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 9M 2023 RESULTS WITH SOLID OPERATIONS

• Liquidity balance of €2.8 billion as of September 2023 representing 20% of total debt. Including signed disposals and future proceeds from vendor loans, liquidity will amount to €3.7 billion and will cover debt maturities until mid-2026.
• Disposals of approx. €710 million signed in 2023 year-to-date.
• 16% of debt maturing in 2024-2026 has been repurchased. €1.3 billion of bonds repurchased at an average discount of 20% thereby reducing leverage and further strengthening the balance sheet.
• New bank debt signed in the amount of ca. €1 billion YTD of which €790 million drawn during 9M 2023.
• Progressing amount of green building certifications: 100% of the Dutch office, 29% of total office portfolio
• Recurring net rental income of €885 million in 9M 2023, down by 2% compared to €903 million in 9M 2022 due to net disposals, offset by total like-for-like rental income growth of 3.5%.
• Adjusted EBITDA of €748 million in 9M 2023, 1% lower compared to €758 million in 9M 2022. 
• FFO I of €255 million and €0.23 per share in 9M 2023, lower compared to €275 million and €0.25 per share in 9M 2022.
• Net loss of €1.4 billion and basic loss per share of €1.02 in 9M 2023 mostly due to negative property revaluations.
• EPRA NTA of €9.1 billion as of the end of September 2023 compared to €10.1 billion at the end of December 2022. EPRA NTA per share of €8.3 as of the end of September 2023 compared to €9.3 at the end of December 2022.
• LTV of 41% at the end of September 2023, only 1% higher compared to 40% at the end of December 2022 due to the positive impacts of the liability management and deleveraging activities.
• Unencumbered assets ratio of 75%, reflecting a value of €19.1 billion and ICR of 4.3x in 9M 2023.
• Full year 2023 guidance confirmed.

29 November 2023.

Aroundtown (‘the Company’ or ‘AT’) announces results for the first nine months of 2023 in line with full year guidance. Recurring long-term net rental income amounted to €885 million in 9M 2023, down by 2% compared to €903 million in 9M 2022 due to ca. €1 billion closed disposals in the period, offset by the total portfolio’s like-for-like rental growth of 3.5%. Year-to-date 2023 Aroundtown signed ca. €710 million of disposals at slightly below book value, of which €660 million were signed in 9M 2023, showing the Company’s ability to sell also during challenging market conditions. In 9M 2023, FFO I totaled €255 million representing €0.23 per share, lower compared to €275 million and €0.25 per share in 9M 2022. The decline was mainly due to disposals, higher finance expenses, and higher perpetual notes attribution partially offset by higher hotel rent collection and like-for-like rental growth. The Company confirms its FFO I guidance for FY 2023, which is expected to be in the range of €310 million to €340 million.

LIABILITY MANAGEMENT MEASURES STRENGTHEN THE BALANCE SHEET

Aroundtown strengthened its liquidity position to €2.8 billion at the end of September 2023 from €2.7 billion at the end of December 2022 despite having undertaken significant liability management measures. In 2023 year to date, AT has repurchased approx. €1.3 billion of bonds in nominal value, mostly with near-term maturities at an average discount of 20%, thereby further reducing net debt and extending the debt maturity profile. As a result, 16% of total debt maturing in 2024 to 2026 has been repurchased and cash and liquid assets with future cash proceeds from signed disposal and vendor loans will cover debt maturities until mid-2026. Furthermore, using its strong banking relationships and large network AT signed ca. €1 billion in new bank debt year-to-date from a variety of different banking partners. The new bank debt has an average maturity of above 7 years and margin of 1.4%, of which €790 million has been drawn in 9M 2023. Deleveraging measures which include further disposals, bond buybacks at a discount, suspension of dividends, not exercising the option to call perpetual notes, and operational profitability have allowed AT to maintain its LTV relatively stable at 41% as compared to 40% at year-end 2022, despite significant negative revaluation impacts.

100% OF THE DUTCH OFFICE PORTFOLIO HAS BEEN GREEN CERTIFIED

Following the initial pilot project in 2021, 100% of the Dutch office portfolio has been green certified. The knowledge gained has been leveraged successfully by expanding the scope of the project to include also the German office portfolio, which is currently in the process of being certified. As a result, 29% of the office portfolio has been green certified year to date, up from 15% at the end of 2022 and 2% at the end of 2020. Aroundtown continues the process of certifying its portfolio and aims to gradually increase the share of certified properties within its portfolio.

The Interim Consolidated Report for 9M 2023 is available on the Company’s website:

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 46-51 of the Interim Consolidated Report for 9M 2023. You can find the Interim Consolidated Report for 9M 2023 on AT’s website under Investor Relations > Publications > Financial Reports or under this link:

https://www.aroundtown.de/fileadmin/user_upload/04_investor_relations/downloads/2023/AT_Q3_2023.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: info@aroundtown.de
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.