REG-Aroundtown SA Aroundtown SA announces Q1 2024 results with stable start to the year, confirming guidance, positioning for better expected outlook

Aroundtown SAAnnouncement

29/05/2024 06:00

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Aroundtown SA (IRSH)
Aroundtown SA announces Q1 2024 results with stable start to the year, confirming guidance, positioning for better expected
outlook

29-May-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 Q1 2024 RESULTS WITH STABLE START TO THE YEAR, CONFIRMING GUIDANCE, POSITIONING FOR BETTER EXPECTED OUTLOOK

  • Net rental income of €293 million in Q1 2024, lower by 1% year-over-year, as like-for-like rental income growth of 2.8%
    mostly offset the disposal impact.
  • Adjusted EBITDA of €247 million, up by 1% driven by like-for-like rental income growth and cost efficiency.
  • FFO I amounting to €76 million and €0.07 per share in Q1 2024, in-line with 2024 guidance.
  • Completed disposals of approx. €110 million in Q1 2024. Year to date signed disposals amounted to ca. €200 million.
  • Net profit of €102 million and basic earnings per share of €0.04 in Q1 2024.
  • EPRA NTA of €8.1 billion and €7.4 per share as of March 2024, stable since December 2023.
  • LTV remained stable at 43% as of March 2024. Unencumbered assets ratio of 74%, reflecting a value of €18 billion as of March
    2024 and ICR of 3.9x in Q1 2024.
  • Successful perpetual exchange post Q1 has long-term accretive FFO impact, improves access to capital markets and is
    supportive to credit rating metrics.
  • FY 2024 Guidance confirmed.

29 May 2024.

Aroundtown (‘the Company’ or  ‘AT’) announces results  for the first  three months of  2024. Net rental  income amounted to  €293
million, only slightly lower year-over-year since like-for-like net rental  income growth of 2.8% mostly offset the net  disposal
impact. The like-for-like rental growth was  mainly driven by in-place rental growth  which offset lower occupancy in the  office
portfolio and was further supported by the strong performance  in the residential portfolio. Adjusted EBITDA grew slightly by  1%
year-over-year, amounting to €247 million, driven by the like-for-like rental income growth and cost efficiencies, offsetting the
net disposal impact.  FFO I amounted  to €76 million  and €0.07  per share in  Q1 2024, a  decrease of 10%  and 9%  respectively,
compared to Q1 2023. The  growth in adjusted EBITDA was  offset by the higher finance  expenses and perpetual notes  attribution.
These impacts were in-line  with expectations, and as  a result the Company  confirms its 2024 guidance.  As the Company did  not
revalue its portfolio in  Q1 2024, the  bottom line net profit  was mainly driven  by the operational results,  leading to a  net
profit of €102 million for the  period, reflecting earnings per share  of €0.04. EPRA NTA was €8.1  billion as of March 2024,  or
€7.4 per share, stable since December 2023.

The Company continued  its efforts in  strengthening its balance  sheet and reducing  refinancing risk. Approx.  €200 million  of
disposals were signed year to date.  In Q1 2024, AT closed approx.  €110 million of disposals at a  premium to book value of  2%.
Aroundtown additionally signed ca. €240 million of new secured  financing in 2024 year-to-date. The Company continues to  benefit
from its large pool of unencumbered assets, amounting to €18 billion or 74% of rent as of March 2024, providing access to further
secured financing. LTV as of March 2024 stood at 43%, stable compared  to December 2023. ICR decreased to 3.9x in Q1 2024 as  the
growth in finance expenses outpaced the EBITDA growth.

SUCCESSFUL AND ACCRETIVE PERPETUAL EXCHANGE

After the reporting period Aroundtown, together with GCP (together “the Group”), successfully completed exchange offers including
tender option for all  of its perpetual  notes with past  first call dates  and those with  first call dates  within the next  12
months. Ca. 80% of holders accepted the exchange offer, and around half of those opted to participate in the tender, resulting in
a buyback at an average discount to nominal value of over 30%. As a result of the offers, the Group issued 5 new perpetual  notes
with an aggregate volume of €2.5 billion, making the Group  the largest issuer among investment grade rated European real  estate
companies year-to-date. The total balance of perpetual notes outstanding reduced from €4.8 billion prior to the exchange to  €4.5
billion after the  exchange, partially utilizing  S&P’s reduction allowance.  The outcome of  the exchange is  supportive of  the
Company’s credit metrics  under S&P’s  methodology and  is FFO  accretive after 2024  through ca.  €35 million  of annual  coupon
reduction while being FFO neutral in 2024.

The Interim Consolidated Report for Q1 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 Q1  2024. You can find the Interim Consolidated  Report for Q1 2024 on AT’s website  under
Investor Relations > Publications > Financial Reports or under this link:

 2 https://www.aroundtown.de/aroundtown.de/Data%20Objects/Downloads/Financial%20Reports/Q1%202024%20Financials/AT%20Q1%202024.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,
   Category Code: QRF
   TIDM:          IRSH
   LEI Code:      529900H4DWG3KWMBMQ39
   Sequence No.:  324370
   EQS News ID:   1913069


    
   End of Announcement EQS News Service

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References

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