Aroundtown SA (IRSH)
Aroundtown SA announces Q1 2020 Results following consolidation of TLG
27-May-2020 / 06:48 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
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 Q1 2020 RESULTS
FOLLOWING CONSOLIDATION OF TLG. *
_- _*Net rental income increased by 33% to EUR 236 million *in Q1 2020, from
EUR 178 million in Q1 2019
- *Adjusted EBITDA* *increased to EUR 237 million* in Q1 2020, an increase of
32% from EUR 180 million in Q1 2019
- *FFO I increased by 25% to EUR 147 million *compared to EUR 118 million in
Q1 2019
- *FFO I per share increased by 9% to EUR 0.114 *from EUR 0.105 in Q1 2019,
reflecting an FFO yield of 9.5% based on annualized FFO I per share and a
share price of EUR 4.84
- *FFO I per share after perpetual notes attribution* *amounted to EUR 0.098*
compared to EUR 0.095 in Q1 2019
- *FFO II amounted to EUR 170 million *including disposals at a high margin
of 68% over total costs
- *Net Profit for Q1 2020 amounted to EUR 246 million *and *EPS (basic)
resulted in EUR 0.14*, compared to EUR 437 million and EUR 0.36 in Q1 2019
- *EPRA NAV increased to EUR 12.1 billion *and *EPRA NAV per share*
*increased to EUR 8.8*, compared to EUR 10.6 billion and EUR 8.7 in Dec
2019
- *Total Equity increased to EUR 16.2 billion *and amounted to an *equity
ratio of 50%*
- *Investment property increased to EUR 23.2 billion*, from EUR 18.1 billion
as of Dec 2019
*- *Strong liquidity provided by significant *cash and liquid assets of over
EUR 3 billion* and substantial amount of *unencumbered assets* at the amount
of *EUR 16.6 billion (ratio of 74%)*
- *Low leverage maintained with* *LTV at 36%, *well below the 45% Board of
Directors' limit and well below the EMTN bond covenants of 60%
- *Strong ICR at 4.7x*, *long* *average debt maturity of 6.4 years*, *low
average cost of debt* *of 1.6% *
- *Strong operational performance with a total net rent LFL growth of 3.7%*,
with 3.2% from in-place rent increases and 0.5% as a result of occupancy
increases.
- Insignificant impact from Covid-19 on Q1 2020 operational results and Q1
2020 collection rates have been in line with previous periods.
- Q1 2020 includes full consolidation of TLG starting from February 19th, 2020
as of the final the takeover date
_27 May 2020._
*STRONG GROWTH DRIVEN BY OPERATIONAL IMPROVEMENT AND INCREASED SIZE THROUGH
TLG MERGER*
Aroundtown ('the Company' or 'AT') recorded significant growth in the first
quarter of 2020, supported by the operational improvements and the increased
size after the takeover of TLG, which has been fully consolidated as of
February 19th, 2020. The FFO I increased by 25% as compared to the first
quarter of 2019, to EUR 147 million, resulting in an FFO I per share of
EUR 0.114, which increased by 9% compared to Q1 2019 and reflecting an FFO
yield of 9.5% on annualized FFO I per share. EPRA NAV grew substantially in
the quarter to EUR 12.1 billion as of March 2020 as compared to EUR 10.6
billion as at year-end 2019. EPRA NAV per share grew to EUR 8.8, from
EUR 8.7 as at year-end 2019.
*STRONG LIQUIDTY AS A FINANCIAL CUSHION AND FIREPOWER FOR OPPORTUNISTIC
ACQUISITIONS*
The Company's conservative financial structure, with cash and liquid assets
amounting to over EUR 3 billion as of March 2020, which together with
EUR 16.6 billion of unencumbered assets (74% ratio) and a low LTV of 36%
provide Aroundtown with ample liquidity and flexibility to take advantage of
opportunities that may arise in the current environment. Aroundtown meets all
financial covenants with a high headroom.
*LARGE PORTFOLIO IN TOP TIER LOCATIONS *
AT's well diversified portfolio, including its share in GCP, amounts to
EUR 26.2 billion as of March 2020. The portfolio covers strong asset classes,
with Office, Logistics/Wholesale, and Residential making up 68% of the Group's
portfolio. 87% of the portfolio is located in Germany and the Netherlands,
Europe's strongest economies (AAA rated). The portfolio is focused on central
locations in top tier cities, which benefit from strong fundamentals and
diverse economic drivers, with Berlin, Munich and Frankfurt making up the
three largest cities in the portfolio. The portfolio is further diversified
through its granular tenant base, with over 4,000 tenants from diverse
industries and with a long WALT of 8.1 years, with the top 10 tenants
representing 20% of the rental income. Within the office portfolio, the
largest tenant segment is the public sector, combined with a resilient German
residential exposure, provides highly secured cash flows, even in the negative
economic environment.
*UPDATE ON COVID-19*
The Q1 2020 operational results have been insignificantly impacted from
Covid-19 and Q1 2020 collection rates have been in line with previous periods.
Despite the economic lockdown resulting in an increased uncertainty,
Aroundtown entered the crisis in a strong position on the back of its
conservative financial approach with high liquidity position and strong
portfolio diversification. In April, the collection rate, excluding hotels,
stood at 90%, with the collection in May expected to be in line with April.
Aroundtown has one of the strongest asset type diversifications in the
European real estate market and the hotel properties make up 23% of the total
portfolio. Aroundtown's hotel portfolio benefits from its fixed long-term
leases with a diverse tenant structure with no dependency on any single hotel
tenant. There has been a limited impact from Covid-19 on the Q1 2020
collection rates of the hotel rental income. However, the second quarter is
challenging for the hotel industry due to the lockdown and travel ban and thus
the vast majority of rent was deferred in April and May 2020, with payments
being delayed but not reduced. As the lockdowns have started to be lifted
across the portfolio's locations, half of AT's hotel tenants are re-opening as
of the end of May 2020. Currently announced hotel opening in June 2020 amount
to 66% of the hotel properties by rent, with potentially more re-openings in
June 2020. The recovery potential is expected to be strong in AT's three
largest locations in Germany, the UK and the Netherlands due to a high
domestic demand.
Shmuel Mayo, CEO of Aroundtown: 'The past weeks have further highlighted the
strength of our Company. The dedication of our teams and their ability to
swiftly change their processes and work remotely, supported by our flexible IT
infrastructure, have allowed us to continue operations efficiently and without
significant interruptions. We are working closely with our tenants and other
stakeholders to minimize the impact of lockdowns.'
The financial statements for Q1 2020 are available on the Company's website:
https://www.aroundtown.de/investor-relations/publications/financial-reports
[1]
For definitions and reconciliations of the Alternative Performance Measures,
please see the relevant sections in the pages 42-44 of the Q1 2020 financial
statements. You can find the financial statements in AT's website under
Investor Relations > Publications > Financial Reports or under this link:
https://www.aroundtown.de/fileadmin/user_upload/04_investor_relations/download
s/2020/AT_Q1_2020.pdf [2]
*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.
*Contact *
Timothy Wright
T: +352 285 7741
E: info@aroundtown.de
www.aroundtown.de [3]
*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.
ISIN: LU1673108939, XS1227093611, XS1336607715, XS1403685636,
XS1449707055, XS1532877757, XS1540071724, XS1586386739,
XS1649193403, XS1700429308, XS1715306012, XS1761721262,
XS1815135352, XS1753814141, CH0398677689, XS1857310814
Category Code: MSCL
TIDM: IRSH
LEI Code: 529900H4DWG3KWMBMQ39
Sequence No.: 66175
EQS News ID: 1056061
End of Announcement EQS News Service
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(END) Dow Jones Newswires
May 27, 2020 00:48 ET (04:48 GMT)
