DGAP-News: Aroundtown SA announces H1 results with positive portfolio performance despite crisis related negative impact
DGAP-News: Aroundtown SA
/ Key word(s): Real Estate/Half Year Results
Aroundtown SA announces H1 results with positive portfolio performance despite crisis related negative impact
26.08.2020 / 06:50
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 H1 2020 RESULTS WITH POSITIVE PORTFOLIO PERFORMANCE DESPITE CRISIS RELATED NEGATIVE IMPACT
- Net rental income increased to €502 million in H1 2020, grew by 40% from €359 million in H1 2019
- Adjusted EBITDA increased to €500 million in the first half of 2020, an increase of 38% compared to €363 million in H1 2019
- FFO I increased 30% to €312 million in H1 2020 from €239 million in H1 2019
- FFO I per share after perpetual increased by 5% year over year, to €0.20 per share in H1 2020 compared to €0.19 per share in H1 2019
- FFO I per share after perpetual, Covid adjusted decreased by 11% to €0.17 per share from €0.19 per share in H1 2019
- Collection rate H1 2020: 84% and 95% excluding hotels
- Disposal volume of approx. €240 million above book value result in strong FFO II amounting to €384 million
- Signed disposals of approx. €1 billion YTD, 6% above book value, non-core and mature assets. Proceeds funding accretive €500 million share buy-back program generating significant shareholder value. Additional sales of assets over €1 billion in advanced negotiation.
- Positive revaluations gains of €560 million in H1 2020, +2.5% on a like-for-like basis. Strong revaluation gains in all asset classes excluding hotels of €766 million offset negative revaluation results in hotel portfolio of €206 million after almost entire hotel portfolio has been externally revalued
- Net Profit for the first half of 2020 amounting to €626 million, reflecting EPS (basic) of €0.36
- EPRA NAV increased to €12.4 billion and EPRA NAV per share of €9.0, compared to €10.6 billion and €8.7 per share in December 2019
- Total Equity of €16.4 billion resulting in an equity ratio of 51%
- Investment property of €22.6 billion, increasing from €18.1 billion as of Dec 2019
- Ample liquidity due to large balance of cash and liquid assets of over €2.7 billion and substantial amount of unencumbered assets at the amount of €16.1 billion (74% of rent)
- Conservative capital structure maintained with low LTV at 36%, well below the 45% Board of Directors' limit
- Strong ICR at 4.5x, long average debt maturity of 6.2 years, low average cost of debt of 1.6%
- Strong operational performance with a total net rent LFL growth of 3.0%, with 3.2% coming from in-place rent increases, offset by a 0.2% decrease in occupancy
- Guidance for FY 2020 published
26 August 2020.
UPDATE ON COVID IMPACT
While Aroundtown ("the Company" or "AT") saw an insignificant impact from the Covid pandemic on its operations in the first quarter of 2020, it was the primary driver of events in the second quarter. The impact of the pandemic was primarily in the Hotel portfolio which makes up 23% of the portfolio, with Office, Logistic/Wholesale, and Residential (through GCP) seeing only limited impact. These make up 70% of the portfolio. The collection rate in H1 2020 stood at 84% for the full portfolio and excluding the hotel portfolio, the collection rate was 95%. The collection rates in July have been improving, also for hotels to 33%, from 21% in Q2 2020. Due to the prevailing uncertainties of the effects from Covid, the recovery of the hotel industry remains uncertain, and thus Aroundtown has conservatively created general provisions based on management assessment, amounting to €35 million, or 53% of the deferred hotel net rents. The company is still working on a case by case basis with tenants in order to collect the deferred amounts.
SOLID PERFORMANCE, DESPITE LOCKDOWNS, UNDERLINING STRONG PORTFOLIO DIVERSIFICATION
Aroundtown recorded a net rental income of €502 million in the first half of 2020, 40% higher than the €359 million recorded in the first half of 2019. The strong growth was driven by a mix of external growth, primarily driven by the merger with TLG which was finalized in February of 2020, as well as internal growth, with a like-for-like rent increase of 3.0%. FFO I increased by 30% to €312 million and by 10% to €0.23 per share in H1 2020, from €239 million and €0.21 per share in H1 2019. Aroundtown conservatively recorded extraordinary general rental provisions amounting to €35 million in response to the prevailing uncertainties of the effects from Covid over the hotel industry, reflecting ca. 50% of the deferred hotel net rents. The provision has been created based on management assessment, although the Company is still working with its tenants, on a case by case basis, to collect deferred rents. Due to the Company's strong portfolio diversification it benefited significantly from the stability of its Office, Logistic/Wholesale, and Residential portfolio, which only saw limited impact from the pandemic. The FFO I per share after perpetual increased by 5% YOY to €0.20 per share. The FFO I after perpetual, Covid adjusted provisions resulted in €0.17 per share in the first half of 2020. EPRA NAV grew to €12.4 billion (€9.0 per share), as compared to €10.6 billion (€8.7 per share) as at year end 2019, driven by net profits including revaluation gains. Positive revaluation gains of €560 million, +2.5% on a like-for-like basis, included solid office revaluations gains, offset by negative revaluation gains in the hotel portfolio. Almost the entire hotel portfolio has been revalued by external valuators.
STRONG DISPOSAL ACTIVITY OF NON-CORE AND MATURE ASSETS, CHANNELED INTO HIGHLY ACCRETIVE SHARE BUY-BACK PROGRAM
Year to date the Company signed disposals of non-core and mature properties amounting to approx. €1 billion, increasing the portfolio quality while freeing up funds and strengthening liquidity. The disposals were signed at 6% above book value, validating the conservative valuations of the portfolio. The freed up funds support the €500 million share buy-back program, which started in June 2020 and runs till the end of the year. Approx. 26% of the share buy-back program was executed as of August 21st, at a weighted average price of approx. €5.1 per share. AT is well on track to be finalize the program by year-end 2020. Compared to the EPRA NAV of €9.0 per share and considering the premium on disposals, the share buy-back has been executed at a significant discount creating very strong shareholder value. Year-to-date disposals were 70% retail and close to 50% were in non-core cities, thereby increasing the portfolio quality and strengthening the focus on offices in top tier cities. The Company continues with the sales program and is in advanced negotiations for additional disposals in a volume of over €1 billion.
GUIDANCE FOR FY 2020 PUBLISHED DRIVEN BY HIGH DISPOSAL VOLUMES
For full year 2020 the FFO I after perpetual is expected to be in the range of €460-€485 million, €0.34-€0.36 per share. After including the estimated extraordinary non-recurring rental provisions for Covid effects, FFO I per share after perpetual is expected to be in the range of €0.25-€0.28. The guidance includes the effect of €1 billion year-to-date signed disposals plus an additional €1 billion net sales. The effect of the share buyback will be partial in 2020 and will have a full effect only in 2021.
The financial statements for H1 2020 are available on the Company's website:
For definitions and reconciliations of the Alternative Performance Measures, please see the relevant sections in the pages 44-47 of the H1 2020 financial statements. You can find the financial statements in AT'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 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.
26.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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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 €
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|Dividende '19 in €
||Dividende '20e in €
||Performance 52 Wochen