2023 forecast is not achievable due to the business development in the first half of the year and the continued weak market development
Providing a well-founded and reliable forecast scope is currently not possible
Berlin, 31 August 2023 - Following a weak start to the year, the unchanged difficult economic environment continued to have a strong impact on the German housing market in the second quarter of 2023. Accordingly, the investment volume in the sector was significantly below the previous year's level with a drop of more than 60% and at the same time marked the lowest turnover of a first half-year since 2011. Prices for residential real estate also continued to fall, although recently much less dynamically than in the previous quarters.
The difficult parameters had a significant impact on ACCENTRO's business development in the first half of 2023. Consolidated revenues fell to EUR 36.1 million in the reporting period (comparable period: EUR 93.5 million). This is primarily due to the significant decline in revenues to EUR 26.7 million (comparable period: EUR 84.8 million) in the "Trading and Privatisation" segment because of the significantly lower notarisation volume since the second half of 2022 and also the price development on the market. Once again, rental income achieved a plus. Due to the further expansion of the portfolio last year and rent increases, revenues rose by around 17% to EUR 9.1 million (comparable period: EUR 7.8 million).
Consolidated earnings before interest and taxes (EBIT) amounted to EUR -9.4 million in the first six months (comparable period: EUR 9.0 million). The significant decline compared to the same period of the previous year is also largely due to the development in the "Trading and Privatisation" segment. In contrast, earnings in the rental business developed positively due to a significant improvement in margins.
Consolidated total income fell to EUR -24.6 million (comparable period: EUR -2.3 million). This was also affected by the increase in interest expenses due to the refinancing of the two bonds. Earnings per share were EUR -0.75 (comparable period: EUR -0.07). The equity ratio rose to 28.4% as of 30 June 2023 (as of 31 December 2022: 28.2%).
Due to the business development in the first half of the year, the still extremely tense market situation and the continuing weak demand on the housing market, the Management Board no longer expects that the forecast for the 2023 financial year (revenues: EUR 100 - 120 million, EBIT: EUR 0 - 2 million), which was first given at the end of April with the publication of the 2022 Annual Report, can be achieved. Furthermore, due to the unpredictable business environment, it is currently not possible for the Management Board to provide a well-founded and reliable forecast scope for the current financial year. The forecast is therefore temporarily suspended. For the 2023 financial year, a significant reduction in consolidated revenues and consolidated earnings before interest and taxes (EBIT) compared to the previous forecast must be expected.
An improvement in the market situation requires, above all, more stable parameters. They are an essential prerequisite for investors as well as private individuals to be more willing to make transactions again. And here, in particular, the development of interest rates and house prices play a decisive role. Even if further interest rate increases by the European Central Bank are to be expected this year and it is not yet possible to speak of a bottoming out of prices, an increasing stabilisation of both factors seems possible.
Jörg Neuß, CEO of ACCENTRO, is confident about the future: "Despite the current difficult economic situation and its impact on our industry, the fundamental data show that the German housing market is intact and has great growth potential. The demand for living space remains high and is met by a far too scarce supply of housing, which is further exacerbated by the massive slump in new construction. ACCENTRO is ideally positioned to participate in this long-term growth. As the leading housing privatisation company in Germany with an attractive real estate portfolio as well as a housing stock that offers great rental and appreciation potential, we are well positioned for the coming years."
About ACCENTRO Real Estate AG
ACCENTRO Real Estate AG is a residential investor and market leader in housing privatisation in Germany. As of 30 June 2023, the real estate portfolio comprised 5,815 units with an area of approximately 340,000 square metres. The book value of the entire portfolio was around EUR 600 million. In addition to Berlin, the regional focus includes major central German cities and conurbations as well as the Rhine-Ruhr metropolitan region. ACCENTRO's business activities comprise three core areas. These include the tenant-oriented sale of flats to private owner-occupiers and capital investors as well as the sale of real estate portfolios to institutional investors, the management of its own real estate portfolio and services for third parties. The shares of ACCENTRO Real Estate AG are listed in the Prime Standard segment of the Frankfurt Stock Exchange (WKN: A0KFKB, ISIN: DE000A0KFKB3). www.accentro.de
ACCENTRO Real Estate AG
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