Aroundtown SA presents Q1 2018 results: Powerful start to 2018 with continued growth and profitable first quarter

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 PRESENTS Q1 2018 RESULTS: POWERFUL START TO 2018 WITH CONTINUED GROWTH AND PROFITABLE FIRST QUARTER

- Net rental income of EUR139 million, up 43% from EUR97m in Q1 2017

- Adjusted EBITDA growth of 43% to EUR134 million from EUR93 million

- FFO I of EUR91 million, increased 54% YOY from EUR59 million

- FFO I per share up 8% YOY to EUR0.094 ; (EUR0.38 annualized)

- FFO I per share of EUR0.083 after perpetual notes attribution (4% increase YOY)

- Net profit of EUR371 million generated, representing YOY growth of 50%

- Fully diluted EPS increased to EUR0.31 (up 19% YOY)

- EPRA NAV increased to EUR7.6 billion and EUR6.9 per share (+6%) from Dec 2017

- EPRA NAV incl. perpetual notes amounted to EUR9.2 billion and EUR8.3 per share, increasing by 9% from Dec 2017

- Equity growth of 17% to EUR8.5 bn, with a strong equity ratio of 53%

- Investment property value of EUR10.9 billion, increased 11% from year-end 2017

- Maintaining low leverage with an LTV of 35%

- Solid financial position and strong credit profile mirrored in high ICR of 4.9x, low average cost of debt of 1.6%, long average debt maturity of 7.5 years and high unencumbered ratio of 71% (EUR7.8 bn)

- Consistently strong internal growth highlighted with total net rental income like-for-like increase of 4.8%, 3.3% from in-place rent growth and 1.8% from occupancy increase

29 May 2018.

High growth continued in 2018 together with high profitability and lower risk

Aroundtown (the 'Company' or 'AT') is pleased to announce its results for the first quarter of 2018 with continued portfolio growth and increased profitability, with a Q1 2018 annualized FFO I of EUR365 million reflecting strong year-over-year growth of 54%. With the accretive growth continuing following the quarter, the May 2018 annualized FFO I run rate of EUR405 million and EUR0.39 per share reflects a high FFO I yield of 5.7% and dividend yield of 3.6%, highlighting the Company's ability to continue growing while consistently generating attractive shareholder value.

Strong portfolio growth through addition of quality assets and capital recycling

AT further expanded its portfolio during the quarter with the addition of high quality, centrally located assets across key portfolio locations offering additional upside potential, including in Berlin, Frankfurt, Munich, Utrecht, Rotterdam, NRW, and London. The quality of the Berlin portfolio was strengthened in Q2 2018 with the acquisition of the Hilton Berlin Gendarmenmarkt, a landmark asset encompassing an entire city block in the best location in Berlin. In the second quarter of 2018, Aroundtown sold over EUR700 million of non-core assets held for sale at 12% above book value and at a 30% disposal margin over total costs, with the proceeds to be invested in additional properties complementing the existing portfolio.

Solid financial and market position further reinforced in early 2018

The Company continues to reinforce the strong and well diversified capital structure at the base of its success through proactive debt management and capital market activities. With the equity base further strengthened through additional perpetual notes issued in January 2018 and the Company's largest yet equity increase in March 2018 of over EUR600 million, AT achieved a market cap of EUR7.3 billion while maintaining conservative leverage metrics. The investor base was further diversified through three straight bond issuances under the EMTN programme during the quarter with an aggregate nominal amount of EUR1.1 billion. Meanwhile, the average cost of debt remains low at 1.6% with a long average debt maturity of 7.5 years.

Highlighting Aroundtown's successful growth over the years, the Company was included in a host of key market indices in March 2018 including the MDAX, FTSE EPRA/NAREIT Index Series, GPR 250 and DIMAX, reflecting AT's status as one of Europe's leading listed real estate companies.

The Q1 2018 financial report is available on the Company's website:
http://www.aroundtown.de/investor-relations/publications/financial-reports/

About the Company

Aroundtown SA (symbol: AT1), trading on the Prime Standard of the Frankfurt Stock Exchange, is the largest listed German commercial real estate company.
Aroundtown invests in income generating quality properties with value-add potential in central locations in top tier cities 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 THE COMPANY 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.

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.