Revenues up by 28.1 % to EUR 93.5 million during first half of 2022
Operating profitability improved
Valuation of portfolio confirmed despite challenging market environment
Cash and cash equivalents up to EUR 150.7 million
Refinancing of 2023 bond expected to be completed in the months ahead
Berlin, 31 August 2022 – ACCENTRO Real Estate AG, a residential real estate investor and Germany’s leading housing privatisation company, is on track to achieve its stated annual targets and the expected growth owing to a good business development. Irrespective of the current market environment, the group confirms its annual forecast for 2022, assuming that the positive business development of the first six months of 2022 continues during the second half of the year. Following a good first half-year, ACCENTRO continues to expect revenues between EUR 200 and 220 million (previous year: EUR 192.7 million) and EBIT between EUR 45 and 50 million (previous year: EUR 45.2 million).
Lars Schriewer, CEO of ACCENTRO Real Estate AG, faces the second half-year with optimism: “The business development during the first six months makes us confident that we will be able to continue our trajectory and achieve our annual targets although it is currently impossible to make a comprehensive assessment of the impact the volatile market development is likely to have. But even in the currently challenging sector and market environment, ACCENTRO is well positioned, as the latest increase in revenues and the intrinsic value of our portfolio illustrate. Following a robust first quarter and a certain reticence during the months of April and May, demand rebounded visibly as early as June and July. In the individual privatisation business, this enabled us to achieve the company’s best-ever result apart from the banner year of 2021.”
Successful business development
Revenues increased by 28.1 % to EUR 93.5 million (previous year: EUR 73.0 million) during the first six months. The dynamic growth was mainly driven by apartment sales, which registered a revenue increase of 39.0 % up to EUR 84.8 million (previous year: EUR 61.0 million). They also improved the profit margin of this segment, which is now 29.0 % (previous year: 16.3 %). Letting revenues, which were influenced by successful apartment sales, amounted to EUR 7.8 million (previous year: EUR 10.8 million). Reduced vacancies increased the rental income in the company’s own rental portfolio.
The earnings adjusted for valuation effects improved considerably, and did so despite a partial write-off on one receivable. Consolidated earnings before interest and income tax (EBIT) equalled EUR 9.0 million and admittedly fell short of the prior-year figure (previous year: EUR 19.0 million). But it should be remembered that the prior-year result was largely defined by positive valuation effects after major portfolio acquisitions worth EUR 16.3 million. The latest periodic valuation of the portfolio as of the balance sheet date of 30 June 2022 did not return any adjustments – clear evidence for the intrinsic value of the company’s real estate, even and especially in the currently demanding market environment. The earnings per share equalled EUR -0.07 (previous year: EUR 0.10).
While the total assets remained stable at EUR 927.0 million as of 30 June 2022 (31/12/2021: EUR 929.5 million), cash and cash equivalents increased to EUR 150.7 million (31/12/2021: EUR 121.5 million). The equity ratio stood at 27.9 % at mid-year (31/12/2021: 28.0 %).
Growth drivers remain intact
“The structural growth pillars of our business model remain intact. The keen interest in homeownership is still matched by a so-far stable price level and by persistently short supply. Demand for rental accommodation is also likely to stay as high as ever, especially in the segments that are relevant for ACCENTRO,” commented CEO Schriewer. “The anticipated business development is based on a solid foundation, meaning primarily our sales portfolio with a current market value of around EUR 370 million. In addition, we are optimising our property stock through pinpoint transactions, and keep investing in our proprietary rental portfolio to enhance the attractiveness of the apartments.”
Refinancing of bond maturing in 2023 to be closed in the coming months
In a parallel effort, ACCENTRO concentrates on the refinancing of the bond that will mature in February of 2023: “Here, we are in the process of reviewing various refinancing options while keeping a close eye on the financing markets. We now expect to be able to report the successful closing of a refinancing arrangement within the next few months,” said CEO Schriewer in regard to the latest state of affairs.
About ACCENTRO Real Estate AG
ACCENTRO Real Estate AG is a residential property investor and Germany’s market leader in housing privatisations. Its real estate portfolio consisted of around 4,900 units as of 31 December 2021. In addition to Berlin, regional focal points include eastern German cities and conurbations, as well as the Rhine-Ruhr metro region. The business activity of ACCENTRO comprises three core divisions. They are the tenant-sensitive retailing of apartments to private owner-occupiers and buy-to-let investors as well as the selling of real estate portfolios to institutional investors, and the build-up and management of a proprietary real estate portfolio, plus the provision of services for third parties. 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). www.accentro.de
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