DGAP-News: Aroundtown SA announces H1 2019 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 STRONG GROWTH DRIVEN BY ACQUISITIONS AND INCREASED OPERATIONAL RESULTS

- Net rental income increased to EUR359 million during the first half of 2019, up 23% from EUR291 million reported in H1 2018.

- Adjusted EBITDA grew to EUR363 million, +30% YOY.

- FFO I up by 26% to EUR239 million.

- FFO I per share increased to EUR0.21, grew by 11% YOY, (EUR0.42 annualized, reflecting a yield of 5.6%).

- FFO I per share after perpetual notes attribution grew by 12% YOY to EUR0.19

- Active sales pipeline providing substantial funds and enabling capital recycling into high quality assets: over EUR220 million disposals concluded in H1 2019, resulting in an FFO II of EUR288 million.

- Profit for the period at EUR969 million in H1 2019, resulting in a basic EPS of EUR0.68.

- EPRA NAV advanced to EUR9.4 billion and EUR8.3 per share at the end of June 2019, with a per share growth of 11% (dividend adjusted) since year-end 2018.

- EPRA NAV including perpetual notes amounted to EUR11.4 billion and EUR10.1 per share.

- High equity ratio of 51% maintained with Total Equity growing by 15% since year-end 2018 to EUR11.5 billion, and Total Equity pro forma at EUR12.6 billion.

- Investment property increased to EUR16.2 billion, up by 14% since year-end 2018.

- Healthy capital structure maintained with a low LTV of 36% at the end of June 2019, with a high unencumbered assets ratio of 74% (EUR11.4 billion in value).

- Solid credit profile with ICR at 4.5x, long average debt maturity period of 7.5 years, and lower average cost of debt of 1.7%.

- Robust organic growth is highlighted by the total net rent LFL growth of 4.4%, 2.3% is attributable to in-place rent increases and 2.1% is due to occupancy increases in the portfolio.

- Following the strong results and acquisition activity, 2019 Guidance is updated.

28 August 2019.

Strong operational performance leading to high profitability and unlocking the value potential
Aroundtown (the "Company" or "AT") announces its results for the first half of 2019, demonstrating a strong growth in both the top-line and bottom-line results, achieved by continuous strong acquisition activities and extracting the internal potential of the portfolio. AT continues to unlock its high reversionary potential, reflected in the total like-for-like net rental income growth of 4.4%. The combined efforts led to an FFO I per share growth of 11%, which amounted to EUR0.21, EUR0.42 when annualized, representing an FFO I yield of 5.6%. Based on the dividend payout policy of 65% of the FFO I per share, this results in a dividend yield of 3.6%. EPRA NAV per share increased to EUR8.3, growing by 11% dividend adjusted and 8% net of dividend paid, showing the consistent value creation at the shareholders' level. Guidance for FY 2019E is updated based on the strong results and the strong acquisition activity, which will have a partial effect on 2019 results and only a full year impact starting 2020. Updated guidance includes additional EUR25 million FFO I (new guidance at >EUR490 million). FFO I per share guidance remains at EUR0.41- EUR0.42 (EUR0.37 - EUR0.38 after perpetual notes attribution), based on the increased number of shares from the EUR601 million equity increase in July 2019. The equity will support AT's pursuit of attractive deals generating accretive shareholder profitability.

Year-to-date signed deals of EUR2.5 billion with high reversionary rent and value-add potential
Benefitting from its large deal sourcing network and its market experience, Aroundtown signed deals year-to-date of EUR2.5 billion, of which EUR1.2 billion has been taken over in H1 2019. The year-to-date signed acquisitions are of high quality with high growth and upside potential, primarily offices and hotels, mainly located in top tier European cities Munich, Berlin, Cologne, Hamburg, Frankfurt and in the Benelux. The Acquisitions are expected to be taken over in Q3 and Q4 2019.

The financial statements for H1 2019 are 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 54-56 of the H1 2019 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/2019/AT_H1_2019.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.