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Aroundtown S.A. — Earnings Release 2019
Aug 29, 2019
6213_rns_2019-08-29_40567809-f17d-4ab3-92e2-2fe5d7a868b3.pdf
Earnings Release
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Aroundtown SA (IRSH)
28-Aug-2019 / 06:52 CET/CEST
Dissemination of a RegulatoryAnnouncement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
THISANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLYOR INDIRECTLY, IN OR INTOTHE UNITED STATES, CANADA,AUSTRALIA, JAPAN, SOUTHAFRICAORANYOTHER JURISDICTION WHERE TODOSO WOULD CONSTITUTEAVIOLATION OFAPPLICABLE LAWS OR REGULATIONS
AROUNDTOWNANNOUNCES STRONGGROWTH DRIVEN BYACQUISITIONSAND INCREASED OPERATIONAL RESULTS
- Net rental income increased to EUR359 million during the first half of 2019, up 23% from EUR291 million reported in H1 2018.
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Adjusted EBITDAgrew to EUR363 million, +30% YOY.
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FFOI up by 26% to EUR239 million.
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FFOI per share increased to EUR0.21, grew by 11% YOY, (EUR0.42 annualized, reflecting a yield of 5.6%).
- FFOI per share after perpetual notes attribution grew by 12% YOYto EUR0.19
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Active sales pipeline providing substantial funds and enabling capital recycling into high quality assets: over EUR220 million disposals concluded in H1 2019, resulting in an FFOII of EUR288 million.
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Profit for the period at EUR969 million in H1 2019, resulting in a basic EPS of EUR0.68.
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EPRANAV advanced to EUR9.4 billion and EUR8.3 per share at the end of June 2019, with a per share growth of 11% (dividend adjusted) since year-end 2018.
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EPRANAV including perpetual notes amounted to EUR11.4 billion and EUR10.1 per share.
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High equity ratio of 51% maintained with Total Equity growing by 15% since year-end 2018 to EUR11.5 billion, and Total Equity pro forma at EUR12.6 billion.
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Investment property increased to EUR16.2 billion, up by 14% since year-end 2018.
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Healthy capital structure maintained with a low LTV of 36% at the end of June 2019, with a high unencumbered assets ratio of 74% (EUR11.4 billion in value).
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Solid credit profile with ICR at 4.5x, long average debt maturity period of 7.5 years, and lower average cost of debt of 1.7%.
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Robust organic growth is highlighted by the total net rent LFL growth of 4.4%, 2.3% is attributable to in-place rent increases and 2.1% is due to occupancy increases in the portfolio.
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Following the strong results and acquisition activity, 2019 Guidance is updated.
28August 2019.
Strong operational performance leading to high profitability and unlocking the value potential
Aroundtown (the 'Company' or 'AT') announces its results for the first half of 2019, demonstrating a strong growth in both the topline and bottom-line results, achieved by continuous strong acquisition activities and extracting the internal potential of the portfolio. AT continues to unlock its high reversionary potential, reflected in the total like-for-like net rental income growth of 4.4%. The combined efforts led to an FFO I per share growth of 11%, which amounted to EUR0.21, EUR0.42 when annualized, representing an FFO I yield of 5.6%. Based on the dividend payout policy of 65% of the FFO I per share, this results in a dividend yield of 3.6%. EPRA NAV per share increased to EUR8.3, growing by 11% dividend adjusted and 8% net of dividend paid, showing the consistent value creation at the shareholders' level. Guidance for FY2019E is updated based on the strong results and the strong acquisition activity, which will have a partial effect on 2019 results and only a full year impact starting 2020. Updated guidance includes additional EUR25 million FFO I(new guidance at >EUR490 million). FFO I per share guidance remains at EUR0.41- EUR0.42 (EUR0.37 - EUR0.38 after perpetual notes attribution), based on the increased number of shares from the EUR601 million equity increase in July 2019. The equity will supportAT's pursuit of attractive deals generating accretive shareholder profitability.
Year-to-date signed deals of EUR2.5 billion with high reversionary rent and value-add potential
Benefitting from its large deal sourcing network and its market experience,Aroundtown signed deals year-to-date of EUR2.5 billion, of which EUR1.2 billion has been taken over in H1 2019. The year-to-date signed acquisitions are of high quality with high growth and upside potential, primarily offices and hotels, mainly located in top tier European cities Munich, Berlin, Cologne, Hamburg, Frankfurt and in the Benelux. The Acquisitions are expected to be taken over inQ3 and Q4 2019.
The financial statements for H1 2019 are available on the Company's website:
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 54-56 of the H1 2019 financial statements. You can find the financial statements inAT's website under Investor Relations > Publications > Financial Reports or under this link:
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 inGermany/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 1,Avenue du Bois, L-1251 Luxembourg, Grand Duchy of Luxembourg.
Contact
Timothy Wright
T: +352 285 7741
www.aroundtown.de
DISCLAIMER
THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELLOR THE SOLICITATION OF AN OFFER TO BUYANY 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 SECURITIESACT),AND MAYNOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION ORAN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES.
THIS ANNOUNCEMENT IS DIRECTED ATAND IS ONLYBEING DISTRIBUTED IN THE UNITED KINGDOM TO (I) PERSONS WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHINARTICLE 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 MAYOTHERWISE LAWFULLYBE COMMUNICATED FALLING WITHINARTICLE 49 OF THE ORDER,AND (III) PERSONS TO WHOM IT MAYOTHERWISE LAWFULLYBE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TOAS RELEVANT PERSONS). THIS COMMUNICATION MUST NOT BE READ,ACTED ON OR RELIED ON BYPERSONS WHOARE NOT RELEVANT PERSONS.ANYINVESTMENT OR INVESTMENTACTIVITYTO WHICH THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLYTO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLYWITH RELEVANT PERSONS.
IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA (EEA), THIS ANNOUNCEMENTAND ANYOFFER IF MADE SUBSEQUENTLYIS DIRECTED ONLYAT PERSONS WHOARE 'QUALIFIED INVESTORS' WITHIN THE MEANING OF ARTICLE 2(1)(E) OF DIRECTIVE 2003/71/EC,AS AMENDED (THE PROSPECTUS DIRECTIVE) (QUALIFIED INVESTORS). ANYPERSON IN THE EEA WHOACQUIRES THE SECURITIES INANYOFFER (AN INVESTOR) OR TO WHOM ANYOFFER OF THE SECURITIES IS MADE WILL BE DEEMED TO HAVE REPRESENTED AND AGREED THAT IT IS A QUALIFIED INVESTOR.ANYINVESTOR WILLALSO BE DEEMED TO HAVE REPRESENTED AND AGREED THATANYSECURITIES ACQUIRED BYIT IN THE OFFER HAVE NOT BEENACQUIRED ON BEHALF OF PERSONS IN THE EEA OTHER THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEENACQUIRED WITHA VIEW TO THEIR OFFER OR RESALE IN THE EEA TO PERSONS WHERE THIS WOULD RESULT INA REQUIREMENT FOR PUBLICATION BYAROUNDTOWN OR ANYOF THE MANAGERS OF A PROSPECTUS PURSUANT TOARTICLE 3 OF THE PROSPECTUS DIRECTIVE.
THIS ANNOUNCEMENT MAYCONTAIN PROJECTIONS OR ESTIMATES RELATING TO PLANS AND OBJECTIVES RELATING TO OUR FUTURE OPERATIONS, PRODUCTS, OR SERVICES, FUTURE FINANCIAL RESULTS, OR ASSUMPTIONS UNDERLYING OR RELATING TOANYSUCH STATEMENTS, EACH OF WHICH CONSTITUTES A FORWARD-LOOKING STATEMENT SUBJECT TO RISKS AND UNCERTAINTIES, MANYOF WHICHARE BEYOND THE CONTROLOF AROUNDTOWN SA.ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ONA NUMBER OF FACTORS.
ISIN: LU1673108939, XS1227093611, XS1336607715, XS1403685636, XS1449707055, XS1532877757, XS1540071724, XS1586386739, XS1649193403, XS1700429308, XS1715306012, XS1761721262, XS1815135352, XS1753814141, CH0398677689, XS1857310814 Category Code:IR TIDM: IRSH
LEICode: 529900H4DWG3KWMBMQ39 OAM Categories: 1.2. Half yearly financial reports and audit reports/limited reviews Sequence No.: 18208 EQS News ID: 864249
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