REG-Aroundtown SA Aroundtown SA announces Q1 2023 results in line with guidance

Aroundtown SAAnnouncement

30/05/2023 06:00

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Aroundtown SA (IRSH)
Aroundtown SA announces Q1 2023 results in line with guidance

30-May-2023 / 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 Q1 2023 RESULTS IN LINE WITH GUIDANCE

  • Disposals of approx. €320 million signed year to date (€155 million in Q1 2023).
  • Bonds repurchased in the amount of circa €710 million in 2023 YTD (€114.5m in Q1 2023) at a 17%
    discount to par.
  • Net rental income of €297 million in Q1 2023 as compared to €309 million in Q1 2022 as a result of
    high disposal volume.
  • FFO I amounting to €85 million for Q1 2023, down 5% YOY. FFO I per share amounted to €0.077 for Q1
    2023, down 4% YOY.
  • Net loss of €22 million in Q1 2023 reflecting basic loss per share of 0.04, as a result of
    negative property revaluations in the amount of €133 million.
  • EPRA NTA amounting to €10 billion and EPRA NTA per share of €9.3 at the end of March 2023.
  • Conservative financial profile maintained, with LTV of 40% and equity ratio of 48% as of March
    2023 and strong ICR of 4.8x in Q1 2023. 
  • Liquidity balance of €3 billion, up by over €300 million since Dec 2022, which cover debt
    maturities until the end of 2025. Additional liquidity sources through undrawn revolving credit
    lines and €22 billion unencumbered properties.
  • Full year 2023 guidance confirmed with all financial KPI’s in line.

30 May 2023.

Aroundtown (‘the Company’ or ‘AT’) presents the results  for the first three months of 2023, in  which
net rental income amounted to €297 million, lower compared to the first quarter of 2022 as a result of
disposals, which offset operational growth reflected in a like-for-like rental growth of 3.5%. In  the
first quarter of 2023 Aroundtown closed approx. €460 million of disposals around book value, of  which
part was signed in 2022.  In 2023 year-to-date the Company  has signed disposals amounting to  approx.
€320 million around  book value. FFO  I for the  first 3 months  of 2023 amounted  to €85 million,  or
€0.077 per share, decreasing from €89 million or 0.080 compared to the same period of 2022 as a result
of the disposals as well as from higher  interest expenses driven by the current higher interest  rate
environment and from higher coupons on the perpetual notes which had their first call date in  January
and which the Board of Directors of both Aroundtown and GCP respectively decided not to call. Q1  2023
results were ahead of the FY 2023 guidance as the next quarters are expected to show higher  financing
costs as well as higher attributions to the  perpetual notes. These impacts had already been  expected
and are in-line with the Company’s unchanged FY 2023 guidance.   

ACTIVE LIABILITY MANAGEMENT MEASURES SUPPORTING DEBT REDUCTION

As of March 2023,  Aroundtown maintained its  sizeable liquidity position, which  amounted to over  €3
billion in cash and liquid assets, and an  additional €1 billion is expected due to disposal  proceeds
and vendor loans  which together cover  debt maturities until  the end of  2025. AT used  part of  its
liquidity to buy back circa €710 million of bonds  maturing in 2024-2026 at a discount to par of  17%.
The majority of  the liability management  was executed after  the reporting period  and will thus  be
reflected in the H1 figures.  Taking into consideration disposal  proceeds, vendor loans and  discount
embedded in  the bond  buy  backs, the  Company  has been  able to  reduce  pro-forma leverage  by  an
additional 3 percentage points. Aroundtown raised €450 million of bank debt year-to-date utilizing its
strong banking relationship, providing liquidity that  can be used for accretive liability  management
and to further  extend the time  to refinance. The  Company continues to  source additional  liquidity
through various means  including bank debt  and disposals  and, until market  volatility levels  down,
expects to continue to allocate funds to buying back debt when it trades at a significant discount.

The Interim Consolidated Report for Q1 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 44 - 49 of the Interim Consolidated Report for Q1 2023. You can find the Interim
Consolidated Report for Q1 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_Q1_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: QRF
   TIDM:          IRSH
   LEI Code:      529900H4DWG3KWMBMQ39
   Sequence No.:  247099
   EQS News ID:   1644263


    
   End of Announcement EQS News Service

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References

   Visible links
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   3. mailto:info@aroundtown.de
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