Aroundtown SA announces FY 2018 results

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 FY 2018 RESULTS: HIGH OPERATIONAL PROFITABILITY AND STRONG VALUE CREATION

- Net rental income of EUR633 million, improved by 41% from EUR449 million recorded in 2017

- Adjusted EBITDA of EUR606 million, an increase of 41% compared to the EUR429.3 million recorded in 2017

- FFO I growing 38% YOY to EUR405.7 million, from EUR293 million in 2017

- FFO I per share of EUR0.39, up from EUR0.36 in 2017. FFO I per share after perpetual attribution increased to EUR0.34

- FFO II amounted to EUR575 million, 69% higher than in 2017, due to disposals over EUR740 million

- Dividend per share of EUR0.25, up 9% from 2017 (subject to next AGM approval), reflecting a dividend yield of 3.2%

- Net profit amounted to EUR1.8 billion during the period, increasing 19% in comparison to 2017. Diluted EPS increased 10% to EUR1.49, from EUR1.35 in 2017

- EPRA NAV at EUR8.7 billion, +35% from December 2017, EUR7.7 on a per share basis, growing +22% YOY (+18% excluding dividend adjustment)

- EPRA NAV incl. perpetual notes expanded to EUR10.3 billion (+34% from 2017) and EUR9.1 per share

- Total Equity growing 37% to EUR9.9 billion; with a consistently strong equity ratio of 52%.

- Investment property increased to EUR14.2 billion, up 45% as compared to EUR9.8 billion as at year-end 2017

- Strong capital structure with a low LTV at 35% as of December 2018

- Robust credit profile with an ICR of 4.7x, long average debt maturity of 7.4 years and cost of debt of 1.8% and high unencumbered assets ratio of 72% (EUR10.2 billion in value)

- Strong like-for-like results with a total net rent LFL growth of 4.8%, of which 2.6% is attributable to in-place rent increases and 2.2% to occupancy increases

28 March 2019.

High quality portfolio centrally located in top tier European metropolises
Utilizing its deal sourcing network, Aroundtown executed EUR3.7 billion of acquisitions in 2018 including acquisitions through joint ventures, and together with high revaluations gains of EUR1.5 billion the portfolio grew by 45% to over EUR14 billion consisting for 83% of offices and hotels in top tier cities mainly in Germany and the Netherlands.
In addition, the Company disposed over EUR740 million of properties in 2018 as part of its capital recycling, reflecting a profit over total cost of approx. 30%, which added to Aroundtown's track record of successful value creation. The disposals, which were non-core and/or mature in nature were sold at a 12% margin above net book value and affirm the properties' conservative valuations. The proceeds from the capital recycling were directed into further acquisitions in high quality, centrally located properties in top tier European cities, with further upside potential.

Corporate milestones and achievements highlight non-financial growth
In line with its strong financial results in 2018 Aroundtown had several note-worthy corporate achievements. The corporate governance was further strengthened with the appointment of Dr. Gerhard Cromme as Chairman of the Advisory Board as well as the appointment of Mr. Andrew Wallis as Deputy CEO of the Company. Furthermore, in September 2018, EPRA awarded Aroundtown with the EPRA BPR Gold award for the second consecutive year, the highest award for financial reporting standards, as well as the EPRA sBPR Gold award and most improved award for its sustainability reporting. In addition, Aroundtown was ranked as an Outperformer in the 93rd percentile among 319 global peers by the sustainability rating agency Sustainalytics in September 2018, affirming the Company's progress regarding sustainability.
Besides these, 2018 also marked the year where the Company was included into a range of key benchmark indices, such as the MSCI Index series in December and the MDAX and FTSE EPRA Index Series in March. The company was already a constituent in the STOXX 600 series since December 2017. The inclusion of Aroundtown in these key benchmark indices further improves its market visibility and continued strong access to capital.

The financial statements for FY 2018 are available on the Company's website:
https://www.aroundtown.de/investor-relations/publications/financial-reports/?L=0

For definitions and reconciliations of the Alternative Performance Measures, please see the relevant sections in the pages 76-80 of the FY 2018 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/downloads/2018/AT_FY_2018.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 1, Avenue du Bois, L-1251 Luxembourg, Grand Duchy of Luxembourg.

Contact

Timothy Wright

T: +352 285 7741

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), THIS ANNOUNCEMENT AND ANY OFFER IF MADE SUBSEQUENTLY IS DIRECTED ONLY AT PERSONS WHO ARE 'QUALIFIED INVESTORS' WITHIN THE MEANING OF ARTICLE 2(1)(E) OF DIRECTIVE 2003/71/EC, AS AMENDED (THE PROSPECTUS DIRECTIVE) (QUALIFIED INVESTORS). ANY PERSON IN THE EEA 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 OTHER THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEEN ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN THE EEA 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 DIRECTIVE.

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.