REG-Aroundtown SA Aroundtown SA announces 9M 2023 results with solid operations

Aroundtown SAAnnouncement

29/11/2023 05:45

============

Aroundtown SA (IRSH)
Aroundtown SA announces 9M 2023 results with solid operations

29-Nov-2023 / 06:44 CET/CEST
The issuer is solely responsible for the content of this announcement.

══════════════════════════════════════════════════════════════════════════════════════════════════════

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 9M 2023 RESULTS WITH SOLID OPERATIONS

  • Liquidity balance of €2.8 billion as of September 2023 representing 20% of total debt. Including
    signed disposals and future proceeds from vendor loans, liquidity will amount to €3.7 billion and
    will cover debt maturities until mid-2026.
  • Disposals of approx. €710 million signed in 2023 year-to-date.
  • 16% of debt maturing in 2024-2026 has been repurchased. €1.3 billion of bonds repurchased at an
    average discount of 20% thereby reducing leverage and further strengthening the balance sheet.
  • New bank debt signed in the amount of ca. €1 billion YTD of which €790 million drawn during 9M
    2023.
  • Progressing amount of green building certifications: 100% of the Dutch office, 29% of total office
    portfolio
  • Recurring net rental income of €885 million in 9M 2023, down by 2% compared to €903 million in 9M
    2022 due to net disposals, offset by total like-for-like rental income growth of 3.5%.
  • Adjusted EBITDA of €748 million in 9M 2023, 1% lower compared to €758 million in 9M 2022. 
  • FFO I of €255 million and €0.23 per share in 9M 2023, lower compared to €275 million and €0.25 per
    share in 9M 2022.
  • Net loss of €1.4 billion and basic loss per share of €1.02 in 9M 2023 mostly due to negative
    property revaluations.
  • EPRA NTA of €9.1 billion as of the end of September 2023 compared to €10.1 billion at the end of
    December 2022. EPRA NTA per share of €8.3 as of the end of September 2023 compared to €9.3 at the
    end of December 2022.
  • LTV of 41% at the end of September 2023, only 1% higher compared to 40% at the end of December
    2022 due to the positive impacts of the liability management and deleveraging activities.
  • Unencumbered assets ratio of 75%, reflecting a value of €19.1 billion and ICR of 4.3x in 9M 2023.
  • Full year 2023 guidance confirmed.

29 November 2023.

Aroundtown (‘the Company’ or ‘AT’) announces  results for the first nine  months of 2023 in line  with
full year guidance. Recurring long-term net rental income amounted to €885 million in 9M 2023, down by
2% compared to €903 million in 9M 2022 due to ca. €1 billion closed disposals in the period, offset by
the total portfolio’s  like-for-like rental growth  of 3.5%. Year-to-date  2023 Aroundtown signed  ca.
€710 million of disposals at slightly below book value, of which €660 million were signed in 9M  2023,
showing the Company’s ability  to sell also during  challenging market conditions. In  9M 2023, FFO  I
totaled €255 million representing €0.23 per share, lower compared to €275 million and €0.25 per  share
in 9M 2022. The  decline was mainly due  to disposals, higher finance  expenses, and higher  perpetual
notes attribution partially offset  by higher hotel rent  collection and like-for-like rental  growth.
The Company confirms its  FFO I guidance for  FY 2023, which is  expected to be in  the range of  €310
million to €340 million.

LIABILITY MANAGEMENT MEASURES STRENGTHEN THE BALANCE SHEET

Aroundtown strengthened its liquidity position to €2.8 billion at the end of September 2023 from  €2.7
billion at  the  end of  December  2022 despite  having  undertaken significant  liability  management
measures. In 2023 year  to date, AT has  repurchased approx. €1.3 billion  of bonds in nominal  value,
mostly with near-term maturities at an average discount of 20%, thereby further reducing net debt  and
extending the debt maturity profile. As a result, 16% of total debt maturing in 2024 to 2026 has  been
repurchased and cash and liquid assets with future cash proceeds from signed disposal and vendor loans
will cover debt  maturities until mid-2026.  Furthermore, using its  strong banking relationships  and
large network AT  signed ca. €1  billion in  new bank debt  year-to-date from a  variety of  different
banking partners. The new bank debt  has an average maturity of above  7 years and margin of 1.4%,  of
which €790 million has been drawn in  9M 2023. Deleveraging measures which include further  disposals,
bond buybacks at  a discount, suspension  of dividends, not  exercising the option  to call  perpetual
notes, and operational profitability have allowed AT to  maintain its LTV relatively stable at 41%  as
compared to 40% at year-end 2022, despite significant negative revaluation impacts.

100% OF THE DUTCH OFFICE PORTFOLIO HAS BEEN GREEN CERTIFIED

Following the  initial pilot  project in  2021, 100%  of the  Dutch office  portfolio has  been  green
certified. The knowledge gained has been leveraged successfully by expanding the scope of the  project
to include also the German office portfolio, which is currently in the process of being certified.  As
a result, 29% of the office portfolio has been green certified year to date, up from 15% at the end of
2022 and 2% at the end of 2020. Aroundtown continues the process of certifying its portfolio and  aims
to gradually increase the share of certified properties within its portfolio.

The Interim Consolidated Report for 9M 2023 is available on the Company’s website:

 1 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 46-51 of the Interim Consolidated  Report for 9M 2023. You can find the  Interim
Consolidated Report for 9M 2023  on AT’s website under Investor  Relations > Publications >  Financial
Reports or under this link:

 2 https://www.aroundtown.de/fileadmin/user_upload/04_investor_relations/downloads/2023/AT_Q3_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:  3 info@aroundtown.de
 4 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.

══════════════════════════════════════════════════════════════════════════════════════════════════════

Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

══════════════════════════════════════════════════════════════════════════════════════════════════════

   ISIN:          LU1673108939, LU1673108939, XS2114459550, XS1508392625,
                  XS1634523754, XS1752984440, XS2017788592, XS2027946610,
                  XS2055106210, XS2287744721, XS1586386739, XS1639847760,
                  XS1649193403, XS1700429308, XS1715306012, XS1753814141,
                  CH0398677689, XS1761721262, XS1815135352, AU3CB0252955,
                  CA04269KAA12, XS1879567144, XS1877353786, XS1901137106,
                  XS1905592546, CH0460054437, XS1961042915, XS1964701822,
                  XS1966277748, XS1980255779, XS1999746370, XS2023872174,
                  XS2023873149, XS2198981263, XS1843435501, XS2273810510,
                  XS2421195848,
   Category Code: QRT
   TIDM:          IRSH
   LEI Code:      529900H4DWG3KWMBMQ39
   Sequence No.:  287849
   EQS News ID:   1783919


    
   End of Announcement EQS News Service

   ══════════════════════════════════════════════════════════════════════════

    5 fncls.ssp?fn=show_t_gif&application_id=1783919&application_name=news&site_id=refinitiv2

References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=6119f03c12e11c68c3af148b6301db5d&application_id=1783919&site_id=refinitiv2&application_name=news
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=e17a929615c0b4e4f53ebdd4974404cc&application_id=1783919&site_id=refinitiv2&application_name=news
   3. mailto:info@aroundtown.de
   4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=297cc9a7a72fca4905b7f9b22c5861be&application_id=1783919&site_id=refinitiv2&application_name=news


============