Aroundtown SA announces FY 2022 results with guidance achieved and continued disposals despite challenging environment

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 FY 2022 RESULTS WITH GUIDANCE ACHIEVED AND CONTINUED DISPOSALS DESPITE CHALLENGING ENVIRONMENT

• Disposals in the amount of €1.6 billion in 2022 with an additional €150 million in 2023-to-date demonstrating ability to sell despite difficult market conditions with proceeds strengthening the liquidity profile.
• Net rental income of €1.2 billion in 2022, increasing by 13% as compared to €1.1 billion in 2021 mostly from the consolidation of GCP and like for like rental growth of 3.5%, offset by disposals.
• FFO I amounting to €363 million in 2022, up 3% YOY.
• FFO I per share in 2022 at €0.33 up by 10% compared to €0.30 in 2021 as a result of the positive impacts from the accretive share buyback.
• Net loss of €457 million as result of property devaluations and impairment of goodwill, reflecting a loss per share of €0.58.
• EPRA NTA of €9.3 per share, 2% down as compared to €9.5 per share in 2021. Total EPRA NTA amounted to €10.1 billion as of December 2022.
• EPRA NTA including RETT (previously defined as EPRA NTA) per share amounted to €9.8 in 2022, compared to €10.2 in 2021.
• Conservative financial profile maintained with low LTV of 40%, strong ICR at 5.2x, and unencumbered assets of €22.2 billion (82% by rent) as of December 2022. High headroom to bond covenants.
• Proactive repayments of shorter-term bonds and bank loans in the amount of approx. €1.1 billion in 2022, offset by €500 million in longer maturity bank debt raised in 2022.
• Guidance for FY 2022 achieved and guidance for FY 2023 published.
• Due to macro-economic uncertainty, the company will not pay dividend for 2022.

28 March 2023.

Aroundtown (‘the Company’ or ‘AT’) presents the results for the year 2022 achieving the 2022 guidance despite the difficult macroeconomic conditions.  Net rental income amounted to €1.2 billion, increasing by 13% as compared to 2021 as a result of the consolidation of GCP and like-for-like net rental income growth but offset by disposals. AT recorded like-for-like rental growth of 3.5%, coming mainly from rent indexation, including 2.9% like for like contributed by GCP`s operational growth. FFO I totaled €363 million and increased 3% year over year. FFO I per share equaled €0.33 which was 10% higher as compared to €0.30 in 2021, in-line with the guidance and positively impacted by the share buybacks. In the fourth quarter of 2022, property valuations turned negative as a result of yield expansion which offset the robust rental growth, and which resulted in a valuation loss of 3%. In the hotel segment, the hospitality industry continues to recover with rent collection at 69% in FY 2022 and expected to increase to 85-90% in 2023, positively impacting cash flow going forward.

PROCEEDS FROM DISPOSALS STRENGTHEN THE LIQUIDITY POSITION AND MAINTAIN CONSERVATIVE FINANCIAL PROFILE

Aroundtown achieved disposals in the amount of €1.6 billion in 2022 with a further €150 million so far in 2023. Cash proceeds from disposals strengthen the liquidity position which amounted to €2.7 billion as of December 2022 and give the Company financial flexibility to continue to actively optimize its financial profile. In 2022 and 2023 so far, Aroundtown repaid €1.2 billion in shorter term debt with 1-year average maturity. As a result, cash and liquid assets and expected proceeds of signed disposals cover debt maturities until end of 2025. The Company maintains a conservative financial profile with a low LTV ratio of 40%, comfortable ICR of 5.2x, and large headroom on all bond covenants which are based on IFRS reported figures and thus fully exclude perpetuals notes which are accounted for as equity. Furthermore, the Company’s large balance of unencumbered properties in the amount of €22.2 billion provide additional flexibility to raise relatively cheaper secured financing. In 2022 and YTD 2023 the Company raised €640 million in longer maturity bank financing. As of December 2022, the average cost of debt remains low at 1.4% and the average debt maturity remains long at 5 years.

As announced today, and in-line with the Company’s measures to preserve liquidity, the Board of Directors of Aroundtown decided not to recommend a dividend distribution for 2022. The Company believes that in the current macro-economic environment it is better to preserve cash and equity, thereby strengthening the balance sheet and better positioning the Company to navigate the uncertainties ahead.

CONTINUED ESG PROGRESS IN 2022

Throughout 2022, Aroundtown continued to make progress on its ESG targets. With regards to the environmental front, Aroundtown certified 55% of the Dutch portfolio with BREEAM, up from 30% in 2021 and is beginning certifying assets in the German portfolio in 2023. Furthermore, the Company continued to invest in a range of energy efficiency measures such as Photovoltaics, Combined Heat and Power, EV charging stations and efficient windows, lighting, roofs, façades and heating systems which will help the Company attain its future emissions and certification targets. On the social front, the Aroundtown foundation continued to support and engage with numerous charities across its portfolio locations, working in close contact with local partners and authorities. Furthermore, through the continued Social Days program, AT employees were able to volunteer in multiple projects across local communities. Finally, regarding the Governance front, the Company continued to improve processes, policies and sustainability reporting which was recognized through numerous awards and the inclusion in additional sustainability indices such as the Dow Jones Sustainability Index and the Bloomberg Gender-Equality Index. Aroundtown received the EPRA BPR Gold award for the 6^th time and EPRA sBPR Gold award for the 5^th time consecutively, reflecting the Company’s high standards of financial transparency and sustainability reporting.

The Consolidated Annual Report for 2022 and the FY 2022 presentation will be available on the Company’s website tomorrow morning:

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 88-96 of the Consolidated Annual Report for 2022. You can find the Consolidated Annual Report tomorrow morning on AT’s website under Investor Relations > Publications > Financial Reports.

About the Company

Aroundtown SA (symbol: AT1), trading on the Prime Standard of the Frankfurt Stock Exchange, is among the largest European listed real estate companies, rated BBB+ by S&P. 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.

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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.