DO Deutsche Office AG reports successful FY2014

- Increase in Funds from Operations by 11% to about EUR 47 million (2013: EUR 42 million)

- NAV per share at EUR 4.45, EPRA NAV per share at EUR 4.74

- Good lease results: lease performance in 2014 accounts for about 18 % of the portfolio's total lettable area

- Vacancy rate drops by 3.5 percentage points to 16.4 %

- Proposed dividend compared to guidance increased by 50 respectively 36 % to EUR 0.15 per share

- Guidance 2015:

- Rental revenues based on the current portfolio in the amount of
EUR 105 - 107 million

- FFO increases to at least EUR 50 million

- Stable dividend at a payout ratio of 50 - 60% of FFO

Cologne, 26 March 2015. DO Deutsche Office AG ("Deutsche Office") is announcing the final results for FY2014. The merger of Prime Office REIT-AG ("PO REIT") and OCM German Real Estate Holding AG into Deutsche Office took place upon being registered in the Trade Registry on 21 January 2014. 2013 comparison figures are represented on a pro forma basis.

Given revenues from rental income of about EUR 106 million and, including PO REIT as of January 2014, in the amount of about EUR 108 million (2013: EUR 135 million), Deutsche Office achieved Funds from Operations (FFO) amounting to about EUR 47 million (2013: EUR 42 million). The FFO were thus above the guidance of EUR 44 - 46 million. The FFO increase by around 11 % resulted in particular from the significant improvement in the financial result adjusted for one-off effects, which decreased from about EUR -70 million in 2013 by 45 % to about EUR -38 million. Key drivers in this regard were the significantly reduced Net-LTV-ratio that was lowered from 58.6 % in the previous year to 53.5 % as well as the improved financing terms with a weighted average interest rate of 3.4 %. Based on the positive effects on the financing side, Deutsche Office was able to more than offset the decline in revenues from rental income that was mainly attributable to disposals.

Net profit in FY2014 was about EUR 125 million (2013: EUR -125 million). It includes earnings from the merger in the amount of EUR 115 million. The EPRA result, which adjusts one-time and special items, rose in FY2014 to about EUR 39 million (2013: EUR 13 million). The remarkable improvement can be attributed to the improved financial result. The EPRA result per share rose to EUR 0.22 (2013: EUR 0.10).

The Net Asset Value (NAV) went up substantially by the end of 2014 to about EUR 803 million (2013: EUR 707 million). On 31 December 2014, the end of the reported period, the NAV per share was EUR 4.45 and the EPRA NAV was EUR 4.74.

Besides overcoming numerous particular merger- and integration-related issues, Deutsche Office achieved a good letting result in 2014 of 170,700 sqm in total. The rented area corresponds to about 18 % of the portfolio's total area. All in all, around 45,400 sqmwere attributed to new lease contracts and about 125,300 sqmwere attributed to lease contract extensions. By the end of the year, the vacancy rate of investment properties was 16.4 % (previous year: 19.9 %).

In FY2014 Deutsche Office gained a good starting position for its future development. Based on the positive operational development in FY2014, the Executive and Supervisory Board of Deutsche Office are proposing to the annual shareholders' meeting, which will be held in Cologne on 17 June 2015, to distribute a total of EUR 0.15 per share for FY2014.

For FY2015 based on the current portfolio Deutsche Office is expecting EUR 105 - 107 million in rental revenues and FFO to climb to at least EUR 50 million. In addition, the Company expects stable dividends with a pay-out ratio of 50 - 60 % of FFO going forward.

On the occasion of the announcement of the results for FY2014, the Executive Board is inviting analysts, investors and journalists to attend a telephone conference on 26 March 2015 at 2:00pm CET. The annual report as well as a webcast of the telephone conference will be available on the homepage at www.deutsche-office.com.

Deutsche Office at a glance

in EUR million 2014 2013
(pro-forma) 		Delta
in %
Rental income 108 135 - 20
Financial result - 38 - 70 -45
Consolidated net income 125 - 125 n.a.
Earnings per share (in EUR) 0.73 - 0.94 n.a.
EPRA earnings 39 13 > 100
EPRA earnings per share (in EUR) 0.22 0.10 > 100
Funds from operations (FFO) 47 42 11
Investment properties 1,781 1,904 -6
Balance sheet total 1,951 2,120 -8
Equity 803 707 14
Equity ratio (in percent) 41.2 33.4 n.a.
Net Loan to value ratio [LTV] (in percent) 53.5 58.5 n.a.
Net asset value (NAV) 803 707 14

Corporate contact:

DO Deutsche Office AG
Richard Berg
Head of Investor Relations & Corporate Communications
Email rberg@deutsche-office.de
Telephone +49 (0)221 - 888 29 160

About Deutsche Office

Deutsche Office is a leading, on the SDAX index listed office property company, focussing on German metropolitan regions and conurbations. As at 31 December 2014, its geographically diversified real estate portfolio contained 51 properties held as investment properties, with a total rental area of about 899,000 square metres and an attractive and broad tenant base. As at 31 December 2014, the properties had a market value of about EUR 1.8 billion. Deutsche Office's business model is based on the profit-oriented asset management of office properties in German metropolitan regions, underpinned by investment to increase and to maintain the value of the properties in the portfolio. The strategy also includes the acquisition of properties with potential for appreciation as well as exploiting potential sales opportunities, which are applied throughout the entire property cycle in order to capitalise the appreciation achieved and to invest in new properties.

Additional information on Deutsche Office is available online at: http://deutsche-office.com

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