• Consolidated revenues of EUR 125.2 million in 2020 • Consolidated earnings before interest and taxes (EBIT) at EUR 34.8 million • One-off expenses of EUR 6.0 million negatively impact EBIT • Notarised volume of property sales exceeds prior-year level at EUR 118.7 million • Outlook for 2021: double-digit growth planned for revenues and EBIT
Berlin, 5 May 2021 – ACCENTRO Real Estate AG, residential investor and Germany's leading residential property privatisation company, once again exceeded in 2020 the already strong figures of the previous year in terms of EBIT before one-off effects and sales volume. During the 2021 financial year, the company is expected to achieve double-digit growth in revenues and EBIT.
The consolidated earnings before interest and taxes (EBIT) during the 2020 financial year equalled EUR 34.8 million (previous year: EUR 39.8 million). Earnings contributions from the fair value assessment of the portfolio properties had a clearly positive effect on the result. However, the earnings performance was impacted by pandemic-driven delays to transfers of benefits and burdens, which caused some of the profits expected in the fourth quarter of 2020 to be pushed back into 2021. In addition, one-off expenses in the amount of EUR 6.0 million diminished the EBIT. Excluding the one-off expenses, EBIT of the 2020 financial year would total EUR 40.8 million and thereby set a new record in the company’s history.
The consolidated revenues of the 2020 financial year added up to EUR 125.2 million (previous year: EUR 143.3 million). Here, too, delayed transfers of benefits and burdens caused revenues initially scheduled for the fourth quarter of 2020 to be pushed back into 2021. Accordingly, the accumulated already notarised sales volume without completed change of use and burden as at 31 December 2020 has further increased to EUR 36.9 million (as at 30 September 2020: EUR 29.5 million).
Due to property acquisitions, the balance sheet total has also grown significantly to EUR 862.0 million as at 31.12.2020 (as at 31.12.2019: EUR 580.8 million). As at balance sheet date, the hidden reserves of the inventory properties equalled EUR 135 million while the adjusted Net Asset Value (adj. NAV) approximated EUR 12 per share. The equity ratio as at balance sheet date was 28.7 percent.
ACCENTRO invested massively in the expansion of its real estate portfolio during the past year, more than doubling it to over 5,000 units. Investments focused on fast-growing regions in East Germany and the Rhine-Ruhr metro region.
The bulk of the roughly 3,500 units acquired are earmarked for the proprietary portfolio. Building up the own portfolio will play a key role going forward. Doing so the company increases rental income and sustainably improves the profitability of its business model through value-enhancing development of the portfolio in combination with successful sales.
Despite the severe marketing restrictions imposed by the pandemic, the sales figures of ACCENTRO developed positively in 2020. With 420 property units retailed in privatisation sales, the company almost matched the robust performance of the year before (previous year: 463 units). In fact, the notarised sales volume topped the prior-year figure at EUR 118.7 million (previous year: EUR 109.8 million). The same is true for the fourth quarter of 2020, as the sales total of 156 units (previous year: 117 units) and the notarised sales total of EUR 44.9 million (previous year: EUR 32.6 million) each represented a year-on-year increase.
The performance was matched by successful property portfolio sales to institutional investors such as pension funds and family offices in the course of the past year. For instance, ACCENTRO closed deals for 320 units with a notarised sales volume of c. EUR 40 million.
“The positive trend in sales indicates, on the one hand, that residential real estate in Germany continues to have great significance for private and institutional investors. But on the other hand, it also points to our sales strength and the quality of our products. Without the one-off effects, ACCENTRO would have achieved a record year,” said Lars Schriewer, the CEO of ACCENTRO Real Estate AG.
For the 2021 financial year, the management board expects to see a revenue and earnings growth well into the double-digit range. Revenues is expected to be between EUR 170 and 200 million and EBIT between EUR 45 and 50 million.
On top of that, the current privatisation portfolio of ACCENTRO is certainly well stocked with an anticipated property sales volume of EUR 550 million, and paves the way for a continued successful business performance in the years ahead. At the same time, the growing property stock and the rental income derived from it are supposed to stabilise the business model further with their recurring earnings.
“We are very well positioned, and will keep pursuing our growth trajectory. To this end, we can rely on the long-term structural growth of Germany’s residential property market as robust foundation of our success,” Lars Schriewer added.
Note: The Annual Report for 2020 was published on 30 April 2020.
ACCENTRO Real Estate AG is a residential property investor and Germany’s market leader in housing privatisations. Its real estate portfolio consisted of around 5,200 units as of 31 December 2020. In addition to Berlin, regional focal points include East German cities and conurbations, as well as the Rhine-Ruhr metro region and Bavaria. The business activity of ACCENTRO comprises four core divisions. These are the tenant-sensitive retailing of condominiums to owner-occupiers and private buy-to-let investors, the sale of real estate portfolios to institutional investors, the set-up and management of a proprietary real estate portfolio, and third-party condominium marketing for property asset holders, investors and developers. The shares of ACCENTRO Real Estate AG are listed on the Prime Standard segment of the Frankfurt Stock Exchange (German securities code number WKN: A0KFKB, ISIN: DE000A0KFKB3). investors.accentro.de
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