DGAP-News: Aroundtown SA

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (THE "UNITED STATES") OR IN OR INTO OR TO ANY PERSON RESIDENT OR LOCATED IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO PUBLISH OR DISTRIBUTE THIS DOCUMENT.

AROUNDTOWN ANNOUNCES ITS FY 2017 RESULTS WITH RECORD PROFITABILITY AND OUTSTANDING PERFORMANCE

- Rental and operating income of EUR527 million, increased from EUR274m in 2016

- Adjusted EBITDA up 60% to EUR429 million from EUR268 million

- FFO I of EUR293 million, increasing 77% from EUR166 million

- FFO I per share growth of 44% to EUR0.36 from EUR0.25 in 2016

- 2017 dividend distribution of EUR0.23 (subject to AGM approval), up 44% YOY

- Net profit recorded of over EUR1.5 billion, increased 71% from EUR0.9 billion for 2016; Basic earnings per share up to EUR1.56, Diluted EPS up to EUR1.35

- EPRA NAV incl. perpetual notes of EUR7.7 billion and EUR7.6 per share (up 41%); further increased to EUR8.7 billion incl. Q1 2018 equity and perpetual issuances

- EPRA NAV of EUR6.5 billion and EUR6.5 per share (up 33%)

- Equity increased 84% to EUR7.2 bn, strong equity ratio of 53%; further increased to EUR8.3 billion pro forma for March 2018 equity increase

- Investment property almost doubled to EUR9.8 billion from EUR5 bn at year-end 2016

- LTV further decreased to 36% as of year-end 2017; 33% assuming conversion

- Conservative financial and credit position demonstrated with an ICR of 5.4x, long average debt maturity of almost 8 years and low average cost of debt of 1.6%

- High investment-grade credit rating from S&P further upgraded to BBB+, making Aroundtown the highest-rated company in German commercial real estate

- Strong organic growth maintained with total net rent like-for-like of 5.1%, with 3.3% from in-place rent growth and 1.8% from occupancy increase

28 March 2018.

Quality portfolio supports record profitability and accretive growth

Aroundtown's (the "Company" or "AT") record profit of over EUR1.5 billion in 2017 is the result of its successful business model of acquiring income generating quality properties with value-add potential in central locations in top tier cities. The record profitability translated into strong shareholder value creation evident from the high growth in EPRA NAV per share (incl. perpetuals) of 41% to EUR7.6 as well as the strong FFO I per share growth of 44% to EUR0.36, reflecting an FFO yield of 5.8%. Accordingly, the dividend increased by 44% to EUR0.23 (subject to AGM approval), reflecting a dividend yield of 3.7%.

Aroundtown's successful year, as well as accretive growth on a per share basis, positioned the Company as a top performer in the market, outperforming all benchmarks and key market indices and resulting in a market cap of currently EUR6.4 billion, making Aroundtown the largest listed German commercial real estate company. These achievements are topped by the latest inclusions into major indices - the MDAX, FTSE/EPRA Index Series, Stoxx Europe 600, GPR 250 and DIMAX.

Conservative financial structure and rating upgrade to BBB+

Aroundtown's growth was supported along a conservative capital structure. The Loan-to-Value as of end of 2017 decreased to 36% from 39% in year-end 2016, providing significant headroom to the board's limit of 45%. In December 2017, S&P further increased Aroundtown's credit rating to BBB+ based on a stronger asset profile. AT enjoys the best-in-class ICR of 5.4x, the highest unencumbered ratio among German commercial real estate peers of 71% (EUR7.1 billion), and longest debt duration of almost 8 years.

Significant ESG improvement

In 2017, AT achieved important milestones on the ESG front as it was ranked in the 88^th percentile and Outperformer for its ESG efforts by Sustainalytics among almost 300 peers worldwide and received the EPRA BPR Gold award from EPRA for the highest reporting standards. Additionally, after the re-domiciliation to Luxembourg, the Board of Directors has been strengthened to 7 members of which 3 are independent.

Strong momentum maintained in 2018

Aroundtown continues in 2018 with its strong growth path, bringing the portfolio size to EUR10.2 billion which generates an FFO I on an annualized basis as of April 2018 of EUR369 million. The Company issued since January 2018 a total of EUR2.1bn in equity, perpetual notes and straight bonds, supporting additional growth as well as further optimizing the debt structure.

The full year 2017 annual report is available on the Company's website:
http://www.aroundtown.de/investor-relations/publications/financial-reports/

About the Company
Aroundtown SA (symbol: AT1), is trading on the Prime Standard of the Frankfurt Stock Exchange, and 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@aroundtownholdings.com

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.