria needs to maintain a ratio of the Consolidated Adjusted EBITDA over Net Cash
Interest of no less than 1.80 to 1.00. The ratio should be calculated and published at every reporting
date following the issuance of the bond or the Schuldschein, starting after the fifth reporting date.
EUR k
Cumulative 2025
Earnings Before Interest and Taxes (EBIT)
161,515
Net profit / loss from fair value adjustments to investment property
-42,224
Net profit / loss from fair value adjustments to financial derivatives
21,045
Profit / loss from the disposal of investment property
1,627
Other adjustments1)
-4,921
Fair value and other adjustments in joint venture
-
Consolidated Adjusted EBITDA
137,042
Net Cash Interest
−57,047
Consolidated Coverage Ratio (min. 1.80 to 1.00)
2.4
1) Depreciation, amortization, and nonrecurring or exceptional items.
In the 2025 financial year no covenants under the loan agreements and / or the terms and conditions
of the bonds and Schuldschein had been breached. The breach of a covenant would lead to liquidity
outflow.
2.9.
Current liabilities
Current liabilities amounted to EUR 382,910 k as of December 31, 2025 (December 31, 2024:
EUR 515,008 k). In addition to the liabilities to non-controlling shareholders already explained in
section 2.4, this includes EUR 221,740 k in current loan liabilities (December 31, 2024:
EUR 445,958 k). Furthermore, current liabilities include trade payables amounting to EUR 6,256 k
(December
31,
2024:
EUR 3,410 k).
Other
current
liabilities
amount
to
EUR 31,291 k
(December 31, 2024: EUR 57,015 k). In the previous year, this amount included a liability of
EUR 23,239 k, which represented compensation to free float shareholders for the loss of REIT status.
As per December 31, 2025, there were also provisions for outstanding invoices amounting to
EUR 15,850 k (December 2024: EUR 17,483 k) and rental deposits received amounting to EUR 5,793 k
(December 31, 2024: EUR 6,196 k).
Combined Management Report
25
alstria Annual Report 2025
3. OVERALL ASSESSMENT OF THE FINANCIAL YEAR BY THE BOARD OF MANAGERS (CONSEIL DE
GÉRANCE)
Despite weak overall economic development and a persistently difficult market environment for office
properties, alstria's earnings performance developed as planned in fiscal year 2025. Revenue and
earnings reflected the high quality of the real estate portfolio and the efficient corporate structure.
The liquidity situation remained comfortable at all times during fiscal year 2025.
III. EXPECTED DEVELOPMENTS
The report on expected developments contains statements related to anticipated future
developments. The Company’s development depends on various factors, some of which are beyond
alstria’s control. Statements about expected developments are based on current assessments and are
thus, by their nature, are exposed to risks and uncertainty.
The alstria Group’s actual development may differ positively or negatively from the predicted
development presented in this report’s statement.
1. EXPECTED ECONOMIC DEVELOPMENT
The economic environment is likely to remain challenging in 2026. According to the German
government's current assessment, GDP growth of 1.0% is expected in 2026. This slight upward trend
is driven in particular by government investment in infrastructure and defense. Inflation is likely to
be within the target range of 2.0% on average in 2026.
2. DEVELOPMENT OF THE REAL ESTATE MARKET: OUTLOOK FOR 2026
It is to be expected that the continuing weak economic development will continue to have a
dampening effect on the commercial real estate market in 2026. The rental market is likely to remain
at the same level as in 2025. Although the transaction market is showing initial signs of improvement,
2026 will remain challenging.
3. OUTLOOK FOR THE ALSTRIA GROUP
alstria expects revenues of EUR 192 million for the 2026 financial year. The slight decline is mainly
due to planned disposals and the termination of leases. FFO is expected to be EUR 53 million due to
the anticipated decline in revenues.
Combined Management Report
alstria Annual Report 2025
26
IV. REPORT REGARDING ALSTRIA S.À R.L.
1. EARNINGS POSITION
The following table shows the key operating figures of the audited income statements for the 2025 and
2024 financial years:
in EUR k
2025
% of oper.
perf.
2024
% of oper.
perf.
Change
Total operating
performance
161,298
100.0
169,646
100.0
-8,348
Other operating income
32,894
20.4
35,230
20.8
-2,336
Cost of purchased services
-36,428
-22.6
-34,861
-20.5
-1,567
Personnel expenses
-3,124
-1.9
-21,281
-12.5
18,156
Depreciation
-56,543
-35.1
-50,145
-29.6
-6,398
Other operating expenses
-47,504
-29.5
-50,628
-29.8
3,124
financial result
-50,759
-31.5
-47,635
-28.1
-3,124
Income tax
-17,775
-11.0
0
0.0
-17,775
Net result of the year
-17,941
-11.1
326
0.2
-18,267
1.1.
Business development
Net result for the year decreased by EUR -18,266 k compared to the previous year. For the financial
year 2025, a net loss of EUR 17,941 k was recognized (previous year: profit for the year of EUR 326 k).
The result includes Income Taxes of EUR 17,775 k.
The net loss for the year compared to the previous year mainly results from the decrease in total the
increase in Income Taxes by EUR 17,775 k, the operating performance by EUR 8,348 k, and the decline
in the net financial result by EUR 3,124 k, as well as lower other operating income of EUR 2,950 k and
higher cost of purchased services of EUR 1,567 k.
In contrast, Personnel expenses decreased by EUR 18,157 k and other operating expenses declined by
EUR 3,124 k.
1.2.
Total operating performance
Total operating performance decreased by EUR 8,342 k in the past financial year. Revenues amounted
to EUR 160,494 k in the financial year 2025 (previous year: EUR 167,521 k). In the reporting year,
income from real estate-related services declined by EUR 7,820 k, primarily due to the spin-off of
advisory services to alstria advisors GmbH. Together with the increase or decrease in work in progress
of EUR 805 k (previous year: EUR 2,126 k), Total operating performance amounted to EUR 161,299 k
(previous year: EUR 169,646 k).
1.3.
Other operating income
Other operating income decreased by EUR 2,336 k compared to the previous year to EUR 32,894 k.
Write-ups of financial assets decreased by EUR 2,796 k to EUR 23,965 k as a result of reversals of
previously recognized impairments in accordance with Section 253 (5) HGB.
Combined Management Report
27
alstria Annual Report 2025
Furthermore, in the prior period an arrangement fee of EUR 3,290 k was recognized for arranging a
loan granted by a Group company to a bank. No comparable transaction occurred in the current
financial year.
In contrast, income of EUR 1,667 k was generated from the disposal of two properties, as well as
additional income of EUR 163 k from the disposal of trademark rights. No comparable transactions took
place in the prior period.
In addition, reversals of impairments on property, plant and equipment amounting to EUR 1,399 k were
recognized.
1.4.
Purchased services
Cost of purchased services increased by EUR 1,567 k to EUR 36,428 k, mainly due to inflationary effects.
1.5.
Personnel expenses
On 18 September 2025, the operating activities of alstria office AG were spun off to alstria advisors
GmbH, Hamburg, which had previously been newly established. alstria advisors GmbH acts as advisor
to alstria office S.à r.l. (formerly alstria office AG) with respect to the management and financing of
the real estate portfolio.
In accordance with Section 5 UmwG, the effective date for accounting purposes stipulated in the spin-
off and transfer agreement was set at 1 January 2025. Accordingly, both the balance sheet and the
Income Statement of the Company were prepared on the assumption that the assets transferred under
the spin-off and transfer agreement became economically effective as of 1 January 2025.
Whereas personnel expenses amounted to EUR 21,281 k in the prior period, only expenses relating to
the management board in the amount of EUR 3,125 k remain in the Income Statement of alstria S.à
r.l. for the financial year 2025, including severance payments of EUR 2,389 k.
1.6.
Depreciation and amortization
Amortization and depreciation of fixed intangible and tangible assets increased by EUR 6,400 k
compared to the previous year to EUR 56,543 k. The increase compared to the prior period mainly
results from unscheduled depreciation recognized in the reporting year in the amount of EUR 4,490 k.
This related to one property whose market value is permanently impaired.
1.7.
Other operating expenses
Other operating expenses decreased by EUR 3,124 k. At the beginning of the financial year, alstria
exited the REIT regime. In this context, a one-off compensation payment to shareholders in the
amount of EUR 23,964 k became due, which had burdened the prior-year balance. No comparable
transactions occurred in the reporting year.
In connection with the spin-off of the operating business to alstria advisors GmbH, a service agreement
was concluded governing the provision of advisory and management services by alstria advisors GmbH.
Expenses of EUR 17,921 k were incurred for these services in the financial year. These replace
Combined Management Report
alstria Annual Report 2025
28
Personnel expenses and administrative costs for which the Company had incurred total expenses of
EUR 22,148 k in the prior year.
In addition, property operating expenses increased by EUR 2,889 k, mainly due to renovation costs
(EUR 1,700 k) and maintenance expenses (EUR 957 k). Finally, restructuring costs of EUR 2,610 k were
recognized in the reporting year in connection with the reorganization of the Group.
1.8.
Financial result
in EUR k
2025
2024
Change
(%)
Interest expenses, corporate bonds
-32,689
-11,466
185
Transaction costs
-28,272
-5,081
456
Interest result “Schuldschein” (“senior unsecured debt“)
-1,100
-1,100
0
Interest expenses from bank loans
-51,098
-64,312
-21
Interest result from financial derivatives
-2,803
11,316
-125
Other interest expenses
-3
-115
-97
Financial expenses
-115,965
-70,758
64
Income from participating interests
36,221
0
-
Income from loans to affiliates
8,607
8,806
-2
Other interests and similar income
20,379
15,256
34
Write down on financial assets
0
-939
-100
Net financial result
-50,758
-47,635
7
The net financial result decreased by EUR 3,123 k compared to the prior period to EUR -50,759 k. This
mainly resulted from an increase in Interest and similar expenses of EUR 45,208 k. In contrast, Income
from investments of EUR 36,221 k was recognized in the reporting year from the distribution of the
prior year’s result of a subsidiary. In addition, Interest and similar income increased by EUR 5,123 k,
mainly due to higher income from the repurchase of own bond notes. However, these effects did not
fully offset the increase in Interest and similar expenses.
The increase in Interest and similar expenses by EUR 45,208 k to EUR 115,966 k mainly results from
higher transaction costs in connection with the raising of loans and derivatives (EUR 23,191 k), as well
as higher interest expenses from bond notes (EUR 21,223 k) and derivative financial instruments (EUR
14,119 k). In the reporting year, two new corporate bonds with a volume of EUR 500,000 k each were
issued. Furthermore, thirteen derivative financial instruments with a nominal volume of EUR 3.3 mio.
were entered into. This led to the increase in transaction costs of EUR 23,191 k.
The two corporate bonds issued in the reporting year increased interest-bearing debt, while in the
same period only EUR 736,100 k of bond notes were repaid. In addition, the newly issued bonds carry
higher coupons than those outstanding in the prior year. This resulted in the increase in interest
expenses from corporate bonds of EUR 21,223 k. Interest expenses from other loans decreased by EUR
13,214 k. While existing loans were partially repaid, new borrowings were primarily raised towards
the end of the financial year.
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alstria Annual Report 2025
2. FINANCIAL AND ASSET POSITION
On the balance sheet date, alstria owned 80 real estate properties (in 2024: 82). The following table
illustrates alstria’s changes in investment property in 2025:
in EUR m
Land and Buildings on December 31, 2024
1,770.1
Investments
8.5
Adjustments
47.8
Disposals
-15.2
Appreciations on market value
1.4
Nonscheduled depreciation
-4,5
Ordinary depreciation
-51.8
Land and Buildings as of December 31. 2025
1,756.2
2.1.
Land, land rights and buildings
The item Land, property rights and buildings decreased by EUR 13.9 mio. compared to the prior year
reporting date. In the reporting period, EUR 8.5 mio. was invested in existing properties and
construction in progress amounting to EUR 47.8 mio. was completed. Two properties with carrying
amounts totalling EUR 15.2 mio. were disposed of or transferred within the Group. In addition, write-
ups of EUR 1.4 mio. were recognized due to increased market values of two properties. Finally, one
property was subject to unscheduled depreciation of EUR 4.5 mio. due to a permanently impaired
market value.
2.2.
Prepayments and constructions in progress
Prepayments and construction in progress decreased by EUR 17,871 k compared to the previous year
to EUR 67,607 k. In the reporting year, EUR 29,901 k was invested in modernization projects. A further
EUR 47,772 k was reclassified to Land, property rights and buildings upon completion of the respective
projects.
2.3.
Financial assets
Financial assets increased by EUR 27,475 k compared to the prior year reporting date to EUR 547,045
k. The increase mainly results from additions to Shares in affiliates amounting to EUR 30,927 k. In the
course of the restructuring, 94 new subsidiaries were established in the reporting year. In addition, a
write-up of EUR 23,965 k was recognized on one participating interest due to increased market values.
Furthermore, one participating interest (EUR 1,725 k) was spun off and Other loans were reduced by
EUR 1,156 k.
This was partially offset by repayments of loans amounting to EUR 10,000 k. In addition, repayment
claims from loans to one participating interest amounting to a further EUR 20,000 k were waived.
2.4.
The cash position
Cash in hand and at banks increased by EUR 222 mio. in the financial year to EUR 291.5 mio.
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30
Cash inflows mainly resulted from the issuance of two corporate bonds (EUR 1,000 mio. in total),
which were only partially offset by the repurchase of own bond notes (EUR 736 mio.). In addition,
loans amounting to EUR 273 mio. were raised, while EUR 247 mio. were repaid.
Furthermore, net investments of EUR 73 mio. were made in non-current assets. These primarily relate
to investments in property, plant and equipment (EUR 39 mio.) and the establishment of subsidiaries
(EUR 31 mio.). These were offset by cash inflows of EUR 17 mio. from the disposal of property, plant
and equipment and EUR 10 mio. from the repayment of loans to affiliated companies.
A further cash outflow related to the REIT compensation payment to shareholders, which arose from
the exit from the REIT regime in the prior year and was paid out in the reporting year (EUR 23.3 mio.).
2.5.
Equity
On the liabilities side of the balance sheet, shareholders’ equity amounts to EUR 116,211 k. As of the
reporting date, the equity ratio is 4%. The decrease in equity compared to the prior year by EUR
17,941 k results from the loss for the year in the same amount.
As of the reporting date, Share capital amounted to EUR 121,167 k. On 11 July 2025, the Annual
General Meeting of alstria resolved to reduce the Company’s share capital from EUR 178,562 k to EUR
121,167 k in order to offset accumulated losses. The released share capital in the amount of
EUR 57,395 k was allocated to Capital reserves.
2.6.
Provisions
Provisions increased by EUR 10,054 k compared to the prior year reporting date to EUR 35,702 k. The
decrease mainly results from the recognition of tax provisions EUR 17,123 k, as the Company became
subject to income taxation for the first time in the financial year, additionally provisions for severance
payments increased by EUR 2,389 k due to the departure of members of the Management Board.
In contrast, the reversal of provisions for variable salary components (EUR 5,830 k), as the Company’s
employees – with the exception of the Management Board – were transferred to alstria advisors GmbH.
At least provisions for outstanding invoices decreased by EUR 2,014 k.
2.7.
Liabilities
Accounts payable increased by EUR 296,009 k compared to the prior year reporting date. In the
reporting year, the Company acquired own bond notes issued by alstria amounting to EUR 736,100 k
in total. In contrast, two corporate bonds with a nominal value of EUR 500,000 k each were issued
during the financial year. As a result, liabilities from Bonds increased by EUR 263,900 k, as well as
accrued interest of a further EUR 23,905 k.
Furthermore, the Company repaid four loans totalling EUR 267,000 k. Three additional loans were
raised in the reporting year, which amounted to EUR 272,500 k as of the reporting date. This resulted
in an increase in loan liabilities of EUR 25,500 k.
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alstria Annual Report 2025
Finally, a liability arising from the exit from the REIT status as of 31 December 2024 was settled in
the reporting year. This obligation required the Company to compensate minority shareholders for
the loss of the tax exemption in the amount of EUR 23,239 k. The liability recognized in the prior year
was fully extinguished through payment in the reporting year, resulting in a corresponding reduction
in liabilities as of the balance sheet date.
3. ADDITIONAL DISCLOSURE REGARDING ALSTRIA S.À R.L.
3.1.
Employees
In the course of the financial year, the Company’s operating business, together with its employees,
was spun off to its subsidiary alstria advisors GmbH. As of 31 December 2025, alstria therefore had no
employees other than the members of the Management Board (31 December 2024: 186 employees).
In the course of the financial year, the Company’s operating business, together with its employees,
was spun off to its subsidiary alstria advisors GmbH. As of 31 December 2025, alstria therefore had no
employees other than the members of the Management Board (31 December 2024: 186 employees).
The annual average number of employees amounted to 180 (previous year: 186). The figures exclude
the members of the Management Board.
3.2.
Outlook for alstria S.à r.l.
The Company is managed at Group level; accordingly, planning is also based on key performance
indicators of the Group.
Net income amounts to EUR -17.9 million. After adjusting for non-forecastable profit and loss
components—such as the reversal of impairment on financial assets (EUR -23.9 million), taxes (TEUR
+17.8), reversals of impairment on property, plant and equipment (EUR -1.4 million), as well as one-
off items such as income from the disposal of property, plant and equipment (EUR -1.8 million),
transaction costs relating to loans and derivatives (+EUR 28.2 million), and the adjustment for non-
scheduled depreciation of EUR 4.2 million on one property—adjusted net income amounts to EUR
5.2 million.
On this basis, the Company expects stable results in the future as well.
3.3.
Shares
On 11 February 2025, the Extraordinary General Meeting resolved to transfer the shares of all
remaining shareholders to BPG Holdings Bermuda Limited or one of its subsidiaries against the granting
of appropriate cash compensation. Following the acquisition of all alstria shares by subsidiaries of
Brookfield Corporation, the company was delisted and its stock exchange listing was terminated in
the course of the 2025 financial year.
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32
V. RISK AND OPPORTUNITY REPORT
1. RISK REPORT
1.1.
Risk management
alstria has established a group-wide structured risk management and early warning system in
accordance with Section 91 para. 2 of the German Stock Corporation Act (AktG).
alstria S.à r.l. is the parent company of the alstria Group. Since the outsourcing of key operational
functions to alstria advisors GmbH, the risk management activities of alstria S.à r.l. have focused
primarily on strategic and financial risks as well as overarching supervision.
The business performance of alstria S.à r.l. continues to be significantly influenced by its subsidiaries.
Therefore, unless otherwise stated, the following explanations apply to both the alstria Group and
alstria S.à r.l..
1.1.1. Structure of the risk-management system
All risks are identified, assessed, and monitored at least on a quarterly basis. Our objective is to
identify opportunities and risks as early as possible, evaluate their potential impact, and take
appropriate measures to mitigate risks. The risk identification process enables the continuous
detection of relevant risks. Potential mitigation measures include, for example, insurance,
diversification, internal controls, or process adjustments.
The risk management system is an integral part of alstria’s corporate governance. Risk policy is
defined by the members of the Management Board (until 21 January 2026) and thereafter the
members of the Conseil de gérance, together referred to as the Governing Body. Reporting occurs on
a regular basis to both the Governing Body and the Audit Committee are considered in the context of
operational management but are not a formal component of the risk management system.
Risk management is centrally coordinated and operates independently from the operating business
units. The Risk Manager prepares a quarterly risk report and reports directly to the Governing Body. The
report is based on input from the individuals responsible for the different risk categories. In addition to
compiling the risk report, the Risk Manager informs the Governing Body about the implementation,
execution, and monitoring of the risk management and internal control system, and supports the Board,
for example, in reporting to the Audit Committee.
In the course of its business activities, alstria is exposed to various types of risks, which are classified
into the following four categories:
▪ Strategic risks
▪ Operational risks
▪ Compliance risks
▪
Financial risks
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alstria Annual Report 2025
Each risk category is assigned to one or more risk owners who, by virtue of their position, are also
responsible for the business area in which the identified risks are most likely to materialize:
alstria’s areas of risk and risk categories
Risk category
Risk owner
Strategic risks
Finance & Controlling
Operational risks
Real Estate Operations,
Development, and IT
Compliance risks
Legal
Financial risks
Finance & Controlling
Following the functional carve-out of operational responsibilities, the operational and compliance
risks is now primarily managed through the management of the relationship with alstria advisors
GmbH.
The quarterly risk report summarizes the findings gathered through the processes of risk
identification, assessment, analysis, and monitoring. It enables both the relevant departments and
the Supervisory Board to assess alstria’s overall risk exposure comprehensively.
In addition, the business units discuss current risk issues with the Governing Body during their regular
weekly meetings.
1.1.2. Risk valuation
Risks are assessed based on their likelihood of occurrence and potential impact (net assessment, i.e.,
after taking existing mitigation measures into account). Each risk is classified into one of three
categories: high, medium, or low. The assessment is based on the expected deviation from planned
key performance indicators or the potential impact on earnings.
Classification according to degree of impact
Expected impact in EUR m
Degree of impact
Between 0.0 and 0.6
minor
Between 0.6 and 1.5
low
Between 1.5 and 6.0
moderate
Between 6.0 and 15.0
high
Greater than 15.0
very high
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Classification according to likelihood
Probability/likelihood of occurrence
Description
1 to 15 %
very unlikely
16 to 30 %
unlikely
31 to 50 %
possible
51 to 70 %
likely
71 to 99 %
highly likely
A risk is considered “highly unlikely” if it would only materialize under exceptional circumstances,
and “highly likely” if its occurrence can reasonably be expected within a defined time frame.
The classification of a risk as high (H), medium (M), or low (L) is based on the combination of its
expected likelihood and its potential impact on alstria’s financial position, results of operations, and
cash flows, according to the following risk matrix.
Risk classification
Probability
highly likely
L
M
H
H
H
likely
L
M
M
H
H
possible
L
L
M
M
H
unlikely
L
L
L
M
M
very unlikely
L
L
L
L
M
Degree of impact
minor
low
moderate
high
very high
L = low risk.
M = medium risk.
H = high risk.
In 2025, in principle the Company’s risk-management system was not subject to any significant
changes compared to the previous year.
1.2.
Internal control system*
alstrias’s internal control system (ICS) encompasses all principles, policies, procedures and measures
aimed at implementing the decisions of the Group’s management:
▪ to ensure the effectiveness and efficiency of business operations (including asset protection,
and the prevention and detection of asset losses),
▪ to ensure the proper and reliable preparation of financial reporting (internal control and risk
management system relating to the Group’s financial reporting process), and
▪ to ensure compliance with the legal and regulatory requirements relevant to the alstria Group.
* This section is an unaudited statement.
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alstria Annual Report 2025
The ICS is established as an integral component of both the central and decentralised internal
management and monitoring processes, with clearly defined responsibilities, and is documented in a
Group policy. It also includes a compliance management system (CMS), tailored to the company’s risk
profile.
In the 2025 financial year, the ICS was adapted in response to the organisational realignment and the
resulting shift in responsibilities between alstria S.à r.l. and alstria advisors GmbH. The operational
execution of core functions such as accounting, treasury and controlling is outsourced. The functional
responsibility for these areas, however, remains with the Governing Body of alstria S.à r.l., which–
continues to exercise all essential oversight and control functions.
In the opinion of the legal representatives, the appropriateness and effectiveness of the internal
control system remain fully intact as a result of these adjustments. The content and underlying
principles of the ICS are substantially consistent with those of the previous year.
The internal monitoring process comprises both integrated and independent control mechanisms.
Integrated controls are embedded into the company’s organisational and operational structures and
include, among other things, authorisation concepts, access and entry restrictions, separation of
duties, completeness and plausibility checks, and limit monitoring.
To manage and monitor the identified risks, risk and opportunity owners are appointed on appropriate
hierarchical levels based on the relevance of the respective risks. These are primarily the heads of
departments responsible for risk areas (see Section V.1.1.1, "Structure of Risk Management"). These
individuals define appropriate risk and opportunity management strategies (such as avoidance,
mitigation, control, transfer or acceptance in the case of risks). In coordination with central support
functions and individual action owners, they also define and monitor the measures required to
implement these strategies. The active and targeted management of risks and opportunities is a
critical success factor of our system.
The effectiveness of measures and controls is regularly assessed within the organisation. In addition,
the company monitors and reviews the underlying structures and activities (such as the internal
control and risk management system) and identifies corrective actions, where necessary. This enables
the Governing Body to assess the adequacy and effectiveness of the internal control and risk
management system.
Furthermore, the Audit Committee is also involved in monitoring the ICS and RMS.
1.3.
Compliance Management System*
alstria has implemented a group-wide compliance management system (CMS) designed to
systematically, comprehensively and sustainably manage compliance-related risks. During both the
*This section is an unaudited statement.
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36
implementation phase and the ongoing review and assessment of the CMS’s adequacy and
effectiveness, alstria was advised by law firms specialised in compliance matters.
The Governing Body of alstria bears ultimate responsibility for ensuring compliance with all applicable
laws and internal regulations and is responsible for defining the structure of the CMS and for deciding
on any amendments or additions. The Board is supported in this task by the Compliance Officer, who
reports directly to the Board. If there is a suspicion involving a member of the Governing Body, the
Compliance Officer reports directly to the Chairman of the Audit Committee. At least once a year,
the Compliance Officer also reports to the Audit Committee.
All employees of the Group and its subsidiaries are required to participate in a compliance training
session at least once a year. The training content is regularly updated and covers essential legal and
ethical standards, particularly those set out in the Code of Conduct and the Compliance Management
Manual.
As part of the organisational realignment undertaken in the 2025 financial year, the CMS was also
adjusted to reflect the new corporate organization. alstria S.à r.l. retains overarching responsibility
for the compliance structure at the Group level, and control of the proper implementation of its
compliance guideline by its service providers. The effectiveness and operational capability of the CMS
remains unaffected.
alstria’s internal regulations – particularly the Code of Conduct and the Compliance Management
Manual – define the core principles and behavioural standards to be observed by all employees of its
affiliated companies, as well as in interactions with customers, external partners and the public.
These standards cover legal risk areas such as corruption, data protection, anti-money laundering,
anti-discrimination, and human rights, and also include ethical principles that go beyond statutory
requirements.
The key components of the CMS are continuously developed further with the aim of preventing,
detecting and responding to compliance-related incidents. Compliance with the system is monitored
through regular audits conducted by an external audit firm.
Compliance risks are regularly identified and assessed in relation to defined compliance objectives.
In the event of incidents, risk assessments may be repeated within a shorter timeframe to evaluate
whether modifications made to the CMS are achieving their intended effect. Furthermore, a
structured process for identifying and reporting compliance risks is in place. Identified risks are
analysed within the broader risk management framework, taking into account their likelihood of
occurrence and potential consequences (e.g. financial losses or reputational impact).
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alstria Annual Report 2025
1.4.
Key characteristics of accounting-related internal controls and risk-management system
The objective of alstria’s internal control and risk management system (ICS/RMS) in relation to the
accounting process is to ensure that financial reporting is consistent and compliant with statutory
requirements, the principles of proper accounting under the German Commercial Code (HGB),
International Financial Reporting Standards (IFRS), and internal policies. In this way, the recipients
of the consolidated and separate financial statements as well as the combined management report
are provided with accurate and reliable information.
To achieve this objective, alstria has implemented an accounting-related internal control and risk
management system that encompasses all relevant policies, procedures, and control measures.
The system is structured into two main components: control and monitoring. Responsibility for control
lies with the Treasury, Controlling, and Accounting departments. Monitoring is carried out through
both process-integrated and independent external measures. Integrated controls include system-
supported mechanisms such as the consistently applied four-eyes principle and software-based
validation checks. In addition, qualified personnel in specialised departments such as Controlling,
Legal, or Treasury perform key monitoring functions.
The Governing Body and the Supervisory Board are involved in the internal monitoring system through
independent audit measures. The internal audit function has been outsourced to an external audit
firm.
The implementation of accounting-related controls defined by alstria S.à r.l. is carried out outsourced
to service providers. However, responsibility for the design, control, and monitoring of the system
remains with alstria S.à r.l.. Despite the organisational changes, the legal representatives are
unaware of any indication that the accounting-related ICS/RMS is not overall adequate and effective.
For specialised accounting issues or complex valuation matters, the accounting department serves as
the central point of contact. Where necessary, external experts such as auditors or qualified
appraisers are consulted.
In addition, regular controls are performed by the Controlling department. All line items and material
accounts in the income statements and balance sheets of the consolidated entities—as well as the
consolidated financial statements—are reviewed for accuracy and plausibility. The frequency of these
checks depends on the nature of the underlying data and is conducted monthly or quarterly.
The accounting-related risk management system is an integral part of the Group’s overall risk
management. Risks that could affect the accuracy of accounting data are monitored by the Risk
Officer responsible for the financial risk category, and are identified, documented and assessed on a
quarterly basis by the risk management committee. Appropriate monitoring and optimisation
measures for accounting-related risks are implemented through alstria’s Group-wide risk management
framework.
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1.5.
Description and assessment of risks
In the 2025 financial year, alstria continues to classify its risks into four categories: strategic risks,
operational risks, compliance risks, and financial risks.
This chapter outlines all material risks that may affect the future development of the portfolio,
earnings power, and the Group’s assets, financial position, and results of operations. Potential effects
on the Group’s cash flow and reputation are also taken into account.
The order in which risks are presented within each of the four categories reflects alstria’s current
assessment of their relative significance for the Group. Risks that are currently unknown or considered
immaterial may nevertheless have a negative impact on business development. Unless otherwise
stated, the following risk descriptions apply to all entities within the alstria Group.
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alstria Annual Report 2025
The individual risks described relate to the planning period from 2026 to 2028.
Corporate risks
Likelihood
Risk
impact
Risk level
Change since
prior year
Strategic risks
Market environment risks
likely
high
H
unchanged
Risks in relation to changes
to the legal environment
unlikely
moderate
L
unchanged
Risks due to inefficient
organizational structures
unlikely
moderate
L
unchanged
Operational risks
Property transactions
likely
very high
H
unchanged
Refurbishment project risks
possible
high
H
unchanged
Vacancy risks
possible
high
M
unchanged
Shortfalls of rental payment risks
possible
high
M
unchanged
Maintenance risks
Possible
high
M
unchanged
Dependency on a service company
possible
high
M
newly
categorized
HR risks
n/a
n/a
n/a
no longer a risk
at Group level
IT risks
n/a
n/a
n/a
no longer a risk
at Group level
Compliance risks
Risks arising from fraud or
noncompliance
unlikely
moderate
L
unchanged
Litigation risks
unlikely
moderate
L
unchanged
Climate-related risks
possible
low
L
unchanged
Human rights risks
unlikely
low
L
unchanged
Financial risks
Refinancing on unfavorable terms
possible
very high
H
decreased
Breaches of covenants
likely
very high
H
unchanged
Valuation risks
possible
very high
H
unchanged
Interest rate risks
possible
high
M
unchanged
Tax risks
possible
high
M
increased
Liquidity risks
unlikely
high
M
unchanged
Counterparty risks
very unlikely
high
L
unchanged
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40
1.5.1. Strategic risks
Strategic risk management focuses on key influence factors such as the market environment,
regulatory developments, and the structure of the corporate organization.
Market environment risks
Market environment risks for the Group arise from the macroeconomic situation and developments in
the German real estate market. In the calendar year 2025, the overall economic recovery in Germany
remained subdued, which continued to weigh on the demand for office space. Despite moderate
growth impulses from the consumer and export sectors, take-up volumes in the office segment in the
fourth quarter of 2025 remained significantly below long-term average levels. Persistently high
structural vacancy rates in many major German cities and weak net absorption are key drivers of this
development.
The structural shift toward hybrid working models became further entrenched during the reporting
year. Many companies continued to reduce their office space or reorganize their workspace concepts,
dampening net space demand, strengthening tenants’ negotiating positions, and exerting pressure on
rents and income. In some segments of the office market, there is now a tangible risk of rental and
income declines, as well as potential impairments on property values.
Financial markets remained highly volatile in 2025. While initial interest rate cuts by the European
Central Bank in the second half of the year provided some relief for refinancing costs, the overall
level of interest rates remained elevated and continued to weigh on investment activity and capital
costs. A sustained and significant reduction in interest rates has not yet materialized. Accordingly,
interest rate and liquidity risks remain relevant.
In addition, ongoing global uncertainties continue to affect the German economy and, indirectly, the
real estate market. Geopolitical tensions, volatile commodity and energy prices, and international
trade conflicts increase risk aversion in capital markets and can delay investment and expansion
decisions. Furthermore, the globally interconnected economy remains vulnerable to external shocks
such as natural disasters, cyberattacks, and other systemic risks.
In light of these macroeconomic and market-structural developments, the level of market
environment risk continues to be assessed as high (H) for the reporting period.
Risks in relation to changes in the legal environment
Regulatory environment risks arise from changes in the legal framework that may affect the corporate
governance, tax treatment, or compliance requirements of alstria Group entities.
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alstria Annual Report 2025
In the 2025 financial year, alstria was for the first time no longer organized as a Real Estate Investment
Trust (REIT). The transition to a regular corporate tax and regulatory structure did not have any
material impact on profit determination, profit appropriation, or ongoing reporting to the tax
authorities, as these processes had already largely been in place under the REIT regime. However,
since the loss of REIT status, the company has been subject to corporate income tax and trade tax,
thereby expanding the spectrum of tax-related risks.
In addition, complexity has increased due to potential cross-border issues within the Group structure—
particularly in view of the relocation of the parent company's registered office to Luxembourg,
completed in January 2026. Although the tax and regulatory implications were thoroughly reviewed
in advance, the resulting requirements for group structure, reporting obligations, and ongoing
compliance must now prove effective in practice.
International developments such as the introduction of global minimum taxation under OECD Pillar
Two do not currently have a direct impact on alstria, as the relevant revenue thresholds are not met.
However, indirect effects—such as on intra-group transfer pricing or documentation obligations—
cannot be entirely ruled out.
Overall, the regulatory environment at the European level remains dynamic. New requirements in the
area of capital market compliance or IT security (e.g., NIS2 Directive) currently affect alstria only to
a limited extent..
The existing compliance and governance framework continues to provide a reliable basis for the
implementation of regulatory requirements. Against this background, the risk level related to the
regulatory environment is assessed—unchanged from the previous year—as low (L).
Risk caused by inefficient organizational structures
Risks related to inefficient organizational structures may arise if the company’s organizational setup,
internal processes, or governance frameworks are not effectively aligned with the corporate strategy
and group objectives, or if the connection between strategic management and operational
implementation is insufficiently ensured.
The implementation of the Business Plan decided by the Board of the company is executed through a
number of outsourced service providers which are responsible for the proper execution and reporting
on the plan. The contractual design of these business relationships and the ongoing oversight by the
Governing Body of alstria S.à r.l. are key elements in ensuring strategy-compliant implementation.
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42
Organizational and technological risks also remain relevant, including risks associated with interface
processes, the adherence to group-wide governance requirements, or the functioning of IT systems.
Risks such as system outages, cyberattacks, or insufficient technological integration are mitigated
through dedicated security architectures and audit processes.
The transition to digital and hybrid working models was successfully completed in previous years.
Despite the organizational restructuring, the Group's organization remains effectively aligned to
support alstria S.à r.l.’s strategic objectives.
In light of the stable structures, the contractually regulated collaboration with the service providers
of the company, and the established control and monitoring mechanisms, the risk from inefficient
organizational structures is again assessed as low (L) as of December 31, 2025.
1.5.2. Operational risks
alstria’s operational risk management covers both real estate-specific and general business risks.
These include, among others, vacancy rates, tenant creditworthiness, and the risk of declining market
rents. In addition, risks arising from the potential loss of key personnel—such as loss of know-how and
essential competencies—are also considered within this category.
Following the transfer of operational functions to third parties, personnel- and IT-related risks are no
longer managed at Group level but are instead the responsibility of the advisors company. At Group
level, these individual risks have been functionally replaced by a new risk category: dependency on a
third-party service provider This risk has been integrated into the operational risk assessment and
reflects the new governance and control structure appropriately.
alstria uses various early warning indicators to monitor these risks. Measures include the preparation
of rental forecasts, vacancy analyses, monitoring of lease terms and termination clauses, as well as
regular reviews of insurance coverage—all of which serve to identify potential threats at an early
stage.
Risks relating to property transactions
alstria is exposed to risks in connection with the acquisition and disposal of real estate assets. These
include, in particular, the partial or complete failure to identify defects, unknown obligations, or
unfavorable contractual arrangements that may remain undetected despite comprehensive due
diligence processes.
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In the context of property sales, alstria typically provides warranties regarding the factual and legal
conditions of the properties being sold. It cannot be completely ruled out that unknown obligations
may arise after the contract has been signed, which are covered by contractual guarantees and could
lead to subsequent claims.
Similarly, when acquiring properties, there is a risk that hidden defects, disadvantageous contractual
terms, or structural issues may be overlooked, potentially resulting in unexpected costs and adversely
affecting the profitability of the investment.
To mitigate these risks, alstria conducts thorough technical, legal, and tax due diligence. Internal
experts are involved in the risk analysis, and external specialists such as architects, engineers,
lawyers, and tax advisors are consulted when necessary to identify potential liabilities early. The
operational execution and organizational handling of these processes are contractually delegated to
alstria advisors GmbH. Strategic oversight is maintained by the Group through defined reporting lines
and control mechanisms to ensure alignment with corporate objectives.
The refurbishment and repositioning of office buildings remains a core component of alstria’s
corporate strategy. Significant investments are planned for associated development projects, some
of which are to be financed through real estate transactions. However, the market for commercial
property transactions did not show sustainable recovery during 2025, and transaction volumes in
Germany remained subdued throughout the reporting period. Demand volumes and price expectations
are at times misaligned with internal return requirements, making the realization of planned disposals
more difficult.
The ongoing market stagnation, combined with structural adjustments and competitive pressure, may
delay planned property sales or force them to be completed at reduced prices. This, in turn, could
negatively affect lease-up potential, rental income, and capital returns.
Given the persistently challenging market conditions and the structural risks associated with
transaction processes, the risk from real estate transactions continues to be classified as high (H).
Refurbishment project risks
alstria continues to implement refurbishment and modernization projects on a significant scale. Such
undertakings are associated with risks including delays in completion, budget overruns, construction
defects, planning deviations, or underestimation of project complexity. alstria addresses this risk
profile through comprehensive project controlling, integrated budget and milestone processes,
standardized approval procedures, and the involvement of both internal and external experts.
Operational execution and project monitoring are contractually assigned to alstria advisors GmbH,
while strategic oversight and control remain with alstria S.à r.l..
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In the 2025 reporting year, early signs of a moderate recovery in the construction and project
development market have materialized. Demand for construction services has increased compared to
previous years, and there is a renewed interest among construction companies to take on project
volumes. This trend may lead to reduced pricing pressure and improved cost predictability for future
projects.
At the same time, structural challenges persist. The availability of qualified construction resources
remains regionally and project-specifically volatile, despite some easing. Supply chain bottlenecks,
material delays, and price volatility for intermediate goods continue to affect project planning and
execution. In addition, economic fluctuations and geopolitical uncertainties continue to pose risks to
cost and scheduling reliability.
The volume of construction and development projects planned for the coming financial years remains
high and is in line with the company’s strategic focus, particularly with respect to the repositioning
of existing assets. The foreseeable market development in the real estate and construction sectors,
combined with the continued implementation of digital planning and management tools, contributes
to limiting operational risks in the project context.
Against this backdrop, the risk from construction projects is assessed as medium (M) as of
December 31, 2025.
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Vacancy risk
In the event of lease terminations, non-renewals, or existing vacancies, there remains a risk that
vacated rental space may not be re-let within the originally planned timeframe. The planning
assumptions are based on the expectation that space can be re-leased within a defined period after
a lease ends; however, this may deviate in the current market environment.
The office space market in Germany continued to face significant uncertainties in 2025. The volume
of newly signed lease agreements remains markedly subdued compared to the years preceding the
COVID-19 pandemic, and new space demand is recovering only slowly. Lasting structural changes such
as hybrid work models, remote working, and more flexible office concepts have become established
and continue to affect net space demand. The long-term impact of these developments is not yet
fully foreseeable and contributes to elevated planning uncertainty.
Additionally, there remains a time lag between macroeconomic developments, corporate
expectations, and actual leasing results. Economic uncertainties, prolonged decision-making and
tendering processes, and conservative space planning by companies mean that vacated spaces remain
on the market longer before new leases are concluded.
While the existing portfolio and current lease agreements remain stable, the increased caution among
potential tenants continues to dampen leasing volumes, rental income, and the speed of re-letting
activities.
Against this backdrop, the vacancy risk remains elevated and is therefore still assessed as medium
(M) as of December 31, 2025.
Shortfall of rental payment risks
An operational risk arises from the possibility that one or more tenants may fail to meet their
contractual rental payment obligations in full or on time. This may occur particularly in the context
of economic downturns, sector-specific slowdowns, or company-specific financial difficulties.
Although the overall economic situation showed partial signs of stabilization in 2025, many companies
continued to face challenging conditions. High interest expenses, stagnant investment levels, and
ongoing structural transformation processes placed a strain on several industries.
In the second half of 2025, actual rent defaults increased compared to previous years, in some cases
triggered by tenant insolvencies and liquidity shortages, particularly among smaller or sectorally
burdened tenants. This development is regarded as a delayed aftereffect of the economic pressures
described above.
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The majority of alstria’s key tenants continue to be public institutions and financially strong
corporations, which helps to mitigate the overall risk exposure. Even in the current financial year,
the volume of defaults remained within a manageable range and was largely offset by proactive
receivables management.
However, it remains uncertain whether the observed increase in defaults represents the peak of this
trend or whether further defaults may occur in 2026 before payment behavior normalizes again.
Against this backdrop, the rental default risk continues to be assessed as medium (M) as of December
31, 2025, despite the increase in actual defaults. This assessment reflects both heightened attention
by the risk management function and the still resilient overall tenant structure.
Maintenance risks
For the purpose of planning maintenance requirements, assumptions are made regarding the condition
and the intended standard of the properties. Unexpected repair needs, unidentified construction
defects, external damage, material ageing, or new statutory requirements—such as those relating to
energy efficiency, fire protection, or barrier-free access—may result in significantly higher
maintenance expenditure than originally planned. In particular, new requirements in the areas of
energy efficiency and sustainability may trigger additional technical and financial burdens that go
beyond previous planning assumptions.
An inadequate assessment of long-term maintenance requirements may also lead to budget overruns
and delays in the maintenance cycle of the property portfolio, which could have a negative impact
on earnings, property usage, and competitiveness. The volatile development of material costs and
labor expenses, partly driven by macroeconomic uncertainties and supply chain risks, represents an
additional factor that may reduce planning reliability in this area.
In recent years, alstria has established a comprehensive, strategically designed maintenance budget
that is systematically based on current condition assessments, priority evaluations, and life-cycle
analyses. Through the early identification of required measures and their operational
implementation—supported by contractual arrangements—via alstria advisors GmbH, it is ensured that
necessary repairs and modernization measures are carried out in a timely manner. At the same time,
project-related flexible budget resources are provided to enable responses to unforeseen events.
Although the institutionalized maintenance approach increases immediate operational certainty, the
potential effects of external cost and regulatory risks remain. In particular, long-term investment
cycles and the possibility of further legislative tightening in the areas of energy efficiency and
environmental minimum standards may represent additional burdens that are currently difficult to
quantify.
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On this basis, maintenance risk as of December 31, 2025 continues to be classified as a medium risk
(M). This reflects both the existing control and budgeting mechanisms and the ongoing uncertainties
related to material costs, statutory requirements, and long-term maintenance cycles.
Dependency on a Service Provider
With the outsourcing of key operational functions—particularly in the areas of Human Resources, IT,
Accounting, Controlling, Treasury, Legal, and Real Estate Management—to alstria advisors GmbH as
of December 8, 2025, the Group has become structurally dependent on a single intra-group service
provider. Since that date, alstria S.à r.l. no longer performs operational functions but focuses solely
on steering, oversight, and reporting activities.
The operational execution of core processes and systems lies entirely with alstria advisors GmbH. This
gives rise to cross-functional risks related to the availability, quality, and continuity of service
delivery. Potential risk factors include:
▪ staffing shortages, employee turnover, or loss of expertise at alstria advisors GmbH
▪ IT outages or security incidents in systems operated by the service provider
▪ insufficient coordination or oversight of complex internal interfaces
▪ strategic or financial weaknesses of the service provider
As a result of this restructuring, previously identified standalone risks at Group level—such as
personnel or IT risks—have been functionally transferred to the level of the service company.
However, they remain indirectly relevant from a Group perspective. The ability to manage these risks
depends largely on the performance, stability, and operational resilience of alstria advisors GmbH.
To mitigate these risks, contractually defined service-level agreements (SLAs) have been
implemented, including quality assurance measures, escalation procedures, and reporting obligations.
alstria S.à r.l. monitors service performance through standardized KPIs and direct reporting lines to
the Governing Body. In the event of strategic or operational deviations, the company holds significant
intervention rights.
From the Group’s perspective, the dependency on a central service provider represents a structural
risk, which is managed through clearly defined governance and control processes. While no material
service deficiencies or disruptions were observed in 2025, the risk remains latent—particularly in the
event of external crises, regulatory changes, or the loss of key personnel.
As of December 31, 2025, the dependency on a service provider is classified as a medium risk (M).
HR risks
With the outsourcing of all operational functions—including personnel management, recruiting, and
employee development—to alstria advisors GmbH, there are no longer any direct personnel risks at
Group level. Responsibility for staff recruitment, retention, and development now lies entirely with
the service company.
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Nonetheless, the risk remains indirectly relevant: alstria advisors GmbH’s ability to retain and attract
qualified personnel in areas such as real estate management, IT, accounting, and construction is
critical for ensuring reliable service delivery to alstria S.à r.l. and the Group.
Accordingly, risks related to staffing shortages, employee turnover, or a shortage of skilled
professionals are now reflected in the overarching risk category “Dependency on a Service Provider”
(see above).
As a result, the formerly stand-alone personnel risk is no longer assessed separately as of year-end
2025 but has been functionally absorbed into the overarching service provider risk.
IT risks
Since the outsourcing of operations, the operational responsibility for all IT systems, including their
security and functionality, lies with alstria advisors GmbH. The Group no longer operates its own IT
infrastructure.
The risk of IT disruptions, data loss, or cyberattacks therefore relates to the service provider’s ability
to deliver IT performance and security in accordance with contractual agreements. The Group has
defined corresponding reporting obligations, control mechanisms, and security standards to ensure
compliance.
As IT risks are now fully embedded in the overarching risk category “Dependence on a service
provider,” a separate assessment of IT risk at Group level is no longer conducted in the 2025 financial
year. Potential impacts are comprehensively addressed within the service provider risk.
1.5.3. Compliance risks
Risks of Non-Compliance with Compliance Requirements
In the 2025 financial year, all employees of alstria S.à r.l. and its subsidiaries were contractually
transferred to alstria advisors GmbH (with effect from July 2025). Since then, alstria S.à r.l. no longer
has any employees of its own and is solely represented by its remaining sole Governing Body member.
As a result, operational responsibility for personnel-related compliance risks—such as discrimination,
harassment, labor law violations, or internal whistleblowing cases—has been fully transferred to the
service company. However, alstria advisors GmbH remains subject to the Group-wide compliance
rules established by alstria S.à r.l. and operates under its instructions within contractually defined
processes.
At the same time, key compliance obligations continue to reside at the level of alstria S.à r.l. and the
Group, particularly in the following areas:
▪ Capital market law (e.g. insider trading, ad-hoc disclosures, directors’ dealings)
▪ Anti-money laundering and financial sanctions
▪ Tax and accounting regulations
▪ Corporate governance
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▪ Anti-corruption in decision-making processes
As the parent company, alstria S.à r.l. retains overall responsibility for ensuring compliance with
legal, regulatory, and ethical requirements. Compliance violations by alstria advisors GmbH may still
have a material impact on the Group—particularly in cases of reputational damage, flawed decision-
making inputs, or failure to properly fulfil legal obligations, especially in the context of supervisory
or fiduciary duties of the Governing Body.
To prevent such risks, alstria maintains a Group-wide compliance management system (CMS)..
alstria ensures that all employees of its main service providers are required to participate in annual
compliance training. The training content is reviewed and updated regularly and covers topics such
as anti-corruption, data protection, capital market compliance, anti-discrimination, and ESG-related
obligations.
In addition, alstria operates a Group-wide internal and external whistleblowing system, which was
implemented even before the German Whistleblower Protection Act (HinSchG) came into force and
was formalised in 2023.
New regulatory developments, such as the NIS2 Directive (cybersecurity) and expanding ESG-related
transparency requirements, are systematically tracked as part of the CMS framework.
In light of the structural changes, special emphasis is placed on monitoring interfaces and control
processes between alstria S.à r.l. and the service provider. While the compliance framework remains
robust and well-established, indirect risks arising from errors or omissions on the part of the service
provider cannot be fully ruled out.
As such, the risk of non-compliance as of December 31, 2025, continues to be assessed as low (L).
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Litigation risks
The alstria S.à r.l. or its subsidiaries could, in principle, be involved in ongoing or foreseeable legal
or arbitration proceedings that might significantly impact the Group’s financial position. Additional
potential risks could arise from claims made through litigation, such as warranty, restitution, or other
claims related to real estate transactions or development projects carried out in recent years.
Following the final resolution of the legal disputes concerning the transformation of DO Deutsche
Office AG into the partnership alstria office Prime Portfolio GmbH & Co. KG in 2016, neither alstria
S.à r.l. nor its subsidiaries are currently involved in any ongoing or foreseeable legal or arbitration
proceedings that could have a significant impact on the Group’s financial position.
This also applies to potential claims related to real estate sales or development projects conducted
in previous years. Provisions have been made at the respective Group company level to cover potential
financial obligations arising from any ongoing or foreseeable proceedings.
As no material lawsuits or disputed claims against any company within the Group are currently pending
or foreseeable, the risk from legal disputes remains classified as low (L), unchanged from the prior
year.
Climate-related risks
Considering the long-term nature of the real estate business and the immovable nature of the assets,
it is imperative to take into account the effect of climate change on the prospects.
Alstria’s assets are in areas with (on a global scale) relatively limited climate sensitivity. In most
cases, the changes in market regulations and tenant demand that will be caused by the transition to
a low-carbon society are known and predictable. The adaptation and innovation need of the
company’s assets and services fit naturally into the modernization cycle of its portfolio. However,
alstria’s business is not immune to the systemic risks created by climate change.
The specific risks related to climate change that the Company faces are listed below.
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Physical risks: alstria’s property portfolio is subject to extreme weather events, such as flooding,
storms, and hail, which may weaken building structures and threaten tenants’ safety. The potential
immediate risk for alstria relates to the cost of repairing a damaged building and reduced revenues
due to reduced office quality/availability during the renovation period. In the worst case, the
structural value of the asset will be negatively impacted. According to many experts, such as the IPCC
(Intergovernmental Panel on Climate Change), extreme weather phenomena will increase in the
coming years. alstria’s control process includes:
▪ Regular update of physical climate-risk assessments to determine which buildings must be
upgraded accordingly.
▪
Insurances covering the portfolio from the loss of due to events such as fire, storms, and other
unforeseen incidents. For the fiscal year 2024, the cost of this insurance was EUR 4.4 m,
covering assets valued at EUR 6,966.0 m.
Transition risks
Policy and legal risks: After the Paris Agreement, new regulations, for example the EU Energy
Performance of Buildings Directive imposes stringent obligations for the energy efficiency of EU’s
building stock to be met by 2050. Failing to meet new climate regulations may decrease the
attractiveness of alstria’s assets, which may, in turn, lower or nullify their rental potential and
ultimately decrease the company’s revenues and value. alstria’s control process includes:
▪ Ongoing environmental monitoring and compliance with applicable laws and standards.
▪ Participation in industry bodies to monitor emerging legislation early.
▪ Integration of physical, regulatory, and demand-related factors into all central decision-making
and planning processes (incl. OPEX and CAPEX) along the business cycle (buy, manage,
redevelop, and sell), to reduce the carbon footprint of the company’s building portfolio.
▪ Decarbonization of the company’s revenues/ business model through technological innovations,
e.g., smart building technology, which also enables less carbon-intensive office offerings in the
sharing economy (e.g., alstria advisor’s Gmbh coworking business BEEHIVE).
▪ Prioritizing the development of existing assets over ground-up developments. From alstrias
perspective, new developments have negative contribution to climate change, regardless of
their operational efficiency, because of the carbon needed for their construction (i.e.,
embodied carbon).
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Market and reputational risks: The growing awareness of climate change, coupled with the increase
in environmental taxes like carbon taxes, is increasingly influencing tenant preferences for energy
efficient office spaces. Failing to meet this emerging demand could result in our assets becoming less
attractive, thereby affecting their rental value. alstria’s control process includes:
▪ Piloting new technologies in alstria’s corporate offices first to prevent complications and
reputational risks when rolling them out across our portfolio.
▪ Offering additional services to help tenants run their offices efficiently (e. g., Mieterstrompool
and coworking spaces).
▪ Recognizing early the financial requirements to upgrade and modernize buildings.
Systemic risks: alstria faces significant indirect risks from climate change; events occurring far away
can still impact its operations by affecting tenant economic stability. Key systemic risks—like climate
refugees, political instability, and disruptions in global supply chains—are expected to affect alstria
more imminently and often than direct risks.
Alstria addresses these risks as follows:
▪ Engaging in policy and industry dialogue to promote regulatory frameworks that recognise the
climate benefits of refurbishing and reusing existing buildings over new construction, even
where new buildings are classified as energy efficient.
▪ Embedding energy-efficiency investments as a fixed element of alstria’s regular capex
planning, with public funding instruments used solely as a value-enhancing accelerator (“green
boost”), ensuring operational and financial resilience against regulatory change or funding
withdrawal.
The implementation of the EU Energy Performance of Buildings Directive (EPBD) and the regulatory
requirements arising from the European Green Deal are continuously monitored by alstria’s ESG
department and integrated into both strategic and operational planning. Responsibility for
implementation at the property level lies with alstria advisors GmbH, while control and prioritisation
remain with alstria S.à r.l..
Similar to the previous year, environmental risks are assessed at a low (L) level.
Risk of noncompliance with human rights
There remains a risk that activities triggered by alstria's operations could result in human rights
violations. Such risks may arise, for example, from poor working conditions on construction sites or
in the production of goods and services required for alstria’s business activities.
alstria is fully committed to its responsibility to respect human rights. Effective leadership guidelines
and the compliance organization, which focus particularly on adherence to laws, anti-discrimination,
and diversity, ensure that the conduct of alstria’s legal representatives and employees complies with
legal requirements while also meeting high ethical standards. This commitment also extends to
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contractual arrangements with contractors and customers to minimize the risk of human rights
violations throughout the entire value chain.
The entire Group follows the UN Guiding Principles on Business and Human Rights, which recognize
the obligation of states and businesses to respect human rights. States are primarily responsible for
protecting the human rights of their citizens, which they ensure through national regulations and
laws. If national laws fail to adequately safeguard internationally recognized human rights principles,
the UN Guiding Principles expect businesses to align their actions with these higher international
standards.
Since the transfer of operational functions to alstria advisors GmbH, all relevant human rights
standards have also been firmly embedded at that level. The requirements set by alstria S.à r.l. apply
across the Group and are extended to service providers and contractors through contractual
obligations.
The risk of non-compliance with human rights remains classified as low (L), unchanged from the
previous year, due to the measures in place and the regulatory framework in Germany.
1.5.4. Financial risks
Refinancing risks
The financing instruments used by the Group primarily consist of mortgage-backed bank loans and
fixed-interest bonds, which are used to finance ongoing business activities. The associated risks
mainly include cash flow, interest rate, and liquidity risks.
As of December 31, 2025, the Net LTV stood at 54.9 % (previous year: 54.8 %). The long-term issuer
rating assigned by Standard & Poor’s remained stable at BB, while the rating for unsecured bonds
remained at BB+. This underscores alstria’s continued credit stability despite the volatile financing
environment.
In the 2025 financial year, key refinancing measures were successfully implemented, reducing the
volume of liabilities maturing within the next three years to below EUR 1 billion. At the same time,
the interest rate structure of existing financial liabilities was optimized through targeted interest
rate hedging transactions (swaps). The maturity profile was further smoothed, significantly reducing
concentration risks at maturity (see page 18]).
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Despite these improvements, the general market environment remains challenging. While the ECB
initiated its first monetary policy easing steps during the year, interest rates and risk premiums –
partly due to global uncertainties – remain above the levels seen in recent years. This continues to
have a negative impact on the terms of new financing, especially for issuers rated in the BB segment.
As a result of the successful measures taken to actively manage the capital structure, the likelihood
of refinancing risk materializing has decreased compared to the previous year. The risk assessment
has therefore been lowered from “likely” to “possible.” However, due to the still significant absolute
financing volume and the challenging market environment, refinancing risk is still overall classified
as high (H) – albeit at the lower end of this category.
Breaches of covenants
When taking on financing—particularly in the form of bonds, bank loans, and promissory note loans—
alstria undertakes to comply with contractually defined financial covenants. These include, among
others, a maximum permissible loan-to-value (LTV) ratio and minimum earnings indicators related to
the encumbered properties (e.g., interest coverage ratios).
A breach of such covenants can have significant consequences, including cash traps, increased
financing costs, or, in extreme cases, the extraordinary termination of financing agreements by
lenders.
As of December 31, 2025, the Group's Net LTV stood at 54.9 % (previous year: 54.8 %). The valuations
of the property portfolio have largely stabilized during the 2025 financial year, confirming the
headroom relative to certain covenant thresholds. In addition, the interest rate hedging instruments
(swaps) entered into during the year have contributed to an improvement in interest coverage
metrics.
Despite this progress, the overall situation remains tense: The headroom to covenant thresholds
remains limited, and potential future impairments or declines in earnings could result in a covenant
breach. No covenant violations were identified in the 2025 financial year, but ongoing compliance is
continuously monitored (see section II.2.7 "Compliance with and Calculation of Financial Covenants"
in the Combined Management Report).
Against this background, the risk of breaching financial covenants remains classified as high (H) as of
December 31, 2025, unchanged from the previous year.
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Valuation risks
The valuation of the real estate portfolio is based on fair value, as determined by independent,
internationally recognized appraisers using market-standard valuation methods. The fair value may
fluctuate in the future as a result of macroeconomic developments, structural changes in demand, or
other external factors.
The potential decline in market value of real estate is largely influenced by external variables such
as declining rent levels, weak demand for office space, rising vacancy rates, or increased capital
market interest rates—factors over which alstria has no direct control. In addition, qualitative aspects
such as the condition and location of the properties and the structure of future lease agreements play
a decisive role. The final judgment of the appraisers is subject to a degree of discretion and may
differ from the views of other experts.
If the assumptions or factors used in the valuation process change—whether due to market
developments or other reasons—subsequent valuations could result in a reduction in market value,
leading to significant valuation losses for the company.
In 2025, interest rates remained largely unchanged. Compared to the sharp increases seen in 2022
and 2023, they stabilized at a slightly lower but still elevated level, continuing to dampen transaction
activity in the commercial real estate market. By year-end 2025, the German office property market
showed only moderate signs of recovery, and transaction volumes remained subdued.
Nevertheless, alstria recorded several significant and unexpected leasing successes during the 2025
financial year, which—together with targeted investments—contributed to a slight upward revaluation
of the portfolio. In addition, the positive effect of CPI-linked rental agreements, which apply to a
large portion of alstria’s leases, continued to support valuation stability.
To mitigate risk, alstria maintains its strategy of regional portfolio diversification, a tenant-centric
approach, and ongoing market monitoring and analysis. The market value of all properties is assessed
at least annually by independent, internationally recognized appraisers.
Despite signs of a modest recovery, structural uncertainties remain—particularly regarding the future
demand for office space and the long-term interest rate environment. As a result, the valuation risk
remains elevated, and is therefore again classified as high (H), unchanged from the previous year.
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Interest rate risks
Interest rate risks arise from changes in market interest rates. Such fluctuations affect the cost of
interest payments, both in the current financial year and over the three-year forecast period, which
is the basis for alstria’s risk management system.
In 2024, the European Central Bank (ECB) began to ease its monetary policy for the first time in
several years. In 2025, it implemented several moderate interest rate cuts, supported by a declining
inflation trend within the eurozone. As a result, the 3-month EURIBOR, the benchmark rate for
variable-rate financing, also declined over the course of the year.
However, it became evident in 2025 that construction and real estate financing rates decoupled
increasingly from the ECB’s policy rate development. Credit spreads for property financing widened.
Market observers attribute this, among other factors, to the increased issuance of government bonds
as part of the German government's debt package, which pushed up yields on government securities
and exerted upward pressure on long-term capital market interest rates. As a consequence, real
estate financing costs did not decline in line with central bank rates.
alstria’s hedging policy includes the targeted use of interest rate swaps and caps to protect against
future rate hikes while maintaining sufficient flexibility for portfolio adjustments. In 2025, additional
interest rate swaps were concluded, ensuring that nearly all variable-rate debt (EURIBOR-based) is
now fully hedged through to maturity.
The 3-month EURIBOR remains the base rate for alstria’s variable financial liabilities and is adjusted
quarterly. In addition, a significant portion of alstria’s debt consists of fixed-rate bonds.
The remaining interest rate risk relates primarily to future refinancing needs after 2027, where
deviating market conditions could result in higher interest costs. However, no significant short-term
interest rate risks are currently identified.
Thanks to effective hedging measures, a moderate monetary policy environment, and improved cost
predictability across the existing portfolio, interest rate risk continues to be classified as medium
(M)—unchanged from the previous year, but with a downward trend. The currently elevated credit
spreads in the real estate financing market remain under close observation.
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Tax risks
Following the loss of the REIT status of alstria S.à r.l. as of December 31, 2024, the company has been
subject to corporate income tax and trade tax from 2025 onward. The associated tax reclassification
was implemented successfully, without encountering any significant transition obstacles. Taxes are
generally a consequence of positive economic performance and are therefore not inherently
considered a risk. However, the new tax status introduces additional risk dimensions, particularly due
to the broader scope of tax audits and the increased complexity of cross-border structuring.
While tax audits and the related requirements for ongoing documentation and substantiation remain
unchanged in procedural terms, the fact that alstria is now fully taxable increases the relevance of
correct tax positions, especially in areas such as profit determination, profit appropriation, and
potentially transfer pricing.
Tax risks may also arise from subsidiaries and other tax types such as VAT, real estate transfer tax
(RETT), or property tax. In addition, there is the risk that changes in tax legislation or divergent
interpretations thereof could lead to higher tax liabilities, including retroactive effects for all fiscal
years that are not yet finally assessed.
The property tax reform that took effect on January 1, 2025, did not result in a structural increase in
the Group’s tax burden. While property tax remains chargeable to tenants, its actual level depends
on the individual local multipliers (Hebesätze) determined by municipalities.
Another tax-related risk arises from real estate transfer tax in share deals. Although the purchaser
(Alexandrite) provided contractual assurances in 2022 to avoid detrimental share transfers and to
compensate for any resulting RETT charges, residual risks remain due to possible changes in
administrative practice or future legislative amendments.
The outsourcing of all employees to alstria advisors GmbH (contract effective July 2025) has
introduced new complexities in the area of VAT-related intercompany services, particularly with
regard to organizational integration, service qualification, and input VAT deduction. These matters
are currently being addressed in close consultation with external tax advisors.
alstria addresses tax risks through an effective internal tax control system, ongoing monitoring of tax
developments, and continuous engagement with external tax consultants and auditors.
Given the structural changes, evolving legal environment, and limited predictability of tax
regulations, the tax risk remains classified as medium (M). Compared to the previous year, however,
its scope has expanded, as new areas of focus have emerged.
Combined Management Report
alstria Annual Report 2025
58
Liquidity risk
Liquidity management is a central component of alstria’s financial management. The company
monitors cash utilization on a daily basis and forecasts cash flows using an integrated liquidity
planning system. This system includes expected inflows and outflows from operating activities,
financing, and investments.
alstria follows a diversified financing and refinancing strategy: the repayment of large volumes in a
single tranche (“balloon repayment”) is mitigated by staggered maturities. This applies also to the
sources of funding, which reflect a balanced mix between corporate bonds and mortgage-backed bank
loans. As of the 2025 reporting date, all planned measures to optimize the refinancing strategy had
been successfully implemented, contributing positively to the predictability of future cash flows.
During 2025, alstria also continued to repurchase its own bonds below par, taking advantage of
favorable market opportunities. These transactions not only improved the financial result but also
reduced future repayment obligations and thus strengthened the liquidity position on a sustained
basis.
As of December 31, 2025, cash and cash equivalents amounted to approximately EUR 315 million (prior
year: EUR 80 million). This significant increase reflects the successful implementation of the
refinancing strategy under challenging market conditions. It ensures that alstria is able to meet all
obligations reliably and demonstrates the active allocation of liquidity in the context of ongoing
investments and financing activities.
Additional liquidity can be generated, if needed, through the sale of non-core properties. This
flexibility is an integral part of the company’s liquidity planning. However, as with real estate
transaction risks, a potential trade-off may arise if planned disposals are delayed or cannot be
executed at the expected price. In such cases, temporary shortfalls in funding for investment or
development projects may occur.
alstria addresses these risks through rigorous cash management, continuous monitoring of liquidity
reserves, and robust oversight of all financial obligations.
Despite the persistently tight stance of banks and capital markets and a generally cautious approach
to new financing, operational liquidity remains fully secured. As a result, the liquidity risk continues
to be classified as medium (M), unchanged from the previous year.
Counterparty risks
alstria mitigates part of its risk exposure through financial instruments and insurance contracts
involving external counterparties – for example, in the case of interest rate derivatives and property
insurance policies. These counterparties are internationally recognized financial institutions and
insurers, whose creditworthiness is regularly assessed based on ratings issued by leading rating
agencies.
Combined Management Report
59
alstria Annual Report 2025
To further limit the risk of default, alstria additionally uses alternative information sources to validate
the plausibility of credit ratings. This multi-layered credit assessment process helps to identify and
mitigate potential default risks at an early stage.
In 2025, the credit quality of key counterparties remained stable despite ongoing geopolitical
uncertainties, high interest rates, and macroeconomic volatility. This stability was supported by
targeted monetary and fiscal policy measures, which continue to aim at safeguarding systemically
important financial institutions.
As of the reporting date, no material credit risks in relation to alstria’s counterparties have been
identified. Based on ongoing credit monitoring, conservative counterparty selection, and robust risk
mitigation instruments, counterparty risk continues to be classified as low (L), unchanged from the
prior year.
1.6.
Overall risk assessment by the Governing Body
Alstria S.à .l. consolidates and aggregates all risks identified across the various risk categories in
accordance with its Group Risk Management Policy. The most significant challenges within each of
the four categories – strategic risks, compliance risks, operational risks, and financial risks – are
discussed first in their respective sections.
In recent years, alstria’s risk environment has been significantly shaped by external factors such as
inflation, interest rate developments, the consequences of the Russian war of aggression, and shifts
in transatlantic economic relations. These factors particularly impacted refinancing and valuation
risks. Risks associated with REIT regulations no longer apply following the loss of REIT status as of
December 31, 2024. In the 2025 financial year, no fundamentally new risk areas emerged; the focus
remained on the major, already known risk drivers.
Compared to previous years, the more stable market parameters in 2025 provided some positive
signals for valuation risks, although a sustained long-term recovery in real estate values remains
uncertain. Against this backdrop, valuation risk continues to be classified as material.
The low liquidity in the office property transaction market remains a key challenge, particularly as
property sales continue to represent a relevant source of funding for investment and development
projects. If planned disposals cannot be realized as scheduled, delays or setbacks in project
implementation may arise, which could indirectly affect leasing performance and rental income.
These interdependencies highlight the importance of forward-looking liquidity and project planning.
Combined Management Report
alstria Annual Report 2025
60
alstria’s refinancing strategy – in particular, a balanced maturity profile and the gradual shift toward
mortgage-backed loans – helps to limit potential risks associated with expiring financial liabilities. At
the same time, the Group maintains a consistently high equity ratio of 35% compared to the previous
year, which serves as an additional buffer to address any further challenges in the real estate market.
In 2025, compliance and operational risks were less prominent in the risk landscape, due to the
successful restructuring, which led to the elimination or reduced relevance of certain risk types.
However, the restructuring process itself – particularly any unanticipated challenges in terms of tax,
legal, or organizational execution – represents a risk factor. Delays, complexity, or divergent legal/tax
assessments could lead to additional costs or compromise expected outcomes.
In the current year’s risk matrix, several changes were observed in the classification of risks as high
(H) or medium (M). It should be noted that the overall number of identified risks has declined,
primarily due to the removal of risks that no longer apply following the restructuring. For
comparability, the share of high risks has been adjusted on a like-for-like basis, excluding risks that
were removed from the current and prior-year baselines. On this adjusted basis, the proportion of
risks classified as "high risk" among all identified risks amounts to 14.6 % as of year-end (December
31, 2024: 14.7 %), while the share of "medium risk" remains at 28.1 % (December 31, 2024: 30.5 %).
The key areas of risk—valuation, transaction market, refinancing, and implementation of the
restructuring—continue to be in focus and remain unchanged.
In addition to assessing the potential impact of risks on the Group’s net asset position, selected key
risks are also used to derive an estimate of liquidity requirements over the three-year assessment
period, to ensure that any resulting obligations can be met. As of December 31, 2025, the required
liquidity buffer is slightly lower than in the previous year, reflecting both the removal of certain risks
due to the restructuring and the overall more stable risk environment.
Based on the diversified portfolio and tenant structure, the already reflected market effects in
property valuations, and the balanced debt maturity profile, the Governing Body considers the current
overall risk situation to be manageable. In our view, none of the risks described – individually or in
combination – pose a threat to the Company’s continued existence.
Combined Management Report
61
alstria Annual Report 2025
2. REPORT ON OPPORTUNITIES
2.1.
Management of opportunities
is conducted at Group level and aims to identify, evaluate, and implement opportunities at an early
stage. Growth and earnings opportunities continue to arise from the existing property portfolio and –
depending on market conditions – from potential acquisitions. Depending on a property's stage in the
lifecycle, value can be created particularly through repositioning, refurbishment, re-letting or
disposal.
In recent years, the market environment has been shaped by inflation, interest rate developments,
and geopolitical uncertainty. In the 2025 financial year, market parameters showed greater stability
than in previous years. If this trend continues, it may foster improved investment and transaction
readiness in the market, thereby supporting the conditions for implementing value-enhancing
initiatives.
The exit from the REIT status as of December 31, 2024, had no direct impact on alstria’s core
operational opportunity base. The subsequent realignment of the business model in response to new
tax and structural conditions was aimed at ensuring stability and transparency, thus establishing a
reliable foundation for future development.
Opportunities are assessed as part of the annual budgeting process and continuously monitored. The
focus lies on analyzing the market environment, portfolio properties, and regulatory developments.
This includes evaluating tenant needs, asset quality and categories, and ESG-related trends and
obligations. The Governing Body is regularly informed about the progress of growth initiatives.
Monthly reporting compares planned and actual performance, and financial and liquidity forecasts
are continuously updated.
2.1.1. Opportunities related to property acquisitions
alstria’s acquisition strategy continues to focus on properties with value enhancement potential. The
primary focus remains on well-located buildings that can be upgraded through repositioning,
refurbishment, or active asset management. Despite continued market challenges, opportunities may
arise in situations where market inefficiencies, repositioning potential, or attractive risk-return
profiles are identified.
Combined Management Report
alstria Annual Report 2025
62
2.1.2. Opportunities related to tenant relationships
Active asset and property management remains key to maintaining strong tenant relationships.
alstria’s ability to flexibly address tenant needs supports its goal of securing long-term cash flows and
stabilizing occupancy through property- and location-specific measures. Opportunities include
enhancing space offerings, needs-based modernisation, and strengthening tenant satisfaction and
retention.
2.1.3. Opportunities arising from real estate development
By focusing on refurbishment, modernisation, and repositioning of existing properties, alstria can
unlock value and address evolving market demands for sustainability, energy efficiency, and space
quality. Improved market conditions could further enhance the implementation of projects and
leasing success.
2.1.4. Opportunities from sustainable management
Sustainability remains a central pillar of alstria’s strategy. Upgrading and repositioning buildings as
part of a value creation process allows the Company to meet ESG criteria and strengthen the long-
term marketability of the portfolio. Benefits may include higher tenant demand, improved letting
performance, and competitive advantages in attracting investors and financing partners.
2.1.5. Opportunities arising from financing
Access to capital remains a critical success factor. A balanced maturity profile and an optimal mix of
financing instruments – such as corporate bonds and mortgage-backed loans – enhance planning
reliability and cost stability. alstria’s ESG positioning may also enable it to secure competitive
financing conditions, depending on market dynamics, and support implementation of the business
plan.
2.1.6. Opportunities from restructuring
The restructuring presents the opportunity to reduce organisational and legal complexity, streamline
structures, and strengthen decision-making and governance capabilities. Successful implementation
can yield efficiency gains, further standardisation of processes, and enhanced Group-wide
transparency – thereby improving the operational foundation for executing portfolio, investment, and
financing strategies.
Combined Management Report
63
alstria Annual Report 2025
2.2.
Overall statement on opportunities
alstria’s future opportunities are primarily derived from the quality of its real estate portfolio, the
stability of its tenant base, and value enhancement potential through refurbishment, repositioning,
and targeted leasing measures. The Company leverages these opportunities through its holding and
governance role – by setting strategic direction, engaging suitable service providers, and monitoring
performance through robust control structures.
Major decisions on portfolio, investment, and financing activities are based on analyses and proposals
prepared by service providers, and are subject to oversight through defined reporting and governance
processes.
The continuous development of the property portfolio – particularly with respect to sustainability,
energy efficiency, and marketability – can support letting performance and long-term value growth.
In addition, the restructuring creates the potential to reduce complexity, enhance transparency, and
improve the conditions for efficient strategy implementation. alstria is therefore well positioned to
advance the strategic development of its portfolio and to seize future opportunities as market
conditions allow
Combined Management Report
alstria Annual Report 2025
64
VI. SUSTAINABILITY INFORMATION
alstria is committed to transparent and consistent sustainability reporting and has been disclosing ESG
information on an annual basis since 2010. alstria’s 2024 ESG information is presented in a tabular
format in accordance with the EPRA Sustainability Best Practice Recommendations (sBPR) fourth
edition. This data was subject to a limited assurance engagement conducted by KPMG AG
Wirtschaftsprüfungsgesellschaft (see also: https://alstriawebsites.blob.core.windows.net/alstria-de-
com/media/sustainability/report/alstria_24-25_ESG_data.pdf).
Further sustainability information is provided in Section E. Sustainability Statement included in the
2025 Annual Report. This Sustainability Statement reflects evolving European sustainability reporting
requirements under the Corporate Sustainability Reporting Directive (CSRD) and is informed by the
structure of the European Sustainability Reporting Standards (ESRS).
Combined Management Report
65
alstria Annual Report 2025
VII. ADDITIONAL GROUP DISCLOSURE
1. CORPORATE GOVERNANCE GROUP DECLARATION PURSUANT TO SECTIONS 289F AND
315D HGB (“HANDELSGESETZBUCH”: GERMAN COMMERCIAL CODE)
With the delisting of alstria S.à r.l. becoming effective on May 23, 2025, and the subsequent relocation
of the company’s registered office to Luxembourg as of January 21, 2026, the obligation to issue a
Group Corporate Governance Statement in accordance with Section 161 of the German Stock
Corporation Act (AktG) no longer applies. Consequently, no Group Corporate Governance Statement
was issued for the 2025 financial year.
2. EMPLOYEES
As of December 31, 2025, alstria no longer employed any staff, apart from the Chief Executive Officer,
due to the carve-out of the operational business to alstria advisors GmbH and its deconsolidation on
December 8, 2025 (December 31, 2024: 195 employees). During the period from January 1 to
December 31, 2025, the company employed an average of 173 employees (January 1 to December 31,
2024: an average of 195 employees). The average figures were determined based on the number of
employees at the end of each month. These figures do not include members of the Governing Body.
3. GROUP AND DEPENDENT-COMPANY REPORT
In accordance with Section 290 of the German Commercial Code (HGB), alstria S.à r.l. is required to
prepare consolidated financial statements and a group management report or a combined
management report covering all entities controlled by alstria S.à r.l. Accordingly, alstria S.à r.l. and
all subsidiaries, as listed in the notes to the consolidated financial statements, are consolidated in
the alstria Group.
Due to Brookfield Corporation’s ability to exercise a majority of the voting rights in alstria as of
December 31, 2025, and in the absence of a domination agreement between a controlling company
and alstria, the Company, which was a German stock corporation (AG) as of the balance sheet date,
was considered a dependent company within the meaning of Section 312 AktG. Accordingly, a separate
report on relationships with affiliated companies (dependency report) was prepared for the 2025
financial year. This report includes the following statement by alstria’s Board of Managers (Conseil
de gérance):
“In the legal transactions and measures listed in the report on relationships with affiliated companies,
alstria S.à r.l., Luxembourg (formerly alstria office AG, Hamburg), received appropriate consideration
for each legal transaction based on the circumstances known to us at the time the legal transactions
with affiliated companies were entered into or the measures were taken or omitted, and the company
was not disadvantaged as a result of such measures being taken or omitted.”
4. DIVIDEND
The statutory representatives do not intend to propose a dividend distribution for the 2025 financial
year.
Combined Management Report
alstria Annual Report 2025
66
Should there be a material change in freely available liquidity during the course of the 2026 financial
year, the statutory representatives reserve the right to submit a corresponding alternative proposal
to the shareholders’ meeting.
Luxembourg, March 5, 2026
alstria S.à r.l.
Board of Managers
Glenn LaFountain
Luc Leroi
Claire Sabbatucci
Consolidated Financial Statements
67
alstria Annual Report 2025
DETAIL INDEX CONSOLIDATED FINANCIAL STATEMENTS
B.
CONSOLIDATED FINANCIAL STATEMENTS ................................................ 68
I.
CONSOLIDATED INCOME STATEMENT ............................................................... 68
II.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ....................................... 69
III.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................................ 70
IV.
CONSOLIDATED STATEMENT OF CASH FLOWS ..................................................... 72
V.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY............................................. 74
VI.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ......................................... 75
1. GENERAL INFORMATION ................................................................................. 75
2. BASIS OF PREPARATION ................................................................................. 76
3. SEASONAL OR ECONOMIC EFFECTS ON BUSINESS .................................................. 106
4. SEGMENT REPORTING ................................................................................. 107
5. NOTES TO THE CONSOLIDATED INCOME STATEMENT ............................................. 108
6. NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION – ASSETS ............... 119
7. NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION – EQUITY AND
LIABILITIES .............................................................................................. 133
8. OTHER NOTES .......................................................................................... 143
9. RELATED PARTY RELATIONSHIPS ..................................................................... 145
10. EARNINGS PER SHARE ................................................................................. 146
11. DIVIDENDS PAID AND DIVIDENDS PROPOSED ........................................................ 147
12. EMPLOYEES ............................................................................................. 148
13. LONG-TERM REMUNERATION ......................................................................... 148
14. FINANCIAL RISK MANAGEMENT ....................................................................... 150
15. SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD ............................. 160
16. UTILIZATION OF EXEMPTING PROVISIONS ........................................................... 160
17. DISCLOSURES PURSUANT TO THE WERTPAPIERHANDELSGESETZ [GERMAN SECURITIES
TRADING ACT] AND EUROPEAN MARKET ABUSE REGULATION [MAR] ............................ 161
18. DECLARATION OF COMPLIANCE PURSUANT TO AKTG SECTION 161 ............................. 162
19. AUDITORS’ FEES ........................................................................................ 163
20. MANAGEMENT BOARD ................................................................................. 163
21. SUPERVISORY BOARD .................................................................................. 164
Consolidated Financial Statements
alstria Annual Report 2025
68
B. CONSOLIDATED FINANCIAL STATEMENTS
I.
CONSOLIDATED INCOME STATEMENT
For the period from January 1 to December 31, 2025
EUR k
Notes
2025
20241)
Revenues
5.1
195,073
198,441
Revenues from service charge income
5.1
39,866
40,735
Real estate operating expenses
5.2
-68,315
-65,537
Net rental income
166,624
173,639
Administrative expenses
5.3
-8,605
-9,260
Advisory and asset management expenses
5.4
-2,644
0
Personnel expenses
5.5
-22,503
-21,566
Other operating income
5.6
17,400
7,968
Other operating expenses
5.7
-8,456
-32,528
Net result from fair value adjustments to
investment property
6.1
42,224
63,496
Net result from the disposal of investment
property
5.8
-1,627
0
Net operating result
182,414
181,749
Net financial result
5.9
-59,369
-60,831
Share of the result of companies accounted
for at equity
2.3.4
146
0
Net result from the adjustment of financial
derivatives
5.9;
6.5
-21,045
-2,062
Pretax result
102,146
118,856
Income tax expenses
5.10
-16,804
1,895
Deferred tax result
5.10
53,196
-225,296
Consolidated profit
138,538
-104,545
Attributable to:
Shareholders of alstria S.à r.l.
138,509
-104,545
Non‑controlling interests
29
0
Earnings per share in EUR
Basic earnings per share
10
0.90
-0.59
Diluted earnings per share
10
0.90
-0.59
1) adjusted, see Section “Disclosure relating to adjustments of accounting policies " in Note 2.2.
Consolidated Financial Statements
69
alstria Annual Report 2025
II. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period from January 1 to December 31, 2025
EUR k
Notes
2025
2024
Consolidated profit for the period
138,538
-104,545
Other comprehensive income for the period
(items that can be reclassified to net income):
Market valuation cash flow hedges
6.5
4,286
-8,362
Amortizing OCI
1,340
0
Income tax relating to items that may be
reclassified subsequently to profit or loss
5.10
-1,153
2,230
4,473
-6,132
Total comprehensive income for the period
143,011
-110,677
Total comprehensive income attributable to
Shareholders of alstria S.à r.l.
142,982
-110,677
Non‑controlling interests
29
0
Consolidated Financial Statements
alstria Annual Report 2025
70
III. CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of December 31, 2025
ASSETS
EUR k
Notes
Dec. 31, 2025
Dec. 31, 2024
Noncurrent assets
Investment property
6.1
4,249,307
4,127,431
Equity-accounted investments
6.2
8,170
0
Property, plant, and equipment
6.3
23
20,719
Intangible assets
6.3
0
342
Deferred tax assets
5.9
6,172
7,321
Financial assets
6.4
95,589
94,432
Derivatives
6.5
31,760
4,961
Total noncurrent assets
4,391,021
4,255,206
Current assets
Trade receivables
6.6
4,453
4,836
Income tax receivables
100
90
Other receivables
6.6
7,770
6,026
Receivables from equity-accounted investments
6.6
3,727
0
Derivatives
6.5
46,484
2,576
Cash and cash equivalents
6.7
315,114
80,233
thereof restricted
9,869
7,448
Total current assets
377,648
93,761
Total assets
4,768,669
4,348,967
Consolidated Financial Statements
71
alstria Annual Report 2025
EQUITY AND
LIABILITIES
EUR k
Notes
Dec. 31, 2025
Dec. 31, 2024
Equity
7.1
Share capital
121,167
178,562
Capital surplus
303,355
245,961
Hedging reserve
6.5
-8,067
-12,540
Retained earnings
1,229,940
1,091,401
Revaluation surplus
10,590
3,485
Total equity
1,656,985
1,506,869
Noncurrent liabilities
Limited partnership capital noncontrolling
interests
7.2
0
101,038
Long-term loans and bonds, net of current portion
7.3
2,536,509
1,971,926
Deferred tax liabilities
5.9
177,194
230,387
Other provisions
7.4
250
1,673
Other liabilities
7.5
10,993
13,932
Derivatives
6.5
3,828
8,134
Total noncurrent liabilities
2,728,774
2,327,090
Current liabilities
Limited partnership capital noncontrolling
interests
7.2
98,558
21
Short-term loans
7.3
221,740
445,958
Trade payables
7.5
6,256
3,410
Liabilities to equity-accounted investments
7.5
8
Derivatives
6.5
6,970
5,190
Income tax liabilities
7.6
17,224
440
Other provisions
7.4
863
2,974
Other current liabilities
7.5
31,291
57,015
Total current liabilities
382,910
515,008
Total liabilities
3,111,684
2,842,098
Total equity and liabilities
4,768,669
4,348,967
Consolidated Financial Statements
alstria Annual Report 2025
72
IV. CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ending December 31, 2025
EUR k
Notes
2025
2024
1. Cash flows from operating activities
Consolidated profit or loss for the period
138,538
-104,545
Interest income
5.9
-24,045
-19,196
Interest expense
5.9
83,413
80,027
Result from income taxes
5.10
16,804
-1,895
Deferred tax result
5.10
-53,196
225,296
Unrealized valuation movements
-32,778
-41,063
Other noncash income (−)/expenses (+)
8.3
-4,455
-552
Gain (−)/loss (+) on disposal of investment properties
5.8
1,628
0
Depreciation and impairment of fixed assets (+)
6.3
773
1,558
Increase (−)/decrease (+) in trade receivables and other
assets not attributed to investing or financing activities
-3,136
5,518
Increase (+)/decrease (−) in trade payables and other
liabilities not attributed to investing or financing activities
-4,042
15,027
Cash generated from operations
119,504
160,174
Interest received
7,080
8,276
Interest paid
-64,127
-75,110
Income taxes paid
-21
-1,073
Net cash generated from operating activities
62,436
92,267
2. Cash flows from investing activities
Acquisition of investment properties
-82,398
-103,427
Proceeds from the sale of investment properties
24,850
0
Payment of transaction cost in relation to the sale
of investment properties
-232
0
Proceeds from the equity release of interests in joint ventures
0
0
Acquisition of other property, plant, and equipment
-446
-588
Proceeds from the sale other property, plant, and equipment
2,835
0
Payments for investment in financial assets
6.4
-1,156
0
Net cash used in/ generated from investing activities
-56,547
-104,015
Consolidated Financial Statements
73
alstria Annual Report 2025
EUR k
Notes
2025
2024
3. Cash flows from financing activities
Cash received from cash equity contributions
7.1
0
0
Payments for the acquisition of shares in limited partnerships of
minority interests
0
0
Distributions on limited partnerships of minority shareholders
-4,179
-3,748
Proceeds from the issue of bonds and borrowings
1,317,500
120,000
Payments of transaction costs for taking out loans
-28,188
-7,362
Payments for the redemption portion of leasing obligations
-790
-690
Cash-outflow due to deconsolidation
-15,373
0
Payments due to the redemption of bonds and borrowings
-963,655
-130,950
Payments for the acquisition of financial derivatives
6.5
-76,323
-1,552
Net cash used in financing activities
228,992
-24,301
4. Cash and cash equivalents at the end of the period
Change in cash and cash equivalents (subtotal of 1 to 3)
234,881
-36,049
Cash and cash equivalents at the beginning of the period
80,233
116,282
Cash and cash equivalents at the end of the period
315,114
80,233
thereof restricted:
6.7
9,869
7,448
Consolidated Financial Statements
alstria Annual Report 2025
74
V. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period from January 1 to December 31, 2025
EUR k
Not
es
Share
capital
Capital
Surplus
Hedging
reserve
Retained
earnings
Revaluat
ion
surplus
Equity
alstria
shareholder
Non-
controlling
interests
Total
equity
As of Dec. 31,
2024
178,562 245,961 -12,540
1,091,401
3,485
1,506,869
0
1,506,869
Changes in the
financial year
2025
Consolidated
profit
0
0
0
138,510
0
138,510
29
138,538
Other
comprehensive
income
0
0
4,473
0
0
4,473
0
4,473
Total
comprehensive
income
0
0
4,473
138,510
0
142,982
29
143,011
Reduction of
Share capital
7.1
-57.395
57.395
0
0
0
0
1,600
1,600
Capital increase
minorities
0
0
0
0
0
0
0
0
Deconsolidation
minorities
0
0
0
0
7,105
7,105
0
7,105
Termination of
own used
property
7.1
0
0
0
29
0
29
-1,629
-1,600
As of Dec. 31,
2025
7.1 121.167 303.355
-8,067
1,229,940
10,590
1,656,985
0
1,656,985
For the period from January 1 to December 31, 2024
EUR k
Notes
Share
capital
Capital
Surplus
Hedging
reserve
Retained
earnings
Revaluation
surplus
Total
equity
As of Dec. 31, 2023
178,562
245,961
-6,408
1,195,947
3,485
1,617,547
Changes in the
financial year 2024
Consolidated profit
0
0
0
-104,545
0
-104,545
Other comprehensive
income
0
0
-6,132
0
0
-6,132
Total comprehensive
income
0
0
-6,132
-104,545
0
-110,677
As of Dec. 31, 2024
7.1
178,562
245,961
-12,540
1,091,401
3,485
1,506,869
Consolidated Financial Statements
75
alstria Annual Report 2025
VI. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL INFORMATION
alstria S.à r.l. (the “Company”, formerly alstria office AG, formerly alstria office REIT-AG until May
23, 2025) is a real estate holding company with its registered office in Luxembourg, Grand Duchy of
Luxembourg (formerly Hamburg, Germany). The principal activities of the Company and its subsidiaries
(together “alstria” or the “Group”) comprise the acquisition, management, use and disposal of its own
real estate, as well as the participation in entities pursuing comparable business activities.
Following the successful acquisition by Alexandrite Lake Lux Holding S.à r.l. (“Alexandrite”),
Luxembourg, the Company was first included in the consolidated financial statements of its ultimate
parent, Brookfield Corporation, Toronto, Canada (hereinafter “Brookfield”), on January 11, 2022.
During the fourth quarter of the 2024 fiscal year, Brookfield Wealth Solutions Limited (“BWS”) obtained
a common equity interest in the entities controlling Alexandrite. As a result, the Company was
deconsolidated from the consolidated financial statements of Brookfield Property Partners LP,
Hamilton, Bermuda (BPY), and Brookfield. From that point onward, the alstria Group was no longer
included in Brookfield’s consolidated financial statements. Regardless of the voting structure as of
December 31, 2025, alstria S.à r.l. prepares the consolidated financial statements for both the largest
and smallest group of companies within the alstria Group.
As of December 31, 2024, the Company lost its REIT status due to the failure to meet the statutory
minimum free float requirement (§ 11 REITG) on three consecutive balance sheet dates. As a result,
the tax exemption from corporate income tax and trade tax ceased to apply from the 2025 fiscal year.
The resulting accounting implications have been taken into account in these consolidated financial
statements.
On February 11, 2025, the extraordinary general meeting resolved, at the request of the majority
shareholder, to implement a squeeze-out pursuant to §§ 327a et seq. of the German Stock Corporation
Act (AktG). As a result of the transfer of the shares held by minority shareholders to BPG Holdings
Bermuda Limited, a subsidiary of Brookfield, the listing of the Company’s shares on the stock exchange
ended as of May 23, 2025. The corporate bonds issued by the Company remain admitted to trading on
a regulated market within the European Union.
As part of a group reorganization implemented in the 2025 financial year, the Company’s operating
business was transferred to the newly established alstria advisors GmbH, based in Hamburg, effective
in the third quarter of 2025. At the same time, Lapis Holding GmbH acquired voting rights and shares
in alstria advisors GmbH. Further corporate arrangements concerning alstria advisors GmbH resulted
in the loss of control in December 2025. As a result, the company was deconsolidated and has since
been accounted for as an equity-accounted investment in the consolidated financial statements.
Consolidated Financial Statements
alstria Annual Report 2025
76
In addition, with effect from January 1, 2026, all properties held by the Company were contributed to
domestic subsidiary limited partnerships domiciled in Hamburg. As a result, the structure of the
Group’s property‑holding entities was reorganized immediately after the reporting date.
Furthermore, on January 21, 2026 (after the balance sheet date but prior to the authorization of these
financial statements), the Company transferred its statutory seat to Luxembourg and converted into a
Luxembourg private limited liability company (Société à responsabilité limitée, or S.à r.l.). The
registration was completed on 5 February 2026 in the Luxembourg Trade and Companies Register
(RCSL) under number B304475.
These consolidated financial statements have been prepared in accordance with the International
Financial Reporting Standards (IFRS), as adopted by the European Union (EU), and the supplementary
provisions of the German Commercial Code (Handelsgesetzbuch – HGB) pursuant to § 315e (1) HGB. The
consolidated financial statements were authorized for issue by the Board of Managers (Conseil de
gérance) on March 5, 2026.
The consolidated financial statements are presented in euros (EUR), the Group’s functional currency.
Rounding differences may result in minor discrepancies between the stated totals and the sum of
individual amounts. The fiscal year corresponds to the calendar year and covers the period from January
1 to December 31, 2025. The financial statements have been prepared on a going concern basis.
2. BASIS OF PREPARATION
Apart from investment property (land and buildings), properties held for sale and certain financial
instruments that are measured at fair values at the end of each reporting period, as explained in the
accounting policies below, the consolidated financial statements have been prepared based on
historical cost.
The preparation of financial statements in conformity with the IFRSs requires the use of certain
critical accounting estimates and for management to exercise its judgement when applying the
Group’s accounting policies. Areas involving a higher degree of judgement or complexity, or items
wherein assumptions and estimates have a significant impact on the consolidated financial
statements, are disclosed in Note 2.4.
The consolidated income statement is prepared using the total cost method. Single items are
summarized in the consolidated statement of financial position and the income statement. They are
commented on in the Notes to the financial statements.
Consolidated Financial Statements
77
alstria Annual Report 2025
Assets and liabilities are classified as noncurrent and current, respectively. Current items are defined
as items that are due in less than 1 year and vice versa for noncurrent items.
2.1.
Changes in accounting policies and mandatory disclosures
Effects of new and amended IFRSs
The Company adopted the following new amendment to an existing standard for the first time for the
financial year beginning January 1, 2025:
EU
Endorsement
Standard/
interpretation
Content
Nov. 12, 2024
Amendments to
IAS 21
The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability.
The change to IAS 21 did not have any material effect on the Group's net assets, financial position,
and results of operations.
Consolidated Financial Statements
alstria Annual Report 2025
78
New and amended IFRSs and interpretations to existing standards that are not yet effective and
that the Group has not adopted early
EU
Endorsement
Standard
Content
Applicable for FY
beginning on/after
May 27, 2025
Amendments to
IFRS 9 and IFRS 7
Amendments to the Classification and Measurement of
Financial Instruments to address matters identified
during the post-implementation review of the
classification and measurement requirements of IFRS 9
Financial Instruments
Jan. 1, 2026
June 30, 2025
Amendments to
IFRS 9 and IFRS 7
Contracts Referencing Nature-dependent Electricity
Jan. 1, 2026
Not yet
endorsed
IFSR 18
New Standard.
Presentation and Disclosure in Financial Statements. IFRS
18 includes requirements for all entities applying IFRS for
the presentation and disclosure of information in
financial statements. IFRS 18 replaces IAS 1 Presentation
of Financial Statements.
Jan. 1, 2027
Not yet
endorsed
IFSR 19
New Standard.
Subsidiaries without Public Accountability. IFRS 19
specifies reduced disclosure requirements that an eligible
entity is permitted to apply instead of the disclosure
requirements in other IFRS Accounting Standards.
Jan. 1, 2027
Not yet
endorsed
Amendments to
IFSR 19
Subsidiaries without Public Accountability: Disclosures
Jan. 1, 2027
Not yet
endorsed
Amendments to
IFSR 21
The Effects of Changes in Foreign Exchange Rates:
Translation to a Hyperinflationary Presentation Currency
Jan. 1, 2027
July 9, 2025
Annual
Improvements to
IFRS Standards –
Volume 11
Various clarifications and amendments
Jan. 1, 2026
The IASB published IFRS 18, Presentation and Disclosures in Financial Statements, in April 2024. IFRS
18 requires additional, defined subtotals in the income statement, disclosures on key performance
indicators determined by management, adds new principles for aggregating and disaggregating
information, and makes limited changes to IAS 7, Statement of Cash Flows. IFRS 18 replaces IAS 1,
Presentation of Financial Statements. Initial application must be made retrospectively. The Company
is currently assessing in detail the impact that the initial application of IFRS 18 will have on the
Group’s consolidated financial statements and already expects that it will have significant effects on
the presentation of the consolidated income statements and, where applicable, the cash flow
statement.
No further significant impact on financial reporting is expected from the other new standards and
amendments to the existing standards listed above.
The Group did not adopt any new or amended standards or interpretations early in the 2025 financial
year.
Consolidated Financial Statements
79
alstria Annual Report 2025
2.2.
Disclosure relating to adjustments of accounting policies
2.2.1. Basic assumptions
Effective January 1, 2025, alstria S.à r.l. has adjusted its accounting policies regarding the
classification of certain expenses and the capitalization of project-related costs. This change
represents a reversion to the accounting methods applied up to and including the year 2022.
The background to this adjustment is the deconsolidation of alstria from the consolidated financial
statements of Brookfield Corporation. As a result of the termination of the consolidation requirement,
there are no longer any valid reasons for continued alignment with the presentation requirements of
the former parent group.
The reintroduced original methodology better reflects alstria's operational reality and its position as
an independently reporting group. Furthermore, it significantly reduces the internal effort required
for reconciliations and accounting adjustments.
This change—just like the amendment implemented on January 1, 2023—has no impact on the
consolidated result, as it solely involves reclassifications. The specific effects are outlined below:
2.2.2. Real estate operating expenses
Certain costs related to the management of investment properties, which were previously report-ed
real estate operating expenses will, as of January 1, 2025, will again be recorded under per-sonnel
or administrative expenses according to their respective cost type from January 1, 2025 in order to
increase transparency.
2.2.3. Net result from fair value adjustments on investment property
Certain expenses related to development projects, which until the end of 2024 were capitalized as
production costs of development assets in accordance with Brookfield group accounting policies (in
particular, specific portions of property operating expenses attributable to development assets and,
to a lesser extent, personnel and administrative expenses), have been recognized directly in their
respective expense categories since January 1, 2025, due to a revised assessment of their eligibility
for capitalization as production costs.
The quantitative effects of these changes on the income statement are presented in the tables below.
The balance sheet and, therefore, the Group’s equity remain unaffected by the retrospective
application of the revised accounting policies, as the consolidated period result remains unchanged.
Consolidated Financial Statements
alstria Annual Report 2025
80
The following overview shows the adjustments resulting from the change in accounting policy for
2025:
Current
Adjustments
Previous
accounting policy
2025
2025
2025
EUR k
EUR k
EUR k
Net rental revenues
195,073
0
195,073
Service charge income
39,866
0
39,866
Real estate operating costs
-68,315
1,545
-69,860
Net Rental Income
166,624
1,545
165,079
Administrative expenses
-8,605
-763
-7,842
Advisory and asset managament expenses
-2,644
0
-2,644
Personnel expenses
-22,503
-10,899
-11,604
Other operating income
17,400
0
17,400
Other operating expenses
-8,456
0
-8,456
Net result from fair value adjustments
on investment property
42,224
10,116
32,108
Result on disposal of investment property
-1,627
0
-1,627
Net Operating Result
182,414
0
182,414
Net financial result
-59,369
0
-59,369
Share of the result of equity-accounted
investments
146
146
Net result from fair value adjustments
on financial derivatives
-21,045
0
-21,045
Pre-Tax Income (EBT)
102,146
0
102,146
Current income tax result
-16,804
0
-16,804
Deferred tax result
53,196
0
53,196
Consolidated profit for the period
138,538
0
138,538
Consolidated Financial Statements
81
alstria Annual Report 2025
The following overview shows the reported prior-year figures as they would appear if the current
accounting policies had already been applied in the prior-year’s reporting period 2024:
As stated
Adjustments
Current
accounting
policy
2024
2024
2024
EUR k
EUR k
EUR k
Net rental revenues
198,441
0
198,441
Service charge income
40,735
0
40,735
Real estate operating costs
-67,322
-1,785
-65,537
Net Rental Income
171,854
-1,785
173,639
Administrative expenses
-8,341
918
-9,260
Personnel expenses
-9,955
11,612
-21,567
Other operating income
7,968
0
7,968
Other operating expenses
-32,528
0
-32,528
Net result from fair value adjustments
on investment property
52,751
-10,744
63,496
Gain/Loss on disposal of investment
property
0
0
0
Net Operating Result
181,749
0
181,749
Net financial result
-60,831
0
-60,831
Net result from fair value adjustments
on financial derivatives
-2,062
0
-2,062
Pre-Tax Income (EBT)
118,856
0
118,856
Current income tax result
1,895
0
1,895
Deferred tax result
-225,296
0
-225,296
Consolidated profit for the period
-104,545
0
-104,545
Consolidated Financial Statements
alstria Annual Report 2025
82
2.3.
Basis of consolidation
2.3.1. Subsidiaries
The consolidated financial statements incorporate the financial statements of alstria S.à r.l. and
entities controlled by the Company and its subsidiaries. Control is achieved when the Company
▪
exercises authority over the investee;
▪
is exposed or has rights to variable returns from its involvement with the investee; and
▪
can use its authority to affect the amount of its returns.
The Company reassesses whether it controls an investee if facts and circumstances indicate changes
to one or more of the three elements of control listed above.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases
when the Company loses control of the subsidiary. Specifically, the income and expenses of a
subsidiary acquired or disposed of during the year are included in the consolidated statement of
profit or loss and other comprehensive income from the date when the Company gains control until
the date when the Company ceases to control the subsidiary.
The profit or loss and each component of the other comprehensive income are attributed to the
Company’s owners and noncontrolling interests. The total comprehensive income of the subsidiaries
is attributed to the Company’s owners and noncontrolling interests, even if this results in the
noncontrolling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to align their
accounting policies with the Group’s accounting policies.
All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions
between members of the Group are eliminated in full upon consolidation.
Changes in the Group’s ownership interests in existing subsidiaries
Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing
control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the
Group’s interests and noncontrolling interests are adjusted to reflect the changes in their relative
interests in the subsidiaries. Any difference between the amount by which the noncontrolling
interests are adjusted and the fair value of the consideration paid or received is recognized directly
in equity and attributed to the owners of the Company.
Consolidated Financial Statements
83
alstria Annual Report 2025
When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is
calculated as the difference between
(i) the aggregate of the fair value of the consideration received and the fair value of any
retained interest, and
(ii) the previous carrying amount of the assets (including any goodwill) and liabilities of the
subsidiary and any noncontrolling interests.
All amounts previously recognized in other comprehensive income in relation to that subsidiary are
accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary
(i.e., reclassified to profit or loss or transferred to another category of equity, as
specified/permitted by applicable IFRSs).
Business combinations
Acquisitions of businesses within the meaning of IFRS 3 are accounted for using the acquisition
method. The consideration transferred in a business combination is measured at fair value, which is
calculated as the sum of the acquisition-date fair values of the assets transferred by the Group,
liabilities incurred by the Group to the former owners of the acquiree, and the equity interests issued
by the Group in exchange for control of the acquiree. Acquisition-related costs are generally
recognized in profit or loss as incurred.
At the acquisition date, the identifiable acquired assets and the assumed liabilities are recognized
at their fair value.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any
noncontrolling interests in the acquiree, and the fair value of the acquirer’s previously held equity
interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable
assets acquired and the liabilities assumed. After reassessment, if the net of the acquisition-date
amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the
consideration transferred, the amount of any noncontrolling interests in the acquiree and fair value
of the acquirer’s previously held interest in the acquiree fit and the excess is recognized immediately
in profit or loss as a bargain purchase gain.
Noncontrolling interests that are present ownership interests and entitle their holders to a
proportionate share of the entity’s net assets in the event of liquidation may be initially measured
either at fair value or at the noncontrolling interests’ proportionate share of the recognized amounts
of the acquiree’s identifiable net assets and reported under liabilities. The choice of measurement
is made on a transaction-by-transaction basis. Other types of noncontrolling interests are measured
at fair value or, when applicable, on the basis specified in another IFRS.
Consolidated Financial Statements
alstria Annual Report 2025
84
When a business combination is achieved in stages, the Group’s previously held equity interest in
the acquiree is remeasured to its acquisition-date fair value, and the resulting gain or loss, if any,
is recognized in profit or loss.
Amounts arising from interests in the acquiree prior to the acquisition date that have previously
been recognized in other comprehensive incomes are reclassified as profit or loss, where such
treatment would be appropriate if that interest were disposed of.
Significant companies wherein alstria S.à r.l. is directly or indirectly able to significantly influence
financial and operating decisions (associates), or directly or indirectly share control (joint ventures),
are accounted for using the equity method.
The acquisition of real estate property companies that do not represent a business in the sense of
IFRS 3 is shown as a direct purchase of real estate (asset deal). The acquisition costs of the property
company are assigned to the individually identifiable assets and liabilities on the basis of their fair
values. In this case, there is no goodwill.
2.3.2. Fully consolidated subsidiaries
The Group of consolidated companies, including alstria S.à r.l., comprised 130 companies in the
financial year (2024: 37). As of the balance sheet date, 122 companies (prior-year balance sheet
date: 36 companies) existed. In addition, one associate, alstria advisors GmbH, was accounted for
using the equity method. The company was deconsolidated during the financial year due to the
disposal of the majority of voting rights.
Consolidated Financial Statements
85
alstria Annual Report 2025
In the consolidated financial statements of alstria S.à r.l., the following companies are included
(statement according to Section 313 para. 2 and Section 315 (e) HGB):
No.
Company
Fn. Headquart
ers
Equity
interest
%
Held
by
No.
Business
activity
1 alstria S.à r.l. (formerly alstria office AG)
Luxem-
bourg
Parent company Holding
2 alstria fixtures & facilities GmbH (formerly alstria Portfolio 3
GP GmbH)
Hamburg
100,0
1 Service
company
3 alstria office Adlerstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
4 alstria office Alte Königstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
5 alstria office Alter Steinweg GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
6 alstria office Am Borsigturm 13 GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
7 alstria office Am Borsigturm 44 GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
8 alstria office Am Wehrhahn 28 GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
9 alstria office Am Wehrhahn 33 GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
10 alstria office Amsinckstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
11 alstria office Augustaanlage GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
12 alstria office Bäckerbreitergang GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
13 alstria office Bamlerstraße GmbH & Co. KG (formerly alstria
office Portfolio 3 GmbH & Co. KG)
1)
Hamburg
100,0
1 PropCo
14 alstria office Basselweg GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
15 alstria office Besenbinderhof GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
16 alstria office Buxtehuder Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
17 alstria office Carl-Reiß-Platz 1 GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
18 alstria office Carl-Reiß-Platz 2 GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
19 alstria office Corneliusstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
20 alstria office Darwinstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
21 alstria office Drehbahn GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
22 alstria office Eichwiesenring GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
23 alstria office Elisabethstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
24 alstria office Emanuel-Leutze-Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
25 alstria office Epplestraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
26 alstria office Ernst-Merck-Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
27 alstria office Essener Bogen GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
28 alstria office Friedrich-List-Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
29 alstria office Friedrich-Scholl-Platz GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
30 alstria office Friedrichstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
31 alstria office Garstedter Weg GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
32 alstria office Gasstraße GmbH & Co. KG (formerly alstria
office Portfolio 4 GmbH & Co. KG)
1)
Hamburg
100,0
1 PropCo
33 alstria office Georg-Glock-Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
34 alstria office Gereonsdriesch GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
35 alstria office Goldsteinstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
36 alstria office Grindelberg GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
37 alstria office Gustav-Nachtigal-Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
38 alstria office Hamburger Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
39 alstria office Hammer Steindamm GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
40 alstria office Hanauer Landstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
41 alstria office Handwerkstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
42 alstria office Hansaallee GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
43 alstria office Hans-Böckler-Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
Consolidated Financial Statements
alstria Annual Report 2025
86
No.
Company
Fn. Headquart
ers
Equity
interest
%
Held
by
No.
Business
activity
44 alstria office Hauptstätter Strasse GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
45 alstria office Hauptstraße 98 GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
46 alstria office Heidenkampsweg 97 GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
47 alstria office Herthastraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
48 alstria office Holzhauser Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
49 alstria office Horbeller Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
50 alstria office Immermannstraße 40 GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
51 alstria office Immermannstraße 59 GmbH & Co. KG (formerly:
alstria office Portfolio 5 GmbH & Co. KG)
1)
Hamburg
100,0
1 PropCo
52 alstria office Insterburger Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
53 alstria office Ivo-Beucker-Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
54 alstria office Johanniswall GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
55 alstria office Kaiser-Wilhelm-Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
56 alstria office Kaistraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
57 alstria office Karlstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
58 alstria office Kattunbleiche GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
59 alstria office Lehrter Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
60 alstria office Ludwig-Rosenberg-Ring GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
61 alstria office Mainzer Landstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
62 alstria office Max-Brauer-Allee GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
63 alstria office Maxstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
64 alstria office Mehringdamm GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
65 alstria office Nagelsweg GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
66 alstria office Öjendorfer Weg GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
67 alstria office Rahlstedter Straße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
68 alstria office Rankestraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
69 alstria office Schaartor GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
70 alstria office Schinkestraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
71 alstria office Siemensstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
72 alstria office Sonninstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
73 alstria office Steinstraße 10 GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
74 alstria office Steinstraße 5 GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
75 alstria office Stresemannallee GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
76 alstria office Süderstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
77 alstria office Taunusstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
78 alstria office Tempelhofer Damm GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
79 alstria office Uhlandstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
80 alstria office Willstätterstraße GmbH & Co. KG
1), 2) Hamburg
100,0
1 PropCo
81 alstria Portfolio 1 GP GmbH
Hamburg
100,0
1 General
Partner
82 alstria Portfolio 10 GP GmbH
2)
Hamburg
100,0
1 General
Partner
83 alstria Portfolio 11 GP GmbH
2)
Hamburg
100,0
1 General
Partner
84 alstria Portfolio 12 GP GmbH
2)
Hamburg
100,0
1 General
Partner
85 alstria Portfolio 13 GP GmbH
2)
Hamburg
100,0
1 General
Partner
86 alstria Portfolio 14 GP GmbH
2)
Hamburg
100,0
1 General
Partner
87 alstria Portfolio 15 GP GmbH
2)
Hamburg
100,0
1 General
Partner
88 alstria Portfolio 16 GP GmbH
2)
Hamburg
100,0
1 General
Partner
Consolidated Financial Statements
87
alstria Annual Report 2025
No.
Company
Fn. Headquart
ers
Equity
interest
%
Held
by
No.
Business
activity
89 alstria Portfolio 17 GP GmbH
2)
Hamburg
100,0
1 General
Partner
90 alstria Portfolio 18 GP GmbH
2)
Hamburg
100,0
1 General
Partner
91 alstria Portfolio 19 GP GmbH
2)
Hamburg
100,0
1 General
Partner
92 alstria Portfolio 20 GP GmbH
2)
Hamburg
100,0
1 General
Partner
93 alstria Portfolio 21 GP GmbH
2)
Hamburg
100,0
1 General
Partner
94 alstria Portfolio 4 GP GmbH
Hamburg
100,0
1 General
Partner
95 alstria Portfolio 6 GP GmbH
2)
Hamburg
100,0
1 General
Partner
96 alstria Portfolio 7 GP GmbH
2)
Hamburg
100,0
1 General
Partner
97 alstria Portfolio 8 GP GmbH
2)
Hamburg
100,0
1 General
Partner
98 alstria Portfolio 9 GP GmbH
2)
Hamburg
100,0
1 General
Partner
99 alstria Prime Portfolio 2 GP GmbH
Hamburg
100,0
1 General
Partner
100 alstria Prime Portfolio 3 GP GmbH
2)
Hamburg
100,0
1 General
Partner
101 alstria Prime Portfolio 4 GP GmbH
2)
Hamburg
100,0
1 General
Partner
102 alstria Prime Portfolio 5 GP GmbH
Hamburg
100,0
1 General
Partner
103 First Pine GmbH & Co. KG
1)
Hamburg
100,0
1 Financial Asset
company
104 alstria Prime Portfolio GP GmbH
Hamburg
100,0
1 General
Partner
105 alstria office Prime Portfolio GmbH & Co. KG
1)
Hamburg
89,0
1 Intermediate
holding
106 alstria office PP Holding I GmbH & Co. KG
1)
Hamburg
89,0
104 Intermediate
holding
107 alstria office Berliner Straße GmbH & Co. KG
1)
Hamburg
89,0
105 PropCo
108 alstria office Hanns-Klemm-Straße GmbH & Co. KG
1)
Hamburg
89,0
105 PropCo
109 alstria office Heerdter Lohweg GmbH & Co. KG
1)
Hamburg
89,0
105 PropCo
110 alstria office Solmsstraße GmbH & Co. KG
1)
Hamburg
89,0
105 PropCo
111 alstria office Maarweg GmbH & Co. KG
1)
Hamburg
89,0
105 PropCo
112 alstria office PP Holding II GmbH & Co. KG
1)
Hamburg
89,0
100 Intermediate
holding
113 alstria office Am Hauptbahnhof GmbH & Co. KG
1)
Hamburg
89,0
112 PropCo
114 alstria office An den Dominikanern GmbH & Co. KG
1)
Hamburg
89,0
112 PropCo
115 alstria office Carl-Schurz-Straße GmbH & Co. KG
1)
Hamburg
89,0
112 PropCo
116 alstria office Hauptstraße 45 GmbH & Co. KG
1)
Hamburg
89,0
112 PropCo
117 alstria office Heidenkampsweg 51 GmbH & Co. KG
1)
Hamburg
89,0
112 PropCo
118 alstria office Kastor GmbH & Co. KG
1)
Hamburg
89,0
112 PropCo
119 alstria office Pempelfurtstraße GmbH & Co. KG
1)
Hamburg
89,0
112 PropCo
120 alstria office Region Mitte GmbH & Co. KG
1)
Hamburg
89,0
112 PropCo
121 alstria office Region Süd GmbH & Co. KG
1)
Hamburg
89,0
112 PropCo
122 alstria office Wilhelminenstraße GmbH & Co. KG
1)
Hamburg
89,0
112 PropCo
123 alstria advisors GmbH
2), 4) Hamburg
(100,0)5)
1 Service
company
124 alstria office Frauenstraße GmbH & Co. KG
3)
Hamburg
(89,0)5)
112 PropCo
125 alstria office Kampstraße GmbH & Co. KG
3)
Hamburg
(89,0)5)
105 PropCo
126 alstria office Mergenthaler Allee GmbH & Co. KG
3)
Hamburg
(89,0)5)
112 PropCo
127 alstria office Olof-Palme-Straße GmbH & Co. KG
3)
Hamburg
(89,0)5)
112 PropCo
128 alstria office Region Nord GmbH & Co. KG
3)
Hamburg
(89,0)5)
112 PropCo
Consolidated Financial Statements
alstria Annual Report 2025
88
No.
Company
Fn. Headquart
ers
Equity
interest
%
Held
by
No.
Business
activity
129 alstria solutions GmbH
3)
Hamburg
(100,0)5)
1 Service
company
130 beehive GmbH (vormals Beehive solutions GmbH)
4)
Hamburg
(100,0)5)
1
Service
company,
General
Partner
1) The Company has made use of the exemption from the obligation to prepare annual financial statements in accordance with the provisions
applicable to corporations in accordance with Section 264b HGB.
2) Newly established in FY 2025
3) Terminated by accretion or merger with its shareholder in the 2025 financial year.
4) Deconsolidated due to share disposal.
5) Share at the time of termination, accretion, merger or disposal.
The consolidation scope includes, in addition to alstria S.à r.l., companies in which the company
directly or indirectly holds the majority of voting rights. As of the balance sheet date, the
consolidation scope comprises the company itself, 103 domestic subsidiaries, and 18 domestic sub-
subsidiaries.
Changes in the Scope of Consolidation
The table below summarizes the significant changes in the group of consolidated entities resulting
from the restructuring measures implemented during the 2025 financial year:
Legal form
Newly established in FY
2025
Terminated through
merger (GmbH) / accrual
(KG)
Deconsolidated through
disposal of shares
GmbH & Co KG
75
5
0
GmbH
19
1
2
The newly established entities primarily relate to property-owning limited partnerships (KGs) set up
in connection with the contribution of real estate assets in the first quarter of 2026. The
deconsolidations relate to the disposal of the shares in alstria advisors GmbH and one additional
subsidiary.
There were no further changes to the consolidated group in the 2025 financial year in comparison to
the consolidated financial statements as of December 31, 2024. All of the Group’s companies are land
or property management companies, holding companies, or general partner companies.
The reporting date for the consolidated financial statements is the same as the reporting date for the
alstria S.à r.l. and consolidated subsidiaries.
Consolidated Financial Statements
89
alstria Annual Report 2025
2.3.3. Deconsolidation of alstria advisors GmbH
In July 2025, the operating business of alstria S.à r.l. was transferred to alstria advisors GmbH by way
of a spin-off pursuant to Section 123 (2) No. 1 of the German Transformation Act (UmwG). At the
same time, the majority of voting rights in alstria advisors GmbH was sold. Further corporate measures
led to the loss of control over alstria advisors GmbH within the meaning of IFRS 10 in December 2025.
As a result, the company was deconsolidated.
As of the date of deconsolidation, alstria S.à r.l. continued to hold 83% of the capital and 49% of the
voting rights in alstria advisors GmbH. Due to the continued existence of significant influence, the
investment has since been accounted for using the equity method in accordance with IAS 28 (see
section 2.3.4).
The deconsolidation resulted in a one-time gain, which is reported under other operating income in
the consolidated statement of comprehensive income. The following table shows the balance sheet
effects of the deconsolidation:
Effects from the deconsolidation of alstria advisors GmbH:
EUR k
2025
Derecognized assets
15,981
Derecognized liabilities
-12,336
Non-controlling interests
-1,629
Accumulated other comprehensive income (recyclable)
0
Accumulated other comprehensive income (non-recyclable)
0
Fair value of retained interest (49% / 83%)
8,024
Gain on deconsolidation
6,008
2.3.4. Interests in noncontrolling interests
Classification and Background
During the financial year 2025, the operational business of alstria S.à r.l. was spun off and transferred
to alstria advisors GmbH, Hamburg. The spin-off included the transfer of operational activities,
personnel, processes, and associated assets.
Following this transaction, alstria S.à r.l. disposed of the majority of voting rights in alstria advisors
GmbH. As a result of the loss of control within the meaning of IFRS 10 Consolidated Financial
Statements, the entity was deconsolidated.
Since the disposal, the Group holds 49% of the voting rights, and 83% of the equity interest in alstria
advisors GmbH.
Due to the continued significant influence, alstria advisors GmbH is classified as an associate and
accounted for using the equity method in accordance with IAS 28 Investments in Associates and Joint
Ventures.
Consolidated Financial Statements
alstria Annual Report 2025
90
Since the spin-off, alstria advisors GmbH has advised the Group, in its capacity as a service provider,
on operational matters. It is to be classified as a material associate.
As of the reporting date, the carrying amount of the investment in the associate amounts to
EUR 8,170 k.
Summarised financial information of the associate
The following tables present the IFRS-adjusted summarised financial information of the associate, as
reported in its own financial statements.
Statement of financial position (associate)
EUR k
Dec. 31, 2025
Current assets
15,755
Non-current assets
14,566
Total assets
30,320
Current liabilities
10,093
Non-current liabilities
16,408
Total liabilities
26,501
Net assets
3,819
Income statement of the associate
EUR k
2025
Revenue
2,331
Profit before tax
65
Net income
45
Other comprehensive income
0
Total comprehensive income
45
No distributions of profits were received by the Group during the reporting period.
Reconciliation from net assets to carrying amount of the investment
EUR k
Dec. 31, 2025
Net assets of the associates
3,819
less other partners share in equity (17%)
-1,658
Groups Share in equity
2,161
Adjustment based on the valuation at the time of deconsolidation
6,154
Result of the investment
146
Carrying amount of the investment
8,170
Consolidated Financial Statements
91
alstria Annual Report 2025
Additional disclosures
▪ There are no unrecognised losses exceeding the carrying amount of the investment.
▪ There are no significant restrictions on the associate’s ability to transfer funds, dividends, or
other assets to the Group.
▪ alstria advisors GmbH holds a 100% subsidiary (beehive GmbH), which is included in the above
financial figures.
▪ The deconsolidation of the former subsidiary led to a result from disposal, which is recognised
under other operating income in the consolidated income statement.
2.4.
Key judgments and estimates
To a certain degree, estimates, assessments, and assumptions must be made in the course of
preparing the Group’s consolidated financial statements. These can affect the reported amounts and
recognition of assets and liabilities, contingent assets and liabilities on the balance sheet date, and
the amounts of income and expenses reported for the overall period. The major items that such
estimates, assessments, and assumptions affect are described hereafter. Actual amounts may differ
from the estimates. Changes in the estimates, assessments, and assumptions can have a material
impact on the consolidated financial statements.
2.4.1. Judgements
Management has made the following discretionary decisions in line with the Group’s accounting
policies. Apart from decisions involving estimations, it has the most significant effect on the amounts
recognized in the financial statements:
Operating lease commitments—the Group as lessor
The Group has entered into commercial property leases in its investment-property portfolio. Based
on an evaluation of the terms and conditions of the arrangements, the Group has determined that all
significant risks and rewards of ownership of these properties remain with the Group. As a result, the
contracts are treated and accounted for as operating leases.
Consolidated Financial Statements
alstria Annual Report 2025
92
2.4.2. Estimates and assumptions
Significant key sources of estimation uncertainty and key assumptions concerning the future as of the
balance sheet date relate to the following balance sheet items. They present a significant risk, possibly
resulting in necessary material adjustments to the carrying amounts of assets and liabilities within the
next financial year. Applying estimates is particularly necessary to
▪ determine the fair value of investment property (see Note 6.1);
▪ positive and negative fair values of derivatives (see Note 6.5);
▪ expected credit loss (see Note 5.7 and Note 6.6);
▪ determine the amortized cost of limited partnership capital of noncontrolling interests
(see Note 7.2);
▪ determine the fair value of other provisions (see Notes 7.4);
▪ determine the fair value of deferred taxes (see Notes 5.10) and
▪ determine the fair value of long term compensation granted to Management Board (see Note
13.1) and ACES granted to employees (so called alstria Collective Employee Scheme shares see
Note 13.2).
At the end of the reporting period, the above-stated assets, liabilities, and equity instruments, which
are particularly exposed to estimation uncertainties, had the following impact on the consolidated
statement of financial position:
EUR k
Dec. 31, 2025
Dec. 31, 2024
Investment property and properties held for sale, without prepayments made
4,249,307
4,127,431
Deferred tax assets
6,172
Positive fair values of derivatives
78,244
7,537
Expected credit loss
1.730
432
Limited partnership capital of noncontrolling interests
98,558
101,058
Deferred tax liabilities
177,194
230,387
Other current provisions
863
2,974
thereof ACES and longterm compensation board
400
2,510
Other noncurrent provisions
250
1,673
thereof ACES and longterm compensation board
250
1,673
Negative fair values of derivatives
-10,798
13,324
Consolidated Financial Statements
93
alstria Annual Report 2025
2.5.
Summary of significant accounting policies
The following accounting and valuation methods have been used to prepare the consolidated financial
statements of alstria S.à r.l..
2.5.1. Fair value measurement
The Group measures certain financial instruments, such as derivatives, and nonfinancial assets, such
as investment property, at their fair value at each reporting date.
The fair value of an asset or liability is determined based on the assumptions that market participants
would use in pricing the asset or liability, regardless of whether that price is directly observable or
estimated by applying another valuation technique. In estimating fair value, it is assumed that the
transaction during which the disposal of the asset or the transfer of the liability occurs takes place
either
▪
in the principal market for the asset or liability, or
▪
in the most advantageous market for the asset or liability if no principal market exists.
The Group must have access to the principal market or the most advantageous market.
Fair value for measurement and/or disclosure purposes in these consolidated financial statements is
determined on such a basis. Hereby excluded are the following:
▪
share-based payment transactions that are within the scope of IFRS 2 “Share-based
payments”;
▪
leasing transactions that are within the scope of IFRS 16 “Leases”; and
▪
measurements that have some similarities to fair value but are not fair value, such as net
realizable value in IAS 2 “Inventories” or value in IAS 36 “Impairment of assets.”
Market prices are not always available to determine the fair value. It must often be determined based
on various valuation parameters. In addition, for financial-reporting purposes, fair value
measurements are categorized as Level 1, 2, or 3 based on the degree to which the inputs to the fair
value measurements are observable and the significance of the inputs to the fair value measurement
in its entirety, which are described as follows:
▪
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date.
▪
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly or indirectly.
▪
Level 3 inputs are unobservable inputs for the asset or liability.
Consolidated Financial Statements
alstria Annual Report 2025
94
Level 3 inputs require more extensive disclosures.
The input parameters used are subject to market-specific and property-specific uncertainties.
Sensitivity analyses for selected parameters and their potential impact on property values are
presented in section 6.1.
2.5.2. Investment property
Investment properties are properties held to earn rental income and/or for capital appreciation
(including property under construction for such purposes). They are not used in production or for
administrative purposes. This includes properties that are in production and are intended to serve the
aforementioned purposes. Investment properties are measured initially at cost at the time of purchase
or construction, including transaction costs. In accordance with IAS 40.17, costs incurred subsequently
for dismantling, replacement of parts, or maintenance of property are also included, insofar as these
contribute to an increase in the fair value of the property.
Costs of debt, which can be directly allocated to the acquisition or production of investment property,
are capitalized in the year in which they arise.
For subsequent measurement, the Company uses the fair value model according to IFRS 13.61 et seq.,
which reflects an income-capitalization approach combined with market conditions at the end of the
reporting period.
In the context of the fair value hierarchy described above, only inputs from Levels 2 and 3 are
applicable for property. The majority is categorized as Level 3. Inputs used in the valuation approach
that the Group has adopted for all of its properties include rental revenues, adjusted yield figures
(e.g., property-based capitalization rates), and vacancy periods. These inputs are not observable in
markets and are considered significant. Therefore, the fair value measurement used by the Group for
valuation of all investment properties is generally categorized as Level 3. Information about the
significant unobservable inputs used and their sensitivities to the fair values of the Group’s investment
property is presented in Note 6.1.
When determining the fair value, climate-related risks are indirectly taken into account on a property-
specific basis through appropriate deductions for the expected cash inflows and surcharges for future
investment expenditure.
Gains and losses arising from changes in the fair value of investment properties are included in the
profit or loss in the period when they arise.
An investment property derecognized upon disposal, or when the investment property is permanently
withdrawn from use, and future economic benefits are expected from the disposal. Any gain or loss
arising from derecognition of the property (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the
property is derecognized.
Consolidated Financial Statements
95
alstria Annual Report 2025
Investment properties are transferred to property, plant, and equipment when there is a change in
use evidenced by the commencement of owner occupation. The properties’ deemed cost for
subsequent accounting corresponds to the fair value at the date of reclassification.
When the use of a property changes from owner-occupied to investment property, the property is
remeasured to fair value and reclassified accordingly. Any gain arising from this remeasurement is
recognized in profit or loss to the extent that it reverses a previous impairment loss on the specific
property, with any remaining gain recognized in OCI and presented in the revaluation reserve.
Any loss is recognized in profit or loss. However, to the extent that an amount is included in the
revaluation surplus for that property, the loss is recognized in other comprehensive income and
reduces the revaluation surplus within equity.
Leases of land and buildings in which the Group acts as a lessee and which it sublet are also classified
as financial investments and subsequently measured at fair value. The investment properties are
shown with the addition of the leasing liabilities.
2.5.3. Valuation process for investment properties
The fair value hierarchy gives no information about the applied valuation techniques.
The basis for deriving fair value, as defined by IFRS 13.61, should, if possible, be based on valuation
techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, thereby maximizing the use of relevant observable inputs and minimizing the use
of unobservable inputs. The analysis in the previous section showed there was no sufficient number
of official comparable transactions to derive any market values. Therefore, fair value was determined
based on an income approach in accordance with IFRS 13.61.
In estimating the fair value of the properties, their current use of the property is the highest and best
option.
Consolidated Financial Statements
alstria Annual Report 2025
96
As in the prior year, the investment properties were measured at fair value as of December 31, 2025
by external real estate valuation experts using internationally accepted, IFRS‑compliant valuation
methods. The properties were valued using the discounted cash flow (DCF) method. The
determination of the fair values was performed by an accredited, external and independent appraiser,
BNP Paribas Real Estate Consult GmbH, Frankfurt am Main.
Description of the DCF method
The DCF method is a two-stage financial mathematical model to determine the cash value of the
future yield of the property, which is viewed as its present value. In this coherence, a detailed
forecast computation of the revenue and expenditures for a "holding period" of 10 years is compiled.
This method fulfills the requirements of the Red Book, a set of international valuation standards,
set forth by the Royal Institution of Chartered Surveyors. In addition, the method used by the
independent experts is also appropriate and suitable for determining market values in accordance
with the provisions of the International Valuation Standards (IVS, or the White Book).
To determine the fair values, the discounted cash flow method is applied, taking the following
factors into account. Parameters that have changed due to modified framework conditions compared
to the previous year are indicated in brackets.
▪
the contractual rent for the remaining term of the lease (in the case of open-ended leases, a
residual term of 3 years;
▪
new relets at market rents;
▪
necessary investments for reletting;
▪
leasing commission in the amount of 2 to 3 months’ rent;
▪
an average lease term of 10 years;
▪
rent-free periods from 3 to 6 months’ rent;
▪
a vacancy period of between 6 and 68 months for vacancies existing at the valuation date and
after the expiry of the lease;
▪
vacancy costs in the amount of EUR 1.00/m² to EUR 3.00/m²;
▪
management costs between 0,5 and 2 % of market rent;
▪
non-allocable costs of ongoing maintenance between EUR 6.50/m² and EUR 12.00/m²
depending on the property standard;
▪
inflation assumptions;
▪
capitalization and discount rates reflecting the individual risk of the property and market
activity (comparable transactions); and
▪
costs of transaction consisting of real estate transfer tax, notary fees and agency fees.
If the future development of these properties differs from the estimate, large-scale losses resulting
from the change in the fair value may be incurred. This can have a negative impact on future earnings.
The effects of the most significant input parameters on the valuation of the Group’s investment
properties are shown in Note 6.1.
Consolidated Financial Statements
97
alstria Annual Report 2025
The valuation method described also applies to investment properties in which development projects
are realized. In the case of development projects, the construction costs incurred are also taken into
account.
Gains or losses arising from changes in the fair values of investment properties are disclosed in the
income statement under the item “Net gain/loss from fair value adjustments on investment property”
in the year in which they arise.
Investment properties are derecognized when they have been disposed of or when the investment
property is permanently withdrawn from use and no future economic benefit is expected from its
disposal. Any gains or losses on the retirement or disposal of an investment property are recognized
in the income statement in the year of retirement or disposal.
2.5.4. Assets held for sale
In accordance with IFRS 5, non-current assets were classified as held for sale and presented separately
in the consolidated financial statements if, by the end of the reporting period, the formal conditions
for a sale were met and the sale has been authorized by the Management Board – and, in cases
exceeding a certain threshold, by the Supervisory Board. The respective asset must be available for
immediate sale and the sale must be highly probable to occur within twelve months of classification
(cf. IFRS 5.6–5.8).
In the case of a planned asset deal, only the specific non-current asset is separately classified as held
for sale. For a planned share deal, all affected assets and liabilities are presented as a disposal group
in accordance with IFRS 5.4.
The measurement of assets held for sale and disposal groups is based on fair value less costs to sell,
both at the time of reclassification and at each subsequent reporting date. No further depreciation is
recognized from the time of reclassification, in accordance with IFRS 5.25.
Gains or losses from remeasurement or subsequent sale are recognized in the consolidated income
statement under the item “Net result from the disposal of investment property”.
Consolidated Financial Statements
alstria Annual Report 2025
98
2.5.5. Leases
At the inception of a contract, the Group assesses whether the contract is, or contains, a lease in
accordance with IFRS 16. A contract is, or contains, a lease if it conveys the right to control the use
of an identified asset for a period of time in exchange for consideration (see IFRS 16.9).
(i) The Group as lessee
At the commencement date, the Group recognizes a right-of-use asset and a lease liability for all
lease components. The lease and any associated non-lease components are accounted for as a single
lease component, based on the practical expedient under IFRS 16.15, particularly for property leases.
The right-of-use asset is initially measured at cost and depreciated on a straight-line basis over the
lease term. The lease liability is measured at the present value of lease payments and accounted for
using the effective interest method.
The Group has made use of the exemption for low-value leases and short-term leases (terms ≤ 12
months), where the lease payments were recognized as an expense on a straight-line basis. This
applied to IT and office equipment until the spin-off of operating activities in July 2025, after which
the Group no longer holds relevant lease assets at the holding level.
(ii) The Group as lessor
For property leases, the Group assesses whether the lease qualifies as a finance lease or an operating
lease, based on whether substantially all risks and rewards incidental to ownership are transferred
(IFRS 16.62). All material property leases in the portfolio are classified as operating leases.
In cases where the Group subleases properties, the classification is based on the right-of-use asset,
not the underlying property. These are treated as part of the Group’s investment property portfolio
and measured at fair value.
Lease income from operating leases is recognized on a straight-line basis over the lease term.
Consolidated Financial Statements
99
alstria Annual Report 2025
2.5.6. Revenue and expense recognition
Revenue and other operating income are recognized when the Group satisfies a performance
obligation by transferring a promised good or service to a customer. Control of an asset is considered
transferred when the customer is able to direct the use of, and obtain substantially all the benefits
from, the asset (see IFRS 15.31–38).
Revenue is measured at the fair value of the consideration received, excluding discounts, rebates,
and other sales taxes or duties. Revenues are recorded, excluding VAT. In addition, the following
specific recognition criteria must be met before revenues are recognized.
Rental income from operating leases on investment properties is, according to IFRS 16, recognized
on a straight-line basis over the terms of the relevant lease, regardless of the payment date. Initial
direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount
of the leased asset.
Revenues from service charge income are, according to IFRS 15, realized over the period of
performance, which essentially corresponds to the time at which service charge expenses are
recorded. alstria acts as a principal under IFRS 15.34ff, as it obtains control over the services before
transferring them to tenants. The corresponding expenses are recorded as property operating
expenses.
Proceeds from the sale of investment properties are recognized when the risks and opportunities
associated with ownership of the property have passed to the buyer. This typically corresponds to the
legal and economic transfer of possession, benefits, and burdens.
Operating expenses are recognized at the time of the service or when they are incurred.
Interest expenses and interest income are recognized using the effective interest method in
accordance with IFRS 9, including amortization of transaction costs and premiums or discounts related
to financial instruments.
2.5.7. Income taxes
The income tax expense represents the sum of current and deferred income tax expense.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity. In such cases, the current and
deferred taxes are also recognized in other comprehensive income or directly in equity. Where current
or deferred taxes arise from the initial recognition of a business combination, the tax effects are
included as part of the accounting for that business combination.
Consolidated Financial Statements
alstria Annual Report 2025
100
Current tax
The current tax expense is calculated based on the taxable income for the financial year. Taxable
income differs from net profit reported in the consolidated statement of profit or loss as it excludes
income or expenses that are taxable or deductible in future periods or not taxable/deductible at all.
The Group’s liability for current taxes is calculated using tax rates that are enacted or substantively
enacted by the end of the reporting period.
The parent company, alstria S.à r.l., was exempt from corporate and trade taxes in the 2024 financial
year due to its REIT status. However, due to non-compliance with the REIT status requirements—
particularly the minimum free float requirement under Section 11 of the German REIT Act—this status
expired as of December 31, 2024. From that date onward, the Group is subject to regular corporate
income and trade tax obligations..
Deferred Tax
Deferred taxes reflect the expected tax liabilities from the 2025 financial year onwards and are based
on temporary differences between the tax base and the IFRS carrying amounts of assets and liabilities.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax
assets are recognized to the extent that it is probable that future taxable income will be available
against which the deductible temporary differences can be utilized. Deferred tax assets and liabilities
are not recognized for temporary differences arising from the initial recognition (other than in
business combinations) of assets or liabilities in a transaction that affects neither taxable income nor
accounting profit. Additionally, deferred tax liabilities are not recognized for temporary differences
arising from goodwill.
Deferred tax liabilities on taxable temporary differences related to investments in subsidiaries,
associates, and joint ventures are recognized unless the Group is able to control the timing of the
reversal and it is probable that the differences will not reverse in the foreseeable future. Deferred
tax assets on deductible temporary differences related to such investments are only recognized to
the extent that it is probable that sufficient taxable income will be available and that the differences
will reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable income will be available to utilize the asset
in whole or in part.
Consolidated Financial Statements
101
alstria Annual Report 2025
Deferred tax assets and liabilities are measured using the tax rates and tax laws that are expected to
be in effect at the time the asset is realized or the liability is settled. The measurement reflects the
tax consequences that would follow from the manner in which the Group expects, at the reporting
date, to recover or settle the carrying amount of its assets and liabilities.
Investment Properties
For the purpose of measuring deferred taxes, it is presumed in accordance with IAS 12.51C that the
carrying amount of investment property measured at fair value will be recovered through sale.
Deferred tax liabilities are recognised for taxable temporary differences arising from the difference
between the fair value of the investment property and its tax base. Deferred taxes are measured
using the tax rates that have been enacted or substantively enacted at the reporting date.
Offsetting
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets against current tax liabilities, and when the deferred taxes relate to income taxes levied
by the same tax authority on the same taxable entity, and the Group intends to settle on a net basis.
Consolidated Financial Statements
alstria Annual Report 2025
102
2.5.8. Earnings per share
Basic earnings per share are calculated by dividing the profit attributable to the shareholders of the
parent company by the weighted-average number of ordinary shares outstanding during the financial
year. Diluted earnings per share are calculated based on the assumption that all potentially dilutive
securities and share-based payment arrangements are converted or exercised.
2.5.9. Impairments of assets according to IAS 36
Assets are tested for impairment whenever events or changes in circumstances indicate that the
carrying amount may no longer be recoverable.
An impairment loss is recognized for the amount by which the carrying amount of an asset exceeds
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell
and its value in use. If the reasons for the impairment no longer apply, the impairment loss is reversed
up to the amount that would have been determined had no impairment loss been recognized.
2.5.10. Property, plant, and equipment
As of the reporting date, the consolidated financial statements no longer include material property,
plant and equipment, since all related assets – including owner-occupied properties, right-of-use
assets under IFRS 16, and office equipment – were fully transferred as part of the spin-off of the
operating business.
Previously, property, plant and equipment were measured at cost less accumulated depreciation and
impairment losses. Depreciation was applied on a straight-line basis over the estimated useful lives
(e.g., three to 23 years for equipment, 33 to 50 years for buildings). Land was not depreciated.
A forest property with tree growth was also included under property, plant and equipment. It was
measured in accordance with IAS 41 at fair value less estimated costs to sell. The forest property was
disposed of in the reporting period.
2.5.11. Intangible assets
The Group amortizes intangible assets with finite useful lives on a straight-line basis over their
respective estimated useful lives. Estimated useful lives for patents, licenses, and other similar rights
generally range from 3 to 8 years. Currently, the Company does not have intangible assets with
indefinite useful lives. The vast majority of the intangible assets were transferred as part of the spin-
off of the operating business.
Consolidated Financial Statements
103
alstria Annual Report 2025
2.5.12. Financial instruments
Initial recognition and initial measurement
Trade receivables and issued bonds are recognized when they arise. All other financial assets and
liabilities are recognized on the trade date, i.e., when the Group becomes a party to the contractual
provisions of the instrument.
A financial asset (except for trade receivables without a significant financing component) or a
financial liability is initially measured at fair value. For instruments not measured at fair value through
profit or loss (FVTPL), directly attributable transaction costs are added. Trade receivables without a
significant financing component are measured at the transaction price.
Classification and subsequent measurement
Financial assets
The Group's financial assets mainly include trade receivables, other receivables, bank balances, and
short-term deposits. These are measured at amortized cost, provided they are held within a business
model with the objective of collecting contractual cash flows and the contractual terms give rise on
specified dates to cash flows that are solely payments of principal and interest.
Interest income, foreign exchange gains or losses, and impairment losses are recognized in profit or
loss. Gains or losses on derecognition are also recognized in profit or loss.
Financial liabilities
The Group’s financial liabilities primarily comprise trade payables, other payables, bank loans, and
corporate bonds. These are measured at amortized cost using the effective interest method. Interest
expenses and foreign exchange differences are recognized in profit or loss. Gains or losses on
derecognition are also recognized in profit or loss.
Derecognition
A financial asset is derecognized when the contractual rights to the cash flows from the asset expire
or when the asset is transferred and substantially all the risks and rewards of ownership are passed
on.
A financial liability is derecognized when the contractual obligation is discharged, cancelled, or
expires. If the terms of a financial liability are substantially modified, the original liability is
derecognized and a new liability is recognized.
Consolidated Financial Statements
alstria Annual Report 2025
104
Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet
if there is a currently enforceable legal right to offset and there is an intention to settle on a net
basis.
Derivative financial instruments and hedge accounting
To manage interest rate risks, the Group uses derivative financial instruments, in particular interest
rate swaps and caps. These are initially and subsequently measured at fair value. Derivatives with
positive fair values are recognized as financial assets; those with negative fair values as financial
liabilities.
alstria applies hedge accounting under IFRS 9 for cash flow hedges. The effective portion of changes
in the fair value of derivatives designated as hedging instruments is recognized in other
comprehensive income; the ineffective portion is recognized in profit or loss. Hedge documentation
and effectiveness assessments are conducted in accordance with IFRS requirements. Further
disclosures are provided in section 6.5.
Cash and cash equivalents
Cash comprises current bank balances, including tenant security deposits, which have corresponding
liabilities recognized under “Other liabilities.” For cash flow statement purposes, cash and cash
equivalents include short-term deposits with original maturities of three months or less and bank
overdrafts.
2.5.13. Impairment
Impairment of nonderivative financial assets
In general, loss allowances are measured at an amount equal to the 12-month expected credit losses,
unless the credit risk has increased significantly since initial recognition. For trade receivables, the
Group applies the simplified approach in accordance with IFRS 9.5.5.15 and recognizes lifetime
expected credit losses, except for trade receivables due from key tenants.
To assess increases in credit risk and estimate expected credit losses, the Group uses reasonable and
supportable information that is relevant and available without undue cost or effort, including forward-
looking data. For other financial assets, a significant increase in credit risk is assumed if the asset is
more than 30 days past due. For trade receivables, longer overdue periods may be tolerated,
particularly for service charge reconciliations or disputed rent components.
A financial asset is considered to be in default if it is unlikely that the debtor will meet its credit
obligations in full without the Group having to take steps such as enforcing collateral. In the case of
trade receivables, security deposits (typically equivalent to two months’ net rent) are taken into
account in this assessment.
Consolidated Financial Statements
105
alstria Annual Report 2025
A financial asset is considered to have low credit risk if its credit rating is equivalent to “investment
grade” as defined globally – i.e. Baa3 or higher from Moody’s or BBB- or higher from Standard & Poor’s.
Expected credit losses are probability-weighted estimates of credit losses, calculated as the present
value of the shortfall between contractual cash flows and the cash flows the Group expects to receive.
Financial assets are considered credit-impaired when there is objective evidence such as significant
financial difficulty of the debtor, breaches of contract, or the likelihood of insolvency.
Impairment losses are deducted directly from the gross carrying amount. A write-off is recognized
when there is no reasonable expectation of recovery. However, written-off receivables may still be
subject to enforcement actions.
Impairment losses on financial assets measured at amortized cost are deducted from the gross carrying
amount of the assets.
2.5.14. Noncontrolling interests of limited partners
In addition to alstria S.à r.l., the consolidated subsidiary alstria office Prime Portfolio GmbH & Co.
KG (“alstria office Prime”) includes further limited partners who qualify as non-controlling interests.
From a Group perspective, these limited partnership interests are classified as financial liabilities
under IFRS. They are presented in the consolidated balance sheet under “Limited partnership capital
of non-controlling interests.”
The measurement is based on amortized cost in accordance with the terms of the partnership
agreement.
2.5.15. Provisions
Provisions are recognized when the Group has a present legal or constructive obligation as a result of
a past event, and it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and the amount can be estimated reliably.
Provisions are measured at the best estimate of the expenditure required to settle the obligation,
taking into account all known risks and uncertainties. Where the provision is long-term in nature, the
expected future cash outflows are discounted to their present value.
Provisions are not offset against expected reimbursements.
Termination benefits (e.g. severance payments) are recognized as a provision when the Group can no
longer withdraw an offer to provide such benefits, or earlier, when a restructuring expense including
such benefits has been recognized and the criteria of IAS 37.71 et seq. are met.
Consolidated Financial Statements
alstria Annual Report 2025
106
2.5.16. Government grants
Government grants are recognized only when there is reasonable assurance that the Group will comply
with the conditions attached to them and that the grants will be received.
Grants are recognized in profit or loss on a systematic basis over the periods in which the Group
recognizes the related expenses they are intended to compensate.
Grants related to the acquisition, construction, or other procurement of long-term assets (e.g.
property, plant, and equipment) are recognized as deferred income in the balance sheet and
systematically released to income over the useful life of the associated asset.
Government grants related to investment property measured at fair value in accordance with IAS 40
are not deducted from the carrying amount of the properties. Instead, they are recognised in other
operating income, either on a systematic basis over the periods in which the related costs that the
grants are intended to compensate are incurred, or (where the grants are intended to provide
immediate financial support with no associated future costs) in the period in which the entitlement
arises.
Grants that reimburse already incurred expenses or provide immediate financial support without
future obligations are recognized in profit or loss in the period in which the corresponding right arises.
Benefits from government loans granted at below-market interest rates are also treated as grants.
The grant is measured as the difference between the proceeds received and the fair value of a
comparable loan at market terms.
3. SEASONAL OR ECONOMIC EFFECTS ON BUSINESS
The business activities of alstria S.à r.l. (primarily the generation of revenues from investment
properties) are not generally affected by seasonality. However, the sale of one or more large
properties can have a significant impact on revenues and operating expenses.
Experience shows that the real estate market tends to fluctuate as a result of factors such as changes
in consumers’ net income, GDP, interest rates, consumer confidence, demographics, and other factors
inherent to the market. Changes in interest rates might lead to a modified valuation of the investment
property.
Consolidated Financial Statements
107
alstria Annual Report 2025
4. SEGMENT REPORTING
IFRS 8 requires a management approach, under which information on segments is presented to the
Governing Body on the same basis used for internal-reporting purposes.
The services offered by alstria S.à r.l. focus exclusively on letting activities to commercial-property
tenants in Germany. In accordance with IFRS 8, a single reporting segment is identified that comprises
all of the Group’s operations.
The manner of reporting for this segment is consistent with the internal reporting provided to the
chief operating decision maker, who is responsible for allocating resources to the operating segments
of an entity and assessing their performance. The Group’s chief operating decision maker is the
Governing Body.
A larger number of tenants generate revenues. Total revenues amount to EUR 234,939 k (2024:
EUR 239,176 k), of which EUR 32,165 k (2024: EUR 30,032 k) are related to leases to the Group’s
largest customer with a share of more than 10% of revenues.
No other single customer has contributed 10 % or more to the consolidated revenues in the 2024 or
2025 financial years.
Consolidated Financial Statements
alstria Annual Report 2025
108
5. NOTES TO THE CONSOLIDATED INCOME STATEMENT
5.1.
Revenues
EUR k
2025
2024
Revenues from investment properties
195,073
198,441
Revenues from service charge income
39,866
40,735
Revenues
234,939
239,176
Revenues from investment properties mainly comprised rental income. The rental income includes
effects totaling EUR 508 k (2024: -EUR 97 k), which are attributable to rent-free periods. This rental
income amount is spread over the remaining term of the respective rental agreement. In addition,
revenues from investment properties include income from asset management services in relation to
the leased real estate properties in the amount of EUR 3,613 k (2024: EUR 3,622 k).
Rental income from property leases contains variable rental income amounting to EUR 5,253 k
(2024: EUR 5,699 k). These are rental agreements in which the rental payments are linked to the
operating results of the tenants.
5.2.
Real estate operating expenses
EUR k
2025
2024
adjusted1)
Operating costs that can be charged to tenants
39,831
39,738
Vacancy costs
13,571
11,617
Maintenance and refurbishment
7,698
6,475
Ongoing repairs
5,024
5,302
Legal and advisory fees
1,132
929
Property management
305
232
Electricity costs
251
133
Rent expenses
112
159
Other expenses
391
952
Total
68.315
65,537
1) See note 2.2.3
Consolidated Financial Statements
109
alstria Annual Report 2025
5.3.
Administrative expenses
EUR k
2025
2024
adjusted1)
Legal and consulting fees
2,002
2,517
Depreciation
959
1,558
IT maintenance
928
1,029
Audit fee (audit and audit-related services)
883
713
Communication and marketing
716
711
Insurance expenses
483
529
Leasing payments and rents
440
490
Travel expenses
372
448
Office area costs
326
400
Training & workshops
137
173
Recruitment
180
121
Office equipment
116
103
Contributions
109
97
Donations
100
0
Supervisory Board compensation
70
70
Other
785
301
Total
8,605
9,260
1) See note 2.2.3
Administrative expenses slightly declined compared to the prior-year period. This reflects the spin-
off of the operational business to alstria advisors GmbH, effective July 1, 2025. Since that date, key
administrative functions such as accounting, ESG reporting, and investor relations are no longer
performed within the consolidated Group but provided by the external service provider under an
advisory agreement.
The lease payments and rents in the 2025 financial year amounting to EUR 440 k are related to short-
term and low-value leases.
5.4.
Advisory and asset management expenses
In connection with the advisory agreement concluded with alstria advisors GmbH, the Group
introduced a new line item in the income statement starting in 2025. This item includes all fees paid
for services provided by alstria advisors GmbH, including property management, preparation of the
consolidated financial statements and group management report, as well as other operational and
strategic support.
The separate presentation of these expenses ensures transparency following the structural change.
Allocation to existing expense categories was considered inappropriate due to the bundled nature of
services rendered.
Consolidated Financial Statements
alstria Annual Report 2025
110
5.5.
Personnel expenses
EUR k
2025
2024
adjusted1)
Salaries and wages
12,935
13,665
Social insurance contribution
2,465
2,589
Bonuses
1,485
2,069
Expenses for long term compensation
2,644
2,649
thereof long-term compensation components (previous year also
share-based compensation from stock options) of the Management
Board
422
393
thereof relating to the convertible profit participation certificates
and other long term compensation
2,222
2,256
Amounts for Management Board retirement provisions and disability
48
48
Other
2,926
547
Total
22,503
21,567
1) See note 2.2.3
As of December 8, 2025, all employees – with the exception of one remaining Management Board
member – were transferred to alstria advisors GmbH. Consequently, the Group now employs only one
individual. This change resulted in a reduction in salaries and wages compared to the prior year.
Personnel expenses increased by EUR 936 k, or 4.3%. This increase is primarily attributable to a
severance payment of EUR 2,389 k in connection with the early termination of a service contract. The
severance payment is reported under other personnel expenses. In contrast, recurring personnel
expenses declined, mainly due to the elimination of salary payments following the transfer of the
operating business in early December 2025. Adjusted for the severance payment, personnel expenses
decreased by EUR 1,453 k, or 6.7%.
Overall, the expenses for remuneration for employees and the Management Board in the financial
year amounted to EUR 22,503 k (2024: EUR 21,567 k).
See also Sections 13.1 and 13.2 for information on expenses for long-term remuneration.
The employer’s contribution to statutory pension insurance, included in wages and salaries, amounts
to EUR 1,116 k for the 2025 financial year (2024: EUR 1,173 k).
On average, the Group employed 173 employees in 2025 (2024: 195).
Consolidated Financial Statements
111
alstria Annual Report 2025
5.6.
Other operating income
EUR k
2025
2024
Government grants
7,236
0
Deconsolidation gain
6,008
0
Compensation payments and other recharges
2,204
937
Utilization of retained security deposits
671
0
Income from the reversal of accrued liabilities
336
1,668
Reimbursements for pass-through expenses related to services provided
to shareholders
331
50
Property management services
127
0
Health insurance reimbursement
37
65
Proceeds from forest management
11
163
Arrangement fee
0
3,290
Income from the reversal of EWB
0
485
Indemnity payments received
0
274
Other
439
1,036
Total
17,400
7,968
Government grants amounting to EUR 7,236 k relate to subsidies for the energy-efficient
refurbishment of buildings. The deconsolidation gain of EUR 6,100 k resulted from the deconsolidation
of alstria advisors GmbH, as described above (see Section 2.3.3.).
The arrangement fee in the previous year was earned for facilitating a loan from a group company to
a bank.
The Revaluation of the limited partnership capital noncontrolling interests in the previous year
concerns alstria office Prime Portfolio GmbH & Co. KG, in which the non-controlling partners have an
interest. The valuation was essentially impacted due to the devaluation of the investment properties
in that year held by this company.
Compensation payments and other charges result from early termination of leases and refurbishment
activities conducted by alstria. The latter refers to refurbishments the tenants had originally
committed to carry out themselves upon conclusion of the leasing contracts. This item also includes
compensation payments made by a tenant for the postponement of the start of the lease caused by
the tenant.
Consolidated Financial Statements
alstria Annual Report 2025
112
5.7.
Other operating expenses
EUR k
2025
2024
Legal and advisory fees
2,868
910
Expenses from input VAT adjustments pursuant to Section 15a of the German
VAT Act
1,802
371
Impairment on trade receivables
1,730
432
Revaluation of the limited partnership capital noncontrolling interests
1,679
6,555
Compensation payment to free float shareholders for REIT loss
0
23,239
Valuation financial assets
0
918
Other operating expenses
377
103
Total
8,456
32,528
The increase in legal and consulting expenses is primarily attributable to the higher advisory
requirements in connection with the spin-off of the operating business, the reorganization of the
Group, and the relocation of the registered office to Luxembourg (see section 1).
The increase in expenses from input VAT adjustments pursuant to Section 15a of the German VAT Act
(UStG) results from expenses relating to significant rental areas for which the intention to opt for VAT
on the lease changed during the financial year.
The increase in impairments on receivables reflects the higher number of tenant insolvencies due to
the current challenging economic environment.
The Revaluation of the limited partnership capital noncontrolling interests concerns alstria office
Prime Portfolio GmbH & Co. KG, in which the non-controlling partners have an interest. The valuation
was essentially impacted due to the increase in valuation of the investment properties held by this
company.
As a result of the loss of REIT status (see section 1), in the previous year a compensation payment
was required to be made to the free float shareholders in accordance with the REIT Act and Section
20 of the Company’s articles of association. The amount of the compensation offsets the distribution
disadvantage incurred by these shareholders due to the reinstatement of regular taxation. The
amount was determined by an independent appraiser appointed by the Institute of Public Auditors in
Germany (IDW).
Consolidated Financial Statements
113
alstria Annual Report 2025
5.8.
Net results of the disposal of investment property
EUR k
2025
2024
Proceeds from the disposal of investment property - transferred to buyer
24,850
29,750
Carrying amount of investment property disposed of - transferred to buyer
-26,245
-29,648
Costs in relation to the sale of investment properties - transferred to buyer
-232
-21
Gain on disposal of investment property - transferred to buyer
-1,627
81
Agreed selling price of held-for-sale investment properties
0
0
Carrying amount of investment property at the time of reclassification to
held-for-sale
0
0
Costs in relation to the sale of investment properties - held for sale
0
0
Valuation result of held-for-sale investment properties
0
0
Gain on disposal of investment property
-1,627
81
In the reporting period, a loss of EUR 3,145 k was incurred from the disposal of properties sold below
their carrying amounts. In contrast, no such disposals below carrying amount occurred in the 2024
financial year.
Consolidated Financial Statements
alstria Annual Report 2025
114
5.9.
Net financial result
The financial result breaks down as follows:
EUR k
2025
2024
Interest income
7,137
4,514
Interest like income
16,907
14,682
Income from financial instruments and other interest income
24,044
19,196
Interest expenses, bank loans
-61,701
-77,672
Interest expenses, corporate bonds
-36,789
-13,764
Interest result ”Schuldschein”
-1,116
-1,116
Interest result derivatives
17,726
13,889
Other interest expenses
-10
-386
Financial expenses
-81,890
-79,049
Commitment fees
-1,168
-752
Agency fees financial derivatives
-261
-72
Financial expenses lease liability IFRS 16
-94
-103
Miscellaneous other expenses from financial instruments
0
-51
Other financial expenses
-1,523
-978
Net financial result
−59,369
−60,831
The increase in interest income is partly attributable to a higher level of cash investments compared
to the previous year. Interest-like income includes an amount of EUR 16,907 k (2024: EUR 11,350 k)
resulting from the repurchase of own corporate bonds below their issue price. alstria repurchased
own corporate bonds with a nominal value of EUR 651,700 k for EUR 634,793 k.
The slight increase in interest expenses was mainly due to the issuance of new loans and the
refinancing of a corporate bond at a higher interest rate level compared to the original financing
terms (see section 7.3). However, the increase was largely mitigated by the Group’s existing hedging
strategy.
The positive interest result from derivative financial instruments reflects the hedged interest rate
level during the 2025 financial year, which resulted in compensation payments under the interest rate
swaps and caps entered into to hedge variable-rate loan interest. Further information and
explanations on the derivatives can be found in Note 6.5.
Consolidated Financial Statements
115
alstria Annual Report 2025
The total interest expenses calculated by applying the effective interest method for financial
liabilities (i.e., not recognized at fair value through profit or loss) amounted to EUR 7,913 k (interest
expenses, 2024: EUR 6,087 k).
In neither of the two former financial years did the Group hold any financial assets available for sale.
Therefore, the net result from the disposal of financial assets available for sale amounted, as in the
previous year, to EUR 0.
5.10. Income tax expenses
Following its conversion into a Real Estate Investment Trust (REIT) effective January 1, 2007, alstria
S.à r.l. was exempt from corporation and trade tax. The last regular tax assessment was conducted
for the period up to this conversion.
The parent company alstria S.à r.l. remained exempt from corporate and trade tax in the financial
year 2024 due to its REIT status. However, due to non-compliance with certain REIT requirements—
particularly the minimum free float requirement under Section 11 of the German REIT Act—this REIT
status expired as of December 31, 2024.
As a result, alstria S.à r.l. has been subject to regular corporate and trade taxation since January 1,
2025.
In previous years, income tax expenses already arose at the level of alstria office Prime Portfolio
GmbH & Co. KG, which is not subject to the REIT exemption. This tax obligation continues to exist.
In the 2025 financial year, for the first time since the REIT regime was established, current tax
expenses were also recognized at the level of the parent company. In addition, deferred tax assets
and liabilities were recognized (see section 2.5.7), based on temporary differences between IFRS and
tax accounting values.
Consolidated Financial Statements
alstria Annual Report 2025
116
EUR k
2025
2024
Corporate Income tax:
Current year
-17,294
-61
Adjustments in respect of prior years
490
1,957
Corporate Income tax
-16,804
1,895
Deferred tax:
Origination and reversal of temporary differences
-4,615
-225,296
Effet on changes in tax rates
57,811
0
Deferred tax
53,196
-225,296
Income tax result from current and deferred taxes
36,392
-223,401
Current income taxes relate exclusively to taxable profits of consolidated subsidiaries and alstria
S.à r.l. The significantly lower current tax expense in the previous year is due to the fact that alstria
S.à r.l., as a REIT stock corporation, was fully exempt from corporate income tax and trade tax until
December 31, 2024. Current tax expense is composed primarily of corporation tax including solidarity
surcharge amounting to EUR 7.659 k (previous year: EUR 891 k) and trade tax amounting to
EUR 9,145 k (previous year: EUR 1.004 k).
Whether or not deferred tax assets are recoverable is determined based on management’s assessment
regarding the recoverability of deferred tax assets. This depends on the generation of future taxable
profits during the periods in which temporary differences are reversed and tax loss carryforwards can
be utilised. alstria assumes that, based on the forecast for each investment property, the future
taxable income will be sufficient to be able in all likelihood to realise the recognised deferred tax
assets. The current assessment with regard to the recoverability of deferred tax assets may change,
making higher or lower allowances necessary.
Due to the absence of tax loss carryforwards, no deferred taxes arose from this.
Deferred taxes are measured based on the tax rates that are expected to apply at the time the assets
are realized or the liabilities are settled. For domestic deferred taxes, the calculation takes into
account the statutory change enacted in 2025, under which the corporate income tax rate will be
gradually reduced from 15% to 10% between 2028 and 2032 in five annual steps. In addition, the
solidarity surcharge of 5.5% on corporate income tax and entity-specific trade tax rates (generally
16.45%), if applicable, have been considered. The Group's properties are generally held in non-
commercial and de-registered partnerships that are not subject to trade tax. This does not apply to
companies in which development projects are carried out on properties with the intention of
subsequently selling the properties.
Consolidated Financial Statements
117
alstria Annual Report 2025
The trade tax rate was only included for these companies in the calculation of deferred taxes.
Deferred tax expense/income compares with the previous year as follows:
EUR k
2025
2024
Tax loss carryforwards
0
0
Investment properties
52,323
-225,296
Derivatives
873
0
Total
53,196
-225,296
Deferred tax assets and liabilities can be classified as follows:
31.12.2025
31.12.2024
EUR k
Assets
Liabilities
Assets
Liabilities
Tax loss carryforwards
0
0
0
0
Investment properties
5,094
177,194
5,092
230,387
Derivatives
1,078
0
2,229
0
Total
6,172
177,194
7,321
230,387
Deferred taxes on the items included in other comprehensive income amount to EUR 1,078 k (previous
year: EUR 2,229 k), of which EUR 1,078 k (previous year: EUR 2,229 k) is attributable to the
movements in the Group’s cash flow hedges. Deferred tax assets and liabilities amounting to
EUR 5,449 k (previous year: EUR 9,956 k) were netted.
The difference between anticipated tax expense and actual tax expense can be reconciled as follows:
EUR k
2025
2024
Profit for the period before tax
102,146
118,856
Applicable statutory tax rate (in %)
32,275
32,275
32,968
38,361
Increase or decrease in the tax liability through
Deferred taxes
53,196
-225,296
Valuation effect
-37,916
0
Capitalization differences
-5,016
0
Non-deductible interest (interest barrier rule)
-4,682
0
REIT tax exemption
0
-38,361
Other effects
-2,158
1,895
Total
36,392
-223,401
As of December 31, 2025, the Group’s tax results are subject to German tax law, since all operating
subsidiaries are domiciled and active in Germany. From January 1, 2025, alstria S.à r.l.—following the
expiration of its REIT status on December 31, 2024—is again fully subject to corporate and trade
taxation.
Consolidated Financial Statements
alstria Annual Report 2025
118
No deferred tax assets were recognized for unused interest carryforwards amounting to EUR 43.3
million (previous year EUR 0 million), as utilization cannot currently be guaranteed.
Deferred taxes have been measured in accordance with IAS 12 based on the tax rates expected to
apply at the time the underlying assets are realized or liabilities settled. For domestic deferred tax
measurement, a gradually decreasing statutory corporate tax rate, reflecting legislative changes
effective from January 1, 2028, was applied (resulting in an approximate rate of 10.55 % including
solidarity surcharge where trade tax is not applicable).
No additional minimum tax (Qualified Domestic Minimum Top‑Up Tax, QDMTT) has been recognized
for the 2025 financial year. The minimum tax provisions have been assessed, and it is expected that,
given the applicable effective tax rate and the domestic tax position, no additional minimum tax
charge arises. The Group has applied the temporary exception in IAS 12 regarding global minimum
taxation (Pillar Two). In view of the remaining legal uncertainties, the application of this exception
is considered appropriate and in accordance with the Standard.
Consolidated Financial Statements
119
alstria Annual Report 2025
6. NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION – ASSETS
6.1.
Investment property
This item, comprising investment properties held by the Company, breaks down as follows:
EUR k
2025
2024
Investment property as of December 31
4,127,431
3,971,253
Investments (Capital expenditure))
83,535
92,406
Acquisitions
0
277
Acquisition costs
0
0
Recognition of a right-of-use asset according to IFRS 16
18
0
Disposals
0
0
Transfer to assets held for sale
-27,400
0
Transfer from property, plant, and equipment due to termination of own use
23,499
0
Net loss / gain from fair value adjustments to investment property
42,224
63,495
Investment property as of December 31
4,249,307
4,127,431
alstria did not carry out any real estate transactions in the 2025 financial year.
Acquisition
Disposal
Property transaction
Number of
properties
Transaction amount
in EUR k
Number of
properties
Transaction amount
in EUR k
Contract signed until 2022,
transferred in 2024
0
0
0
0
Contract signed and
transferred in 2024
0
0
3
24,850
Contract signed in 2024,
transferred 2025
0
0
1
14,500
Total
0
0
4
39,350
The property, with a transaction volume of EUR 14,500 k , for which the purchase agreement was
signed in the 2025 financial year, was still subject as of the reporting date to approval by the local
authority in whose jurisdiction it is located. Furthermore, the transfer is not expected to take place
until more than twelve months after 31 December 2025. Therefore, as of the reporting date, it was
not yet to be classified as held for sale.
alstria did not carry out any real estate transactions in the 2024 financial year.
Capital expenditure (EUR 83,535 k) comprises subsequent acquisition and production costs relating to
property acquisitions and refurbishment projects.
The investment property includes rights-of-use assets from leases, which are shown in the amount of
the leasing liabilities of EUR 4,143 k (December 31, 2024: EUR 4.276 k).
Consolidated Financial Statements
alstria Annual Report 2025
120
Borrowing costs that would have had to be capitalized as construction costs were not incurred during
the reporting period (2024: EUR 0).
The alstria S.à r.l. applied the fair value model pursuant to IAS 40.33 et seq. for subsequent
measurement of investment property. External appraisals were obtained for measurement. For a
detailed description of the valuation of assets, please see Note 2.5
The item “net result from fair value adjustments on investment property” on the income statement
in the amount of EUR 54,854 k (2024: EUR 144,495 k) is attributable to a change in unrealized losses.
Furthermore, the net result from the valuation of investment properties includes write-downs of EUR
1,155 k (2024: EUR 0), which relate to properties sold during the financial year. The total of the
increases in value amounted to EUR 97,079 k (2024: EUR 197,246 k).
As in the previous year, all real estate held as investment property measured at fair value is classified
as Level 3 in the fair value hierarchy.
The Group has considered the nature, characteristics, and risks of its properties, as well as the level
of the fair value hierarchy within which the fair value measurements are categorized, in determining
the appropriate classes of investment property.
The following factors help determine the appropriate classes:
a) The real estate segment: Within all investment portfolios, the majority of the lettable area
is dedicated to offices. Therefore, all investment properties belong to one asset class: offices.
b) The geographical location of all properties is Germany.
c) The level of fair value hierarchy for all investment properties is Level 3.
d) There are large differences between the contractual lease terms. This also affects the
weighted average unexpired lease term (WAULT) for each investment property. A distinction
is made between objects with a short, medium, and long WAULT.
As a result, three appropriate classes of investment properties emerged:
▪
Germany – Office – Level 3 – short WAULT (0–5 years);
▪
Germany – Office – Level 3 – medium WAULT (> 5–10 years); and
▪
Germany – Office – Level 3 – long WAULT (> 10 years).
Consolidated Financial Statements
121
alstria Annual Report 2025
Quantitative information about fair value measurements using unobservable inputs (alstria
portfolio) (Level 3)
EUR k, unless stated otherwise
Portfolio
Fair value on
Dec. 31, 2025
Valuation
technique
Unobservable
inputs
Range
Min. Max.
Weighted
average
German offices
4,249,307 DCF
Estimated rental value
(EUR/m²/mo.)
8.75
32.00
18.02
Number of properties:
Discount Rate
4.75%
9.75%
6.72%
103
Exit Cap Rate
3.25%
7.75%
5.69%
0 ≤ WAULT ≤ 5 Years
German offices
2,066,075 DCF
Estimated rental value
(EUR/m²/mo.)
10.00
32.00
17.77
Number of properties:
Discount Rate
5.35%
9.75%
6.95%
63
Exit Cap Rate
4.75%
7.75%
5.75%
5 < WAULT ≤ 10 Years
German offices
1,288,032 DCF
Estimated rental value
(EUR/m²/mo.)
8.75
28.00
16.89
Number of properties:
Discount Rate
5.00%
9.00%
6.71%
25
Exit Cap Rate
4.25%
7.25%
5.74%
WAULT > 10 Years
German offices
895,200 DCF
Estimated rental value
(EUR/m²/mo.)
12.00
32.00
20.82
Number of properties:
Discount Rate
4.75%
7.50%
5.77%
15
Exit Cap Rate
3.25%
6.35%
5.33%
Sensitivity of measurement to variance of significant unobservable input
A decrease in the estimated rental income decreases the fair value.
An increase in the discount rate decreases the fair value.
An increase in the Exit Cap Rate decreases the fair value.
Consolidated Financial Statements
alstria Annual Report 2025
122
In the following, the influence of changes in the capitalization rates (discount rate) on the market
values is indicated.
Fair value of investment properties (EUR m)
Capitalization rate
Dec. 31, 2025
Dec. 31, 2024
−1.00 %
4,622
4,501
−0.50 %
4,436
4,309
−0.25 %
4,342
4,217
0.00 %
4,249
4,127
0.25 %
4,159
4,039
0.50 %
4,072
3,954
1.00 %
3,894
3,788
Capitalization rate
Dec. 31, 2025
Dec. 31, 2024
−1.00 %
4,901
4,854
−0.50 %
4,575
4,449
−0.25 %
4,403
4,280
0.00 %
4,249
4,127
0.25 %
4,109
3,989
0.50 %
3,982
3,863
1.00 %
3,716
3,644
Operating lease commitments – Group as lessor
The Group has entered into commercial property leases on its investment property portfolio, which
consists of the Group’s offices and commercial real estate. These noncancelable leases have
remaining maturity of between 1 and 17 years. Most leases include an indexation clause allowing
rental charges to be raised annually according to consumer price indexation.
Future minimum rental charges receivable as agreed in noncancelable operating leases as at
December 31, 2025 are as follows:
EUR k
Dec. 31, 2025
Dec. 31, 2024
Within 1 year
187,306
190,485
After 1 year but not longer than 5 years
515,242
488,330
Longer than 5 years
449,258
378,763
Total
1,151,806
1,057,578
Disclosures concerning expenses/income as recorded in the income statement pursuant to
IAS 40.75 (f) include the following:
▪
EUR 235,508 k (2024: EUR 239,176 k) in revenues from investment properties, of which
EUR 227 k is related to subleases of rights-of-use assets;
Consolidated Financial Statements
123
alstria Annual Report 2025
▪
EUR 54,743 k (2024: EUR 56,243 k) in operating expenses (including repairs and maintenance)
directly allocable to investment properties from which rental income was generated during
the period under review; and
▪
EUR 13,571 k (2024: EUR 11,617 k) in operating expenses (including repairs and maintenance)
arising from investment properties that did not generate rental income during the period
under review.
Investment properties, held-for-sale properties, and own used properties amounting to EUR 2,655.2 m
(December 31, 2024: EUR 2,505.9 m) served as collateral for bank loans.
6.2.
Equity-accounted investment
As of December 31, 2025, the Group holds a significant investment in alstria advisors GmbH, which
was deconsolidated during the financial year and is now classified as an associate in accordance with
IAS 28. The investment is accounted for using the equity method.
Details regarding the classification, share of profit, summarized financial information, and
reconciliation to the carrying amount of the investment are presented in section 2.3.3.
6.3.
Intangible assets and property, plant, and equipment
Following the transfer of the operating business to alstria advisors GmbH on July 1, 2025, and the
deconsolidation of this company on December 8, 2025, all material assets in the categories of
intangible assets and property, plant and equipment were removed from the consolidated group. This
specifically includes:
▪ software licenses and rights,
▪ operational equipment (including furniture, IT, inventory).
As of December 31, 2025, no material carrying amounts remain in these categories.
In addition, owner-occupied properties are no longer recognized as property, plant and equipment,
as own use ceased following the transfer of the business operations located in these premises. Since
then, the respective space has been leased to investee companies outside the Group and therefore
must be classified as investment property in accordance with IAS 40.
Consolidated Financial Statements
alstria Annual Report 2025
124
The following table shows the development of property, plant, and equipment.
EUR k
Plant
Furniture and
fixtures
Owner-
occupied
property
Forrest
IFRS 16
right-of-
use assets
Total 2025
Acquisition and production
cost
As of January 1, 2025
1,118
2,088
18,915
2,835
2,056
27,013
Additions
0
123
0
0
0
123
Transfer to investment
properties
0
0
-18,915
0
0
-18,915
Disposals
0
-2,163
0
-2,835
-2,056
-7,054
As of December 31, 2025
1,118
48
0
0
0
1,166
Accumulated amortization,
depreciation, and write-
downs
As of January 1, 2025
1,118
1,474
2,331
0
1,370
6,294
Additions
0
121
190
0
0
311
Transfer to investment
properties
0
0
-2,521
0
0
-2,521
Disposals
0
-1,570
0
0
-1,371
-2,941
As of December 31, 2025
1,118
25
0
0
0
1,143
Net book values as of
December 31, 2025
0
23
0
0
0
23
EUR k
Plant
Furniture and
fixtures
Owner-
occupied
property
Forrest
IFRS 16
right-of-
use assets
Total 2025
Acquisition and production
cost
As of January 1, 2024
1,266
2,194
18,770
2,834
2,507
27,571
Additions
0
198
130
1
694
1,023
Disposals
-148
-304
16
0
-1,145
-1,580
As of December 31, 2024
1,118
2,088
18,915
2,835
2,056
27,013
Accumulated amortization,
depreciation, and write-
downs
As of January 1, 2024
1,263
1,472
1,996
0
1,445
6,177
Additions
182
335
0
1,437
1,954
Disposals
-145
-180
0
0
-1,512
-1,837
As of December 31, 2024
1,118
1,474
2,331
0
1,370
6,294
Net book values as of
December 31, 2024
0
614
16,584
2,835
686
20,719
Consolidated Financial Statements
125
alstria Annual Report 2025
As of December 31, 2024, three owner-occupied properties reported in the balance sheet were
encumbered with land charges securing Group borrowings. These charges remain in place following
the reclassification of the spaces to third-party leased areas and now fully relate to investment
properties.
The forest property comprised 217,7 hectares of woodland and biological growth, which was sold
during the 2025 financial year. The disposal was completed in August 2025, and the resulting gain was
recognized under Net result from the disposal of investment property. No fair value changes in
accordance with IAS 41 were recorded up to the date of disposal.
6.4.
Financial assets
EUR k
Dec. 31, 2024
Repayments
Investment in
financial assets
Valuation
Dec. 31, 2025
Noncurrent financial assets
94,432
0
1,156
0
95,589
The financial assets of EUR 95,589 k (December 31, 2024: EUR 94,432 k) are related to long-term
deposits in the amount of EUR 94,432 k with a term up to the end of the 2032 financial year. During
the reporting period EUR 1.089 k were additional loans provided and a further EUR 67 k was invested
in a minority interest in a company facilitating CO₂ storage techniques.
Current financial assets did neither exist at the end of the reporting period nor at the end of the
previous.
There were no value adjustments for long-term deposits as of the balance sheet date, as they are
covered by the borrower's shares in an investment.
Consolidated Financial Statements
alstria Annual Report 2025
126
6.5.
Derivative financial instruments
The following derivative financial instruments were in place at the end of the reporting period:
Dec. 31, 2025
Dec. 31, 2024
Product
Strike p.a.
Start of
Hedging
Maturity
date
Counterpart
Notional Fair
value
Notional Fair
value
(%)
(EUR k)
(EUR k)
(EUR k)
(EUR k)
Swap
3.1350
30.06.2023 26.04.2030
Landesbank Hessen-
Thüringen Girozentrale
70,500
-2,218
70,500
-3,321
Cap
0.0350
30.06.2023 26.04.2030
Societe Generale
70,500
308
70,500
638
Swap
4,0330 -
2,5000
01.11.2023 31.08.2028
Hamburg Commercial Bank
AG
50,000
-389
50,000
-1,429
Swap w/
Floor
3.0000
30.06.2023 30.06.2028
Landesbank Baden-
Württemberg
50,000
479
50,000
-1,437
Swap
3.2300
30.06.2023 29.03.2030
Morgan Stanley Europe SE
67,500
-2,365
67,500
-3,469
Cap
3,5000 -
2,5000
01.11.2023 31.08.2028
Morgan Stanley Europe SE
10,000
37
10,000
92
Cap
3,5000 -
2,5000
01.11.2023 31.08.2028
Morgan Stanley Europe SE
40,000
149
40,000
367
Swap
1.7500
30.09.2022 30.09.2027
Societe Generale
0
0
500,000
4,627
Swap
0.0000
30.09.2022 30.09.2027
Societe Generale
500,000
0
0
Cap
3.5000
30.06.2023 29.03.2030
Societe Generale
22,500
93
22,500
119
Cap
3.5000
30.06.2023 30.06.2028
Societe Generale
35,000
23
35,000
198
Cap
3.5000
30.06.2023 26.04.2030
Societe Generale
47,000
205
47,000
426
Swap
1.9240
30.09.2022 30.09.2028
UniCredit Bank AG
60,000
462
60,000
424
Swap
1.9240
30.09.2022 30.09.2028
UniCredit Bank AG
22,450
173
22,450
159
Cap
4.0500
09.02.2024 31.12.2029
Societe Generale
90,000
194
90,000
483
Cap
3.5000
28.06.2024 30.06.2024
Societe Generale
100,000
0
100,000
13
Swap
2.5000
30.06.2026 30.06.2031
Landesbank Baden-
Württemberg
100,000
67
100,000
-1,085
Cap
0.0000
19.09.2025 30.09.2027
Societe Generale
108,000
3,892
0
n/a
Cap
0,0000 -
4,0000
30.09.2025 30.09.2030
Landesbank Baden-
Württemberg
45,000
1,080
0
n/a
Cap
0.0000
30.09.2025 31.03.2026
Landesbank Baden-
Württemberg
118,000
598
0
n/a
Swaption
3.7000
30.12.2026 30.09.2031
Credit Agricole Corporate
and Investment Bank
70,875
38
0
n/a
Swaption
2.9000
30.09.2027 17.09.2032
Societe Generale
81,000
835
0
n/a
Swap
2,1370 -
1,000
04.03.2025 31.12.2029
UniCredit Bank GmbH
60,000
3,096
0
n/a
Cap
0.0000
21.03.2025 31.12.2026
Credit Agricole Corporate
and Investment Bank
70,875
1,447
0
n/a
Swap
0.0000-
1.7500
30.12.2025 30.09.2027
Societe Generale
375,000
3,748
0
Swap
3.0000
29.12.2023 31.08.2025
Societe Generale
0
0
107,000
-435
Swap
3.0000
29.08.2025 29.08.2026
Societe Generale
0
0
107,000
-1,184
Swap
3.0000
31.08.2026 29.08.2027
Societe Generale
0
0
107,000
-971
Floor
0.0000
28.06.2024 29.08.2025
Societe Generale
0
0
107,000
0
Total designated cashflow hedges
2,264,200
11,952
1,763,450
-5,786
Swap
0.0000
20.03.2025 20.03.2027
Landesbank Baden-
Württemberg
500,000
15,999
0
n/a
Reverse
Swap
2.5510
20.03.2025 20.03.2027
Landesbank Baden-
Württemberg
500,000
9,092
0
n/a
Cap
0.0000
30.09.2025 31.03.2026
Landesbank Baden-
Württemberg
100,000
507
0
n/a
Swap
0.0000
15.10.2025 15.10.2027
Landesbank Baden-
Württemberg
500,000
21,707
0
n/a
Consolidated Financial Statements
127
alstria Annual Report 2025
Reverse
Swap
2.2840
15.10.2025 15.10.2027
Landesbank Baden-
Württemberg
500,000
447
0
n/a
Swap
0.0000-
1.7500
30.12.2025 30.09.2027
Societe Generale
125,000
1,312
0
n/a
Cap
0.0000
30.12.2025 31.12.2026
Credit Agricole Corporate
and Investment Bank
50,000
1,021
0
n/a
Cap
0.0000
30.12.2025 31.12.2026
Credit Agricole Corporate
and Investment Bank
265,000
5,409
0
n/a
Total mark-to-market cashflow hedges
2,804,000
55,494
0
n/a
Total Financial derivatives
4,804,200
67,446
1,763,450
-5,786
The derivative financial instruments held by alstria are exclusively interest rate swaps and caps
aligned with Swaptions and Floors where appropriate.
The nominal value of derivative financial instruments, consisting of cash flow hedges and financial
derivatives not included in the cash flow hedge, which were effective on the balance sheet date,
amounts to EUR 4,552,325 k (December 31, 2024 EUR 1.449,450 k).
Derivative financial instruments with a notional value of EUR 2,540,200 k (December 31, 2024: EUR
0) are not designated for a cash flow hedge relationship.
Offsetting agreements with counterparties (so-called master agreements) were not agreed.
The change in value of the derivatives is taken into account in different balance sheet items.
Consolidated Financial Statements
alstria Annual Report 2025
128
The following table shows the change in financial derivatives since December 31, 2024:
EUR k
Cash flow
hedge
Financial assets
Financial liabilities
Total
reserve
Non-current
Current
Non-current
Current
Hedging
instruments
as
at
January 1, 2025
-12,540
4,961
2,576
-8,134
-5,190
-5,787
Effective change in fair values cash
flow hedges
4,286
-28,734
34,649
152
-1,780
4,287
Ineffective change in fair values cash
flow hedges
0
0
0
0
0
0
Net result from fair value changes in
financial derivatives not qualifying for
cash flow hedging
0
-16,616
-3,091
0
0
-19,707
Reclassification of cumulated loss from
equity to income statement
1,340
0
0
0
0
0
Reclassification due to change of
residual term
0
-3,594
3,594
0
0
0
Changes
in
accrued
interests
concerning financial derivatives
0
3,575
8,755
0
0
12,330
Acquisitions
0
72,169
0
0
0
72,169
Disposals
0
0
0
4,154
0
4,154
Deferred tax result
-1,153
0
0
0
0
0
Hedging
instruments
as
at
December 31, 2025
-8,067
31,760
46,484
-3,828
-6,970
67,446
The notional amount of the financial derivatives effective at the end of the reporting period is
EUR 2,264,200 k (December 31, 2024: EUR 1,763,450 k). This includes cash flow hedges and
derivatives not qualifying for cash flow hedging.
An increase in the fair values of derivatives of an amount of EUR 4,286 k that are effective in a cash
flow hedge was recognised in the equity in the hedging reserve in 2025 (2024: decrease of
EUR 8,698 k). An amount of EUR 1,340 k (2024: EUR 334 k) was reclassified from the reserve for cash
flow hedging to the income statement under the Net result from the adjustment of financial
derivatives; these are amounts that relate to terminated derivatives and are amortized over the
remaining term of the underlying loan.
The valuation effect arising from cash flow hedges not designated for hedge accounting purposes
amounted to a fair value loss of EUR k 19,707 (2024: loss of EUR k 1,720) and is recognised in profit
or loss under “Net result from the valuation of derivative financial instruments”
Consolidated Financial Statements
129
alstria Annual Report 2025
6.6.
Receivables and other assets
Due to the specific nature of the business, the Group considers receivables with a remaining term of
up to 1 year to be current. The following table presents an overview of the Group’s receivables:
EUR k
Dec. 31, 2025
Dec. 31, 2024
Net rent receivables
3,167
2,946
Service charge receivables
1,286
1,890
Trade receivables
4,453
4,836
Other receivables
Creditors with debit balance
1,142
988
Maintenance reserves
713
396
Interest receivables
162
222
Cash in transit
268
18
Receivables and other assets
95
77
Financial assets
2,380
1,701
VAT receivables
4,489
2,997
Prepayments made
469
698
Capitalized transaction costs on outstanding loan facility
334
533
Deductible capital gains taxes
98
98
Non-financial assets
5,390
4,326
Other receivables
7,770
6,027
Receivables from an associated company in the amount of EUR 3,727 k result from advance
payments of EUR 2,523 k and loans granted in the amount of EUR 1,204 k.
All receivables are due within 1 year from the balance sheet date. The fair value of all receivables is
equal to their carrying amount.
The expected credit losses are calculated in two ways. For alstria’s key tenants, default probabilities
observed on the market made available by Bisnode database of Dun & Bradstreet Deutschland GmbH,
Frankfurt am Main, Germany, are used. For its receivables from the remaining (non-key) tenants,
alstria uses an impairment matrix. The receivables of these other tenants are valued based on
historical probabilities of default. Future developments or macroeconomic indicators are monitored,
and adjustments are made if necessary.
Consolidated Financial Statements
alstria Annual Report 2025
130
On this basis, alstria estimates the following default rates:
EUR k
0-30 days
overdue
31-90 days
overdue
91-180 days
overdue
More than 180 days
overdue
Default rate as of 31.12.2025
27.50%
43.17%
56.85%
100.00%
Default rate as of 31.12.2024
19.95%
34.03%
88.77%
100.00%
Trade receivables from tenants of alstria as of December 31, 2025 are valued as follows:
EUR k
Gross amount
Provision made for
default of receivables
over the entire term
Provision made for
default of receivables
over 12 months
Net amount
0-30 days overdue
1,525
-419
1,105
31-90 days overdue
494
-213
281
91-180 days overdue
158
-90
68
More than 180 days overdue
352
-352
0
Total other tenants
2,529
-1,075
1,454
Key tenants
3,010
-
-11
2,999
Total
5,538
-1,075
-11
4,453
Trade receivables from tenants of alstria as of December 31, 2024 were valued as follows:
EUR k
Gross amount
Provision made for
default of receivables
over the entire term
Provision made for
default of receivables
over 12 months
Net amount
0-30 days overdue
1,567
-206
1,361
31-90 days overdue
372
-88
284
91-180 days overdue
205
-170
35
More than 180 days overdue
82
-82
0
Total other tenants
2,226
-546
1,679
Key tenants
3,185
-
-30
3,156
Total
5,412
-546
-30
4,836
Consolidated Financial Statements
131
alstria Annual Report 2025
The allowance for trade receivables developed as follows:
EUR k
2025
2024
As of January 1
575
990
Additions
1,730
432
Net revaluation of allowances
-1,219
-847
As of December 31
1,086
575
Receivables from rental agreements and property disposals, as well as insurance receivables and
derivative financial instruments, have been assigned to the lenders (Note 7.3) to secure the Group’s
mortgage-backed loans.
6.7.
Cash and cash equivalents
EUR k
Dec. 31, 2025
Dec. 31, 2024
Bank balances
315.114
80.233
Current accounts held with banks attract variable interest rates for on-call balances. As of the
reporting date, EUR 9,869 k of the cash and cash equivalents were restricted. The amount corresponds
to accrued interest obligations and other amounts that are not at the Company’s free disposal.
Restrictions on cash amounts as of the previous year's reporting date amounted to EUR 7,448 k.
Due to the very low credit default probabilities of the banks for the daily available bank balances,
there was no impairment of cash and cash equivalents. The credit rating was based on observable
market parameters.
In addition, cash and cash equivalents include EUR 5,793 k in rent deposits received from tenants
(December 31, 2024: EUR 6,196 k). These tenant deposits, recognized under cash and cash
equivalents, are offset by an item included under Other Liabilities.
Consolidated Financial Statements
alstria Annual Report 2025
132
6.8.
Assets held for sale
As of the balance sheet date and the previous year's date, the Group did not hold any properties held
for sale.
There was therefore no net result from the sale of investment properties for the 2025 financial year
any more. (see Note 5.8).
The valuation of assets held for sale is generally based on the contract prices and, therefore, included
within Level 1 of the fair value hierarchy.
Consolidated Financial Statements
133
alstria Annual Report 2025
7. NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION – EQUITY
AND LIABILITIES
7.1.
Equity
For detailed information on equity, please refer to the consolidated statement of changes in
consolidated equity.
Share capital
EUR k
Dec. 31, 2025
Dec. 31, 2024
Ordinary shares of EUR 1 each
121,167
178,562
The share capital of alstria S.à r.l. was reduced by EUR 57,395 k. The number of no-par value bearer
shares decreased from 178,561,572 as of December 31, 2024, by 57,394,791 shares, resulting in a
total of 121,166,781 no-par value bearer shares as of December 31, 2025.
As a result of the squeeze-out effective May 23, 2025 (see Section 1), 100.00% of the shares in the
Company were attributable to Brookfield-affiliated entities as of December 31, 2025 (December 31,
2024: 95.37%).
Capital reserve
The capital reserve changed as follows during the financial year:
EUR k
2025
2024
As of January 1
245,961
245,961
Payment of dividends
57,394
0
Share-based remuneration
0
0
Conversion of convertible participation rights
0
0
As of December 31
303,355
245,961
Revaluation surplus
Following the relocation of the headquarters within Hamburg in the first quarter of the financial year
2018, the office space that had previously been used as owner-occupied property again became
investment property and was remeasured at fair value. The fair value revaluation resulted in an
increase in the carrying amount of the property in the amount of EUR 3,485 k. The increase in value
was recognized in other comprehensive income and allocated to the revaluation surplus.
In the 2025 financial year, the deconsolidation of the operating business led to the termination of
own use of all previously owner-occupied office spaces. As a result, these properties were also
reclassified as investment properties. The remeasurement at fair value resulted in an additional
increase in the carrying amount of EUR 7,105 k, which was likewise recognized in other comprehensive
income and allocated to the revaluation reserve.
Consolidated Financial Statements
alstria Annual Report 2025
134
As of the reporting date, the total amount recognized in the revaluation reserve amounts to EUR
10,590 k.
Hedging reserve
EUR k
Dec. 31, 2025
Dec. 31, 2024
Hedging reserve
-8,067
-12,540
For further details on the change in hedging reserve please refer to Note 6.5.
Treasury shares
As of December 31, 2025, as was the case on the previous year's reporting date, the Company held no
treasury shares.
By resolution of the Annual General Meeting held on May 4, 2023, the Company’s authorization to
acquire treasury shares was renewed. The resolution authorized alstria S.à r.l. to acquire up to 10 %
of the capital stock until May 3, 2028. With the relocation of the registered office to Luxembourg on
January 21, 2026, and the associated change of legal form into a Société à responsabilité limitée
(S.à r.l.) governed by Luxembourg law, this authorization has become obsolete, as the relevant
provisions of German stock corporation law no longer apply to the Company.
Retained earnings
Retained earnings as of December 31, 2025, totaled EUR 1,229,940 k (December 31, 2024: profit
carried forward of EUR 1,091,401 k). The increase in retained earnings results from the consolidated
annual result for the 2025 financial year.
Authorized capital
By resolution of the Annual General Meeting on June 6, 2024, the Company’s Authorized Capital I 2020
was replaced with the new Authorized Capital 2024.
The Authorized Capital 2024 authorizes the Management Board, with the Supervisory Board’s
approval, to increase the Company’s share capital on or before June 5, 2029 by up to EUR 89,281 k.
With the relocation of the registered office to Luxembourg on January 21, 2026, and the associated
change of legal form into a Société à responsabilité limitée (S.à r.l.) governed by Luxembourg law,
this authorization has become obsolete, as the relevant provisions of German stock corporation law
no longer apply to the Company.
Consolidated Financial Statements
135
alstria Annual Report 2025
Conditional capital
The Company's share capital is conditionally increased by up to EUR 89,281 k (‘Conditional Capital
2024’). The Conditional Capital 2024 serves to grant shares to the holders of convertible bonds or
bonds with warrants, profit participation rights or participating bonds issued by the Company up to
on or before June 5, 2029. With the relocation of the registered office to Luxembourg on January 21,
2026, and the associated change of legal form into a Société à responsabilité limitée (S.à r.l.)
governed by Luxembourg law, this authorization has become obsolete, as the relevant provisions of
German stock corporation law no longer apply to the Company.
7.2.
Noncontrolling interests of limited partners
In the 2017 financial year, alstria S.à r.l. acquired 2,128,048 limited partner shares. A further
3,593,463 limited partner shares were redeemed against cash compensation by alstria office Prime.
In the financial years 2018 to 2020, a further 47,781 limited partner shares were acquired. No limited
partnership shares were acquired in the 2021 to 2025 financial years. In the 2022 financial year, alstria
S.à r.l. sold 8,840,478 limited partnership shares at a sale price of EUR 55,518 k.
In the reporting period, the change in value of the existing limited partnership shares of noncontrolling
interests resulted in an expense of EUR 1,679 k (2024: gain of EUR 6,555 k). The fair value of the
limited partnerships of noncontrolling interests reported as of the balance sheet date amounted to
EUR 98.559 k (2024: EUR 101.059 k). In contrast to the prior year, the entire amount was classified
as current as of December 31, 2025, whereas as of December 31, 2024, EUR 101,038 k were classified
as noncurrent and EUR 21 k as current.
7.3.
Financial liabilities
Noncurrent
Current
Total
EUR k
Loan
Accrued
interest
Total current
Dec. 31, 2025
Loans
Corporate bonds
1,071,288
153,204
27,561
180,765
1,252,053
Mortgage loans
1,465,222
0
267
267
1,465,488
Schuldschein
0
39,990
718
40,708
40,708
Total
2,536,509
193,194
28,546
221,740
2,758,249
Noncurrent
Current
Total
EUR k
Loan
Accrued
interest
Total current
Dec. 31, 2024
Loans
Corporate bonds
643,859
334,480
3,656
338,137
981,996
Mortgage loans
1,288,088
106,806
296
107,103
1,395,191
Schuldschein
39,979
0
718
718
40,697
Total
1,971,926
441,287
4,671
445,958
2,417,884
Consolidated Financial Statements
alstria Annual Report 2025
136
The table presents the long-term loans and the net of the current portion as stated under noncurrent
liabilities. Furthermore, it shows the current amount due within 1 year, recorded as an item in short-
term loans in current liabilities.
As of December 31, 2025, the total repayable amount of the corporate bonds, the bank loans, the
Schuldscheindarlehen, and the convertible bond drawn by alstria (as of the prior year’s balance sheet
date) was EUR 2,764,638 k (December 31, 2024: EUR 2,427,700 k). The carrying amount of
EUR 2,758,249 k (EUR 2,536,509 k, noncurrent, and EUR 221,740 k, current) considers interest
liabilities and accrued transaction costs. Financial liabilities with a maturity of up to 1 year are
recognized as current loans.
The following table shows the changes in financial liabilities:
EUR k
December
31, 2024
Payments
of the
period
Reclassification
noncurrent/
current
Changes in
fair value
December
31, 2025
Long-term loans and bonds,
net of current portion
1,971,926
812,138
-226,300
-21,255
2,536,509
Short-term loans
445,958
-475,200
226,300
24,682
221,740
Total
2,417,884
336,938
0
3,427
2,758,249
1) Changes in deferred loan costs (effective interest).
2) Changes in the accrued interest.
The cash changes in borrowings shown in the column “Payments of the period” include, in addition
to the cash inflows and outflows from loans and corporate bonds, the payments of transaction costs
for taking out loans.
Consolidated Financial Statements
137
alstria Annual Report 2025
The following table provides information on the Group's loans and borrowings:
Liabilities
Start
Maturity
Notional in
EUR k
Coupon in
%
Utilized at
31.12.2025
in EUR k
Book value as
of 31.12.2025
in EUR k
OMV as at
31.12.2025
in EUR k
Accrued
interest at
31.12.2025
in EUR k
Mortgage
loan #1
II 2024
30.06.2031
150,000
3M-
EURIBOR
115,000
113,171
115,000
24
Mortgage
loan #2
II 2016/
II 2023
31.03.2030
90,000
3M-
EURIBOR
90,000
89,500
89,549
8
Mortgage
loan #3
III 2018/
III 2022
29.09.2028
97,000
3M-
EURIBOR
97,000
96,790
95,553
8
Mortgage
loan #4
III 2022
30.09.2027
500,000
3M-
EURIBOR
357,538
355,362
356,418
70
Mortgage
loan #5
III 2022
29.08.2025
0
3M-
EURIBOR
0
0
0
0
Mortgage
loan #6
III 2023
26.04.2030
188,000
3M-
EURIBOR
188,000
185,813
187,388
35
Mortgage
loan #7
III 2023
30.06.2028
100,000
3M-
EURIBOR
100,000
99,583
99,797
20
Mortgage
loan #8
IV 2023
31.08.2028
100,000
3M-
EURIBOR
95,000
94,028
95,000
19
Mortgage
loan #9
I 2024
28.12.2029
120,000
3M-
EURIBOR
120,000
118,737
120,242
23
Mortgage
loan #10
I 2025
30.09.2031
94,500
3M-
EURIBOR
94,500
92,943
94,500
19
Mortgage
loan #11
I 2025
31.12.2029
70,000
3M-
EURIBOR
70,000
68,726
70,000
7
Mortgage
loan #12
III 2025
30.09.2030
45,000
3M-
EURIBOR
45,000
44,324
45,000
9
Mortgage
loan #13
III 2025
17.09.2032
108,000
3M-
EURIBOR
108,000
106,243
108,000
22
Total secured
1,662,500
1,480,038
1,465,221
1,476,447
264
Bond III
IV 2017
15.11.2027
350,000
1.5000
91,300
90,934
87,584
187
Bond IV
III 2019
26.09.2025
0
0
0
0
0
0
Bond V
II 2020
23.06.2026
350,000
1.5000
153,300
153,199
151,307
1,205
Bond VI
I 2025
20.03.2031
500,000
5.5000
500,000
489,611
509,700
21,623
Bond VII
IV 2025
15.10.2029
500,000
4.2500
500,000
490,743
493,675
4,541
Schuldschein
10y/fix
II 2016
06.05.2026
40,000
2.7500
40,000
39,995
39,859
718
Total
unsecured
1,740,000
1,284,600
1,264,482
1,282,125
28,274
Total
3,402,500
2,764,638
2,729,703
2,758,572
28,5381)
1) As of the reporting date, there are also EUR 8 k in interest liabilities related to loans that have already been repaid, as well as an undrawn
credit facility. The total amount of EUR 2,729,703 k, together with accrued interest liabilities of EUR 28,538 k and the EUR 8 k, corresponds to
the sum of non-current loans of EUR 2,536,509 k and current loans of EUR 221,740 k, totaling EUR 2,758,249 k.
Mortgage loans
These are property-related bank loans, most of them with variable interest rates. The loans are
secured by mortgages and other collateral customary for bank loans.
Corporate bonds
The Group has placed corporate bonds on the market to finance its debt capital. The table presented
before contains a summary of the corporate bonds in existence in the financial year.
Consolidated Financial Statements
alstria Annual Report 2025
138
In the reporting period shares in outstanding corporate bonds were bought back by the Company to
the following extent:
Bond
ISIN
Dec. 31, 2025
Notional value of
shares
EUR k
Bond III
XS1717584913
258,700,000
258,700
Bond V
XS2191013171
196,700,000
196,700
455,400,000
455,400
Schuldschein
As of May 6, 2016, alstria issued a Schuldschein (a debenture bond) with a nominal value of
EUR 150,000 k. The Schuldschein has an average coupon of 2.07 % p.a. payable according to end-of-
year convention and a staggered term of between 4 and 10 years. In the meantime, loan shares in the
amount of EUR 110,000 k were repaid before the end of their term, so that the Schuldschein had a
notional value of EUR 40,000 k at the end of the reporting period. The fair value (hierarchy Level 2)
amounted to EUR 39,859 k as of the balance sheet date.
Further details regarding the loan liabilities
The current portion of the loans relates to planned repayments (EUR 193,300 k), effective interest
accruals to be deducted (EUR-106 k) and interest accruals for the loans. The latter amounted to
EUR 28,546 k as of the balance sheet date (December 31, 2024: EUR 4,671 k) and is to be paid in the
course of the next twelve months.
The variable interest for the loans is payable on a quarterly basis, whereby the standard margin and
borrowing costs for the market are added to the respective EURIBOR rate.
As of December 31, 2025, the loans, the bond and the promissory note (Schuldschein) were reduced
by accrued transaction costs of EUR 34,934 k (December 31, 2024: EUR 14,487 k).
The average debt maturity increased from 2.9 years as of December 31, 2024, to 3.7 years as of
December 31, 2025. The Group’s average interest rate decreased from 2.8 % at the previous balance
sheet date to 2.4 % as of December 31, 2025.
The carrying amounts of the loans are all reported in euros. With the exception of the fixed rate
corporate bonds, the Schuldschein, and the convertible bond described above, the fair values of the
Group’s financial liabilities approximate their carrying values at the end of the reporting period. This
does not apply to their accrued transaction costs. As of December 31, 2025, an undrawn loan facility
of EUR 200,000 k was in place.
Information on the loan agreements (covenants) and compliance with them can be found in Note 14.2
Capital management.
Consolidated Financial Statements
139
alstria Annual Report 2025
The liabilities exposed to floating interest rate risk are due as follows:
EUR k
Dec. 31, 2025
Dec. 31, 2024
Up to 1 year
0
106,806
More than 1 year
1,480,038
1,288,088
Total
1,480,038
1,394,895
Therof liabilities exposed to unhedged interest rate risk are due as follows:
EUR k
Dec. 31, 2025
Dec. 31, 2024
Up to 1 year
0
0
More than 1 year
74,550
84.550
Total
74,550
84,550
The following loans are secured by land charges:
EUR k
Dec. 31, 2025
Dec. 31, 2024
Financial liabilities secured by land charges
1,480,038
1,407,000
thereof on investment property
1,480,038
1,394,569
thereof on own used property
0
12,431
Consolidated Financial Statements
alstria Annual Report 2025
140
7.4.
Other provisions
Due
Due
EUR k
up to
1 year
in more
than 1 year
Total
Dec. 31, 2025
up to
1 year
in more than
1 year
Total
Dec. 31, 2024
Other provisions
Provision ACES and other
long term incentives
400
250
650
2,510
1,673
4,183
Other
463
0
463
464
0
464
Total
863
250
1,113
2,974
1,673
4,647
The development of other provisions is shown in the following overview:
EUR k
Dec. 31, 2024
Consumption Resolution
Additions
Dec. 31, 2025
Development of other provisions
Provision ACES and other long term
incentives
4,183
-2,609
-3,702
2,777
650
Other
464
-1
0
0
463
Total
4,647
-2,609
-3,702
2,778
1,113
As of the balance sheet date, there were provisions of EUR 650 k (December 31, 2024: EUR 4,183 k)
for the ACES granted to the Management Board and employees. The program was relaunched in the
2022 financial year. As part of the spin-off of the operating business to alstria advisors GmbH (see
Section 1), the ACES allocated to employees in the amount of EUR 3,702 k were also transferred to
this company.
Other provisions are mainly related to litigation expenses.
Consolidated Financial Statements
141
alstria Annual Report 2025
7.5.
Trade payables and other liabilities
Due
Due
EUR k
up to
1 year
in more
than 1 year
Total
Dec. 31, 2025
up to
1 year
in more
than 1 year
Total
Dec. 31, 2024
Trade payables
6,256
0
6,256
3,410
0
3,410
Other current liabilities
Accruals for outstanding
invoices
15,850
0
15,850
17,483
0
17,483
Rent and security deposits
received
5,793
7,069
12,861
6,196
9,472
15,669
Salary obligations
2,639
0
2,639
2,571
0
2,571
Accruals for legal and tax
consulting
803
0
803
743
0
743
Cash compensation
620
0
620
735
0
735
Customers with credit balances
713
0
713
1,139
0
1,139
Auditing costs
390
0
390
370
0
370
Compensation payment to free
float shareholder
388
0
388
23,239
0
23,239
IFRS 16 lease liabilities
219
3,924
4,143
641
4,460
5,101
Supervisory Board compensation
70
0
70
70
0
70
Vacation provisions
0
0
0
329
0
329
Miscellaneous liabilities
133
0
133
16
0
16
Financial liabilities
27,618
10,993
38,610
53,532
13,932
67,464
Advance rent payments
received
1,838
0
1,838
1,355
0
1,355
Value-added tax liabilities
1,835
0
1,835
1,906
0
1,906
Income tax and social security
contributions
0
0
0
221
0
221
Non-financial liabilities
3,673
0
3,673
3,483
0
3,483
Total other liabilities
31,291
10,993
42,283
57,015
13,932
70,947
The disclosed carrying amounts approximate their fair values.
The obligation to pay compensation to free float shareholders is the statutory compensation for the
loss of tax exemption to the free float shareholders as a result of the termination of the REIT status
(see Section 5.7).
The salary liabilities relate to a severance payment of EUR 2,389 k resulting from the early termination
of a service agreement, as well as to bonus provisions for the 2025 financial year.
The IFRS 16 lease liabilities relate to the contractually agreed rental terms, including the expected
extension options. Future cash outflows that the lessee might face due to extension options that were
not considered in the measurement of the lease liability amount to EUR 7,548 k.
In its decision of September 26, 2019, the Regional Court of Hamburg set the cash compensation to
be paid to entitled shareholders of the former DO Deutsche Office AG, which was leaving the company
with regard to the change of the legal form, at an amount of EUR 5.58 per share plus interest. The
decision is meanwhile effective. This led to a resurgence of the liability from the cash value
Consolidated Financial Statements
alstria Annual Report 2025
142
settlement (Cash compensation), in terms of the outstanding settlement obligation including interests
according to the court decision, in the amount of EUR 6,052 k. At the end of the reporting period,
after part of the obligation has been settled, this still amounts to EUR 620 k, including interest.
7.6.
Income tax liabilities
The recognition of income tax liabilities as of December 31, 2025, is described in Note 5.10 regarding
income tax expenses. Obligations from income taxes arise almost exclusively at the level of the alstria
office’s Prime companies acquired through the business combination on October 27, 2015.
The tax liabilities mainly resulted from taxes arising out of the realization of hidden reserves as a
result of the inclusion of the companies into the tax-exempt REIT structure. As a result, no further
deferred tax liabilities had to be formed since the 2016 financial year.
Consolidated Financial Statements
143
alstria Annual Report 2025
8. OTHER NOTES
8.1.
Compensation of the Management Board and Supervisory Board
Management Board The following total remuneration was granted to the Management Board,
according to IAS 24.17:
EUR k
2025
2024
Short-term benefits
797
1,019
Long Term Incentiv Plan (LTIP)
422
542
Postemployment benefits
88
88
Termination benefits
2,398
0
Total
3,696
1,649
On the reporting date, liabilities for the compensation of the Management Board members amounted
to EUR 250 k (2024: EUR 250 k).
In addition, termination benefits of EUR 2,389 k were recognized for a contractually agreed severance
payment to the CEO in connection with the early termination of his service agreement.
Under the agreement concluded in December 2025, the service agreement ends by mutual consent at
the end of the month in which the cross-border change of legal form to Luxembourg (“migration”)
becomes effective, but no later than February 28, 2026. The cross-border change of legal form
became effective after the reporting date but before the preparation of these financial statements.
The LTIP granted to the Management Board represent the long-term, key figure-based remuneration
for the Management Board. The actual compensation to be achieved after the end of the term depends
on the performance of these key figures. Further details on the LTIP can be found in Section 13.1.
Supervisory Board Pursuant to the Articles of Association, Supervisory Board members’ fixed annual
payments amounted to EUR 70 k (2024: EUR 70 k).
Further information on the disclosures from HGB Section 314, para. 1, no. 6a (German Commercial
Code) and IAS 24.17 is provided in Section 13.1.
8.2.
Other financial commitments and contingencies
Other financial obligations from refurbishment projects and ongoing maintenance amounted to
EUR 74,577 k (2024: EUR 64,000 k). The increase results from a higher level of ongoing development
projects at the end of the reporting period.
As of December 31, 2025, rental agreements for the car parking spaces and administrative premises
were subject to a minimum lease term. Future financial obligations of EUR 5,128 k arose from other
leasing agreements. Of these, EUR 307 k in obligations has a residual maturity of up to 1 year;
EUR 997 k in obligations has a remaining maturity of 1 to 5 years; and the remaining EUR 3,823 k has
more than 5 years.
Consolidated Financial Statements
alstria Annual Report 2025
144
8.3.
Consolidated cash flow statement
The cash flow statement shows how the Group’s cash and cash equivalents have changed over the
financial year as a result of cash received and paid. In accordance with IAS 7, cash flows are
distinguished from operating activities and from investing and financing activities.
Cash flows from investing and financing activities are calculated based on payments, whereas cash
flows from operating activities are indirectly derived based on the consolidated profit for the year.
The net cash generated from operating activities for the 2025 financial year amounted to
EUR 62,436 k, which is below the level of previous year’s operating cash flow (EUR 92,267 k). The
decrease is due, on the one hand, to the compensation payment of EUR 23,239 thousand to the free
float shareholders following the loss of REIT status and, on the other hand, to a lower net amount of
rental income received and operating cost expenses compared to the prior period. The net cash
generated from operating activities includes other noncash income and expenses totaling
EUR -4,455 k. These essentially relate to allocation to provisions and other liabilities. Cash outflows
for leases amounted to EUR 790 k for the financial year.
The cash flow from investing activities is affected by the cash outflow for investments in the
investment property portfolio in the amount of EUR 82,398 k while the inflow of cash from property
disposals amounted to EUR 24,850 k.
Cash flows from financing activities mainly include cash inflows from the issuance of corporate bonds
and the raising of loans totaling EUR 1,317,500 k. Cash outflows primarily resulted from the repayment
of loans amounting to EUR 963,655 k, payments for the acquisition of derivative financial instruments
totaling EUR 76,323 k, and transaction costs of EUR 28,188 k.
Cash and cash equivalents reported in the cash flow statement relate to all liquidity items disclosed
on the balance sheet (e.g., cash in hand and bank balances).
Consolidated Financial Statements
145
alstria Annual Report 2025
9. RELATED PARTY RELATIONSHIPS
9.1.
Preliminary remarks
The related parties are the Management Board, the members of the Supervisory Board, the managing
directors of the subsidiaries and second-tier subsidiaries, and their close relatives. The related parties
also include entities with a controlling influence over the Group and entities with joint control or
significant influence over alstria S.à r.l..
Alexandrite Lake Lux Holdings S.à r.l., Luxembourg, Grand Duchy of Luxembourg (parent company),
Brookfield Corporation and all companies directly and indirectly controlled by them are considered
to be companies that exercise a controlling influence over alstria S.à r.l. through their majority of
voting rights. There was no group of companies with joint management or significant influence with
which transactions were conducted during the reporting period.
Joint ventures in which alstria S.à r.l. holds an interest, as well as associated companies over which
significant influence is exercised, are considered related parties within the meaning of IAS 24. This
includes, in particular, alstria advisors GmbH, which was accounted for as an associate in the
consolidated financial statements.
In the view of alstria S.à r.l.’s management, all transactions with related parties entered into during
financial year 2025 were undertaken in terms of arm’s-length transactions or under conditions
favoring alstria S.à r.l..
9.2.
Remuneration of key management personnel
For a description of the remuneration of key management personnel, please refer to Notes 8.1 and
13.1.
9.3.
Related party transactions
At the end of the reporting period, the Group recorded no receivables from or liabilities to joint
ventures or related persons other than referred to in Note 9.2.
The following table shows transactions with related companies in the 2025 financial year:
Revenues (+)/
Expenses (-)
Receivables/liabilities (-)
in EUR k
2025
Dec. 31, 2025
Interest Corporate Bonds
-5,766
-4,474
Transactions with / Receivables from associates
-2,768
3,727
Accounting, reporting & other services
286
0
Containerlease
-15
0
Letting
43
9
Consolidated Financial Statements
alstria Annual Report 2025
146
The following table shows transactions with related companies in the 2024 financial year:
Revenues (+)/
Expenses (-)
Receivables/liabilities (-)
in EUR k
2024
Dec. 31, 2024
Interest Corporate Bonds
-1,549
-862
Accounting & Reporting services
100
0
Containerlease
-44
0
Letting
15
5
The accounting and reporting services relate to the preparation of consolidation accounting and
reporting services for Brookfield companies outside the alstria group as well as the organization of an
extraordinary general meeting.
Revenue from and receivables due from associated companies relate to the service agreement with
alstria advisors GmbH as well as receivables and payables arising from loans granted and from goods
and services provided.
The interest expenses relate to corporate bonds that alstria placed on the capital market and that
were acquired by Brookfield companies on the capital market in the 2025 financial year. As of
December 31, 2025, this relate to the following corporate bonds:
Bond
ISIN
Shares
Notional value of
shares
EUR k
Bond VI
XS3025437982
104,900,000
104,900
The construction containers were rented as part of ongoing business for an alstria construction site.
The lessor is a company dependent on Brookfield and is outside of the alstria group of consolidated
companies.
There were no other transactions with related companies and persons in the reporting period.
10. EARNINGS PER SHARE
Basic earnings per share are calculated as the quotient of the profit attributable to the shareholders
and the weighted average number of shares outstanding during the financial year — except for the
average number of treasury shares held by the Company itself.
Diluted earnings per share are calculated by dividing the profit attributable to the parent company’s
ordinary owners by the weighted average number of ordinary shares outstanding during the year —
except for the treasury shares held by the Company itself — plus the weighted average of shares that
would be issued as a result of the dilutive potential ordinary shares’ conversion.
Consolidated Financial Statements
147
alstria Annual Report 2025
The following table reflects the income and share data used in the earnings per share computations:
Earnings per share
2025
2024
Profit attributable to the shareholders (EUR k)
138,538
-104,545
Average number of shares outstanding (thousands)
154,031
178,562
Basic earnings per share (EUR)
0.90
-0.59
The granted Stock Awards and the convertible profit participation rights did not result in dilution
effects during the period under review.
alstria S.à r.l. was contingently authorized to increase its share capital by issuing new shares with a
total nominal amount of up to EUR 89,281 thousand. This contingent capital could potentially have a
dilutive effect on basic earnings per share in the future. However, this was not the case for the period
presented, as the conditions for an issuance were not met. Accordingly, the contingent shares were
not included in the calculation of diluted earnings per share.
11. DIVIDENDS PAID AND DIVIDENDS PROPOSED
EUR k
2025
2024
Dividends on ordinary shares1) not recognized as a liability as of December 31
0
0
Dividend per share
0.00
0.00
1) Refers to all shares except treasury shares on the dividend payment date.
At the annual general meeting of alstria S.à r.l. on July 11, 2025, no proposal for the distribution of
a dividend was put to a vote. No dividend was distributed in the 2024 financial year either.
The management intends not to propose a distribution for the financial year 2025. Should there be a
material change in the company’s freely available liquidity during the course of the 2026 financial
year, the management reserves the right to submit a different proposal to the shareholders' meeting.
Consolidated Financial Statements
alstria Annual Report 2025
148
12. EMPLOYEES
From January 1 to December 31, 2025, the Company had an average of 172 employees (January 1 to
December 31, 2024: 195 employees on average). The average employee numbers were calculated
based on the headcount at the end of each month. As of December 31, 2025, alstria had no employees,
apart from its CEO, due to the spin-off of its operating business to alstria advisors GmbH and its
subsequent deconsolidation on December 8, 2025 (December 31, 2024: 195 employees).
Employees
Average 2025
December 31, 2025
Average 2024
December 31, 2024
Real estate management and development
109
0
124
124
Finance and legal
34
0
38
37
Other occupations
30
0
33
34
Total
173
0
195
195
13. LONG-TERM REMUNERATION
13.1. Long-term remuneration components for the Management Board
As part of the new remuneration system 2022, the members of the Management Board receive
certificates with a term of two years, the performance of which is linked to certain budget-based key
figures. At the end of the term, a payment is made in cash, whereby the performance and the amount
of the payment can be between 0% and 115% depending on the development of the based key figures.
The following table shows the development of the certificates granted to the members of the
Management Board, each with a nominal value of EUR 1.00.
Number certificates
ACES 2025
ACES 20241)
ACES 20231)
Olivier Elamine
Olivier Elamine
Olivier Elamine
Gesamt
As of Dec. 31, 2024
0
500,000
500,000
1,400,000
Certificates granted as at Jan. 1
500,000
0
0
500,000
Certificates matures in reporting period
0
0
-500,000
-900,000
As of Dec. 31, 2025
500,000
500,000
0
1,000,000
Time pro rata as of Dec. 31, 2025
50,0%
100,0%
n/a
n/a
Degree of target achievement as of
Dec. 31, 2025
100%
80%
n/a
n/a
Provision made as of
Dec. 31, 2025 in EUR
250,000
400,000
0
650,000
1) Year of issue, values in the table refer to 2025
The provisions for long-term remuneration components of the Management Board amount to
EUR 650 k as of December 31, 2025 (December 31, 2024: EUR 625 k). The expenses from these
remuneration components amounted to EUR 422 k in the 2025 financial year after EUR 393 k in the
2024 financial year.
Consolidated Financial Statements
149
alstria Annual Report 2025
13.2. Long-term incentive scheme for employees
Employees participate in the “alstria Collective Employee Scheme” (“ACES”), a long-term,
performance-based remuneration instrument in the form of certificates. The ACES do not confer any
equity or ownership interests in the Company and are settled exclusively in cash. The ACES have a
term of two years and their performance is linked to certain budget-based key figures. At the end of
the term, a payment is made in cash, whereby the performance and the amount of the payment can
be between 0% and 115% depending on the development of the underlying key figures. The following
table shows the development of the ACES granted to employees with a nominal value of EUR 1.00
each:
Number ACES
ACES 20251)
ACES 20241)
ACES 20231)
Total
As of Dec. 31, 2024
0
2,846,607
2,846,248
5,692,855
ACES granted during reporting period
2,806,933
0
0
2,806,933
Changes
-2,806,933
-2,846,607
-5,653,540
ACES terminated during reporting period.
0
0
-2,846,248
-2,846,248
As of Dec. 31, 2025
0
0
0
0
Time pro rata as of Dec. 31, 2025
49.9%
100.0%
n/a
n/a
Degree of target achievement as of
Dec. 31, 2025
100%
80%
n/a
n/a
Provision made as of Dec. 31, 2025
in EUR k
0
0
0
0
1) Year of issue, values in the table refer to 2025
Provisions for long-term employee compensation components (ACES) amounted to EUR 0, as of
December 31, 2025 (December 31, 2024: EUR 3,558 k). In connection with the carve-out of the
operating business, the related obligations were transferred to alstria advisors GmbH. As alstria
advisors GmbH was deconsolidated in financial year 2025 and therefore is no longer part of the Group,
these obligations are no longer included in the consolidated financial statements as of the reporting
date. Expenses relating to these compensation components amounted to EUR 2,222 k, in financial
year 2025 up to the date of deconsolidation (financial year 2024: EUR 2,256 k).
Consolidated Financial Statements
alstria Annual Report 2025
150
14. FINANCIAL RISK MANAGEMENT
14.1. Managing financial risk factors
The Group’s activities expose it to a variety of financial risks related to interest rates, credit, and
liquidity. The Group’s overall risk management program focuses on the unpredictability of financial
markets and seeks to minimize potential adverse effects on the Group’s financial performance. To
this end, sources of funding are diversified and a balanced maturity profile is planned, enabling a
coordinated and continuous refinancing process. The financial instruments mainly used by the Group
are Bank loans, corporate bonds, and a Schuldschein (promissory note loan).
The increase in the debt ratio initiated after the takeover of the majority of the shares by Alexandrite
in January of the 2022 financial year (see Note 1), did not change the basic refinancing strategy of
the Group. In particular, neither the corporate bonds nor the promissory note were to be repaid
before the end of their regular term. In the event of the loss of the investment grade rating assigned
to alstria by the rating agency Standard & Poor's (S&P), the bondholders could have had demanded
that the corporate bonds would have to be repaid. In February 2022, S&P confirmed the investment
grade rating, although the rating was downgraded from BBB+ to BBB- (“outlook stable”), the lowest
notch within the investment grade rating. Even though there was subsequently a change from “outlook
stable” to “outlook negative” on May 9, 2023 and a downgrade to BB+ (“issuer rating”) on October
20, 2023, the rating of the bonds was confirmed as BBB-. This means that the conditions for
bondholders to demand a repayment of the corporate bonds before the end of their term were no
longer met. The subsequent downgrading of the corporate rating to BB and the bond ratings to BB+
in 2025 did not change this, as these were no longer related to the takeover. Since then, the corporate
rating and the ratings for the corporate bonds have remained unchanged.
The main purpose of the debt funding is to finance alstria’s business activities. In addition, the Group
also owns various financial assets, such as loans granted and short-term deposits, which arise directly
from business activities.
As a result of the spin-off, risk management has been transferred to alstria advisors GmbH and is now
carried out there by the central treasury function within the Finance and Controlling department on
behalf of the Group. The treasury identifies, evaluates, and hedges financial risks in close cooperation
with the Governing Body. The Governing Body and the Board of Directors provide written principles
for overall risk management and policies that cover specific areas, such as interest rate risk and credit
risk, making use of both derivative and nonderivative financial instruments, as well as excess liquidity
investment.
Derivative financial instruments comprise interest swaps and caps. The purpose of these derivative
financial instruments is to hedge against the interest risks arising from the Group’s business activities
and funding.
Consolidated Financial Statements
151
alstria Annual Report 2025
The main risks arising from the Group’s financial instruments are related to cash flow, interest rates,
and liquidity. The Group is exposed mainly to credit risks, due to derivative financial instruments
being held as assets and due to its bank balances. The carrying amount of the financial assets is the
amount that best presents the maximum credit risk. The Governing Body decides on strategies and
processes to manage specific risk types, as defined in the following paragraphs.
Risks that can arise from an economic slowdown are seen mainly in the potential default of payment
by tenants. Given that all of the Company’s main tenants are public institutions or are highly rated,
the risk of such defaults is currently limited.
The loan agreements of alstria Group allow for the loan-to-value (LTV) ratios outlined by the following
table. As represented in the overview, the Group managed to keep its LTV below the LTV of the loan
at the relevant date — in some cases, significantly so. The risk of a breach of covenant is effectively
countered.
Consolidated Financial Statements
alstria Annual Report 2025
152
The following table presents the single-LTV ratios and covenants for the Group’s loans as of the end
of the reporting period:
Liabilities
Maturity
Principal amount
drawn as of
Dec. 31, 2025
(EUR k)
LTV1) as of
Dec. 31, 2025
(%)
LTV
covenant
(%)
Principal amount
drawn as of
Dec. 31, 2024
(EUR k)
Loan #1
Jun 30, 2031
115,000
54.0
63.0
125,000
Loan #2
Mar 29, 2030
90,000
n/a
-
90,000
Loan #3
Sep 29, 2028
97,000
52.9
65.0
97,000
Loan #4
Sep 30, 2027
357,538
63.7
70.0
480,000
Loan #5
Aug 29, 2025
-
n/a
-
107,000
Loan #6
Apr 26, 2030
188,000
62.4
65.0
188,000
Loan #7
Jun 30, 2028
95,000
61.4
65.0
100,000
Loan #8
Aug 31, 2028
100,000
56.4
70.0
100,000
Loan #9
Dec 28, 2029
120,000
61.4
70.0
120,000
Loan #10
Sep 30, 2031
94,500
51.6
70.0
-
Loan #11
Dec 31, 2029
70,000
50.7
60.0
-
Loan #12
Sep 30, 2030
45,000
58.2
63.0
-
Loan #13
Sep 17, 2032
108,000
53.7
70.0
-
Total secured loans
Dec 28, 2029
1,480,038
-
-
1,407,000
Bond #3
Nov 15, 2027
91,300
-
-
311,400
Bond #4
Sep 26, 2025
-
-
-
335,200
Bond #5
Jun 23, 2026
153,300
-
-
334,100
Bond #6
Mar 20, 2031
500,000
-
-
-
Bond #7
May 15, 2029
500,000
-
-
-
Schuldschein 10y/fixed
May 06, 2026
40,000
-
-
40,000
Revolving credit line3)
Apr 29, 2027
-
-
-
-
Total unsecured loans
1,284,600
-
-
1,020,700
Total
2,764,638
-
2,427,700
Net LTV (balance sheet)
54.1
1) Calculation based on the market values (as per December 31, 2025) of the properties serving as collateral in relation to the loan amount drawn
down.
2) Agreement of a revolving credit line on April 29, 2022: term of EUR 150 million until April 29,2028 and a further EUR 50 million until April 29,
2026.
Apart from the risks mentioned above, the Group is not exposed to any commodity or currency risks.
Consolidated Financial Statements
153
alstria Annual Report 2025
14.1.1. Interest rate risk
The following tables display the carrying amount of the Group’s financial instruments that are exposed
to interest rate risk by maturity:
EUR k
< 1 year
1–2 years
2–3 years
3–4 years
> 4 years
Total
Financial year ending
Dec. 31, 2025
Variable interest
Mortgage bank loans
without hedge
designation
0
0
29,550
30,000
15,000
74,550
Mortgage bank loans
with hedge designation
0
357,538
262,450
160,000
625,500
1,405,488
Total
0
357,538
292,000
190,000
640,500
1,480,038
EUR k
< 1 year
1–2 years
2–3 years
3–4 years
> 4 years
Total
Financial year ending
Dec. 31, 2024
Variable interest
Mortgage bank loans
without hedge
designation
0
0
0
29,550
55,000
84,550
Mortgage bank loans
with hedge designation
107,000
0
480,000
267,450
468,000
1,322,450
Total
107,000
0
480,000
297,000
523,000
1,407,000
Given its noncurrent financial liabilities with variable interest rates, alstria is exposed to risks from
fluctuations in market interest rates. The interest base for these financial liabilities (loans) is the
three-month EURIBOR rate, which is adjusted every three months.
The term of the derivative financial instruments corresponds to the term of the loan. The derivative
financial instruments are interest rate swaps, in which the company agrees with its contractual
partners to exchange the difference between fixed interest and variable interest amounts at fixed
intervals. This is calculated based on an agreed nominal amount.
The overview in Note 6.5 reflects the status of the derivative financial instruments of alstria S.à r.l. as
of December 31, 2025.
The interest rate swaps are also used to hedge the obligations resulting from loans.
Consolidated Financial Statements
alstria Annual Report 2025
154
The following table shows the sensitivity of the Company’s loans to consolidated profit or loss and
equity, due to a reasonably possible change in interest rates (due to the effect on the floating-interest
loans). All of the variables remain constant; the effects from the derivative financial instruments
were not factored into this calculation.
Interest expenses per annum
EUR k
2025
2024
+ 100 bps
14,800
14,570
− 50 bps
-7,400
-7,285
The fair market value of derivative financial instruments is also subject to interest rate risks. A change
in the interest rate would give rise to the following changes in respective fair market values:
Impact on equity
Financial derivatives qualifying for cash flow hedge accounting.
EUR k
2025
2024
+ 100 bps
29,848
30,896
− 50 bps
-13,515
-21,313
Effects on the income statement and accordingly on equity
Derivative financial instruments not designated as cash flow hedges.
EUR k
2025
20241)
+ 100 bps
3,582
n/a
− 50 bps
-1,829
n/a
1) In the financial year 2024, no derivative financial instruments without a designated hedging relationship were in place.
14.1.2. Credit risk
Credit risks are managed at the group level, except for those relating to accounts receivable balances.
The department responsible for managing the operating business property oversees and analyzes credit
risks in relation to each reletting activity before the standard payment and lease terms and conditions
are offered. Credit risk arises from cash and cash equivalents, derivative financial instruments, deposits
with banks and financial institutions, and credit exposures to customers (including outstanding
receivables and other compensatory commitments). Only banks and financial institutions are accepted
as counterparties—and only if they are independently rated parties with a minimum rating of
“investment grade.” If the tenants are independently rated, then their ratings are applied. If there is
no independent rating, the tenant’s credit quality is assessed; its financial position, past experience,
and other factors are taken into account. Credit limits are generally not provided to tenants. Lease
receivables from tenants are settled in bank transfers, which are usually due at the beginning of each
payment term. Tenants must pay a deposit or provide other warranties prior to the start of a lease
term.
Consolidated Financial Statements
155
alstria Annual Report 2025
14.1.3. Liquidity risk
The Company continually monitors the Group-wide risk of potential liquidity bottlenecks with a liquidity
planning tool. The tool uses the expected cash flows from business activities and the maturity of the
financial liabilities as a basis for analysis. The Group’s long-term refinancing strategy ensures that these
medium- and long-term liquidity requirements are met. Such forecasting considers the Group’s debt-
financing plans, covenant compliance, compliance with internal balance sheet targets, and, if
applicable, external regulatory or legal requirements.
At the end of the reporting period, the nominal financial liabilities had the following maturities in line
with their contractual maturity (based on the three-month EURIBOR) as of December 31, 2025.
The following chart shows the related future undiscounted cash flows of financial liabilities:
EUR k
< 1 year 1–2 years
2–3 years 3–4 years
4–5 years >5 years
Total
Financial year ending Dec. 31, 2025
Loans
0
357,538
292,000
190,000
323,000
317,500
1,480,038
Corporate bond
153,300
91,300
0
500,000
0
500,000
1,244,600
Interest
64,637
87,647
89,043
78,384
46,401
20,009
386,120
Schuldschein
40,000
0
0
0
0
0
40,000
Trade payables
6,256
0
0
0
0
0
6,256
Other liabilities
31,290
1,724
1,676
1,625
1,628
4,341
42,283
295,483
538,209
382,719
770,009
371,029 841,850 3,199,298
EUR k
< 1 year 1–2 years
2–3 years 3–4 years
4–5 years >5 years
Total
Financial year ending Dec. 31, 2024
Loans
107,000
0
480,000
297,000
120,000
403,000
1,407,000
Corporate bond
335,200
334,100
311,400
0
0
0
980,700
Interest
64,806
55,415
48,571
28,183
21,187
11,275
229,438
Schuldschein
0
40,000
0
0
0
0
40,000
Trade payables
3,410
0
0
0
0
0
3,410
Other liabilities
57,015
2,405
2,160
2,085
2,032
5,251
70,947
567,431
431,919
842,131
327,268
143,219 419,526 2,731,495
Details on the loans, borrowings, and bonds can be found in Note 7.3. The loans’ maturity profile is
shown in Note 2.5 of the Combined Management Report. To secure the bank loans, receivables from
rental and property purchase agreements, as well as from insurance and derivative financial
instruments, were assigned to the lenders. Liens were granted on bank accounts, and charges were
registered on the land. Obligations arising from floating-interest bank loans were fully secured. Land
charges for real estate properties with a carrying amount of EUR 2,655,200 k (December 31, 2024:
EUR 2,505,900 k) were provided as collateral.
Consolidated Financial Statements
alstria Annual Report 2025
156
14.2. Capital management
The Group’s capital management activities aim to ensure an efficient capital structure that supports
its business operations and maximizes shareholder value.
Following the loss of REIT status as of December 31, 2025, due to non-compliance with the statutory
free float requirement, the Group’s capital management now focuses on optimizing its financing and
equity structure. The Group actively adjusts its capital structure in response to economic changes,
including the possibility of capital repayments to shareholders or the issuance of new equity
instruments.
As part of its capital management strategy, the Group monitors its capital structure using metrics
such as the loan-to-value (LTV) ratio and the equity ratio. The primary focus is on ensuring financial
stability and compliance with financial covenants under IFRS 9. The LTV indicator, defined as the
ratio of net financial liabilities to assets, is regularly monitored to ensure that the debt level aligns
with the Group’s strategic objectives.
The corporate bonds and the promissory note loan (see section 7.3 Loans and bonds) are tied to
compliance with certain key figures. These key figures are reviewed whenever new loans are taken
out that do not serve the purpose of refinancing existing loans. These are the following covenants:
▪
The ratio of Consolidated Net Financial Indebtedness to Total Assets will not exceed 60 %
▪
The ratio of Secured Consolidated Net Financial Indebtedness to Total Assets will not exceed
45 %
▪
The ratio of Unencumbered Assets to Unsecured Consolidated Net Financial Indebtedness will
be more than 150 %
Hedging agreements concluded in connection with these financing agreements grant the contractual
partner a right of termination if the underlying financing agreement is repaid prematurely.
All loan agreements (covenants) have been and will be complied with by alstria.
The LTV indicator, defined as the ratio of net financial liabilities to assets, is regularly monitored to
ensure that the level of indebtedness is aligned with the company’s strategic objectives.
Consolidated Financial Statements
157
alstria Annual Report 2025
14.3. Determination of fair value
The following table shows the carrying amount and fair value of all financial instruments disclosed in
the consolidated financial statements:
Carrying
amount
Nonfinanci
al assets
Financial assets
Assets as per balance
sheet (EUR k) as of
Dec. 31, 2025
At
amortized
costs
Fair value
through p/l
Derivatives
Total
Fair
value
Deferred tax assets
6,172
6,172
0
0
0
0
0
Financial assets
95,589
0
95,246
342
0
95,589
95,589
Derivatives
31,760
0
0
23,482
8,278
31,760
31,760
Total long-term
133,520
6,172
95,246
23,824
8,278
127,349
127,349
Trade receivables
4,453
0
4,453
0
0
4,453
4,453
Tax receivables
100
100
0
0
0
0
0
Receivables and other
assets
7,770
3,984
3,786
0
0
3,786
3,786
Derivates
46,484
0
0
37,108
9,376
46,484
46,484
Cash and cash
equivalents
315,114
0
315,114
0
0
315,114
315,114
Total short-term
373,921
4,084
323,353
37,108
9,376
369,837
369,837
Total
507,442
10,256
418,599
60,932
17,655
497,186
497,186
Consolidated Financial Statements
alstria Annual Report 2025
158
Carrying
amount
Nonfinanc
ial
liabilities
Financial liabilities
Liabilities as per
balance sheet (EUR k)
as of Dec. 31, 2025
FVTPL
At
amortized
costs
Derivati
ves
Total
Fair
value
Ltd. equity of noncontrolling
interests
0
0
0
0
0
0
0
Long-term loans
2,536,509
0
0
2,536,509
0
2,536,509
2,567,406
Deferred tax liabilities
177,194
177,194
0
0
0
0
0
Other liabilities
10,993
0
0
10,993
0
10,993
10,993
Derivatives
3,828
0
1,425
0
2,403
3,828
3,828
Total long-term
2,728,524
177,194
1,425
2,547,502
2,403
2,551,330
2,582,227
Ltd. equity of noncontrolling
interests
98,558
0
0
98,558
0
98,558
98,558
Short-term loans
221,740
0
0
221,740
0
221,740
191,166
Trade payables
6,256
0
0
6,256
0
6,256
6,256
Derivatives
6,970
0
4,954
0
2,017
6,970
6,970
Tax liabilities
17,224
17,224
0
0
0
0
0
Other liabilities
31,291
3,673
0
27,618
0
27,618
27,618
Total short-term
382,039
20,897
4,954
354,171
2,017
361,142
330,568
Total
3,110,563
198,091
6,379
2,901,673
4,419
2,912,472
2,912,795
Carrying
amount
Nonfinanci
al assets
Financial assets
Assets as per balance
sheet (EUR k) as of
Dec. 31, 2024
At
amortized
costs
Fair value
through p/l
Derivatives
Total
Fair
value
Deferred tax assets
7,321
7,321
0
0
0
0
0
Financial assets
94,432
0
94,432
918
0
95,350
95,350
Derivatives
4,961
0
0
-2,062
7,023
4,961
4,961
Total long-term
106,714
7,321
94,432
-1,144
7,023
100,311
100,311
Trade receivables
4,836
0
4,836
0
0
4,836
4,836
Tax receivables
90
90
0
0
0
0
0
Receivables and other
assets
6,026
3,984
2,042
0
0
2,042
2,042
Derivate
2,576
0
0
0
2,576
2,576
2,576
Cash and cash
equivalents
80,233
0
80,233
0
0
80,233
80,233
Total short-term
93,761
4,074
87,111
0
2,576
89,687
89,687
Total
200,475
11,395
181,543
-1,144
9,599
189,998
189,998
Consolidated Financial Statements
159
alstria Annual Report 2025
Carrying
amount
Nonfinanc
ial
liabilities
Financial liabilities
Liabilities as per
balance sheet (EUR k)
as of Dec. 31, 2024
At amortized
costs
Derivati
ves
Total
Fair
value
Ltd. equity of noncontrolling
interests
101,038
0
101,038
0
101,038
101,038
Long-term loans
1,971,926
0
1,971,926
0
1,971,926
1,962,359
Deferred tax liabilities
230,387
230,387
0
0
0
0
Other liabilities
13,932
0
13,932
0
13,932
13,932
Derivatives
8,134
0
8,134
8,134
8,134
Total long-term
2,325,417
230,387
2,086,896
8,134
2,095,030
2,085,463
Ltd. equity of noncontrolling
interests
21
0
21
0
21
21
Short-term loans
445,958
0
445,958
0
445,958
387,458
Trade payables
3,410
0
3,410
0
3,410
3,410
Derivatives
5,190
0
0
5,190
5,190
5,190
Tax liabilities
440
440
0
0
0
0
Other liabilities
57,015
3,483
53,532
0
53,532
53,532
Total short-term
512,033
3,923
502,920
5,190
508,110
449,610
Total
2,837,451
234,311
2,589,816
13,324
2,603,140
2,535,073
All of the Group's financial instruments recognized at fair value, with the exception of the corporate
bonds, were measured using the Level 2 valuation method.
The disclosures in the notes on the market values of the corporate bonds were based on quoted
market prices and were therefore evaluated according to Level 1.
Consolidated Financial Statements
alstria Annual Report 2025
160
15. SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD
On January 21, 2026, the Company relocated its registered office to Luxembourg. With this change,
the legal form of the company was converted into a société à responsabilité limitée (S.à r.l.) under
Luxembourg law and renamed alstria S.à r.l.
As a result of the relocation of the company's registered office, Olivier Elamine's role as Chief
Executive Officer (CEO) of the company came to an end. Since the date of the relocation, the company
has been legally represented by the three directors appointed in 2025, acting as members of the
Board of Managers (Conseil de Gérance).
16. UTILIZATION OF EXEMPTING PROVISIONS
Certain subsidiaries, which have been included in the consolidated financial statements of alstria S.à
r.l. have made use of the exemption from the obligation to prepare annual financial statements in
accordance with the provisions applicable to corporations and certain commercial partnerships
pursuant to Section 264b HGB. An overview of the companies that made use of the exemption can be
found in the table in Note 2.3.2.
Consolidated Financial Statements
161
alstria Annual Report 2025
17. DISCLOSURES PURSUANT TO THE WERTPAPIERHANDELSGESETZ [GERMAN SECURITIES
TRADING ACT] AND EUROPEAN MARKET ABUSE REGULATION [MAR]
17.1. Ad hoc announcements
The following table summarizes the announcements pursuant to Art. 17 MAR, as published by the
Company during the reporting period:
Date
Topic
Mar 10, 2025
alstria office REIT-AG intends to issue a corporate bond with a nominal value of EUR 500,000,000
Invitation to holders of existing corporate bonds (ISIN: XS2053346297, XS2191013171 and XS1717584913) to
offer their bonds to alstria office REIT-AG subject to the successful issuance of the new corporate bond
Oct 06, 2025
alstria office AG intends to issue a corporate bond with a nominal value of EUR 500,000,000
Invitation to holders of existing corporate bonds (ISIN: XS2191013171 and XS1717584913) to offer their bonds
to alstria office AG subject to the successful issuance of the new corporate bond
Announcement of changes to alstria’s management
Oct 15, 2025
alstria has decided to accept offers from holders of existing corporate bonds (ISIN: XS2191013171 and
XS1717584913) to purchase their bonds subject to the successful issuance of the new corporate bond
17.2. Directors’ dealings
The following transaction regarding the shares of the Company (ISIN DE000A0LD2U1) has been
reported to the Company during the reporting period pursuant to Art. 19 MAR:
Name of person
subject to the
disclosure
requirement
Function
Transaction
Place
Transaction date
Price
per
share in
EUR
Volume
in EUR
Olivier
Elamine
CEO
Disposal
Outside a trading
venue
Jan 15, 2025
UTC +1
5.11
151,409.30
Aggregated information:
Average weighted share price: EUR 5.11; aggregated volume: EUR 151,409.30
Consolidated Financial Statements
alstria Annual Report 2025
162
17.3. Voting right notifications
Below is information according to Section 160 para. 1 No. 8 German Stock Corporation Act (AktG):
The Company received one notification pursuant to Section 33 para. 1 WpHG and published it pursuant
to Section 40 para. 1 WpHG:
Shareholders, registered
office
Voting rights
(new) (%)1)
Amount
of shares
Date of
change
Attribution of
voting rights
Contains 3 % or more of
voting rights from
Brookfield Corporation,
Toronto, Canada
95.39)
178,591,572
Jan 15, 2025
Yes
Lapis Luxembourg
Holdings S.à r.l.,
(10.01%)2)
Alexandrite Lake Lux
Holdings I S.à r.l.
(9.27%)
Alexandrite Lake Lux
Holdings II S.à r.l.
(9.27%)
Alexandrite Lake Lux
Holdings III S.à r.l.
(9.27%)
Alexandrite Lake Lux
Holdings IV S.à r.l.
(9.27%)
Alexandrite Lake Lux
Holdings V S.à r.l.
(9.27%)
Alexandrite Lake Lux
Holdings VI S.à r.l.
(9.27%)
Alexandrite Lake Lux
Holdings VII S.à r.l.
(9.27%)
Alexandrite Lake Lux
Holdings VIII S.à r.l.
(9.27%)
Alexandrite Lake Lux
Holdings IX S.à r.l.
(9.27%)
1) Percentage as per date of change. Current percentage in voting rights can deviate, e. g., due to changes in the share capital
of the issuer.
During the reporting period the Company did neither receive any notifications on no longer existing
shareholdings nor notifications pursuant to Section 20 para. 1 and 4 AktG or pursuant to Section 33
para. 2 WpHG.
18. DECLARATION OF COMPLIANCE PURSUANT TO AKTG SECTION 161
With the delisting of alstria S.à r.l. becoming effective on May 23, 2025, and the subsequent relocation
of the Company’s registered office to Luxembourg on January 21, 2026, the obligation to issue a
declaration of compliance pursuant to Section 161 of the German Stock Corporation Act (AktG) no
longer applies. Accordingly, no declaration of compliance was issued for the 2025 financial year.
Consolidated Financial Statements
163
alstria Annual Report 2025
19. AUDITORS’ FEES
On July 11, 2025, the General Meeting elected Deloitte GmbH Wirtschaftsprüfungsgesellschaft,
Dammtorstraße 12, Hamburg auditor of the separate and consolidated financial statements for the
2025 financial year. The fees totaled EUR 883 k in 2025. They were structured as follows:
Auditors’ fees in EUR k
2025
2024
Audit services
657
556
thereof from previous year
0
0
Other confirmation services
226
157
Tax advisory services
0
0
Other services
0
0
Total
883
713
The non-audit services in the 2025 business year essentially relate, the review of quarterly reports,
comfort letter confirmations and other audit related confirmations.
The non-audit services in the 2024 business year, essentially relate to the review of the sustainability
statement, the review of quarterly reports and audit related advisory.
Annika Deutsch is the auditor directly responsible for the audit of the financial statements for alstria
S.à r.l. and the Group. She first assumed this position in fiscal year 2022.
20. MANAGEMENT BOARD
During the financial year, the Company’s Management Board was:
Name
Place of residence
Profession
Olivier Elamine
Hamburg, Germany
CEO of the Company
On December 3, 2025, the Supervisory Board of the Company appointed Mr Glenn LaFountain, Mr Luc
Leroi and Ms Claire Sabbatucci to the board of managers (Conseil de gérance) of alstria S.à r.l. The
appointment became effective with effectiveness of the cross-border conversion of the Company into
Luxembourg alstria S.à r.l. on January 21, 2026. The members of the Board of Managers declared the
acceptance of the mandate. At the time of the cross-border conversion on January 21,2026, the
mandate of Olivier Elamine as CEO of the Company ended by effect of law.
Consolidated Financial Statements
alstria Annual Report 2025
164
21. SUPERVISORY BOARD
Pursuant to the Company’s Articles of Association (Section 9), the Supervisory Board consists of four
members who are elected at the General Meeting of the shareholders.
During the 2025 financial year until the cross-border conversion on January 21, 2026, the members of
the Supervisory Board were as follows:
Name
Place of residence
Profession
Brad Hyler
Chair
London, United Kingdom
Managing Partner, Brookfield
Asset Management, United
Kingdom
Jan Sucharda
Vice-Chair
Toronto, Canada
Managing Partner, Brookfield
Property Group, Canada
Richard Powers
London, United Kingdom
Managing Partner, Brookfield
Asset Management, United
Kingdom
Becky Worthington
Berkshire, United Kingdom
Chief Financial Officer, Canary
Wharf Group, United Kingdom
The Company’s extraordinary general meeting on December 3, 2025 elected Ms Chloe Lardenois, Mr
Nicolas Gerad and Ms Daniela Mora Macia as members of the audit committee of alstria S.à r.l. The
election became effective upon effectiveness of the cross-border conversion of the Company into
Luxembourg alstria S.à r.l. on January 21, 2026. With the cross-border conversion of the Company on
January 21, 2026, the mandates of the Company’s Supervisory Board members ended by effect of law.
Luxembourg, March 5, 2026
alstria S.à r.l.
Board of Managers
Glenn LaFountain
Luc Leroi
Claire Sabbatucci
Responsibility statement
165
alstria Annual Report 2025
C. RESPONSIBILITY STATEMENT
To the best of our knowledge, we confirm that, in accordance with the applicable reporting principles,
the Consolidated Financial Statements for 2025 give a true and fair view of the Group’s assets,
liabilities, financial position and profit or loss, and that the Group Management Report 2025, which
has been combined with the Management Report for alstria S.à r.l., includes a fair review of the
business’ development and performance and the Group’s position, together with a description of the
principal opportunities and risks associated with the Group’s expected development.
Luxembourg, March 5, 2026
alstria S.à r.l.
Board of Managers
Glenn LaFountain
Luc Leroi
Claire Sabbatucci
Independent Auditor‘s Report
alstria Annual Report 2025
166
D. INDEPENDENT AUDITOR’S REPORT
To alstria S.à r.l., Luxembourg/Luxembourg (formerly: alstria office AG, Hamburg/Germany;
previously: alstria office REIT-AG, Hamburg/Germany)
1. AUDIT OPINIONS
We have audited the consolidated financial statements of alstria S.à r.l., Luxembourg/Luxembourg
(formerly:
alstria
office
AG,
Hamburg/Germany;
previously:
alstria
office
REIT-AG,
Hamburg/Germany), and its subsidiaries (the Group) which comprise the consolidated statement of
financial position as at December 31, 2025, the consolidated income statement, the consolidated
statement of comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the financial year from January 1 to December 31, 2025,
and the notes to the consolidated financial statements, including material accounting policy
information. In addition, we have audited the combined management report for the parent and the
group of alstria S.à r.l., Luxembourg/Luxembourg (formerly: alstria office AG, Hamburg/Germany;
previously: alstria office REIT-AG, Hamburg/Germany), for the financial year from January 1 to
December 31, 2025. In accordance with the German legal requirements, we have not audited the
content of the sustainability statement referenced in the section “VI. Sustainability Statement” of
the combined management report and of the section “V.1.4. Key characteristics of accounting-related
internal controls and risk-management system” of the combined management report, including the
executive directors’ statement on the appropriateness and effectiveness of the entire internal control
system and of the risk management system included therein. In addition, we have not audited the
content of the disclosures in the combined management report that are marked as “unaudited”.
In our opinion, on the basis of the knowledge obtained in the audit,
▪ the accompanying consolidated financial statements comply, in all material respects, with the
IFRS® Ac-counting Standards issued by the International Accounting Standards Board (IASB)
(hereinafter “IFRS Ac-counting Standards”) as adopted by the EU and the additional
requirements of German commercial law pursuant to Section 315e (1) German Commercial Code
(HGB) and, in compliance with these requirements, give a true and fair view of the assets,
liabilities and financial position of the Group as at December 31, 2025 and of its financial
performance for the financial year from January 1 to December 31, 2025, and
▪ the accompanying combined management report as a whole provides an appropriate view of
the Group’s position. In all material respects, this combined management report is consistent
with the consolidated financial statements, complies with German legal requirements and
appropriately presents the opportunities and risks of future development. Our audit opinion on
the combined management report does not cover the sustainability statement referred to
above. Furthermore, our audit opinion on the combined management report does not cover the
contents of the section “V.1.4. Key characteristics of accounting-related internal controls and
Independent Auditor‘s Report
167
alstria Annual Report 2025
risk-management system” of the combined management report, including the executive
directors’ statement on the appropriateness and effectiveness of the entire internal control
system and of the risk management system included therein, and of the disclosures marked as
“unaudited”.
Pursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has not led to any reservations
relating to the legal compliance of the consolidated financial statements and of the combined
management report.
2. BASIS FOR THE AUDIT OPINIONS
We conducted our audit of the consolidated financial statements and of the combined management
report in accordance with Section 317 HGB and the EU Audit Regulation (No. 537/2014; referred to
subsequently as “EU Audit Regulation”) and in compliance with German Generally Accepted Standards
for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW). Our
responsibilities under those requirements and principles are further described in the “Auditor’s
Responsibilities for the Audit of the Consoli-dated Financial Statements and of the Combined
Management Report” section of our auditor’s report. We are independent of the group entities in
accordance with the requirements of European law and German commercial and professional law and
the International Code of Ethics for Professional Accountants (including International Independence
Standards) of the International Ethics Standards Board for Accountants (IESBA Code), and we have
fulfilled our other German professional responsibilities in accordance with these requirements and
the IESBA Code. In addition, in accordance with Article 10 (2) point (f) of the EU Audit Regulation, we
declare that we have not provided non-audit services prohibited under Article 5 (1) of the EU Audit
Regulation. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinions on the consolidated financial statements and on the combined
management report.
3. KEY AUDIT MATTERS IN THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements for the financial year from January 1 to December
31, 2025. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole and in forming our audit opinion thereon; we do not provide a separate audit
opinion on these matters.
In the following, we present the measurement of investment properties, which we have determined
as the key audit matter in the course of our audit.
Independent Auditor‘s Report
alstria Annual Report 2025
168
Our presentation of this key audit matter has been structured as follows:
a) description (including reference to corresponding information in the consolidated financial
statements)
b) auditor’s response
4. MEASUREMENT OF INVESTMENT PROPERTIES
a)
Investment properties of mEUR 4,249.3 are disclosed in the consolidated financial statements
of alstria S.à r.l. (formerly: alstria office AG; previously: alstria office REIT-AG, Hamburg/Germany)
as at December 31, 2025. The share of this item in total assets amounts to a total of 89.1% and thus
has a material influence on the Group’s assets and liabilities. alstria office S.à r.l. (formerly: alstria
office AG) measures the investment properties at fair value. In the financial year 2025, total income
from the measurement at fair value of mEUR 42.2 was recognized in the consolidated income
statement. The investment properties were measured at fair values in accordance with the discounted
cash flow method. The measurement date was December 31, 2025. The fair values were determined
by the accredited external experts of BNP Paribas Real Estate Consult GmbH, Frankfurt am
Main/Germany. Apart from the actual data provided by the Parent, which include, for example, the
lettable area, vacancy, scheduled maintenance or modernization measures and the actual rent,
further measurement-related assumptions are taken into account in determining the fair values of
the properties. These assumptions are subject to significant estimation uncertainties and judgment.
Even minor changes in the assumptions relevant for the measurement can lead to material changes
in the fair values resulting from the computation. The main measurement assumptions for the
measurement of investment properties are current and future market rents as well as capitalization
and discount rates. Against this backdrop, and due to the complexity of the valuation model, this
matter was of particular importance within the context of our audit.
The disclosures of the executive directors with respect to the measurement of investment properties
are included in sections 2.5.2 and 6.1 of the notes to the consolidated financial statements.
b)
As part of our audit, we gained an understanding of the process for measuring property assets,
examined the internal control system that was in place to assess the fair values determined by the
external expert and performed a test of the design and implementation, and operating effectiveness
of implemented controls relevant to the audit. We critically assessed the competence, capabilities
and objectivity of the external expert. Together with our own internal real estate valuation experts,
we examined the conformity of the measurement technique applied in accordance with IAS 40 in
conjunction with IFRS 13 and made sample on-site visits, held critical discussions with the external
expert and checked the calculation logic supporting the values that had been determined in the expert
report. We squared the input parameters used in the measurement process with underlying
contractual data or – to the extent that they were based on assumptions and estimates – assessed
their appropriateness with regard to the methods, assumptions and data used by the Parent, also
based on available market data.
Independent Auditor‘s Report
169
alstria Annual Report 2025
In addition, we audited the completeness and accuracy of the disclosures made in the notes to the
consolidated financial statements in accordance with IAS 40 and IFRS 13.
5. OTHER INFORMATION
The executive directors are responsible for the other information. The other information comprises:
▪
the sustainability statement referenced in the section “VI. Sustainability Statement” of the
combined man-agement report,
▪
section “V.1.4. Key characteristics of accounting-related internal controls and risk-
management system” of the combined management report, including the executive directors’
statement on the appropriateness and effectiveness of the entire internal control system and
of the risk management system included therein,
▪
the unaudited content of the combined management report marked as “unaudited”, and
▪
the executive directors’ confirmations pursuant to Section 297 (2) sentence 4 and Section 315
(1) sentence 5 HGB regarding the consolidated financial statements and the combined
management report.
The executive directors are responsible for the other information.
Our audit opinions on the consolidated financial statements and on the combined management report
do not cover the other information, and consequently we do not express an audit opinion or any other
form of assurance conclusion thereon.
In connection with our audit, our responsibility is to read the other information identified above and,
in doing so, to consider whether the other information
▪ is materially inconsistent with the consolidated financial statements, with the audited content
of the disclosures in the combined management report or our knowledge obtained in the audit,
or
▪ otherwise appears to be materially misstated.
6. RESPONSIBILITIES OF THE EXECUTIVE DIRECTORS AND THE AUDIT COMMITTEE FOR THE
CONSOLIDATED FINANCIAL STATEMENTS AND THE COMBINED MANAGEMENT REPORT
The executive directors are responsible for the preparation of the consolidated financial statements
that comply, in all material respects, with IFRS Accounting Standards as adopted by the EU and the
additional requirements of German commercial law pursuant to Section 315e (1) HGB, and that the
consolidated financial statements, in compliance with these requirements, give a true and fair view
of the assets, liabilities, financial position and financial performance of the Group. In addition, the
executive directors are responsible for such internal control as they have determined necessary to
enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud (i.e., fraudulent financial reporting and misappropriation of
assets) or error.
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In preparing the consolidated financial statements, the executive directors are responsible for
assessing the Group’s ability to continue as a going concern. They also have the responsibility for
disclosing, as applicable, matters related to going concern. In addition, they are responsible for
financial reporting based on the going concern basis of accounting unless there is an intention to
liquidate the Group or to cease operations, or there is no realistic alternative but to do so.
Furthermore, the executive directors are responsible for the preparation of the combined
management report that as a whole provides an appropriate view of the Group’s position and is, in
all material respects, consistent with the consolidated financial statements, complies with German
legal requirements, and appropriately presents the opportunities and risks of future development. In
addition, the executive directors are re-sponsible for such arrangements and measures (systems) as
they have considered necessary to enable the preparation of a combined management report that is
in accordance with the applicable German legal requirements, and to be able to provide sufficient
appropriate evidence for the assertions in the combined management report.
The audit committee is responsible for overseeing the Group’s financial reporting process for the
preparation of the consolidated financial statements and of the combined management report.
7. AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND OF THE COMBINED MANAGEMENT REPORT
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and
whether the combined management report as a whole provides an appropriate view of the Group’s
position and, in all material respects, is consistent with the consolidated financial statements and
the knowledge obtained in the audit, complies with the German legal requirements and appropriately
presents the opportunities and risks of future development, as well as to issue an auditor’s report
that includes our audit opinions on the consolidated financial statements and on the combined
management report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Section 317 HGB and the EU Audit Regulation and in compliance with German
Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der
Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements and this combined management report.
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We exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
▪
identify and assess the risks of material misstatement of the consolidated financial statements
and of the combined management report, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our audit opinions. The risk of not detecting a material
misstatement resulting from fraud is higher than the risk of not detecting a material
misstatement resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
▪
obtain an understanding of internal control relevant to the audit of the consolidated financial
statements and of arrangements and measures relevant to the audit of the combined
management report in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an audit opinion on the effectiveness of
internal control or these arrangements and measures of the Group.
▪
evaluate the appropriateness of accounting policies used by the executive directors and the
reasonableness of estimates made by the executive directors and related disclosures.
▪
conclude on the appropriateness of the executive directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in the auditor’s report to the related disclosures in the
consolidated financial statements and in the combined management report or, if such
disclosures are inadequate, to modify our respective audit opinions. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the Group to cease to be able to continue as a going concern.
▪
evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
present the underlying transactions and events in a manner that the consolidated financial
statements give a true and fair view of the assets, liabilities, financial position and financial
performance of the Group in compliance with IFRS Accounting Standards as adopted by the
EU and with the additional requirements of German commercial law pursuant to Section 315e
(1) HGB.
▪
plan and perform the audit of the consolidated financial statements in order to obtain
sufficient appropriate audit evidence regarding the financial information of the entities or of
the business activities within the Group, which serves as a basis for forming audit opinions on
the consolidated financial statements and on the combined management report. We are
responsible for the direction, supervision and review of the audit procedures performed for
the purposes of the group audit. We remain solely responsible for our audit opinions.
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▪
evaluate the consistency of the combined management report with the consolidated financial
statements, its conformity with German law, and the view of the Group’s position it provides.
▪
perform audit procedures on the prospective information presented by the executive
directors in the combined management report. On the basis of sufficient appropriate audit
evidence we evaluate, in particular, the significant assumptions used by the executive
directors as a basis for the prospective information, and evaluate the proper derivation of the
prospective information from these assumptions. We do not express a separate audit opinion
on the prospective information and on the assumptions used as a basis. There is a substantial
unavoidable risk that future events will differ materially from the prospective information.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We provide those charged with governance with a statement that we have complied with the relevant
independence requirements, and communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, the actions taken or
safeguards applied to eliminate independence threats.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the consolidated financial statements for the current
period and are therefore the key audit matters. We describe these matters in the auditor’s report
unless law or regulation precludes public disclosure about the matter.
8. FURTHER INFORMATION PURSUANT TO ARTICLE 10 OF THE EU AUDIT REGULATION
We were elected as group auditor by the general meeting on July 11, 2025. We were engaged by the
supervisory board on October 6, 2025. We have been the group auditor of alstria S.à r.l.,
Luxembourg/Luxembourg (formerly: alstria office AG, Hamburg/Germany; previously: alstria office
REIT-AG, Hamburg/Germany), without interruption since the financial year 2022.
We declare that the audit opinions expressed in this auditor’s report are consistent with the additional
report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-form audit
report).
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9. GERMAN PUBLIC AUDITOR RESPONSIBLE FOR THE ENGAGEMENT
The German Public Auditor responsible for the engagement is Annika Deutsch.
Hamburg/Germany, March 5, 2026
Deloitte GmbH
Wirtschaftsprüfungsgesellschaft
Signed:
Signed:
Annika Deutsch
Maximilian Freiherr v. Perger
Wirtschaftsprüferin
Wirtschaftsprüfer
(German Public Auditor)
(German Public Auditor)
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174
DETAIL INDEX SUSTAINABILITY STATEMENT
E.
SUSTAINABILITY STATEMENT ............................................................. 175
I.
INTRODUCTION ...................................................................................... 175
II.
EVOLUTION OF ALSTRIA’S SUSTAINABILITY REPORTING ........................................ 176
III.
BASIS FOR PREPARATION ........................................................................... 177
1. REPORTING BOUNDARIES ............................................................................. 177
2. DATA ESTIMATIONS AND REPORTING CHALLANGES ............................................... 177
IV.
GOVERNANCE AND LEADERSHIP IN SUSTAINABILITY ............................................ 178
1. GOVERNANCE STRUCTURE ............................................................................ 178
2. RISK MANAGEMENT AND INTERNAL CONTROLS .................................................... 178
3. SUSTAINABILITY GOVERNANCE ....................................................................... 179
4. DUE DILIGENCE IN SUSTAINABILITY .................................................................. 179
5. ESG IN REMUNERATION................................................................................ 180
V.
BUSINESS MODEL, STRATEGY AND SUSTAINABILITY INTEGRATION ............................ 181
1. PURPOSE AND STRATEGIC VISION .................................................................... 181
2. VALUE CHAIN ........................................................................................... 182
3. MANAGING INTERESTS OF STAKEHOLDERS ......................................................... 186
4. DOUBLE MATERIALITY ASSESSMENT ................................................................. 189
5. OUTCOME OF THE DOUBLE MATERIALITY ASSESSMENT ........................................... 192
6. IMPACT OF MATERIAL SUSTAINABILITY RISKS AND OPPORTUNITIES ON ALSTRIA’S STRATEGY
....................................................................................................... 195
7. RATIONALE FOR NON-MATERIAL SUSTAINABILITY MATTERS ...................................... 196
VI.
EU TAXONOMY APPROACH ......................................................................... 199
VII.
CLIMATE CHANGE AND THE BUILDING PORTFOLIO .............................................. 199
1. CLIMATE RELEVANCE AND BUSINESS MODEL ........................................................ 199
2. CLIMATE-RELATED RISKS AND OPPORTUNITIES .................................................... 200
3. DECARBONISATION ACROSS THE BUILDING LIFECYCLE ............................................ 202
4. CLIMATE TARGETS ..................................................................................... 203
VIII.
INTRODUCTION OF NEW ENVIRONMENTAL DATASETS .......................................... 204
IX.
DATA NORMALISATION AND PROJECTION METHODOLOGY ..................................... 205
1. PORTFOLIO-WIDE NORMALIZATION APPROACH .................................................... 205
2. FORWARD-LOOKING ENERGY CONSUMPTION ESTIMATION ........................................ 206
X.
ENERGY AND GHG PERFORMANCE ................................................................. 207
1. PORTFOLIO-WIDE ENVIRONMENTAL PERFORMANCE DATA (FY2024, FY2025) .................. 207
2. PORTFOLIO-WIDE ENERGY PERFORMANCE DATA BY SEGMENTS (E.G. ASSET TYPE, REGION) 209
3. ENERGY PERFORMANCE CLASSIFICATION OF ALSTRIA’S BUILDINGS ............................. 210
4. CARBON ACCOUNTING AND PRICING ................................................................ 211
XI.
ANTICIPATED FINANCIAL EFFECTS FROM CLIMATE-RELATED RISKS AND OPPORTUNITIES .. 212
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E. SUSTAINABILITY STATEMENT
I.
INTRODUCTION
This Sustainability Statement forms part of alstria’s Annual Report and outlines the company’s
sustainability governance, reporting framework and strategic priorities. Although the Corporate
Sustainability Reporting Directive (CSRD) is not formally applicable to alstria, the company has
structured its reporting in reference to the European Sustainability Reporting Standards (ESRS) to
ensure transparency, consistency and sound governance.
In 2024, alstria conducted a double materiality assessment in accordance with ESRS guidance. The
results, which were externally assured, form the basis for the sustainability matters addressed in this
report. Climate change (ESRS E1) remains the most material topic for alstria’s business model and
therefore represents the primary focus of this reporting period. Other material matters are addressed
where relevant within the broader Annual Report and will be further refined through the company’s
annual update of its double materiality analysis.
During the reporting period, alstria expanded its environmental data coverage to include a portfolio-
wide dataset prepared in reference to CSRD requirements and 2025 reporting expectations. This
dataset provides a comprehensive view of environmental performance across the entire building
portfolio. For more information, please refer to the Section “Introduction of new environmental
datasets.”
Separately, alstria continued reporting absolute performance data in line with the EPRA Sustainability
Best Practices Recommendations (sBPRs). These data relate to measured and verifiable consumption
information for the 2024 financial year and have been independently assured by KPMG AG
Wirtschaftsprüfungsgesellschaft (see alstria.eu).
Our goal remains unchanged: transparent reporting and the sharing of real estate data to foster
dialogue, support industry-wide engagement and advocate for the reuse of existing buildings over
new construction.
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176
II. EVOLUTION OF ALSTRIA’S SUSTAINABILITY REPORTING
2007: alstria's initial public offering and listing on the Frankfurt Stock Exchange.
2010: Published the first stand-alone sustainability report based on GRI standards, becoming
the first German real estate company to do so and initiating an annual reporting
practice.
2012: Integrated ESG risks into portfolio management and business planning, including the first
description of climate change risks in the management report.
2015: Conducted the first materiality analysis under GRI 4 and assigned ESG reporting
responsibilities to the newly established sustainability department.
2016: Introduced third-party assurance for ESG data, beginning with the 2015 reporting year.
2020: Set science-based targets, introduced Low Carbon Design Principles with embodied
emissions assessments aligned with CRREM*, and began responding to TCFD† guidelines
for climate risk disclosure.
2021: Published alstria’s first Carbon Accounting Report‡ and received industry recognition for
excellence in sustainability reporting.
2023: Published the final stand-alone sustainability report under GRI§ standards, concluding GRI-
based reporting practices.
2024: Published an EPRA sBPRs stand-alone report while transitioning to CSRD-oriented
reporting.
2025: Issued a voluntary and externally assured sustainability statement in the Annual Report in
anticipation of the conclusions of the Stop-the-Clock initiative.
2026: Issued a more mature voluntary sustainability statement within the Annual Report,
concentrated on the selected areas most relevant to its business model.
* Carbon Riks Real Estate Monitor (see also www.crrem.eu/)
† Task Force on Climate-related Financial Disclosures (see also www.fsb-tcfd.org/)
‡ See also www.alstria.com/sustainability/#carbon-accounting
§ Global Reporting Initiative (see also www.globalreporting.org/)
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III. BASIS FOR PREPARATION
1. REPORTING BOUNDARIES
This Sustainability Statement covers the period from 1st January to 31st December 2025 and follows
the scope of consolidation applied in the Annual Report 2025, which is prepared in accordance with
IFRS. It covers all fully consolidated entities included in the group (see Section 2.3.2 “Fully
consolidated subsidiaries”). Joint ventures are excluded unless stated otherwise, and any deviations
from the consolidation scope are disclosed where relevant.
This report covers alstria’s own operations and, where relevant, selected upstream and downstream
value chain activities necessary to explain material sustainability matters. Where value chain
information is based on estimates this is disclosed in the relevant sections. No information has been
excluded for reasons of confidentiality, intellectual property or ongoing negotiations.
ESRS-defined time horizons are applied in line with alstria’s risk management and financial reporting
cycles (short-term: one year; medium-term: two to five years; long-term: more than five years).
Where relevant, a ten-year period is used for assessing risks and opportunities. The reporting
boundaries and scope have been reviewed by the Management Board.
2. DATA ESTIMATIONS AND REPORTING CHALLANGES
The double materiality assessment identified sustainability matters that require quantitative
environmental information, in particular energy consumption and greenhouse gas emissions. As this
Sustainability Statement is published in the first quarter of the financial year, complete and externally
assured consumption data for the most recent reporting period are not yet available at the time of
publication. This reflects standard data availability timelines in the German energy market, where
final metered data are received with a delay. Accordingly, the latest externally assured actual
consumption data available at the reporting date relate to the 2024 financial year and cover the EPRA
reporting scope.
To ease further understanding alstria distinguishes between two environmental datasets in this
Sustainability Statement:
▪
Externally-assured actual consumption data, based on measured and verifiable information
and reported in accordance with the EPRA Sustainability Best Practices Recommendations.
These data are subject to external assurance and cover those assets that are eligible for EPRA
reporting and for which sufficiently reliable consumption data are available.
▪
Normalised portfolio-level data, prepared with reference to CSRD recommendations, provide
a portfolio-wide view at the time of publication where measured data are not yet available
for all assets. This dataset is used to support completeness and comparability across the
portfolio and does not constitute externally-assured actual consumption data.
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Data limitations and uncertainties remain, in particular in relation to tenant-controlled energy
consumption and certain Scope 3 categories. These are inherent to the real estate sector and are
disclosed where relevant. Further details on the structure and use of the environmental datasets are
provided in the Section “Introduction of new environmental datasets.”
IV. GOVERNANCE AND LEADERSHIP IN SUSTAINABILITY
1. GOVERNANCE STRUCTURE
During the reporting period, alstria applied a dual management system in line with German stock
corporation law, consisting of a Management Board and a Supervisory Board, each with clearly defined
responsibilities. The Management Board was responsible for the operational and strategic
management of the company, including compliance with legal and internal requirements and the
maintenance of an effective risk management framework. The Supervisory Board oversaw and advised
the Management Board and monitored the company’s strategic direction and performance.
Until the relocation of the company’s registered office in January 2026, Olivier Elamine served as
Chief Executive Officer. During his tenure, he played a pivotal role in shaping alstria’s strategic
direction, with a strong emphasis on the refurbishment of existing buildings rather than new
construction. This approach reflected a clear commitment to responsible resource use and the
reduction of carbon emissions associated with new developments. Key initiatives implemented under
his leadership included the Green Dividend, which directed funds toward renewable energy and
carbon capture projects (see also https://green-dividend.com/) demonstrating a tangible
commitment to environmental sustainability. His active participation in industry think tanks, such as
the EPRA Sustainability Committee, further demonstrated his commitment to advancing sustainable
practices in the real estate sector. His advocacy of the principle that “The most sustainable building
is the one that was never built” continues to guide alstria’s long-term sustainability strategy.
Further information on the composition, responsibilities, and functioning of the governing bodies is
provided in the Section “Corporate Governance Statement” and on the company’s website
(www.alstria.eu).
2. RISK MANAGEMENT AND INTERNAL CONTROLS
During the reporting period, the CEO oversaw alstria’s risk management framework, supported by
designated risk owners. Quarterly assessments were conducted on strategic, compliance, financial,
and operational risks, including climate-related risks. The results were reported to the Audit
Committee of the Supervisory Board, which assisted the Management Board in overseeing the
company’s overall risk management. Independent internal audits were conducted and reported to the
Board and Audit Committee.
Further details can be found in the Section ‘V. Risk and Opportunity Report’ of the Combined
Management Report 2025.
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3. SUSTAINABILITY GOVERNANCE
Sustainability oversight follows a structured framework, ensuring clear responsibilities at all levels.
The CEO holds overall accountability, while the Head of Sustainability & Future Research, reporting
directly to the CEO, ensures execution and alignment with corporate strategy.
Sustainability discussions occur at defined intervals to monitor progress:
▪
Supervisory Board – Reviews material sustainability matters at least once per year.
▪
Management Board – Meets monthly with the Head of Sustainability & Future Research to
review sustainability objectives.
▪
Compliance Officer – Meets with the Head of Sustainability & Future Research once per
financial quarter to discuss risks and regulatory compliance.
▪
Head of Operations – Meets every two months with the Head of Sustainability & Future
Research to assess implementation progress.
Sustainability implementation and department roles
The Head of Sustainability & Future Research coordinates sustainability initiatives and works with
departments to integrate sustainability into daily operations.
Key departmental responsibilities:
▪
Monitoring energy consumption across the building portfolio.
▪
Developing and tracking sustainability goals.
▪
Implementing sustainability projects across the value chain.
▪
Identifying and addressing environmental risks and opportunities.
▪
Enhancing internal communication on sustainability.
▪
Engaging with the public on sustainability topics.
4. DUE DILIGENCE IN SUSTAINABILITY
In day-to-day operations, alstria conducts due diligence to assess business partners and suppliers,
focusing on their compliance with policies, procedures, and commitment to ethical business practices.
alstria will not engage external parties if the compliance risk is deemed too high and cannot be
sufficiently mitigated.
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To further strengthen our due diligence, we emphasize the following:
▪
Supplier engagement and compliance: Operating solely in Germany, all Tier 1 suppliers
adhere to German law, ensuring thorough screening and strong enforcement of ESG conduct,
supported by the country’s robust ESG compliance regulations. Tier 1 suppliers are informed
of alstria's Code of Conduct for Suppliers (see also https://alstria.eu/code-of-conduct), which
outlines expectations for ESG compliance, including human rights and labor standards.
Suppliers are encouraged to cascade these requirements to their subcontractors. To further
support accountability, alstria maintains a 24/7 whistleblower platform for anonymous
reporting of potential violations (see also https://compliance.alstria.de/#/?lang=en).
▪
Targeted risk management: Quarterly risk assessments evaluate ESG risks, such as human
rights compliance and working conditions. For example, stringent checks are conducted on
suppliers of photovoltaic components to ensure adherence to human rights standards.
▪
Operational focus: alstria prioritizes procuring assembled services rather than sourcing raw
building materials directly from non-Tier 1 suppliers. This approach simplifies the supply chain
and ensures alignment with strict ESG compliance standards. Redevelopment projects
typically impact less than 20% of the portfolio, further reducing supply chain complexities and
associated risks.
Similarly, appropriate due diligence is conducted when evaluating new projects, partnerships, and
strategic investment opportunities by leveraging in-house expertise and third-party support in legal,
finance, tax, insurance, and risk management as needed.
5. ESG IN REMUNERATION
ESG performance is not part of the company’s remuneration scheme, as measuring it separately could
introduce biases. The remuneration framework focuses solely on financial performance, with strong
ESG stewardship naturally reflected in long-term economic results.
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V. BUSINESS MODEL, STRATEGY AND SUSTAINABILITY INTEGRATION
1. PURPOSE AND STRATEGIC VISION
alstria acts as a transition agent, ensuring that office buildings reaching the end of their economic
life cycle are repurposed for continued use. The company’s primary goal is to transition these assets
into the next life cycle while generating returns in line with the expected cost of capital. Unlike a
fee-based asset manager, developer, or real estate fund, alstria is fully engaged in the acquisition,
refurbishment and management of its properties. alstria’s strategy is built on three core pillars:
sustainability-driven growth, financial discipline, and long-term value creation in Germany’s office
real estate market. Further information is available in Section ‘I. Economics and strategy’ of the
Combined Management Report 2025.
1.1.
Sustainability-driven growth
alstria prioritizes refurbishment over new construction, preserving 70-80% of embodied carbon and
supporting EU climate objectives. By repositioning and revitalizing office spaces, the company
reduces waste, extends building lifespan, and aligns with circular economy principles. Energy-
efficient upgrades, smart systems, improved insulation, and electrification optimize operational
performance while ensuring compliance with German and EU energy efficiency regulations.
1.2.
Risk-optimized capital education
alstria follows strict underwriting criteria, ensuring that acquisitions align with long-term
refurbishment potential rather than short-term speculation. Recycling capital once refurbishment
projects are completed optimizes portfolio performance and ensures proper usage of working capital.
1.3.
Tenant-focused asset management
alstria manages assets throughout their entire lifecycle, ensuring strategic oversight from acquisition
to leasing and monetization. The company focuses on a select number of Germany’s most liquid and
dynamic office markets, chosen for their strong tenant demand, real estate investment potential,
and above-average population growth prospects, ensuring long-term value appreciation.
A tenant-focused leasing strategy keeps office spaces adaptable and energy-efficient, ensuring
continued relevance in evolving workplace environments. With in-house technical expertise, including
architects, construction specialists, and energy market experts, alstria carries out refurbishments
that enhance efficiency and long-term asset value.
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2. VALUE CHAIN
alstria’s value chain is structured to maximize the long-term value and sustainability of office
buildings while ensuring financial resilience. The company takes an integrated approach to real estate
investment, managing properties throughout their entire lifecycle—from acquisition to refurbishment,
active asset management, and eventual repositioning or sale.
Unlike traditional manufacturing companies, where core operations revolve around production, alstria
considers the entire lifecycle of a building as part of its own operations. Refurbishment is its core
activity, as it represents the central function around which all other activities are structured. Asset
management, as well as the acquisition and sale of properties, serve as supporting functions—ensuring
financial stability before and after refurbishment.
Consequently, alstria’s value chain is streamlined, with upstream and downstream supporting
activities occurring outside of its direct control. Upstream activities include the supply of building
materials and construction services, while downstream activities involve interactions with tenants,
investors, and buyers.
At every stage, alstria collaborates with suppliers and business partners involved in building material
production and essential service provision. The following section outlines alstria’s business activities
and classifies its suppliers based on their contractual relationship with the company (Tier 1, 2, and
3). For further details on alstria’s contractual relationships with its suppliers, please also refer to the
‘Due Diligence’ paragraph.
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[Graphic : alstria’s business model]
2.1.
Acquisition (Supporting upstream activity)
The process begins with acquiring properties nearing the end of their economic lifecycle. Once
acquired, buildings follow one of two pathways:
▪
Immediate refurbishment: Properties identified as ready for redevelopment move directly to
the refurbishment phase.
▪
Asset management before refurbishment: Properties not yet scheduled for refurbishment are
actively leased and managed to maintain occupancy and cash flow until market conditions
support redevelopment or sale.
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Core activities of acquisition
▪
Identifying suitable properties aligned with investment and refurbishment goals.
▪
Conducting due diligence, including legal, financial, and sustainability assessments.
▪
Negotiating and finalizing transactions, securing financing, and coordinating with key
stakeholder.
Examples of core suppliers and business partners:
▪
Tier 1: real estate brokers, legal counsels, due diligence consulters
2.2.
Asset management across the building lifecycle (Supporting upstream & downstream)
alstria actively manages properties throughout their lifecycle, focusing on maintaining asset value
before refurbishment through stable occupancy and revenue generation, and enhancing performance,
operational efficiency, and tenant satisfaction after refurbishment to secure long-term financial
returns.
Core activities of pre-refurbishment asset management:
▪
Marketing & Tenant acquisition: Promoting vacant spaces to secure new tenants.
▪
Lease negotiation: Structuring lease agreements to align with market conditions.
▪
Onboarding new tenants: Ensuring a smooth transition to maximize occupancy.
Core activities of post-refurbishment asset management:
▪
Lease termination review: Analyzing tenant departures to improve retention strategies.
▪
Exit process management: Coordinating move-outs and preparing properties for new tenants.
▪
Renegotiation & Lease extensions: Proactively engaging with tenants for potential lease
renewals.
▪
Amenities & Technology upgrades: Enhancing office spaces with modernized infrastructure.
▪
Energy efficiency improvement: Implementing energy-efficient solutions to reduce
operational costs.
2.3.
Refurbishment & Redevelopment (core activity)
At the center of alstria’s value chain is refurbishment and redevelopment, ensuring office buildings
can be efficiently repurposed rather than demolished. Refurbishment typically occurs every 25-35
years due to technical system degradation or design obsolescence. alstria prioritizes reusing as much
of the existing structure as possible, reducing embodied carbon emissions by 70-80% compared to new
construction. Additionally, as part of its refurbishment process, alstria aims to reduce primary energy
usage in the building by at least 30%, as evidenced by the EPC rating.
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alstria Annual Report 2025
Stages of refurbishment:
▪
Defining the end product: Establishing specifications, sustainability goals, and performance
benchmarks, while aligning renovations with market demands and tenant expectations.
o Implementation steps: Setting sustainability targets, identifying reuse potential for
structural components to minimize embodied carbon, and defining efficiency upgrade
priorities.
▪
Managing the refurbishment process: Overseeing redevelopment, ensuring timely execution,
and integrating efficiency upgrades.
o Implementation steps: Coordinating construction activities, managing project timelines,
implementing energy efficient solution (e.g. façade upgrades, insulation, and modern
heating, cooling, and ventilation systems, with a focus on low-carbon and electrification
technologies), and monitoring progress against sustainability benchmarks.
▪
Preparing for market readiness: Ensuring regulatory compliance, documentation
finalization, and tenant readiness.
o Implementation steps: Verifying legal and financial compliance, including alignment with
the EU Taxonomy, enhancing tenant readiness through fit-out adjustments, and
optimizing sustainability performance to strengthen market positioning.
Examples of core suppliers and business partners:
▪
Tier 1: Construction service providers, builders and planners, project managers and support
services
▪
Tier 2: Building components manufacturers, construction and site- related service provides
▪
Tier 3: Raw materials (e.g sand, cement, timber)
2.4.
Sale of refurbished assets & Capital recycling (supporting downstream activity)
After refurbishment, properties follow one of two pathways: they are either retained in alstria’s long-
term portfolio or sold to realize added value. To maintain an optimized portfolio, alstria periodically
evaluates market conditions to determine whether to hold, sell, or reinvest capital into new
acquisitions.
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Stages of transactions:
▪
Property evaluation & Market assessment: Analyzing asset performance and current market
conditions to determine whether to retain, sell, or reposition properties.
o Implementation steps: Evaluating market trends to optimize pricing and timing, while
ensuring alignment with the overall portfolio strategy.
▪
Preparation for sale: Ensuring that assets meet regulatory, sustainability, and market
standards before listing.
o Implementation steps: Verifying legal and regulatory compliance, meeting sustainability
criteria (including EU Taxonomy alignment), and preparing documentation to enhance
the property’s appeal to potential investors.
▪
Investor identification: Finding suitable buyers based on market demand and investment
potential.
o Implementation steps: Engaging with institutional investors, leveraging professional
networks, and collaborating with real estate brokers to maximize market reach and
attract qualified buyers.
▪
Transaction execution & Capital recycling: Completing legal and financial processes while
ensuring reinvestment into higher-value assets.
o Implementation steps: Overseeing contract negotiations, ownership transfers, and
financial settlements. Proceeds from asset sales are strategically reinvested into new
acquisitions or high-return projects, supporting continuous portfolio growth and long-
term value creation.
Examples of core suppliers and business partners:
Tier 1: Real estate brokers, legal counsels, due diligence consulters
3. MANAGING INTERESTS OF STAKEHOLDERS
The business operates with a broad range of stakeholders, and understanding their expectations is
key to long-term success. Transparent dialogue strengthens relationships and aligns operations with
those who can influence the company’s activities.
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3.1.
Stakeholder engagement approach
▪
Clients/Investors, lenders: Engaged through quarterly financial presentations, meetings, and
annual bank presentations. Annual financial and ESG disclosures ensure transparency in
financial and non-financial performance.
▪
Business partners and suppliers: Engagement occurs through direct discussions before
partnerships, weekly contractor meetings during projects, clear procurement processes, and
supplier screenings to maintain quality and sustainability standards. A complaint hotline is
also available at https://compliance.alstria.de/#/?lang=en)
▪
Corporate tenants: Engagement includes one-on-one meetings with in-house asset managers,
tenant satisfaction surveys, and online communication portals to enhance building efficiency
and tenant experience.
▪
Employees: An open and collaborative work culture is fostered through regular employee
feedback surveys, annual appraisals, and an open-door policy. Training programs, internal
communication channels, and workshops support professional development. Employees have
access to a formal complaint-handling mechanism (see also: https://alstria.de/code-of-
conduct)
▪
Local communities: Engaged through press events, social media, and site visits. We actively
participate in discussions on urban development, sustainability initiatives, and environmental
responsibility.
As part of the 2024 DMA process, several external stakeholders were engaged. See also paragraph
4.5.‘Step 3: External stakeholder engagement’.
3.2.
Key stakeholder interests and our response
Create long-term value
▪
alstria invests only in assets that align with its growth objectives and deliver sustainable long-
term returns.
▪
Operations focus on maintaining high occupancy levels across the portfolio and ensuring the
quality of the revenue stream.
Promote good governance and transparency
▪
Financial and sustainability performance data undergoes a yearly external audit.
▪
alstria complies with the majority of recommendations outlined in the German Corporate
Governance Code.
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Retain reliability
▪
Information is provided on every building acquired, owned, or sold, with a strong commitment
to transparency, fostering trust between the company and its stakeholders.
▪
A responsible responsible contracting policy ensures timely payment of agreed prices.
Promote equal and fair treatment
▪
Leadership principles have been established to guarantee fair treatment of all employees and
support their development.
▪
A compliance system is in place to ensure the effective implementation of internal
regulations.
3.3.
Industry engagement and collaboration
alstria actively participates in key industry groups to anticipate regulatory changes, explore trends,
and contribute to sector-wide advancements.
Key partnerships and contributions:
▪
European Public Real Estate Association (EPRA): CEO serves on the Advisory Board,
Sustainability Committee, and chairs the Reporting and Accounting Committee.
▪
German Property Federation (ZIA): Contributes to Germany’s Energy and Climate Action Plan
2050, with our Head of Sustainability as Vice Chairman of the CSR/Sustainability Committee.
▪
Carbon Risk Real Estate Monitor (CRREM) – Global Investor Committee: Advisory Board
member, contributing to industry decarbonization efforts.
▪
BAUAKADEMIE & Neo Impact Bench: Head of Real Estate Operations serves on the Advisory
Board of this benchmarking platform for real estate metrics.
▪
DENEFF Working Groups: Participation in IMMO2.Zero, collaborating on ambitious energy-
efficiency regulations in Germany.
3.4.
Tenant engagement initiatives
Through structured feedback mechanisms and dedicated management, we ensure that tenant needs
are met efficiently while enhancing the overall workplace experience.
Key initiatives:
▪
Tenant satisfaction surveys: Regularly conducted to assess tenant experience. A 2020 survey
showed 86% satisfaction among 47 key tenants. Feedback has driven improved training in
complaint management and overall communication enhancements.
▪
QR Code feedback system: Enables tenants and visitors to provide real-time input on safety,
cleanliness, and maintenance.
▪
Designated alstria managers: Each tenant and building is assigned to a dedicated alstria
manager to address operational and strategic needs.
▪
Internal IT monitoring platform: Tracks tenant requirements, data, and updates, ensuring
efficient service delivery.
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4. DOUBLE MATERIALITY ASSESSMENT
4.1.
Purpose
The 2024 Double Materiality Assessment (DMA) identified actual and potential impacts of alstria’s
operations, value chain, and business activities on people and the environment (impact materiality),
while also assessing sustainability-related risks and opportunities that could affect its financial
position, performance, and resilience (financial materiality).
In line with the European Sustainability Reporting Standards (ESRS) 2023 version, double materiality
requires companies to assess sustainability from both an outward and inward perspective, recognizing
that environmental and social impacts can also create financial risks and opportunities. To determine
which of the ten ESRS sustainability matters are material for alstria, the company conducted a
comprehensive assessment, which followed a preliminary check by its auditors.
The results of the 2024 DMA have been reviewed by the Management Board and apply unchanged for
the 2025 calendar year.
4.2.
Scoring approach for IROs
Each identified impact, risk, or opportunity (IRO) is documented and assessed for materiality in a
structured project workbook, ensuring alignment with ESRS. The assessment follows a clear scoring
methodology, integrating both impact materiality and financial materiality parameters.
To ensure consistency, alstria’s time horizons align with ESRS 1, §6, incorporating our risk
management framework and financial reporting cycles. The short-term horizon is set at one year, the
medium-term ranges from two to five years, and the long-term extends beyond five years, with a ten-
year period typically applied for risk and opportunity quantification.
IROs are scored on a 1-5 scale, based on ESRS 1 requirements. Impact materiality is assessed through
scale, scope, irremediability, and likelihood, considering whether an impact is direct or indirect,
positive or negative, actual or potential. Financial materiality is evaluated based on the magnitude
of financial risk or opportunity, likelihood of occurrence, and the nature of financial effects. alstria
has defined a materiality threshold of ≥3.5, except for human rights-related impacts, where severity
takes precedence over likelihood, as per ESRS 1, § 45.
The initial scoring of IROs was conducted by internal stakeholders, followed by adjustments based on
external stakeholder input. Finally, IROs were reviewed in management workshops and classified as
material or non-material by the Management Board.
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4.3.
Step 1: Foundation research and benchmarking
The Double Materiality Assessment (DMA) began with a thorough due diligence process, integrating
previous materiality assessments (see alstria Sustainability Report 2015, pages 26 to 30) and company
policies (https://alstria.eu/sustainability#policies). To ensure an industry-specific lens, alstria
reviewed European Public Real Estate Association (EPRA) standards relevant to its business.
Additionally, insights from alstria’s participation in multiple ESG ratings helped identify a broad
spectrum of IROs.
To support the identification phase, the company benchmarked CSRD voluntary reporting practices
from 2024 within and beyond the industry. This included survey responses from members of the ZIA
industry association, providing insights into material topic selection within the industry group.
Following the EFRAG IG 1 Implementation Guidance (May 2024), alstria reassessed its business model
and value chain, integrating key recommendations, which serve as the foundation for the materiality
assessment.
4.4.
Step 2: Internal identification and evaluation of IROs
After laying our groundwork, we conducted a structured process to identify and categorize the
Impacts, Risks, and Opportunities (IROs) relevant to our operations and value chain. This phase was
led by an internal task force consisting of sustainability experts with support from Legal, Compliance,
Finance, and Human Resources. The assessment was conducted in alignment with the EFRAG IG 1
Implementation Guidance (May 2024).
The task force systematically:
▪
Mapped IROs to determine their relevance within alstria’s own operations and broader value
chain.
▪
Pre-screened application requirements to identify potential data collection challenges.
▪
Distinguished between actual and potential IROs to ensure structured classification.
▪
Established thresholds for materiality weighting
▪
Defined time horizons for potential IROs to assess short-, medium-, and long-term impacts.
The results were compiled in a project workbook, providing a reference for subsequent scoring and
prioritization in the next steps of the DMA process.
4.5.
Step 3: External stakeholder engagement
To ensure a comprehensive and balanced materiality assessment, we employed a two-step
stakeholder engagement approach involving both internal proxy representatives and external AI-
supported consultation.
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1. Stakeholder representation through internal proxies
Internal proxies were selected to represent key stakeholder perspectives, particularly those of
vulnerable groups who may be affected by sustainability decisions. The selection was informed by
previous materiality assessments and organizational expertise.
▪
Regulatory considerations (G1): The Head of Legal that serves also as the Compliance Officer
of alstria evaluated sustainability matters under Governance (G1), serving as a proxy for
regulatory perspectives.
▪
Employee perspectives (S1): A Human Resources representative participated in two rounds of
discussions, serving as a proxy for employee-related sustainability concerns under Social (S1).
These internal stakeholder proxies played a crucial role in refining the internal classification of IROs.
2. External stakeholder consultation (AI-Facilitated approach)
Rather than convening a traditional stakeholder panel, alstria implemented a pioneering, internally
developed methodology that leverages AI as a facilitation tool. Structured AI-supported consultations
based on Large Language Models (LLMs) were conducted to introduce an additional external
perspective into the double materiality assessment (DMA) process. The objective was to identify
further sustainability issues and assess the relevance of pre-identified Impacts, Risks and
Opportunities (IROs).
Objective
The AI program simulated interviews with key stakeholder groups, focusing on material sustainability
topics identified by alstria under the double materiality principle.
Methodology
▪
alstria’s internal classification workbook (preliminary IRO identification, excluding scoring)
▪
Previous stakeholder reports
▪
The LLM's own perspective and knowledge
▪
Historical company sustainability reports
▪
EFRAG regulatory papers
Outcome
The AI-generated discussions helped refine IRO relevance and stakeholder concerns, ensuring that
alstria’s assessment aligns with external sustainability expectations.
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4.6.
Step 4: Scoring and prioritization of IROs
To finalize the classification of IROs, we conducted a structured scoring workshop led by our CEO and
sustainability experts. Building upon the scoring methodology defined in the 4.2.‘Scoring approach
for IROs’ paragraph, this step applied impact and financial materiality evaluations simultaneously.
To ensure consistency, internal scoring results were cross-validated with findings from external AI-
facilitated consultations. If discrepancies were substantial (for example, exceeding two scoring
points), classifications were reviewed and adjusted accordingly.
Once the scoring process was completed, a final classification document was compiled, serving as the
foundation for Step 6: ‘Governance Review’.
4.7.
Step 5: DMA process documentation
The final stage of the Double Materiality Assessment (DMA) process focused on formally documenting
all assessments. Relevant documentation included:
▪
IRO classification workbooks detailing the assessment process
▪
Summaries of stakeholder interviews conducted during the engagement phase
▪
Workshop findings from internal and external validation sessions
▪
Scoring justifications and rationale overviews, outlining the materiality determination process
This comprehensive documentation serves as the foundation for governance review and final approval
in the subsequent board evaluation phase.
4.8.
Step 6: Governance Review
The results of alstria’s Double Materiality Assessment (DMA) were presented to the Supervisory Board
of alstria office AG.
5. OUTCOME OF THE DOUBLE MATERIALITY ASSESSMENT
The materiality assessment identified E1 “Climate”, E5 “Resource Use and Circular Economy”, S1
“Own Workforce”, and G1 “Business Conduct" as material topics for alstria. This outcome aligns with
the company’s historical sustainability reporting framework and is consistent with the topic selection
of our peer group, including members of the ZIA association. alstria’s increasing focus on embodied
emissions led to the selection of the “Resource Inflows, including resource use” sub-topic as material.
On the other hand, the assessment determined that certain topics, such as pollution, water, and
biodiversity-related issues, are not material under ESRS definitions. This allows for streamlined
reporting and enables necessary adjustments to our previous ESG reporting practices. Moving forward,
the company will concentrate on CO₂ emissions, including embodied ones, energy efficiency, health
and safety of our its workforce, and strong business conduct practices, in alignment with the
materiality assessment.
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The results of this analysis is presented in the ‘List of sustainability matters’ below, following the
requirements of paragraph 11 of ESRS 1, with a sub-topic level assessment—except for S1 “Own
Workforce”," which was assessed at the sub-sub-topic level. In total, more than 50 IROs were defined,
assessed, and classified based on the scoring approach developed by alstria (see “Scoring Approach
for IROs” paragraph).
Additionally, scoped-out topics—marked in grey—in the table below, were excluded from the
assessment from the outset, as they do not align with alstria’s business operations and value chain.
For more details, please refer to the following paragraph ‘Rationale for non-material sustainability
matters’.
Based on the materiality assessment conducted for the 2024 financial year, the identified material
sustainability matters are considered valid for the 2025 reporting period. alstria continuously monitors
developments in its business model, value chain, and regulatory environment and will reassess
materiality should significant changes arise.
5.1.
List of sustainability matters
Sub-topics
Material
Not Material
Out-of Scope
E1 Climate Change
1. Climate change adaptation
X
2. Climate change mitigation
X
3. Energy
X
E2 Pollution (whole topic)
X
E3 Water & marine resources
4. Water consumption
X
5. Water withdrawals
X
6. Water discharges
X
Water discharges in the oceans
X
Extraction and use of marine resources
X
E4 Biodiversity & Ecosystems
7. Direct impact drivers of biodiversity loss
X
8. Impact on the extent and condition of ecosystems
X
Impacts on state of species
X
Impact and dependencies on ecosystems
X
E5 Resource use and circular economy
9. Resource inflows, including resource use
X
10. Resource outflows related to products and services
X
11. Waste
X
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Sub-topics
Material
Not Material
Out-of Scope
S1 Own workforce (in sub-sub topic)
12. Secure employment & Working time
X
13. Health and Safety
X
14. Work life balance
X
15. Diversity
X
16. gender equality and equal pay
X
17. Training and skills development
X
Adequate wages, Social dialogue, Freedom of association, Collective
bargaining
X
Child labor, forced labor, adequate housing, privacy
X
S2 Workers in the value chain
18. Working conditions
X
19. Equal treatment and opportunities
X
20. Other work-related rights
X
S3 Affected Communities
21. Communites´economic, social and cultural rights
X
Communities´civil and political rights
X
Rights of indigenous people
X
S4 Consumers & End-users (whole topic)
X
G1 Business conduct
22. Business conduct policies and corporate culture
X
23. Protection of whistleblowers
X
Animal welfare
X
24. Political engagement
X
25. Management of relationships with suppliers
X
26. Corruption and bribery
X
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6. IMPACT OF MATERIAL SUSTAINABILITY RISKS AND OPPORTUNITIES ON ALSTRIA’S STRATEGY
The double materiality assessment identified climate change (ESRS E1), resource use and circular
economy (ESRS E5), own workforce (ESRS S1) and business conduct (ESRS G1) as material sustainability
matters for alstria. These matters are closely linked to the company’s business model, which is
centred on the acquisition, refurbishment, active management and, where appropriate, disposal of
office buildings in Germany.
Climate change (E1) represents both a material impact and a source of financial risk and opportunity
across the entire lifecycle of alstria’s assets. The refurbishment-first strategy, which prioritises the
reuse of existing building structures over demolition and new construction, directly addresses climate-
related impacts by avoiding significant embodied carbon emissions. At the same time, regulatory
developments related to energy efficiency standards, decarbonisation pathways and energy intensity
thresholds create transition risks for assets that are not technically or economically adaptable. These
risks are managed through early identification of refurbishment potential, lifecycle-based investment
decisions and the application of internal design and decarbonisation principles aligned with EU climate
objectives.
Resource use and circular economy (E5) is intrinsically linked to alstria’s core activity of
refurbishment and redevelopment. By maximising the reuse of existing building fabric and prioritising
durable, low-carbon materials, alstria reduces resource inflows, waste generation and exposure to
supply-chain-related cost volatility. This approach supports long-term asset resilience and protects
value in an environment of increasing regulatory and market focus on material efficiency and lifecycle
performance.
Social matters related to the own workforce (S1) influence alstria’s ability to execute its strategy,
particularly given the reliance on in-house technical expertise for asset management, refurbishment
planning and project execution. Maintaining a skilled and stable workforce supports operational
continuity, risk management and the consistent implementation of sustainability measures across the
portfolio.
Business conduct (G1) underpins all material sustainability matters through robust governance, risk
management and compliance processes. Transparent decision-making, clear accountability and
structured due diligence processes support the identification and management of sustainability-
related risks and opportunities and ensure alignment between strategic objectives, operational
execution and regulatory requirements.
Overall, the identified material impacts, risks and opportunities are not separate from alstria’s
business model but are embedded within it. The company’s strategy of lifecycle-oriented asset
management, disciplined capital allocation and focus on refurbishment over new construction is
designed to mitigate material sustainability risks while capturing opportunities arising from regulatory
change, evolving tenant demand and the transition to a low-carbon built environment.
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6.1.
Outlook
While the double materiality assessment provides a structured framework for identifying material
sustainability matters, alstria does not view the results as static or exhaustive. The company operates
within a dynamic real estate cycle and continuously monitors early regulatory developments, market
signals and stakeholder expectations that may influence future sustainability risks and opportunities.
In the current reporting year, particular emphasis is placed on climate change (ESRS E1), as this
matter represents the most significant environmental impact and financial exposure for the company.
Other identified material topics are addressed within the broader Annual Report, including relevant
governance, workforce disclosures, and they will be further developed in subsequent reporting cycles.
alstria will update its double materiality analysis on an annual basis, considering regulatory
developments, market dynamics and stakeholder expectations.
7. RATIONALE FOR NON-MATERIAL SUSTAINABILITY MATTERS
Based on the double materiality assessment of FY2024, the following sustainability matters were
assessed as not material for alstria for the current reporting year, under the ESRS definitions. This
assessment took into account the company’s business model, geographic footprint, value chain
position and the scale, scope and likelihood of potential impacts, risks and opportunities.
7.1.
E2 Pollution
alstria’s business model is centered on the transition of buildings through refurbishment and
redevelopment, accompanied by asset management, and does not involve significant pollution-
generating activities. Unlike manufacturing or industrial sectors, alstria’s operations do not include
processes that emit hazardous pollutants, effluents, or substantial waste.
alstria does not contribute meaningfully to air, water, or soil pollution. While refurbishments may
generate construction-related waste, it primarily consists of inert materials. Construction waste is
separated on site and managed by external contractors. Recycling and disposal are carried out in
accordance with applicable regulations and standard industry practices. Contractors are required to
comply with environmental requirements to minimize potential impacts.
As alstria does not produce goods, its pollution footprint remains limited. Pollution is therefore not
considered a material topic under the ESRS double materiality thresholds.
7.2.
E3 Water & Marine resources
alstria has determined that water-related topics—withdrawals, consumption, and discharges—are not
material due to alstria’s business model and operational focus. Additionally, alstria’s properties in
Germany’s city centers are located in low water stress areas, minimizing risks related to water
scarcity.
The water-intensive processes associated with construction materials like concrete and bricks occur
upstream in the supply chain, beyond alstria’s direct control. While ESRS encourages reporting on
upstream impacts, alstria’s role is limited to responsible material selection, not production. However,
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alstria actively addresses water-related considerations through the careful selection of construction
methods and material specifications, working closely with construction service providers and the
planning team to ensure sustainable choices.
Given these factors, alstria’s water-related impact does not meet ESRS double materiality thresholds,
making additional reporting on this topic unnecessary. However, alstria remains committed to
responsible resource use and may consider water efficiency criteria in future procurement policies.
7.3.
E4 Biodiversity & ecosystems
alstria’s asset management and refurbishment activities have limited direct impact on biodiversity.
Operating exclusively in city centers across Germany, alstria does not engage in greenfield
developments, land-use change, or resource extraction that would significantly affect ecosystems.
Germany has a comprehensive regulatory framework addressing biodiversity and nature protection,
ensuring strict environmental safeguards. In addition, alstria sources materials from suppliers
operating under EU environmental regulations, which helps mitigate indirect biodiversity risks related
to raw material extraction.
While direct biodiversity impacts are limited, alstria integrates biodiversity-enhancing features into
its properties, such as green roofs and climate-adapted vegetation, where appropriate. Measures to
reduce land sealing and the use of ecological building materials, such as bird-safe glazing, are also
considered in refurbishment and development projects to further reduce environmental impact.
Additionally, alstria actively participates in industry discussions on biodiversity within the real estate
sector, following emerging best practices and guidelines, such as “Leitfaden für die Praxis:
Biodiversität in der Immobilienbranche” (see https://alstria.de/sustainability#biodiversity). This
engagement supports the ongoing integration of biodiversity considerations into asset management
and development processes.
Although biodiversity impacts do not meet the ESRS double materiality thresholds for alstria,
biodiversity considerations remain embedded in sustainable property design and asset management
practices. The company continues to monitor relevant regulatory and market developments to further
support biodiversity efforts.
7.4.
S2 Workers in the value chain
At alstria, we recognize the importance of fair labor practices and human rights throughout our value
chain. However, due to the nature of our business, which focuses on asset management and
refurbishment, our operations typically do not involve high-risk labor conditions commonly associated
with manufacturing or extensive supply chains.
The company contracts directly with Tier 1 service providers, such as construction and refurbishment
companies, who are responsible for executing its projects. These Tier 1 contractors, in turn, engage
Tier 2 suppliers, including subcontractors and laborers, to carry out specific tasks. As a result, alstria
does not directly engage with Tier 2 suppliers and does not have immediate control over their working
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conditions. Responsibility for labor rights, working hours, and compliance rests with the Tier 1
contractors, who are legally obligated to uphold German labor laws and human rights regulations. For
more details, see the Section “Due diligence in sustainability.”
The company’s Supplier Code of Conduct (see also https://alstria.eu/code-of-conduct) reinforces
these expectations, ensuring that all Tier 1 providers adhere to ethical labor practices. Supported by
Germany’s robust legal framework, these regulations provide strong protections for workers, including
fair wages, safe working conditions, and human rights safeguards.
Given the comprehensive regulatory environment in Germany, the company’s business model, and
the safeguards in place to promote responsible sourcing, labor conditions in the value chain do not
meet the ESRS double materiality thresholds for alstria. Nevertheless, the company remains
committed to maintaining responsible business practices.
7.5.
S3 Affected communities
alstria recognizes the importance of minimizing disruptions to local communities and fostering
positive contributions through its refurbishment activities. However, as alstria’s operations are
limited to existing office buildings in city centers, its direct impact on local economic, social, and
cultural rights is minimal. Unlike large-scale infrastructure or industrial projects, alstria’s activities
do not involve land acquisition, displacement, or significant alterations to public spaces.
While refurbishment projects may temporarily generate noise, traffic, and other disturbances, these
activities are common in densely populated urban areas and are subject to strict regulatory oversight.
The company implements noise control protocols, traffic management strategies, and environmental
safeguards to minimize disruptions.
alstria also strives to create positive local impacts, such as prioritizing local hiring, integrating green
recreational spaces, and preserving historic buildings when viable. However, these initiatives do not
represent a core material impact under ESRS definitions. alstria remains committed to engaging with
local stakeholders to minimize any potential disruptions from its activities.
7.6.
S4 Consumers & End-Users
alstria’s core business revolves around the refurbishment and asset management of office buildings,
primarily serving corporate tenants rather than private consumers. Unlike retail or consumer-focused
industries, alstria’s operations do not involve direct engagement with end-users in a way that
significantly impacts them.
alstria’s primary relationship is with corporate tenants, whose employees are the main users of the
office spaces. Workplace health and safety regulations fall under the responsibility of the tenant,
while alstria ensures compliance in shared spaces, which represent approximately less than 10% of
the portfolio.
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Given the nature of alstria’s business model and tenant responsibilities, consumers and end-users do
not meet the ESRS double materiality thresholds for alstria. However, alstria remains committed to
providing high-quality office spaces that support sustainable and efficient workplaces for its tenants.
VI. EU TAXONOMY APPROACH
At present, alstria does not consider a detailed EU Taxonomy eligibility and alignment assessment to
add meaningful decision-making value. Given the current regulatory environment and the evolving
interpretation of the framework, such disclosure would not yet provide sufficiently reliable or
comparable insight for stakeholders. This also reflects alstria’s business model, which focuses on the
long-term ownership, active management and refurbishment of existing office buildings rather than
new development. For refurbishment-led portfolios, the practical application of EU Taxonomy criteria
at asset level is still developing and not yet sufficiently stabilised to support robust, portfolio-wide
alignment ratios.
At the same time, the company recognises the growing relevance of the EU Taxonomy in capital
markets. In particular, redevelopment projects are generally expected to achieve a minimum 30%
reduction in primary energy demand. alstria monitors each refurbishment project against this
threshold and obtains third-party verification of the achieved performance requirement. In this way,
alstria helps lenders and investors to assess the allocation of capital expenditure against applicable
taxonomy criteria.
VII. CLIMATE CHANGE AND THE BUILDING PORTFOLIO
1. CLIMATE RELEVANCE AND BUSINESS MODEL
As a long-term owner and active manager of office buildings, alstria has long recognised that energy
use, refurbishment and lifecycle decisions drive both greenhouse gas emissions and asset value.
Climate change has therefore been a core sustainability focus from the outset. This long-standing
understanding was formally reconfirmed by the 2024 double materiality assessment conducted in line
with the European Sustainability Reporting Standards (ESRS), which identifies climate change as
material from both an impact and a financial perspective.
Climate-related reporting focuses on the parts of the building lifecycle that are directly managed:
acquiring buildings, operating and maintaining them, refurbishing and modernising them, and
managing them thereafter. This is where most climate-related impacts and risks arise in practice.
The value chain is considered where it is closely connected to these activities, particularly the
building materials and services used during refurbishment (upstream) and the way buildings are
subsequently used and leased or sold (downstream).
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From a climate perspective, the office portfolio is shaped by two main factors: the energy used during
the operation of buildings and the emissions linked to refurbishment measures. For alstria, the key
question is therefore how refurbishment decisions – in terms of scope and timing – influence long-
term energy performance and emissions across the portfolio.
By focusing on the continued use and improvement of existing buildings, alstria reduces the risk that
assets become locked into inefficient or fossil-fuel-based systems that are no longer fit for future
requirements (carbon lock-in). This approach supports the long-term usability and value of the
portfolio in an environment of tightening regulation and changing tenant expectations, and guides
investment, refurbishment and day-to-day asset management decisions.
2. CLIMATE-RELATED RISKS AND OPPORTUNITIES
The table below summarises the material climate-related risks and opportunities identified through
the 2024 double materiality assessment, including their classification, relevance across the value
chain and expected time horizons. The anticipated financial effects associated with these climate-
related risks and opportunities, including implications for capital expenditures, asset marketability
and long-term value preservation, are discussed in Section XI.
2.1.
Material climate related risks and opportunities
Material impact, risk, or opportunity
Type
Value chain
stage
Time frames*
Climate change mitigation
A. Tightening EU and national climate and energy performance
regulation for buildings (e.g. EPBD, MEPS, GEG, carbon pricing)
Transition risk
OO, US, DS
short-, medium-
& long-term
B. Ineffective climate policy implementation
Transition risk
OO
short-term
C. Strategic positioning under evolving climate regulation
Opportunity
OO
short- & medium-
term
Climate change adaptation
D. Systemic climate-related impacts on tenants, markets and
supply chains
Systemic risk
OO, US, DS
short- & medium-
term
Energy
E. Reducing energy demand through deep refurbishments
Positive Impact
OO, DS
short- & medium-
term
F. Increased use of energy-intensive technologies in buildings
driven by climate adaptation needs
Negative impact
OO, DS
short- & medium-
term
*short-term: 1-2 years | medium-term: 2-5 years | long-term: >5 years
2.2.
Notes to table
Upstream (US):
Includes activities and business relationships related to the acquisition and refurbishment of
properties, such as real estate brokers, legal and due-diligence advisers, construction service
providers, planners and suppliers of building materials and components used in refurbishment
projects.
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Own operations (OO):
Refers to activities directly managed by alstria across the asset lifecycle, including property
acquisition, holding and asset management before refurbishment, refurbishment and redevelopment
of existing office buildings, and ongoing asset management or preparation for sale following
refurbishment.
Downstream (DS):
Encompasses activities and relationships following refurbishment, including leasing to corporate
tenants, facility and property management during the use phase, and the sale of refurbished
properties to investors.
2.3.
Regulatory transition risks (A & B)
The most significant climate-related risk for alstria arises from evolving EU and national climate
regulation for buildings, including the revision of the Energy Performance of Buildings Directive
(EPBD), the introduction of Minimum Energy Performance standards (MEPs) and national building
energy legislation, as well as carbon pricing mechanisms. These developments may require
accelerated refurbishment cycles, higher capital expenditure or adjustments to asset-level
investment priorities. Where future regulatory thresholds are not met, individual assets may face
restrictions on leasing or reduced marketability.
More importantly, the pace, effectiveness and consistency of implementation of climate policy remain
uncertain. Ineffective or frequently changing policies will create investment timing risks, where
refurbishment decisions made under unclear regulatory signals do not align optimally with future
requirements. alstria therefore follows a cautious and staged investment approach, integrating
regulatory developments into portfolio steering, capital allocation and enterprise risk management
processes.
2.4.
Opportunities from early regulatory alignment and energy efficiency (C)
At the same time, regulatory developments and changing market expectations create opportunities
for alstria. By aligning refurbishment activities with anticipated regulatory requirements and tenant
expectations, the company can enhance the long-term resilience and attractiveness of its portfolio.
A central element of alstria’s approach is the reduction of energy demand through deep
refurbishments, which contributes to lower operational emissions, improved building performance
and may support access to sustainable financing instruments.
2.5.
Systemic climate-related risks (D)
Beyond direct regulatory impacts, alstria is exposed to systemic climate-related risks that may
materialise indirectly through tenants, markets and supply chains. Climate change can affect tenant
business models, economic stability and demand for office space, even where alstria’s assets are not
directly impacted by physical climate events. These systemic risks are inherently uncertain and
difficult to quantify but are recognised as potentially material over the medium to long term.
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alstria addresses systemic climate-related risks through portfolio diversification, continuous
monitoring of market and tenant developments, transparent carbon accounting and active
engagement in industry initiatives that promote the refurbishment of existing buildings as a climate-
efficient alternative to new construction.
2.6.
Energy demand and climate adaptation in buildings (E & F)
alstria seeks to reduce energy demand through the redevelopment of existing office buildings,
improving energy efficiency (usually by at least 30% to previous condition) and lowering operational
energy consumption across the portfolio. At the same time, rising temperatures associated with
climate change may increase the need for energy-intensive technologies, such as cooling systems, to
maintain tenant comfort, which can partially offset efficiency gains.
To manage this interaction, alstria applies a “low-tech” design approach, prioritising passive measures
and energy-efficient solutions and embedding technical systems only where they provide a clear and
demonstrated benefit. This approach aims to balance user comfort with energy efficiency and climate
objectives across the building portfolio.
3. DECARBONISATION ACROSS THE BUILDING LIFECYCLE
In practice, emission reductions are pursued through two closely linked areas: managing embodied
emissions associated with refurbishment activities and improving operational emissions during the use
phase of buildings.
Embodied emissions are managed by prioritising the continued use of existing building structures and
avoiding unnecessary demolition and replacement. Refurbishment projects are guided by alstria’s Low
Carbon Design Principles (see also https://alstria.de/sustainability#carbon-principles), which reflect
regulatory requirements and climate objectives into practical criteria for refurbishment and
redevelopment projects. These principles emphasise the reuse of structural elements, the careful
selection of materials where replacement is unavoidable, and the specification of technical systems
that avoid lock-in effects like fossil fuels and structural inefficiencies. Where appropriate,
refurbishment planning includes early consideration of technologies that allow for decarbonisation,
to support long-term compatibility with renewable energy systems.
Operational emissions are addressed by improving energy performance during building operation. This
includes measures such as upgrades to building envelopes (e.g. façades and insulation) and technical
systems, the replacement of fossil-fuel-based heating solutions, and preparation for increasing
electrification. Depending on asset-specific conditions and on where they are in their life cycle,
measures may also include the integration of photovoltaic systems, EV charging infrastructure,
building automation, load management and, where appropriate, energy storage solutions.
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To prioritise actions and investments across the portfolio, alstria applies asset-level decarbonisation
pathways, including assessments based on CRREM pathways (see also: https://crrem.org/). These
tools are used to assess current and future carbon intensity, identify transition risks and may inform
decisions on refurbishment timing, scope and capital allocation. This supports a structured, risk-based
approach that links technical feasibility with regulatory requirements while maintaining flexibility in
investment planning.
Climate-related considerations are embedded in alstria’s governance and decision-making processes
rather than governed by a standalone climate policy. Progress in improving energy performance is
monitored through portfolio steering tools, in particular alstria’s ESG Dashboard, which tracks energy
consumption, emissions and alignment with CRREM pathways at asset level. Energy management
practices are further supported by an ISO 50001-aligned energy management system, which has been
applied in alstria’s own operations since 2015, the principles of which are also considered in the
monitoring and optimisation of energy performance across the building portfolio.
Climate change adaptation is addressed as part of asset management and refurbishment planning,
with a focus on robust building design, long asset lifecycles and flexibility of use. This approach
supports resilience to physical climate impacts as well as to regulatory and market developments over
time.
Offset-based approaches are not used as a core element of alstria’s climate strategy. Where carbon
compensation is applied in exceptional cases, it is not considered a substitute for direct emission
reductions within the building portfolio.
In 2025, alstria allocated EUR 83.5 million in capital expenditures to its existing office portfolio, with
approximately EUR 50 million directed toward refurbishment projects and EUR 30 million towards
maintenance.
4. CLIMATE TARGETS
alstria has established science-based greenhouse gas reduction targets, which serve as a reference
framework within its broader climate strategy. The targets were initially defined around 2020 in line
with the Science Based Targets initiative (SBTi) and support assessment of the long-term emissions
trajectory of the portfolio (see also https://sciencebasedtargets.org/target-dashboard for alstria).
They are not used as primary performance-linked steering instruments.
In practice, climate-related steering is primarily applied through asset-level decarbonisation and
transition pathways. In line with SBTi requirements and in light of developments in data maturity and
sector-specific guidance, alstria has initiated a review of its science-based targets as part of ongoing
sustainability management.
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VIII.
INTRODUCTION OF NEW ENVIRONMENTAL DATASETS
For the purposes of this Sustainability Statement, alstria differentiates between two environmental
datasets that reflect different reporting scopes and methodological approaches.
1.1.
Dataset 1: Externally-assured actual consumption data (EPRA sBPR Tables, FY2024)
This dataset includes measured and verifiable energy consumption data, subject to external assurance
in line with EPRA Sustainability Best Practice Recommendations. It covers only assets eligible for EPRA
reporting and for which sufficiently complete and reliable consumption data are available. Assets
with limited data availability (e.g. major refurbishment or high vacancy) are excluded.
The audited EPRA tables remain the authoritative source for alstria’s FY2024 ESG data data, which
can be assessed at https://alstria.eu/sustainability#reporting.
1.2.
Dataset 2: Normalised portfolio data for this Sustainability Statement (FY2024 baseline
& FY2025 projection)
Separately, and solely for the purposes of this Sustainability Statement, alstria presents a set of
normalised environmental KPIs to provide a portfolio-wide view at the time of publication. This
methodology was developed in collaboration with external auditors and aims to enhance transparency
and demonstrate readiness by enabling full-portfolio analysis where complete measured data are not
yet available across all assets.
Within this dataset, two methodological steps are applied:
▪
Normalised baseline (FY2024): Starting from available FY2024 asset-level data, a consistent
portfolio-wide dataset is created by closing data gaps through a structured and conservative
approach (e.g. building typologies and recognised benchmarks where direct measurements
are unavailable). Where appropriate, normalisation adjustments are applied (e.g. vacancy
and weather effects).
▪
Projection for the reporting year (FY2025): Based on the normalised FY2024 baseline, an
estimate for FY2025 — the reporting period of this Sustainability Statement — is derived. This
projection reflects the best estimate available at the reporting date and will be replaced by
actual data once FY2025 figures become available.
1.3.
Comparability of datasets
The two datasets — the externally assured EPRA figures and the normalized/projected figures — are
not comparable by design. Accordingly, trend analysis within this Sustainability Statement is limited
to comparisons between the normalised FY2024 baseline and the FY2025 projection.
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IX. DATA NORMALISATION AND PROJECTION METHODOLOGY
1. PORTFOLIO-WIDE NORMALIZATION APPROACH
The portfolio-wide normalised baseline establishes a consistent FY2024 baseline for the complete
portfolio by closing data gaps across all assets held as of 31 December 2024. The following steps
outline how the data are processed:
1.1.
Step 1: Definition of the portfolio scope
All properties within alstria portfolio as of 31 December 2024 are included, irrespective of whether
they are eligible for EPRA reporting.
1.2.
Step 2: Identification of available data
For each asset, the availability and quality of FY2024 consumption data are assessed:
▪
Assets with complete and reliable measured data are classified as complete.
▪
Assets with missing, incomplete or structurally distorted data (e.g. due to high vacancy or
refurbishment) are identified for estimation or normalisation.
1.3.
Step 3: Estimation of missing consumption data
Where direct measurements are unavailable or unsuitable, consumption values are estimated using a
structured and conservative approach:
▪
Assets are classified by building typology and technical standard (e.g. extent of building
services and ventilation systems).
▪
Consumption intensities are derived from recognised regulatory benchmarks (e.g. energy
performance certificate data or EnEV reference values).
▪
Estimated values are calculated by applying these intensities to the relevant lettable areas.
Estimated data are not retroactively normalised, as benchmark values already reflect long-term
average conditions.
1.4.
Step 4 (Optional): Normalisation of prior-year (FY2023) measured data
For assets with measured and reliable prior-year data, normalisation may be applied to improve
comparability across the portfolio:
▪
Weather normalisation: Heating energy consumption is adjusted using heating degree-day
factors to account for differences between actual weather conditions and reference-year
conditions.
▪
Vacancy normalisation: Tenant-related electricity and heating consumption are adjusted to
reflect differences in occupied area.
▪
Electricity consumption in landlord-controlled areas is not vacancy-adjusted, as it is largely
independent of tenant occupation.
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1.5.
Step 5: Aggregation into a portfolio-wide baseline
Measured, estimated and normalised data are combined to form a single, consistent portfolio-wide
dataset representing FY2024 environmental consumption. This dataset constitutes the portfolio-wide
normalised baseline and serves solely as a historical reference for this reporting.
2. FORWARD-LOOKING ENERGY CONSUMPTION ESTIMATION
The energy consumption projection for FY2025 is based on the FY2024 normalised baseline. This
forward-looking estimate incorporates adjustments for expected changes in portfolio composition,
climatic conditions, and vacancy rates. The following steps outline how the data are processed:
2.1.
Step 1: Baseline reference
The portfolio-wide normalised baseline (FY2024) is used as the sole reference for the projection.
EPRA-reported figures are not directly projected.
2.2.
Step 2: Portfolio structure alignment
Baseline data are adjusted to reflect the expected portfolio composition for FY2025. Assets entering
or leaving the portfolio during the reporting year are excluded, as all KPIs are based on full-year
consumption (kWh/m²/year).
2.3.
Step 3: Vacancy adjustment
Vacancy figures available at the time of reporting for FY2025 (full year and heating period) are used
to adjust the measured values at building level.
▪
Tenant-related electricity and heating consumption are adjusted proportionally.
▪
Electricity consumption in common areas remains unchanged, as consumption patterns are
stable and largely independent of tenant occupancy.
2.4.
Step 4: Climate adjustment
Projected heating energy consumption is adjusted using heating degree-day assumptions to reflect
expected climatic conditions for FY2025. Electricity consumption is not climate-adjusted.
2.5.
Step 5: Aggregation and consistency check
Adjusted asset-level values are aggregated at portfolio level. The resulting dataset is reviewed for
internal consistency and plausibility in comparison with historical patterns.
The resulting figures represent a forward-looking environmental projection and do not constitute
actual performance data.
2.6.
Additional methodological parameters and assumptions
As carbon conversion factors for the reporting year are not yet available at the time of publication
(the Federal Environment Agency publishes these in April/May for the preceding year), the same
conversion factors as for the historical normalised year are applied.
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For the limited number of non-commercial (residential) buildings, the best available public sources
are used to estimate consumption where the asset class is not covered by EnEV reference values.
X. ENERGY AND GHG PERFORMANCE
1. PORTFOLIO-WIDE ENVIRONMENTAL PERFORMANCE DATA (FY2024, FY2025)
Energy consumption is a critical metric for assessing the environmental impact of alstria’s operations.
It reflects the total energy used across the office building portfolio, including electricity, heating,
cooling, and ventilation. This data serves as the basis for calculating greenhouse gas (GHG) emissions,
as outlined in the GHG Protocol, which helps measure the company’s environmental performance.
As the owner and operator of buildings generating rental income, alstria applies the “polluter pays
principle” and takes responsibility for the environmental impacts of its buildings, including those from
construction, refurbishment, operation, and energy use, as well as tenant-related consumption.
The total energy consumed in alstria’s operations is used to assess emissions across Scope 1, Scope 2,
and Scope 3, providing a clear picture of alstria’s carbon footprint and supporting its ongoing
sustainability improvements.
▪
Scope 1 emissions: Direct emissions from energy use in alstria’s own operations, primarily
from gas heating in corporate office locations.
▪
Scope 2 emissions: Indirect emissions from purchased electricity and district heating,
especially in multi-let office buildings and corporate office locations.
▪
Scope 3 emissions: Further indirect emissions, including tenant-controlled energy
consumption and those from refurbishment and construction-related activities.
The following table presents the normalized environmental performance data for FY2024 alongside
the FY2025 projection, prepared for this Sustainability Statement.
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Table: Portfolio-wide environmental performance data (FY 2024, 2025)
1.1.
Notes to table (Top-to-Bottom View)
Portfolio context
The top block provides key portfolio parameters (e.g., number of properties, lettable area, Open
Market Value (OMV), and revenue) alongside an “average building” view, offering scale and context
to the data.
Energy consumption (Heating and Electricity):
▪
Absolute values (MWh): Show total energy quantities by energy carrier (e.g., fuel heating,
district heating, electricity).
▪
Intensity values (kWh/m²/year): Relate total energy consumption to the applicable lettable
area, using square metres (m²) as the denominator for comparability across buildings and
portfolios, similar to energy certificate metrics.
GHG emissions derived from energy consumption:
Emissions are calculated in tCO₂ by applying conversion factors to the energy data, distinguishing
between:
▪
Location-based emissions: Using national grid average emission factors.
▪
Market-based emissions: Reflecting specific electricity procurement arrangements, such as
renewable electricity contracts.
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The standard split between Scope 1 (direct) and Scope 2 (indirect) emissions is applied, without
adjustments for the operational or financial control approach. For the FY2025 projection, FY2024
conversion factors are used until updated factors become available.
Year-on-year (YoY) change:
This indicator shows the percentage change between the normalized FY2024 baseline and the
projected FY2025 figures, reflecting the direction and magnitude of change within the normalized
dataset, but not comparing with the audited EPRA FY2024 figures.
2. PORTFOLIO-WIDE ENERGY PERFORMANCE DATA BY SEGMENTS (E.G. ASSET TYPE, REGION)
The table below provides a segmentation view of the same energy consumption KPIs shown at the
portfolio level, enabling a more detailed analysis across different segments of the portfolio.
For each segment (e.g. region or leasing type), the table follows the same structure as the portfolio-
level view, showing:
▪
Absolute energy consumption (Left block)
▪
Energy intensity (Right block)
▪
Year-on-year (YoY) changes
Table: Portfolio-wide energy performance data by segments
2.1.
Notes to table
By Asset Type:
Comparison between office properties and other properties. “Other” comprises a small group of non-
office uses, which may show higher volatility due to the smaller underlying base.
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By Region:
Comparison of energy consumption and intensity across cities and regions (e.g., Hamburg, Düsseldorf,
Frankfurt). Differences may reflect variations in building stock, tenant mix, HVAC systems, and
district heating prevalence. Climatic differences within Germany are generally limited.
By Leasing Type:
Comparison of single-let versus multi-let buildings. Multi-let properties may show different intensity
patterns due to shared/common areas, building services, differing operational profiles, and tenant
turnover. Metering structures may also differ, particularly with respect to landlord- and tenant-
controlled consumption.
By Monument Type:
Comparison of heritage-listed versus non-listed buildings. Listed properties may exhibit systematically
different energy intensities due to constraints on façade upgrades, glazing, insulation, and other
structural measures. This distinction separates “technical potential” from “legal restrictions.”
By Construction Year & Energy Law:
This segmentation is highly diagnostic, grouping buildings by regulatory and era-driven technical
standards. It provides insight into how “efficient by design” buildings tend to perform. Older cohorts
often show higher heating intensity, although this is not always the case. Refurbishment measures,
HVAC retrofits, and tenant fit-outs can materially alter performance patterns.
Large YoY changes within individual cohorts may reflect a very small applicable area (small
denominator), a limited number of assets within the cohort, or the influence of projection
assumptions that disproportionately affect the cohort.
3. ENERGY PERFORMANCE CLASSIFICATION OF ALSTRIA’S BUILDINGS
Under current regulations, German commercial properties are not subject to the standard A-G Energy
Performance Certificates (EPCs) classification. EPCs provide a theoretical assessment of an asset's
energy performance, and listed buildings are typically exempt from EPC requirements.
Instead, alstria has developed its own energy performance classification system, which distinguishes
eight levels of energy efficiency. These classifications have been defined by the company and do not
correspond to the A-G EPC scale. This system aligns with alstria’s business model, which focuses on
acquiring low-performing assets and improving their energy performance through ownership and
management.
The table below provides a breakdown of alstria’s assets based on these internal energy performance
levels.
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Table: [Classification of buildings by EPCs]
Energy intensity
No. of buildings
% of Portfolio area
Level 1
≤ 75 kWh/m²
14
13,6 %
Level 2
75 – 100 kWh/m²
17
16,1 %
Level 3
100 – 125 kWh/m²
22
17,0 %
Level 4
125 - 150 kWh/m²
22
19,0 %
Level 5
150 – 175 kWh/m²
18
12,3 %
Level 6
175 - 200 kWh/m²
8
10,4 %
Level 7
200 – 250 kWh/m²
7
3,9 %
Level 8
≥ 250 kWh/m²
11
8,2 %
4. CARBON ACCOUNTING AND PRICING
4.1.
Greenhouse gas removals and carbon credits
alstria does not purchase carbon credits or apply carbon compensation measures. Greenhouse gas
removals and carbon credits therefore do not play a role in achieving climate targets. The company
prioritises direct emission reductions through lifecycle-based decarbonisation measures at asset level.
4.2.
Internal carbon pricing
alstria has been reporting under the Real Estate Carbon Accounting Principles (RECAP:
https://alstria.eu/sustainability#accounting), including the carbon balance sheet and profit and loss
statement, up until the end of FY 2023. This approach was designed to provide transparency on how
the transition to a carbon-lite economy impacts the business and to facilitate discussions with
stakeholders using a familiar framework.
The introduction of the carbon balance sheet allowed an expansion of the focus beyond operational
carbon emissions to include embedded carbon. This shift enables a more comprehensive assessment
of carbon pricing and its value within the operations.
For the current reporting period, no internal carbon price has been applied. Instead, carbon
considerations are integrated into alstria’s decision-making through asset-level decarbonization
assessments, regulatory analyses, and lifecycle-based refurbishment planning. Carbon-related costs
arising from external mechanisms, such as energy taxation and national carbon pricing schemes, are
reflected indirectly in our investment calculations and asset management decisions.
The upcoming EU ETS 2 regulation will apply stringent standards to the building sector, which we
continue to monitor closely as it progresses.
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XI. ANTICIPATED FINANCIAL EFFECTS FROM CLIMATE-RELATED RISKS AND OPPORTUNITIES
The anticipated financial effects of climate-related risks and opportunities for alstria arise primarily
from the transition to a low-carbon economy, affecting the refurbishment, operation, marketability
and value of existing office buildings.
The most relevant potential financial effects relate to capital expenditures required to maintain or
improve energy performance, as well as to impacts on asset marketability and value resulting from
tightening regulatory requirements (e.g. EPBD, MEPS, national energy legislation) and changing tenant
and investor expectations. Transition risks may require accelerated or additional refurbishment
investments where assets require deeper or earlier upgrades to remain compliant. Conversely,
delayed or insufficient adaptation may result in leasing restrictions, reduced occupancy or
constrained exit options.
Climate-related opportunities arise primarily from the timely repositioning and refurbishment of
buildings, supporting the preservation of asset values and long-term income stability. The financial
relevance of these opportunities is closely linked to the timing and depth of refurbishment decisions
over the asset lifecycle.
Physical climate risks are currently expected to have limited direct financial effects and are mainly
considered in relation to potential increases in insurance costs or changes in coverage availability.
Indirect systemic risks, such as impacts on tenant stability or broader market conditions, may
influence financial performance over time but are subject to significant uncertainty.
alstria does not currently quantify anticipated financial effects in monetary terms. The assessment is
expected to be refined once the stop-the-clock phase has been concluded.
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F. FINANCIAL CALENDAR
I.
FINANCIAL CALENDAR
Events 2026
March 6
Publication of the 2025 Annual Report
Mai 7
Publication of Q1
Interim report
August 6
Publication of Q2
Half-year interim report
November 4
Publication of Q3
Interim report
II. FORWARD-LOOKING-STATEMENTS
This annual report contains forward-looking statements. These statements represent assessments which we have
made on the basis of the information available to us at the time. Should the assumptions on which the statements
are based not occur, or if risks should arise the actual results could differ materially from the results currently
expected.
BUILDING
YOUR
FUTURE
alstria S.à r.l.
www.alstria.eu