REG-Aroundtown SA Aroundtown SA announces H1 2024 results highlighting solid results and improvement in market sentiment driving guidance increase

Aroundtown SAAnnouncement

28/08/2024 06:00

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Aroundtown SA (IRSH)
Aroundtown SA announces H1 2024 results highlighting solid results and improvement in market sentiment driving
guidance increase

28-Aug-2024 / 06:46 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 2024 RESULTS HIGHLIGHTING SOLID RESULTS AND IMPROVEMENT IN MARKET SENTIMENT DRIVING GUIDANCE
                                                      INCREASE

  • Net rental income of €588 million in H1 2024, compared to €596 million in H1 2023. With 2.9% like-for-like rental
    growth mostly offsetting the impact from disposals.
  • Adjusted EBITDA of €502 million in H1 2024, higher by 1% YOY supported by increased operational profitability and
    offsetting the net rent decrease.
  • FFO I amounting to €154 million and €0.14 per share for H1 2024.
  • Revaluation of the full portfolio resulting in a value decline of 2.4% on a like-for-like basis. Pace of
    valuation decline slowed substantially supported by the improving macro-economic conditions and sentiment.
  • Net loss of €330 million in H1 2024 reflecting basic loss per share of €0.30, mainly driven by the negative
    property revaluations, partially offset by the operational growth.
  • EPRA NTA amounting to €7.7 billion and €7.0 per share at the end of June 2024, down from €8.1 billion and €7.4
    per share at the end of December 2023.
  • Broad access to diversified funding sources further strengthened in 2024 YTD with €1.15 billion in senior
    unsecured bond issuances, signed bank debt of €240 million and signed disposals of €475 million around book
    value.
  • LTV of 45%, ICR remained solid at 4.0x, and unencumbered assets ratio of 72% (by rent) with a total value of €17
    billion.
  • Liquidity balance of €2.7 billion representing 19% of total debt.
  • Full year 2024 guidance slightly increased.
  • Progress in green building certifications: 50% of offices are certified.

28 August 2024.

Aroundtown (‘the Company’ or ‘AT’) announces results for the first six months of 2024, with net rental income of €588
million, down 1%  compared to  €596 million  in H1  2023. The  decline was  due to  net disposals,  mostly offset  by
operational growth  as reflected  in the  like-for-like  rental growth  of 2.9%.  Year-to-date, AT  signed  disposals
amounting to ca. €475 million around book value and completed  ca. €340 million of disposals in H1 2024. The  Company
reported Adjusted EBITDA of €502 million in H1 2024, 1% higher compared to the €498 million in H1 2023 mostly due  to
the operational growth and increasing  operational profitability, offsetting the  impact from disposals. The  Company
reported an FFO I result of €154 million in the first half of 2024, or €0.14 per share, decreasing from €175  million
or €0.16 per share in H1 2023,  mainly as a result of higher finance  expenses and perpetual note attribution. In  H1
2024, AT conducted an external revaluation on the  full portfolio, registering a like-for-like value decline of  2.4%
or 1.7% after adding back the capex invested in the  portfolio. The pace of devaluation slowed down materially in  H1
2024, mainly  due to  an improved  macro-economic  environment and  improved sentiment  in the  transaction  markets.
Following the strong H1 2024  performance and more positive  outlook, the full year 2024  FFO I guidance is  slightly
increased on lower-than-expected finance expenses  and robust operational momentum to  a range of €290-€320  million,
from previously €280-€310 million.

DIVERSIFIED FUNDING SOURCES FURTHER STRENGTHENING FINANCING PLATFORM

AT has further strengthened its robust financing platform in 2024 YTD by issuing perpetual notes through an  exchange
in Q2, and  senior unsecured bonds  in Q3.  The perpetual notes  exchange and  tender offer transactions  had a  high
acceptance of around  80% and helped  AT regain  equity credit which  is supportive  to the credit  rating under  S&P
methodology. As a result of the transaction, Aroundtown issued €2.5 billion of perpetual notes and reduced the  total
balance by ca. €230  million. In July 2024,  the Group issued €1.15bn  in senior unsecured bonds  which were 7  times
oversubscribed, demonstrating investor confidence. Broad access to diversified funding sources were further supported
by €240 million of bank debt signed in 2024  YTD and continuous disposals. Proceeds from these sources are  channeled
into liability management activities.  In 2024 YTD,  AT bought back €675  million in mainly  shorter-term bonds at  a
slight discount mainly  through tender  offers in Q3.  Furthermore, the  Company repaid bonds  in an  amount of  €445
million year-to-date, thereby extending the debt maturity profile.

The Interim Consolidated Report for H1 2024 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 42-47 of the Interim Consolidated Report for H1 2024. You can find the Interim Consolidated Report for H1  2024
on AT’s website under Investor Relations > Publications > Financial Reports or under this link:

 2 https://www.aroundtown.de/aroundtown.de/Data_Objects/Downloads/Financial_Reports/H1_2024_Financials/AT_Q2_2024.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, XS2799494120, XS2799493825, XS2812484728,
                   XS2812484215, XS2860457071
   Category Code:  IR
   TIDM:           IRSH
   LEI Code:       529900H4DWG3KWMBMQ39
   OAM Categories: 1.2. Half yearly financial reports and audit
                   reports/limited reviews
   Sequence No.:   343172
   EQS News ID:    1976237


    
   End of Announcement EQS News Service

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References

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