DGAP-News: Aroundtown Property Holdings Plc. / Key word(s): Final Results/Real Estate
CORPORATE NEWS THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS
AROUNDTOWN'S FY 2016 RESULTS:
OUTSTANDING EXTERNAL AND INTERNAL PORTFOLIO GROWTH, RESULTING FROM ACCRETIVE ACQUISITIONS AND OPERATIONAL PERFORMANCE
- Rental and operating income for FY 2016 at EUR274 million, up 119% YOY
- EBITDA amounted to EUR1,109 million, compared to EUR1,041 million in 2015
- Adjusted EBITDA increased by 75% to EUR268 million in 2016
- Net profit at EUR901 million. EPS (basic) at EUR1.11 (EUR1.26 FY 2015); diluted EPS at EUR0.87 (EUR1.01 FY 2015)
- FFO I increased by 76% to EUR166 million for 2016
- FFO I per share increased to EUR0.25, 47% YOY
- EPRA NAV including perpetual notes at EUR4.3 billion as of December 31, 2016, an increase of 60%, resulting in EUR5.4 per share
- EPRA NAV at EUR3.9 billion as of year-end 2016, an increase of 42% from EUR2.7 billion in December 2015. December 2016 EPRA NAV per share at EUR4.9, up from EUR3.7 in December 2015
- Total assets amount to EUR8.1 billion at the end of 2016, up 82% from EUR4.4 billion in the end of 2015. Investment property at EUR5 billion in December 2016, up further to over EUR5.5 billion as of February 2017.
- Maintaining conservative financial policy, with LTV at 39% as of December 2016. Considering the conversion of in-the-money convertible bonds, the LTV further drops to 34%
- Low leverage and strong operational performance results in high cover ratios with Interest Cover Ratio at 4.5x and Debt Service Cover Ratio at 3.3x for 2016
- Cash and liquid assets at EUR836 million as of December 2016, complemented by over EUR500 million issued in 2017. The substantial liquidity balance is providing robust firepower to pursue the acquisition pipeline
- In-place rent growth like-for-like at 4.4% and occupancy growth like-for-like at 3.2%, validating the operational capabilities of the management and mirroring the high upside potential in the portfolio
- Updating dividend policy to 65% distribution of FFO I per share, effective for 2016 results, resulting in a dividend payout of EUR0.163, up 220% from 2015
Carefully selected accretive acquisitions supported by strong access to capital
AT succeeded to build a quality portfolio in top tier cities in Germany and the Netherlands such as Berlin, Munich, Hamburg, Frankfurt, Amsterdam and Rotterdam.
The significant external growth was fueled by fruitful capital market activities. AT was the largest European real estate issuer in 2016, raising more than EUR2.5 billion in equity, perpetual notes and straight bonds. Further, AT has achieved good access to the Asian capital market, issuing $450 million with anchor investors.
The commercial portfolio EPRA Vacancy decreased in the end of 2016 to 7.9%, down from 12.8% in December 2015. As of February 2017 the EPRA Vacancy of the commercial portfolio further decreased to 7.3%. The rental income run rate for the commercial portfolio is EUR380 million as February 2017, and the FFO I is EUR178 million. Including the contribution of the residential portfolio, the FFO I run rate as of February 2017 is EUR230 million.
AT has updated the dividend payout ratio to 65% of FFO I per share, up from formerly 30%, resulting in EUR0.163 per share in 2016 (subject to AGM approval) reflecting a 220% increase from 2015 dividend payout. The updated dividend policy is reflecting a 3.8% dividend yield on 2016 payout and 5.2% dividend yield on February 2017 FFO I run rate.
Further, AT is currently in the process to upgrade the stock listing to an EU-regulated market and in parallel is in the process to migrate the company to Luxemburg and continue as a Luxemburg Company. These corporate transactions are expected to be completed during the course of 2017. The Company believes that these corporate transactions will increase the visibility and tradability of the Company and will result in inclusion in major stock indices in Europe.
The FY 2016 financial report is available on the Company's website:
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 JOINT BOOKRUNNERS 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 PROPERTY HOLDINGS PLC. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.
|Company:||Aroundtown Property Holdings Plc.|
|Faros, Shop 2, Spyros Thalassines Alkyonides|
|Listed:||Regulated Unofficial Market in Berlin, Stuttgart; Open Market in Frankfurt; Paris|
|End of News||DGAP News Service|