Germany's Prime Office REIT has raised its full-year forecasts after posting a positive net rental income result in Q3 of over EUR 49 mln.

'Despite one-off charges in connection with the IPO and the eurozone turmoil, we generated solid results in the first nine months and are very confident for fiscal year 2011. We have therefore adjusted our outlook to reflect the positive situation,' said CEO Claus Hermuth.

The company has increased its forecast for funds from operations for fiscal year 2011 to EUR 19-20 mln and said it will distribute full-year dividends totalling EUR 12 mln, at the upper end of its original guidance range. 'We also increased our forecast for rental and lease revenues by 0.7% to EUR 56.8 mln,' he added.

The Munich-based firm has let about 54,000 m2 over the first nine months of year, resulting in a virtually nul vacancy rate of 0.2% across its portfolio.

In a statement to announce its third-quarter results, Prime Office REIT also said it was able to extend by another two years its only remaining financial liability related to the properties in Dusseldorf, Nuremberg and Stuttgart.

Earlier this year the company raised EUR 214 mln in an Initial Public Offering on the Frankfurt and Munich stock exchanges. Its portfolio consists of 14 office properties in Western Germany with a total area of 385,000 m2 and valued at just less than EUR 1 bn.