REG-Aroundtown SA Aroundtown SA announces H1 2023 results with continued measures to strengthen the balance sheet

Aroundtown SAAnnouncement

30/08/2023 06:00

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Aroundtown SA (IRSH)
Aroundtown SA announces H1 2023 results with continued measures to strengthen the balance sheet

30-Aug-2023 / 06:49 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 H1 2023 RESULTS WITH CONTINUED MEASURES TO STRENGTHEN THE BALANCE SHEET

  • Recurring net rental income of €589 million in H1 2023 lower by 2% as compared to €602 million in
    H1 2022 as a result of disposals, offsetting the total like-for-like rental income growth of 3.4%.
  • Adjusted EBITDA of €498 million in H1 2023, decreasing by 3% as compared to €511 million in H1
    2022.
  • Disposals of approx. €545 million signed in 2023 YTD.
  • Bonds repurchased in the amount of circa €1.3 billion in 2023 YTD at a 20% discount to par. New
    bank financing YTD of €790 million at an average margin of 1.4% plus Euribor and average maturity
    of 7 years.
  • FFO I amounting to €175 million for H1 2023 and €0.16 per share, both down 6% YOY.
  • Following external valuation of the full portfolio in H1 2023, the like-for-like value declined by
    6% and amounted to €1.7 billion. Portfolio value per sqm of €2,518 per sqm as of June 2023.
  • De-leveraging measures maintained LTV at 41% in June 2023, slightly up from 40% in December 2022,
    despite portfolio value decline.  ICR remained strong at 4.5x.
  • Unencumbered assets amounting to €20 billion and representing 79% of total portfolio value
    providing additional financing flexibility.
  • Net loss of €1.3 billion in H1 2023 reflecting basic loss per share of 0.95, mainly driven by the
    negative property revaluations.
  • EPRA NTA amounting to €9.1 billion and EPRA NTA per share of €8.4 at the end of June 2023, down
    from €10.1 billion and €9.3 per share at the end of December 2022.
  • Liquidity balance of €2.5 billion which together with expected proceeds from disposals cover debt
    maturities until mid-2026.
  • Full year 2023 guidance slightly updated upward as a result of the solid operational result.

30 August 2023.

Aroundtown (‘the Company’ or ‘AT’) announces results for the first six months of 2023, with  recurring
long-term net rental income of €589  million, lower compared to €602  million in H1 2022 and  Adjusted
EBITDA of €498 million, lower compared to the €511 million of respective period of 2022. The  decrease
in both items was mainly driven by the high volume of disposals, which offset solid operational growth
reflected in  a like-for-like  rental growth  of  3.4%. Year-to-date  Aroundtown signed  disposals  of
approx. €545 million at slightly below book values, of which ca. €455 million in H1 2023, showing  the
Company’s ability to sell during challenging market conditions.  FFO I amounted to €175 million in  H1
2023, or €0.16 per share, decreasing from €186 million or €0.17 compared to the same period of 2022 as
a result of the  disposals, higher interest rates  and higher coupons on  perpetual notes. Due to  the
current market uncertainty and the impact  on property valuations, Aroundtown externally revalued  its
full portfolio in H1 2023 and recorded a like-for-like  value decline of 6% or 5.4% after adding  back
the capex  invested in  the portfolio.  The revaluation  loss of  €1.7 billion  is due  to the  higher
discount and cap rates, impacting all portfolio locations and asset types.

Due to  the solid  operational performance  reflected in  a like-for-like  increase of  3.4%, and  the
proactive liability management measures taken by the Company, the FFO I guidance was slightly  updated
to the range of €310 million to €340 million, from €300 million to €330 million. 

ACTIVE LIABILITY MANAGEMENT MEASURES SUPPORTING DELEVERAGING

Aroundtown maintained its  strong liquidity position  as of  June 2023, covering  its debt  maturities
until mid-2026, with €2.5  billion in cash and  liquid assets, and an  additional ca. €1 billion  from
signed but not closed disposals and vendor loans. Year-to-date AT repurchased approx. €1.3 billion (of
which approx. €1.2 billion in H1 2023) in nominal value of bonds at an average discount of 20%,  using
its strong liquidity position  helping to further support  deleveraging. Utilizing its strong  banking
relationship, Aroundtown signed  €790 million of  new secured  bank debt year-to-date  (of which  €430
million drawn in H1 2023), with  an average margin of 1.4% plus  Euribor and an average maturity of  7
years, providing  additional  liquidity to  the  Company and  extending  the time  to  refinance.  The
Company’s sizable  pool of  unencumbered assets  of  €20 billion  provides financial  flexibility  and
additional liquidity  potential.  High  volume  of  disposals, bond  buybacks  at  a  discount,  solid
operational profitability, and the suspension of the 2022 dividend have allowed AT to maintain its LTV
relatively stable at 41% as  compared to 40% at year-end  2022, despite material negative  revaluation
impacts.

GREEN CERTIFICATION OF OFFICE PORTFOLIO WELL ON TRACK

Utilizing the knowledge of the  initial pilot project in the  Netherlands, which was started in  2021,
Aroundtown expanded the scope  to Germany and has  been able to further  increase the number of  green
certified office properties in its  portfolio. In 2023 year-to-date, 22%  of the office portfolio  has
been green certified, from 2%  in 2020. Currently the remaining  office properties in the  Netherlands
that have not yet been certified are in  the certification process, which is expected to be  finalized
in the coming periods. At the same time, Aroundtown is continuing the process of certifying its German
office properties. The  Company is  aiming to  gradually increase  the share  of certified  properties
within its portfolio.

The Interim Consolidated Report for H1 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 H1 2023. You can find the  Interim
Consolidated Report for H1 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_Q2_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:  IR
   TIDM:           IRSH
   LEI Code:       529900H4DWG3KWMBMQ39
   OAM Categories: 1.2. Half yearly financial reports and audit
                   reports/limited reviews
   Sequence No.:   267912
   EQS News ID:    1714369


    
   End of Announcement EQS News Service

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References

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