Aroundtown SA announces Q1 2023 results in line with guidance

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS

AROUNDTOWN ANNOUNCES Q1 2023 RESULTS IN LINE WITH GUIDANCE

• Disposals of approx. €320 million signed year to date (€155 million in Q1 2023).
• Bonds repurchased in the amount of circa €710 million in 2023 YTD (€114.5m in Q1 2023) at a 17% discount to par.
• Net rental income of €297 million in Q1 2023 as compared to €309 million in Q1 2022 as a result of high disposal volume.
• FFO I amounting to €85 million for Q1 2023, down 5% YOY. FFO I per share amounted to €0.077 for Q1 2023, down 4% YOY.
• Net loss of €22 million in Q1 2023 reflecting basic loss per share of 0.04, as a result of negative property revaluations in the amount of €133 million.
• EPRA NTA amounting to €10 billion and EPRA NTA per share of €9.3 at the end of March 2023.
• Conservative financial profile maintained, with LTV of 40% and equity ratio of 48% as of March 2023 and strong ICR of 4.8x in Q1 2023. 
• Liquidity balance of €3 billion, up by over €300 million since Dec 2022, which cover debt maturities until the end of 2025. Additional liquidity sources through undrawn revolving credit lines and €22 billion unencumbered properties.
• Full year 2023 guidance confirmed with all financial KPI’s in line.

30 May 2023.

Aroundtown (‘the Company’ or ‘AT’) presents the results for the first three months of 2023, in which net rental income amounted to €297 million, lower compared to the first quarter of 2022 as a result of disposals, which offset operational growth reflected in a like-for-like rental growth of 3.5%. In the first quarter of 2023 Aroundtown closed approx. €460 million of disposals around book value, of which part was signed in 2022. In 2023 year-to-date the Company has signed disposals amounting to approx. €320 million around book value. FFO I for the first 3 months of 2023 amounted to €85 million, or €0.077 per share, decreasing from €89 million or 0.080 compared to the same period of 2022 as a result of the disposals as well as from higher interest expenses driven by the current higher interest rate environment and from higher coupons on the perpetual notes which had their first call date in January and which the Board of Directors of both Aroundtown and GCP respectively decided not to call. Q1 2023 results were ahead of the FY 2023 guidance as the next quarters are expected to show higher financing costs as well as higher attributions to the perpetual notes. These impacts had already been expected and are in-line with the Company’s unchanged FY 2023 guidance.   

ACTIVE LIABILITY MANAGEMENT MEASURES SUPPORTING DEBT REDUCTION

As of March 2023, Aroundtown maintained its sizeable liquidity position, which amounted to over €3 billion in cash and liquid assets, and an additional €1 billion is expected due to disposal proceeds and vendor loans which together cover debt maturities until the end of 2025. AT used part of its liquidity to buy back circa €710 million of bonds maturing in 2024-2026 at a discount to par of 17%. The majority of the liability management was executed after the reporting period and will thus be reflected in the H1 figures. Taking into consideration disposal proceeds, vendor loans and discount embedded in the bond buy backs, the Company has been able to reduce pro-forma leverage by an additional 3 percentage points. Aroundtown raised €450 million of bank debt year-to-date utilizing its strong banking relationship, providing liquidity that can be used for accretive liability management and to further extend the time to refinance. The Company continues to source additional liquidity through various means including bank debt and disposals and, until market volatility levels down, expects to continue to allocate funds to buying back debt when it trades at a significant discount.

The Interim Consolidated Report for Q1 2023 is available on the Company’s website:

https://www.aroundtown.de/investor-relations/publications/financial-reports/

For definitions and reconciliations of the Alternative Performance Measures, please see the relevant sections in the pages 44 - 49 of the Interim Consolidated Report for Q1 2023. You can find the Interim Consolidated Report for Q1 2023 on AT’s website under Investor Relations > Publications > Financial Reports or under this link:

https://www.aroundtown.de/fileadmin/user_upload/04_investor_relations/downloads/2023/AT_Q1_2023.pdf

About the Company

Aroundtown SA (symbol: AT1), trading on the Prime Standard of the Frankfurt Stock Exchange, is the largest listed and highest rated (BBB+ by S&P) German commercial real estate company. Aroundtown invests in income generating quality properties with value-add potential in central locations in top tier European cities mainly in Germany/NL.

Aroundtown SA (ISIN: LU1673108939) is a public limited liability company (société anonyme) established under the laws of the Grand Duchy of Luxembourg, registered with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés, Luxembourg) under number B217868, having its registered office at 37, Boulevard Joseph II, L-1840 Luxembourg, Grand Duchy of Luxembourg.

Contact

Timothy Wright
T: +352 288 313
E: info@aroundtown.de
www.aroundtown.de

DISCLAIMER

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.

THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES.

THIS ANNOUNCEMENT IS DIRECTED AT AND IS ONLY BEING DISTRIBUTED IN THE UNITED KINGDOM TO (I) PERSONS WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE ORDER), (II) HIGH NET WORTH ENTITIES, AND OTHER PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED FALLING WITHIN ARTICLE 49 OF THE ORDER, AND (III) PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS RELEVANT PERSONS). THIS COMMUNICATION MUST NOT BE READ, ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS.

IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA (EEA) AND THE UNITED KINGDOM, THIS ANNOUNCEMENT AND ANY OFFER IF MADE SUBSEQUENTLY IS DIRECTED ONLY AT PERSONS WHO ARE “QUALIFIED INVESTORS” WITHIN THE MEANING OF REGULATION (EU) 2017/1129, AS AMENDED (THE PROSPECTUS REGULATION) (QUALIFIED INVESTORS). ANY PERSON IN THE EEA OR THE UNITED KINGDOM WHO ACQUIRES THE SECURITIES IN ANY OFFER (AN INVESTOR) OR TO WHOM ANY OFFER OF THE SECURITIES IS MADE WILL BE DEEMED TO HAVE REPRESENTED AND AGREED THAT IT IS A QUALIFIED INVESTOR. ANY INVESTOR WILL ALSO BE DEEMED TO HAVE REPRESENTED AND AGREED THAT ANY SECURITIES ACQUIRED BY IT IN THE OFFER HAVE NOT BEEN ACQUIRED ON BEHALF OF PERSONS IN THE EEA OR THE UNITED KINGDOM OTHER THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEEN ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN THE EEA OR THE UNITED KINGDOM TO PERSONS WHERE THIS WOULD RESULT IN A REQUIREMENT FOR PUBLICATION BY AROUNDTOWN OR ANY OF THE MANAGERS OF A PROSPECTUS PURSUANT TO ARTICLE 3 OF THE PROSPECTUS REGULATION.

THIS ANNOUNCEMENT MAY CONTAIN PROJECTIONS OR ESTIMATES RELATING TO PLANS AND OBJECTIVES RELATING TO OUR FUTURE OPERATIONS, PRODUCTS, OR SERVICES, FUTURE FINANCIAL RESULTS, OR ASSUMPTIONS UNDERLYING OR RELATING TO ANY SUCH STATEMENTS, EACH OF WHICH CONSTITUTES A FORWARD-LOOKING STATEMENT SUBJECT TO RISKS AND UNCERTAINTIES, MANY OF WHICH ARE BEYOND THE CONTROL OF AROUNDTOWN SA. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.