DGAP-News: Aroundtown SA Q1 2021 results in line with expectations and well-positioned to capture future recovery
DGAP-News: Aroundtown SA
/ Key word(s): Quarter Results/Real Estate
Aroundtown SA Q1 2021 results in line with expectations and well-positioned to capture future recovery
27.05.2021 / 06:55
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, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS
AROUNDTOWN Q1 2021 RESULTS IN LINE WITH EXPECTATIONS AND WELL-POSITIONED TO CAPTURE FUTURE RECOVERY
- Net rental income of €233 million in Q1 2021, 1% lower compared to Q1 2020 primarily due to disposals.
- 2021 YTD disposals amounting to over €970 million, of which over €420 million closed in Q1.
- Recycling disposal proceeds into €500 million share buyback program at a deep discount to EPRA NTA and accretive impact expected in coming periods.
- Adjusted EBITDA of €230 million for Q1 2021, in comparison to €237 million for Q1 2020.
- FFO I before Covid adjustment of €125 million in Q1 2021, as compared to €127 million in Q1 2020. Including extraordinary expenses due to the Covid pandemic, FFO I for Q1 2021 was €87 million.
- FFO I per share of €0.073 for Q1 2021.
- Net Profit in Q1 amounted to €146 million with a basic EPS of €0.09.
- EPRA NTA as of March 2021 at €11.4 billion, or €9.6 per share, as compared to €11.2 billion and €9.5 per share as at December 2020.
- Strong equity base of €15.9 billion, reflecting an equity ratio of 52% as of March 2021.
- Investment property, excluding assets held-for-sale, at €20.8 billion as of March 2021.
- Robust financial platform maintained with a low cost of debt of 1.4%, long average debt maturity period of 6.0 years, low LTV of 34% and an ICR of 4.9x.
- Total LFL rental growth of 0.1%, excluding hotels the LFL rental growth stood at 1.3%.
- Strong liquidity position, sufficient to cover debt maturities in the next 3 years, further supported by a large level of unencumbered assets amounting to €15.9 billion and 80% by rent at the end of March 2021.
- Guidance for FY 2021 confirmed.
27 May 2021.
Aroundtown ('the Company' or 'AT') began 2021 in line with expectations with a solid financial position and a strong portfolio that continues to benefit from its diversified nature. The Company continued its capital recycling activities with 2021 YTD signed disposals of over €970 million of which over €420 million were closed during the first quarter of 2021, crystalizing gains of 52% on total costs including capex reflecting a premium of 6% over net book values. The disposals above book value validate portfolio valuations, free up funds for accretive share buybacks and the disposals of non-core assets increase the remaining portfolio's quality.
STABLE PORTFOLIO SUPPORTED BY HIGH QUALITY ASSETS IN STRONG LOCATIONS
AT's diversified portfolio focused on central locations in top tier cities, delivered a stable performance with net rental income increasing slightly by 0.1% on a like-for-like basis, and 1.3% excluding the negative impact from hotels. During the first quarter of 2021, the Company posted an FFO I of €87 million, including extraordinary provisions for uncollected rent related to the hotel portfolio. Excluding these expenses, FFO I for the reporting period stood at €125 million, as compared to €127 million in the first quarter of 2020, slightly lower as a result of the strong disposal activity between the periods. Although different portfolio locations remained under lockdown as a result of the coronavirus pandemic during the first quarter of 2021, an increasing number of vaccinations being distributed in recent weeks and an easing of restrictions in some locations indicate that the path to recovery is encouraging. Aroundtown recorded a relatively small revaluation gain in the first quarter of 2021 as only a small portion of its portfolio was revalued. A more significant revaluation of the portfolio is expected in the second half of 2021, in light of the recent reliefs in lockdowns and restrictions across the portfolio's locations. As of the end of March 2021, AT recorded an EPRA NTA of €11.4 billion and €9.6 per share as compared to €11.2 billion and €9.5 per share respectively, at the end of December 2020.
ACCRETIVE CAPITAL RECYCLING RESULTING IN SHAREHOLDER VALUE CREATION
Aroundtown has continued to implement capital recycling measures aimed at enhancing the quality of the portfolio. Disposal proceeds are directed towards the accretive share buyback program announced at the end of March 2021 of up to €500 million. As the 2021 buyback program only started at the end of Q1, the impact on the Q1 financials is immaterial, with the full impact expected over the coming periods as a larger share of the program is completed. As of 21 May 2021, 24% of the program has been executed reflecting an amount of €120 million repurchased at a steep discount to NAV, utilizing the proceeds of disposals which were carried at a premium to book value. Accordingly, the capital recycling results in significant long-term shareholder value creation. AT has also completed debt repayments of higher interest-bearing bank loans and bonds, together amounting to over €500 million as at the end of March 2021 and had an average cost of debt of 1.4% with a long average debt maturity period of 6.0 years.
The Interim Consolidated Report for Q1 2021 is available on the Company's website:
For definitions and reconciliations of the Alternative Performance Measures, please see the relevant sections in the pages 38 - 41 of the Interim Consolidated Report for Q1 2021. You can find the Interim Consolidated Report for Q1 2021 on 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: +352 288 313
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.
27.05.2021 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