REG-Aroundtown SA Aroundtown SA announces FY 2022 results with guidance achieved and continued disposals despite challenging environment

Aroundtown SAAnnouncement

28/03/2023 21:45

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 Aroundtown SA (IRSH)
 Aroundtown SA announces FY 2022 results with guidance achieved and continued
 disposals despite challenging environment

 28-March-2023 / 22:39 CET/CEST
 The issuer is solely responsible for the content of this announcement.

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 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 FY 2022 RESULTS WITH GUIDANCE ACHIEVED AND CONTINUED
                    DISPOSALS DESPITE CHALLENGING ENVIRONMENT

   • Disposals in the amount of €1.6 billion in 2022 with an additional €150
     million in 2023-to-date demonstrating ability to sell despite difficult
     market conditions with proceeds strengthening the liquidity profile.
   • Net rental income of €1.2 billion in 2022, increasing by 13% as compared to
     €1.1 billion in 2021 mostly from the consolidation of GCP and like for like
     rental growth of 3.5%, offset by disposals.
   • FFO I amounting to €363 million in 2022, up 3% YOY.
   • FFO I per share in 2022 at €0.33 up by 10% compared to €0.30 in 2021 as a
     result of the positive impacts from the accretive share buyback.
   • Net loss of €457 million as result of property devaluations and impairment
     of goodwill, reflecting a loss per share of €0.58.
   • EPRA NTA of €9.3 per share, 2% down as compared to €9.5 per share in 2021.
     Total EPRA NTA amounted to €10.1 billion as of December 2022.
   • EPRA NTA including RETT (previously defined as EPRA NTA) per share amounted
     to €9.8 in 2022, compared to €10.2 in 2021.
   • Conservative financial profile maintained with low LTV of 40%, strong ICR
     at 5.2x, and unencumbered assets of €22.2 billion (82% by rent) as of
     December 2022. High headroom to bond covenants.
   • Proactive repayments of shorter-term bonds and bank loans in the amount of
     approx. €1.1 billion in 2022, offset by €500 million in longer maturity
     bank debt raised in 2022.
   • Guidance for FY 2022 achieved and guidance for FY 2023 published.
   • Due to macro-economic uncertainty, the company will not pay dividend for
     2022.

 28 March 2023.

 Aroundtown (‘the Company’ or ‘AT’) presents the results for the year 2022
 achieving the 2022 guidance despite the difficult macroeconomic conditions. 
 Net rental income amounted to €1.2 billion, increasing by 13% as compared to
 2021 as a result of the consolidation of GCP and like-for-like net rental
 income growth but offset by disposals. AT recorded like-for-like rental growth
 of 3.5%, coming mainly from rent indexation, including 2.9% like for like
 contributed by GCP`s operational growth. FFO I totaled €363 million and
 increased 3% year over year. FFO I per share equaled €0.33 which was 10% higher
 as compared to €0.30 in 2021, in-line with the guidance and positively impacted
 by the share buybacks. In the fourth quarter of 2022, property valuations
 turned negative as a result of yield expansion which offset the robust rental
 growth, and which resulted in a valuation loss of 3%. In the hotel segment, the
 hospitality industry continues to recover with rent collection at 69% in FY
 2022 and expected to increase to 85-90% in 2023, positively impacting cash flow
 going forward.

 PROCEEDS FROM DISPOSALS STRENGTHEN THE LIQUIDITY POSITION AND MAINTAIN
 CONSERVATIVE FINANCIAL PROFILE

 Aroundtown achieved disposals in the amount of €1.6 billion in 2022 with a
 further €150 million so far in 2023. Cash proceeds from disposals strengthen
 the liquidity position which amounted to €2.7 billion as of December 2022 and
 give the Company financial flexibility to continue to actively optimize its
 financial profile. In 2022 and 2023 so far, Aroundtown repaid €1.2 billion in
 shorter term debt with 1-year average maturity. As a result, cash and liquid
 assets and expected proceeds of signed disposals cover debt maturities until
 end of 2025. The Company maintains a conservative financial profile with a low
 LTV ratio of 40%, comfortable ICR of 5.2x, and large headroom on all bond
 covenants which are based on IFRS reported figures and thus fully exclude
 perpetuals notes which are accounted for as equity. Furthermore, the Company’s
 large balance of unencumbered properties in the amount of €22.2 billion provide
 additional flexibility to raise relatively cheaper secured financing. In 2022
 and YTD 2023 the Company raised €640 million in longer maturity bank financing.
 As of December 2022, the average cost of debt remains low at 1.4% and the
 average debt maturity remains long at 5 years.

 As announced today, and in-line with the Company’s measures to preserve
 liquidity, the Board of Directors of Aroundtown decided not to recommend a
 dividend distribution for 2022. The Company believes that in the current
 macro-economic environment it is better to preserve cash and equity, thereby
 strengthening the balance sheet and better positioning the Company to navigate
 the uncertainties ahead.

 CONTINUED ESG PROGRESS IN 2022

 Throughout 2022, Aroundtown continued to make progress on its ESG targets. With
 regards to the environmental front, Aroundtown certified 55% of the Dutch
 portfolio with BREEAM, up from 30% in 2021 and is beginning certifying assets
 in the German portfolio in 2023. Furthermore, the Company continued to invest
 in a range of energy efficiency measures such as Photovoltaics, Combined Heat
 and Power, EV charging stations and efficient windows, lighting, roofs, façades
 and heating systems which will help the Company attain its future emissions and
 certification targets. On the social front, the Aroundtown foundation continued
 to support and engage with numerous charities across its portfolio locations,
 working in close contact with local partners and authorities. Furthermore,
 through the continued Social Days program, AT employees were able to volunteer
 in multiple projects across local communities. Finally, regarding the
 Governance front, the Company continued to improve processes, policies and
 sustainability reporting which was recognized through numerous awards and the
 inclusion in additional sustainability indices such as the Dow Jones
 Sustainability Index and the Bloomberg Gender-Equality Index. Aroundtown
 received the EPRA BPR Gold award for the 6^th time and EPRA sBPR Gold award for
 the 5^th time consecutively, reflecting the Company’s high standards of
 financial transparency and sustainability reporting.

 The Consolidated Annual Report for 2022 and the FY 2022 presentation will be
 available on the Company’s website tomorrow morning:

  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 88-96 of the Consolidated Annual
 Report for 2022. You can find the Consolidated Annual Report tomorrow morning
 on AT’s website under Investor Relations > Publications > Financial Reports.

 About the Company

 Aroundtown SA (symbol: AT1), trading on the Prime Standard of the Frankfurt
 Stock Exchange, is among the largest European listed real estate companies,
 rated BBB+ by S&P. 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:  2 info@aroundtown.de
  3 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.

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

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   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: ACS
   TIDM:          IRSH
   LEI Code:      529900H4DWG3KWMBMQ39
   Sequence No.:  233243
   EQS News ID:   1594917


    
   End of Announcement EQS News Service

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