REG-Aroundtown SA Aroundtown SA announces FY 2023 results with strong liquidity and solid operations

Aroundtown SAAnnouncement

27/03/2024 06:00

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Aroundtown SA (IRSH)
Aroundtown SA announces FY 2023 results with strong liquidity and solid operations

27-March-2024 / 06:48 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 2023 RESULTS WITH STRONG LIQUIDITY AND SOLID OPERATIONS

  • Disposals completed of over €1.2 billion in 2023, increasing liquidity and reducing leverage.
    Signed disposals amounted to €0.9bn in 2023.
  • Pro-active liability management, including the repurchase of €1.3 billion shorter-term bonds at a
    discount.
  • New bank debt of ca. €1 billion signed in 2023.
  • Liquidity balance increased to €3 billion and net debt reduced by €0.9 billion during 2023.
  • Property revaluations amounted to negative €3.2 billion, reflecting a like-for-like devaluation of
    11%.
  • LTV of 43% as of December 2023, increased by 3% during the year as disposals and pro-active
    liability management partially mitigated the devaluation impact.
  • Net rental income of €1.2 billion in 2023, 2% lower year-over-year, as a result of net disposals,
    offset by total like-for-like rental income growth of 3.2%.
  • Adjusted EBITDA amounted to €1 billion in 2023, stable compared to 2022.
  • FFO I amounted to €332 million and €0.30 per share in 2023, lower by 8% and 9% respectively
    compared to 2022. Top range of 2023 guidance achieved and guidance for 2024 published.
  • Net loss of €2.4 billion and basic loss per share of €1.82 in 2023 mainly due to negative property
    revaluations.
  • EPRA NTA of €8.1 billion and €7.4 per share as of December 2023 compared to €10.1 billion and €9.3
    per share as of December 2022.
  • Unencumbered assets ratio of 74%, reflecting a value of €17.9 billion and ICR of 4.2x in 2023.
  • Gradual progress in green building certifications: 100% of the Dutch office and 36% of total
    office portfolio green certified.
  • Due to current macro-economic environment, the Company will not pay dividend for 2023.

27 March 2024.

Aroundtown (‘the Company’ or ‘AT’) announces results for the  year 2023 in the top range of full  year
guidance, successfully navigating a volatile macroeconomic environment. Net rental income amounted  to
€1.2 billion in 2023, slightly lower year-over-year, as a result of the ca. €2.8 billion of  disposals
since the start of 2022. AT recorded like-for-like rental growth of 3.2%, driven by the solid in-place
rent growth of 3.6%, mainly  by indexations and high  reversionary potential, offsetting the  negative
0.4% occupancy like-for-like decrease. Adjusted EBITDA remained stable year-over-year at €1 billion as
organic growth and  efficiencies offset impact  of disposals.  Higher rent collection  from the  hotel
portfolio further supported  the FFO  I which  amounted to  €332 million  and €0.30  per share,  lower
compared to €363 million  and €0.33 per  share in 2022  due to higher  finance expenses and  perpetual
notes attribution.

PROACTIVE BALANCE SHEET MANAGEMENT MAINTAINS CONSERVATIVE LEVERAGE

Aroundtown continued its proactive liability measures and reduced net debt by €0.9 billion during  the
year. In 2023, AT  completed over €1.2 billion  of disposals and repurchased  approx. €1.3 billion  of
mostly shorter-term  bonds at  a  discount. 16%  of  total debt  maturing in  2024  to 2026  has  been
repurchased extending  the  debt maturity  profile  and reducing  the  refinancing risk.  The  current
liquidity position covers the debt maturities  until mid-2026. Additionally, Aroundtown signed ca.  €1
billion in new bank debt during 2023 from  a variety of different banks, utilizing the strong  banking
relationships. The new bank debt was raised at an average maturity of over 7 years and margin of  1.4%
over Euribor, of which €0.9 billion has been drawn in 2023.

The full portfolio  was revalued  by independent  and certified  third-party appraisers  for the  2023
annual report, resulting in a like-for-like  revaluation loss of 11%, of  which 5% was recorded in  H2
2023. The revaluation loss is  the result of the  higher discount and cap  rates driven by the  higher
interest rates. Despite the negative revaluations, LTV  increased by 3% as the proactive  deleveraging
measures counteracted the impact. Collectively these  measures will continue to support AT’s  strategy
in strengthening the balance sheet and reducing leverage.

ESG PROGRESS IN 2023

Aroundtown continued to make progress on its ESG  targets. 100% of the Dutch office portfolio has  now
been green certified. 36%  of the total office  portfolio has been green  certified, up from 15%  last
year. Aroundtown aims to gradually  increase the share of  certified properties within its  portfolio.
Installations of solar  panels and  energy efficient heating  measures continued,  reaching a  maximum
capacity of 6  million kWh pa  and approx. 400  EV charging sockets  have been cumulatively  installed
across the portfolio. AT continued to invest in energy efficient refurbishments such as roof,  facade,
window and lighting replacements.  On the social  front, AT continued to  engage with communities  and
contributed to over  90 charity  projects. On  the governance  front, AT  further improved  processes,
policies  and  sustainability  reporting  which  was  recognized  through  numerous  awards  and   the
(re-)inclusion in indices such MDAX ESG+, Bloomberg Gender Equality Index and Dow Jones Sustainability
Index Europe. Aroundtown received the EPRA BPR Gold award  for the 7^th time and EPRA sBPR Gold  award
for the 6^th time  consecutively. Further details on  sustainability measures can be  found in the  FY
2023  Consolidated  Report  which  is  now  integrating  the  non-financial  reporting  alongside  the
comprehensive financial report.

The Consolidated Report for FY 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 142-150 of  the Consolidated Report for FY  2023. You can find the  Consolidated
Report for FY  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_FY_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.

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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
   OAM Categories: 1.1. Annual financial and audit reports
   Sequence No.:   312120
   EQS News ID:    1868119


    
   End of Announcement EQS News Service

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References

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