DGAP-News: Aroundtown SA announces Q1 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 ENTERS 2019 WITH STRONG PERFORMANCE IN OPERATIONAL PROFITABILITY AND VALUE CREATION BACKED BY ACCRETIVE ACQUISITIONS

- Robust net rental income of EUR178 million during the first three months of 2019, advancing 28% over the EUR139 million reported in Q1 2018

- Adjusted EBITDA increased to EUR180 million, rising 34% YOY

- FFO I up 29% to EUR118 million.

- FFO I per share increased to EUR0.105, higher by 12% YOY, (EUR0.42 annualized, reflecting a yield of 5.7%).

- FFO I per share after perpetual notes attribution increased by 14% YOY to EUR0.095 displaying the strong sustainable profitability of the business.

- Substantial gains over cost observed with disposals of over EUR170 million leading to a strong FFO II of EUR161 million during the first quarter of 2019 compared to EUR93.5 million in Q1 2018

- Profit for the period increased to EUR437 million, rising 18% over EUR371 million reported a year earlier with the diluted EPS progressing 16% YOY to EUR0.36

- EPRA NAV grew to EUR9.2 billion as of March 2019. EPRA NAV per share grew by 6% to EUR8.2 (from EUR7.7 per share at year-end 2018).

- EPRA NAV including perpetual notes amounted to EUR10.7 billion and EUR9.5 per share.

- High equity ratio of 51% maintained with Total Equity expanding 5% over three months to EUR10.4 billion as of March 2019.

- Investment property advanced to EUR14.8 billion, rising 4% from year-end 2018.

- Solid capital structure maintained with a low LTV of 37% as of the end of the first quarter of 2019 with a high unencumbered assets ratio of 76% (EUR11.1 billion in value)

- Strong credit profile with ICR at 4.7x, long average debt maturity period of 7.5 years, and cost of debt has remained low at 1.8%.

- Sustained strong organic growth displayed in the positive like-for-like increase in the top-line, with total net rent LFL growth of 4.5%, 2.3% is attributable to in-place rent increases and 2.2% due to occupancy increases in the portfolio.

- Following the strong first quarter, guidance for 2019 is confirmed.

29 May 2019.

Robust operational profitability leading to sustained value creation
Aroundtown (the "Company" or "AT") announces its results for the first quarter of 2019 driven by the strong growth displayed in the top-line with the efficient operational platform ensuring a strong bottom-line development as well. On a like-for-like basis, net rental income increased by 4.5% which, coupled with operational efficiencies of the organization has led to a 12% growth in the FFO I per share, which amounted to EUR0.105, reflecting yield of 5.7%. Based on the dividend payout policy of 65% this results in a dividend yield of 3.7%. EPRA NAV per share increased by 6% to EUR8.2, a result of Aroundtown's sustained value creation.

Year-to-date signed deals of EUR1.4 billion, further materializing the strong pipeline throughout German top tier cities.
Building on its significant experience and large acquisition network, Aroundtown signed deals year-to-date of EUR1.4 billon, of which nearly EUR300 million have been taken over in Q1 2019. These acquisitions are high quality assets, primarily office and hotel assets, of which 90% are located in German top tier cities such as Munich, Berlin, Frankfurt, Cologne and Hamburg.

The financial statements for Q1 2019 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 52-55 of the Q1 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_Q1_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.