DGAP-News: AROUNDTOWN ANNOUNCES PRELIMINARY FY 2019 FINANCIALS WITH STRONG PERFORMANCE FROM DIVERSIFIED PORTFOLIO MAINTAINS SIGNIFICANT CASH BALANCE AND STRONG FINANCIAL POSITION
DGAP-News: Aroundtown SA
/ Key word(s): Real Estate/Preliminary Results
AROUNDTOWN ANNOUNCES PRELIMINARY FY 2019 FINANCIALS WITH STRONG PERFORMANCE FROM DIVERSIFIED PORTFOLIO MAINTAINS SIGNIFICANT CASH BALANCE AND STRONG FINANCIAL POSITION
18.03.2020 / 13:12
The issuer is solely responsible for the content of this announcement.
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS
AROUNDTOWN ANNOUNCES PRELIMINARY FY 2019 FINANCIALS
WITH STRONG PERFORMANCE FROM DIVERSIFIED PORTFOLIO
MAINTAINS SIGNIFICANT CASH BALANCE AND STRONG FINANCIAL POSITION
- Net rental income increased 21% to €766 million, from €633 million in 2018.
- Adjusted EBITDA grew to €773 million, an increase of 28% compared to €606 million in 2018.
- Strong FFO I growth, increasing by 24% YOY to €503 million (in line with increased guidance from Q3 2019), underlining the strong and stable operational profitability.
- FFO I per share resulted in €0.43 for 2019 (in line with increased guidance from Q3 2019), 10% higher than in 2018, reflecting an FFO yield of 12% based on the current share price.
- FFO I per share after perpetual notes attribution of €0.38 (in line with increased guidance from Q3 2019) an increase of 12% YOY.
- Proposed dividend of €0.28 for 2019, following the dividend policy of 65% of FFO I per share, higher by 10% compared to 2018 and reflecting a dividend yield of 8% based on the current share price
- Successful disposals resulted in an FFO II of 2019 to €814 million, up by 42% compared to 2018.
- Net Profit amounting to €1.7 billion, compared to €1.8 billion in 2018 underlining the Company's strong value creation. EPS (basic) amounted to €1.12.
- Strong EPRA NAV growth, increasing to €10.6 billion as of year-end 2019, an increase of 22% compared to year-end 2018, EPRA NAV per share grew by 13% to €8.7 as of year-end 2019. Including dividend payment in 2019 the total shareholder return amounted to 16%.
- Very strong cash position amounting to €2.2 billion and €14.2 billion of unencumbered assets. As of mid-March 2020 the cash position increased to €2.8 billion and unencumbered assets increased to over €16 billion (including TLG).
- EPRA NAV including perpetual notes amounting to €13.1 billion or €10.7 per share as of December 2019.
- Total Equity amounted to €13.4 billion as of December 2019, reflecting an increase of 35% compared to year-end 2018, representing an equity ratio of 53%.
- Investment property increased to €18.1 billion as of year-end 2019, increasing 28% from year-end 2018.
- Aroundtown's conservative financial structure has been strengthened with a low LTV of 34% as of December 2019 remaining well below the 45% Board of Directors' limit and well below the EMTN bond covenants of 60%.
- Secure debt profile with a strong ICR of 4.8x, long average debt maturity period of 7.2 years with no material debt repayments in the coming 4 years, low average cost of debt of 1.7%
- Consistently strong internal growth supported by the total net rent LFL growth of 4.2% (in line with guidance), with 3.6% from in-place rent increases and 0.6% as a result of occupancy increases.
- Full year 2019 guidance met
- Merger with TLG was fully finalized and completed February 19, 2020. Aroundtown currently controls 78% of TLG.
18 March 2020.
STRONG OPERATING PERFORMANCE BENEFITTING FROM A STRONGLY DIVERSIFIED PORTFOLIO
2019 has been another very successful year for Aroundtown. As of February 19, 2020, the merger with TLG Immobilien AG was finalized and completed and Aroundtown owns 78% in TLG.
The cash balance remains to be very strong and further increased to €2.2 billion. As of mid-March 2020, the actual cash balances (including TLG) further increased to €2.8 billion.
The operational performance with an increase in FFO I by 24% was achieved on the back of the strongly performing diversified portfolio with its different economic characteristics with a focus on the strongest economies in Europe, Germany and the Netherlands. Aroundtown remains to have among the highest asset type diversification within the European commercial real estate market which was further strengthened by the merger with TLG. Post merger with TLG, the portfolio's largest asset type is offices which makes up around 47% of Aroundtown's portfolio. The hotel portfolio makes up 24% which have all fixed long-term leases with strong tenants with no dependency on the hotel's operational results. For all its properties, Aroundtown has fixed long term lease structures without any connection to operational profits of its tenants. This also applies to its hotel portfolio which are leased to third party hotel operators at fixed long-term (10 to 25 years) double or triple net leases, fixed plus linked to CPI with no operational dependency on the results of the hotel. The third largest segment with 12% is German residential through Aroundtown's holding in Grand City Properties. Within each asset class Aroundtown focuses on a very high tenant diversification and diversification of the industries that its tenants operate in. Aroundtown (incl TLG) has a strongly diversified tenant structure with over 4,000 tenants, of which the top 10 tenants make up only 20% of the total rental income, and very long lease structures with a long-term WALT of 7.9 years.
CORPORATE ACHIEVEMENTS IN 2020
Aroundtown successfully fully finalized the merger with TLG Immobilien AG by mid-February 2020 and now owns ca. 78% of TLG. TLG will be fully consolidated starting from the Q1 2020 financial reporting. Furthermore, Aroundtown was added to the newly launched DAX 50 ESG Index and ranked as the highest ESG ranked real estate constituent of the index and 10th highest among all constituents.
In addition, Aroundtown improved its ranking from Sustainalytics to 94th percentile from the 93rd previously.
Aroundtown will publish its full year 2019 financials including an updated forecast guidance for the year 2020 on March 26, 2020 and will host an analyst call in the morning of publication.
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 40, Rue du Curé, L-1368 Luxembourg, Grand Duchy of Luxembourg.
T: +352 285 7741
E: [email protected]
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.
18.03.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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||40, Rue du Curé
||Grand Duchy of Luxembourg
||+352 288 313
||LU1673108939, XS1227093611, XS1336607715, XS1403685636, XS1449707055, XS1532877757, XS1540071724, XS1586386739, XS1649193403, XS1700429308, XS1715306012, XS1761721262, XS1815135352, XS1753814141, CH0398677689, XS1857310814
||A2DW8Z, A1Z07A, A18V71, A180VY, A1839S, A1899S, A19LQR, A19QUX, A19Q3W, A19VK9, A19Z76, A19U7Q
||MDAX, MSCI, STOXX Europe 600, S&P 350, FTSE EPRA/NAREIT, GPR 250
||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Stuttgart; Dublin, Luxembourg Stock Exchange, SIX
|EQS News ID:
|End of News
||DGAP News Service
Quelle: boersengefluester.de und Firmenangaben
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1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de
||Kurs in €
||Börsenwert in Mio. €
|Dividende '19 in €
||Dividende '20e in €
||Performance 52 Wochen