AROUNDTOWNS A
Preliminary
Consolidated
Financial
Statements
The following unaudited results and amounts have not yet been approved nor adopted by the Board of Directors
For the year ended December 31, 2019
Munich
Aroundtown SA | Preliminary Consolidated Financial Statements | 2
Key Financials | |||
in € millions unless otherwise indicated | 1-12/2019 | change | 1-12/2018 |
Revenue | 894.8 | 20% | 747.1 |
Net rental income | 765.7 | 21% | 633.0 |
Adjusted EBITDA 1) | 772.7 | 28% | 606.0 |
FFO I 1 ) 2) | 503.4 | 24% | 405.7 |
FFO I per share (in €) | 0.43 | 10% | 0.39 |
FFO I per share after perpetual notes attribution (in €) | 0.38 | 12% | 0.34 |
FFO II | 814.3 | 42% | 574.6 |
ICR | 4.8x | 3% | 4.7x |
Profit for the year | 1,709.1 | -6% | 1,827.8 |
EPS (basic) (in €) | 1.12 | -27% | 1.54 |
EPS (diluted) (in €) | 1.11 | -26% | 1.49 |
- including AT's share in GCP and other joint ventures, net of contributions from commercial assets held for sale
- excluding minorities
2019* | change | 2018 | |||
Dividend per share (in €) | 0.28 | 10% | 0.2535 | ||
*2019 dividend distribution is subject to the next AGM approval and based on a payout ratio of 65% of FFO I per share | |||||
Dec 2019 | |||||
in € millions unless otherwise indicated | Dec 2018 | Dec 2017 | |||
Total Assets | 25,444.7 | 19,040.8 | 13,770.4 | ||
Total Equity | 13,378.9 | 9,944.3 | 7,249.9 | ||
Cash and liquid assets 1) | 3,043.8 | 1,600.6 | 848.7 | ||
Unencumbered assets ratio 2) | 81% | 72% | 71% | ||
Equity Ratio | 53% | 52% | 53% | ||
Loan-to-Value | 34% | 35% | 36% | ||
- including cash and liquid assets under held for sale
- by rent
Net Asset Value
in € millions unless otherwise indicated
Dec 2019
Dec 2019 per share
(in €)
Per share growth
(dividend adjusted)
Per share growth
Dec 2018
Dec 2018 per share (in €)
EPRA NAV | ||||
including | ||||
NAV | EPRA NAV | perpetual notes | ||
11,942.8 | 10,633.4 | 13,117.4 | ||
9.8 | 8.7 | 10.7 | ||
+23% | +16% | +20% | ||
+20% | +13% | +18% | ||
9,309.5 | 8,742.4 | 10,290.1 | ||
8.2 | 7.7 | 9.1 | ||
3 | Aroundtown SA | Preliminary Consolidated Financial Statements
Adjusted EBITDA
For the year ended December 31, | ||
2019 | 2018 | |
in € millions | ||
Operating profit | 2,155.8 | 2,293.5 |
Total depreciation and amortization | 1.7 | 1.6 |
EBITDA | 2,157.5 | 2,295.1 |
Property revaluations and capital gains | (1,217.5) | (1,536.4) |
Share in profit from investment in equity-accounted investees | (298.7) | (251.6) |
Other adjustments | (0.3) | (10.4) |
Adjusted EBITDA commercial portfolio, recurring long-term | 641.0 | 496.7 |
Adjustment for GCP's and other investments' adjusted EBITDA contribution* | 131.7 | 109.3 |
Adjusted EBITDA | 772.7 | 606.0 |
- the adjustment is to reflect AT's share in GCP's and other joint ventures' adjusted EBITDA. GCP generated an adjusted EBITDA of €298 million in FY 2019 and €276 million in FY 2018
Adjusted EBITDA is a key performance measure used to evaluate the operational result of the Company, derived by deducting from the EBITDA non-operational items such as revaluation and capital gains, result from disposal of properties and other adjustments. Additionally, in order to mirror the recurring operational results of the Group, the share in profit from investment in equity-accounted investees is subtracted as this also includes the Company's share in non-operational profits generated by its equity-accounted investees. Due to the nature of its strategic investment in GCP and in other investments, AT includes in its adjusted EBITDA calculation its share in the adjusted EBITDA generated by those investments for the period in accordance with its holding rate over the period. AT's holding rate in GCP is 39% as at the end of December 2019.
The Group generated in 2019 an adjusted EBITDA of €773 million, an increase of 28% compared to €606 million generated in 2018. The main driver of this increase is the strong growth in revenues where the main contributor was the accretive acquisitions in combination with a strong like-for-like performance of 4.2% in 2019. Efficiency gains in the property operating expenses in 2019 further contributed to the increase of the adjusted EBITDA, validating AT's efficient and scalable operating platform. The adjusted EBITDA additionally includes contributions from GCP's and other investments' adjusted EBITDA due to the strategic nature of the investment. GCP recorded a growth of 8% in its adjusted EBITDA in 2019, demonstrating its high operational profitability.
The adjusted EBITDA additionally accounts for other adjustments in the amount of €0.3 million in 2019. These adjustments are implemented mainly to deduct non-recurring items and add back non-cash items. Non-recurring items being mainly the contributions from properties marked for disposal since they are intended to be disposed and therefore not part of the recurring adjusted EBITDA, and non-cash items being mainly expenses for the employee share incentive plan.
Adjusted EBITDA annual development (in € millions)
CAGR | |||
+42% | 773 | ||
606 | |||
429 | |||
268 | |||
2016 | 2017 | 2018 | 2019 |
4 | Aroundtown SA | Preliminary Consolidated Financial Statements
Funds From Operations I (FFO I)
For the year | ||||
ended December 31, | ||||
2019 | 2018 | |||
in € millions | ||||
Adjusted EBITDA | ||||
commercial portfolio, | ||||
recurring long-term | 641.0 | 496.7 | ||
Finance expenses 1) | (141.7) | (114.6) | ||
Current tax expenses | (70.6) | (44.4) | ||
Contribution to minorities | (17.4) | (6.7) | ||
Other adjustments | 3.4 | 7.9 | ||
FFO I commercial portfolio, | ||||
recurring long-term | 414.7 | 338.9 | ||
Adjustment for GCP's and other | ||||
joint ventures' FFO I contribution 2) | 88.7 | 66.8 | ||
FFO I | 503.4 | 405.7 | ||
Weighted average basic shares | ||||
(in millions) | 1,172.9 | 1,052.6 | ||
FFO I per share (in €) | 0.43 | 0.39 | ||
- including the effects of IFRS 16
-
the adjustment is to reflect AT's share in GCP's and other investments'
FFO I. GCP generated an FFO I after perpetual notes attribution of €179 million in 2019 and €168 million in 2018
Funds from Operations I (FFO I) is an industry standard performance indicator, reflective of the recurring operational profits after deducting the finance expenses and current tax expenses from the adjusted EBITDA. The calculation further includes adjustments to consider minorities and the relative share of AT in GCP's reported FFO I (after perpetual notes attribution), and the FFO I of other significant investment positions.
In 2019, the Group increased the FFO I by 24% to €503 million from €406 million recorded in 2018. AT's operational platform embeds strong capabilities to transform its high upside potential into recurring operational profits, which are reflected in this strong bottom-line growth. The strong growth in the adjusted EBITDA was partially offset by higher finance expenses, which is driven by AT's successful capital market issuances to fund its accretive growth and optimize its debt profile which resulted in a long-term average debt maturity of 7.2 years and a low average cost of debt of 1.7%. The FFO I additionally includes adjustments which consider minorities and the contribution from GCP and other investments, including dividend received. The contribution to minorities increased due to acquisitions with minority share and changes in ownership interests. The Group strongly benefitted from GCP's high operational profitability where it recorded a 7% FFO I growth. In addition, the FFO I includes other adjustments in the amount of €3.4 million, mainly related to finance and tax expenses from the contribution of properties marked for disposal.
FFO I annual development (in € millions)
CAGR | 503 | ||
+45% | |||
406 | |||
293 | |||
166 | |||
2016 | 2017 | 2018 | 2019 |
5 | Aroundtown SA | Preliminary Consolidated Financial Statements
FFO I per share
FFO I per share in 2019 amounted to €0.43, a growth of 10% compared to €0.39 recorded in 2018. A per share level growth despite a higher share count validates AT's accretive growth. The average share count between the two periods grew mainly as a result of the equity capital increase and new shares from the scrip dividend in 2019.
FFO I per share development (in €)
0.43
0.39
+10%
2018 2019
FFO I per share after perpetual notes attribution
For the year | |||
ended December 31, | |||
2019 | 2018 | ||
in € millions | |||
FFO I | 503.4 | 405.7 | |
Adjustment for accrued perpetual | |||
notes attribution | (57.8) | (46.1) | |
FFO I after perpetual notes | |||
attribution | 445.6 | 359.6 | |
Weighted average basic shares | |||
(in millions) | 1,172.9 | 1,052.6 | |
FFO I per share after perpetual | |||
notes attribution (in €) | 0.38 | 0.34 | |
According to IFRS accounting treatment, contributions to perpetual notes are recorded through changes in equity and not as a financial expenses in the income statement. In order to ensure a high level of transparency, the Company additionally presents an adjusted FFO I per share figure factoring in these attributions. FFO I per share after perpetual notes attribution amounted to €0.38 in 2019, up by 12% compared to €0.34 recorded in 2018. The growth follows the FFO I per share growth, partially offset by the impact from approx. €1 billion perpetual notes issuances in 2019.
FFO I per share annual development (in €)
FFO I per share after perpetual notes attribution | ||||||
development (in €) | ||||||
CAGR | ||||||
+20% | ||||||
0.43 | ||||||
0.36 | 0.39 | 0.38 | +12% | 0.38 | ||
0.34 | 0.34 | |||||
0.32 | ||||||
0.25 | ||||||
2016 | 2017 | 2018 | 2019 | 2018 | 2019 |
FFO I per share | FFO I per share after perpetual | |
notes attribution | ||
FFO II | For the year | |||
ended December 31, | ||||
2019 | 2018 | |||
in € millions | ||||
FFO I | 503.4 | 405.7 | ||
Result from disposal of properties 1) | ||||
310.9 | 168.9 | |||
FFO II | 814.3 | 574.6 | ||
- the excess amount of the gross sale price to total cost (cost price plus capex of the disposed properties)
FFO II is an additional key performance indicator used in the real estate industry to evaluate the operational recurring profits including the impact from disposal profits during the reporting period. The result from disposal of properties amounted to €311 million, 84% higher compared to the €169 million recorded in 2018. Therefore, the FFO II amounted to €814 million in 2019, up by 42% compared to €575 million recorded in 2018. During 2019, AT disposed €745 million of non-core and mature assets with a 72% margin over total costs. In 2018 AT sold assets at a value over €740 million and a disposal margin over total cost of approx. 30%. The comparatively higher disposal margins in 2019 at around similar disposal volumes compared to 2018 testify the significant value creation achieved in the disposed properties.
6 | Aroundtown SA | Preliminary Consolidated Financial Statements
EPRA NAV
EPRA NAV is defined by the European Public Real Estate Association (EPRA) as the net asset value of the Company adjusted to include real estate properties and other investment interests at fair values and exclude certain items that are not expected to materialize in a long-term real estate business model. The purpose of the EPRA NAV is to adjust the IFRS NAV in order to provide stakeholders
with the most relevant information on the Group's balance sheet items in the context of a real estate investment company with a long-term oriented investment strategy. As perpetual notes are classified as equity in accordance with IFRS accounting treatment, AT additionally reports an EPRA NAV including perpetual notes.
Dec 2019 | Dec 2018 | ||||||
in € millions | per share | in € millions | per share | ||||
NAV per the financial statements | 13,378.9 | 9,944.3 | |||||
Equity attributable to perpetual notes investors | (2,484.0) | (1,547.7) | |||||
NAV excluding perpetual notes | 10,894.9 | 8,396.6 | |||||
Fair value measurements of derivative financial instruments* | (71.6) | 25.1 | |||||
Deferred tax liabilities* | 1,119.5 | 887.8 | |||||
NAV | 11,942.8 | €9.8 | 9,309.5 | €8.2 | |||
Non-controlling interests | (1,309.4) | (567.1) | |||||
EPRA NAV | 10,633.4 | €8.7 | 8,742.4 | €7.7 | |||
Equity attributable to perpetual notes investors | 2,484.0 | 1,547.7 | |||||
EPRA NAV including perpetual notes | 13,117.4 | €10.7 | 10,290.1 | €9.1 | |||
Number of shares, including in-the-money dilution effects | |||||||
(in millions) | 1,224.9 | 1,129.7 | |||||
* including balances in assets held for sale
EPRA NAV as of year-end 2019 increased by 22% to €10.6 billion and €8.7 on a per share basis, which reflects an increase of 13% compared to year-end 2018. The total shareholder return which includes the dividends and the EPRA NAV per share growth resulted in a 16% growth. This robust growth was largely driven by net profits from
revaluations, as well as from a €601 million equity capital increase in July 2019. The EPRA NAV including perpetual notes increased further to a 27% increase compared to year-end 2018 and amounted to €13.1 billion at-year end 2019 due to around €1 billion of perpetual notes issuances in 2019.
7 | Aroundtown SA | Preliminary Consolidated Financial Statements
Consolidated Statement Of Profit Or Loss
Year ended December 31, | |||||||
2019 | 2018 | ||||||
Unaudited | Audited | ||||||
in € millions | |||||||
Revenue | 894.8 | 747.1 | |||||
Capital gains, property revaluations and other income | 1,217.5 | 1,536.4 | |||||
Share in profit from investment in equity-accounted investees | 298.7 | 251.6 | |||||
Property operating expenses | (227.9) | (219.1) | |||||
Administrative and other expenses | (27.3) | (22.5) | |||||
Operating profit | 2,155.8 | 2,293.5 | |||||
Finance expenses and other financial results | (96.0) | (208.4) | |||||
Profit before tax | 2,059.8 | 2,085.1 | |||||
(70.6) | |||||||
Current tax expenses | (44.4) | ||||||
Deferred tax expenses | (280.1) | (212.9) | |||||
Profit for the year from continuing operations | 1,709.1 | 1,827.8 | |||||
- | |||||||
Profit from discontinued operation, net of tax | - | ||||||
Profit for the year | 1,709.1 | 1,827.8 | |||||
Profit attributable to: | |||||||
Owners of the Company | 1,308.1 | 1,620.4 | |||||
Perpetual notes investors | 57.8 | 46.1 | |||||
Non-controlling interests | 343.2 | 161.3 | |||||
Profit for the year | 1,709.1 | 1,827.8 | |||||
Net earnings per share attributable to the owners of the Company | |||||||
(in €) | |||||||
Basic earnings per share | 1.12 | 1.54 | |||||
1.11 | |||||||
Diluted earnings per share | 1.49 | ||||||
Aroundtown SA | Preliminary Consolidated Financial Statements | 8
Consolidated Statement Of
Comprehensive Income
Year ended December 31, | |||||||||
2019 | 2018 | ||||||||
Unaudited | Audited | ||||||||
in € millions | |||||||||
Profit for the year | 1,709.1 | 1,827.8 | |||||||
Other comprehensive income: | |||||||||
Items that are or may be reclassified subsequently to profit or loss | |||||||||
Foreign operations - foreign currency translation difference, net | (3.8) | ||||||||
of investment hedges of foreign operations | (21.8) | ||||||||
Cash flow hedges and cost of hedging | 20.1 | (14.5) | |||||||
Equity-accounted investees - share of OCI | (1.9) | (4.0) | |||||||
Tax related to the other comprehensive income components | (4.9) | 1.7 | |||||||
Total other comprehensive income / (loss) for the year, net of tax | 9.5 | (38.6) | |||||||
Total comprehensive income for the year | 1,718.6 | 1,789.2 | |||||||
Total comprehensive income attributable to: | |||||||||
Owners of the Company | 1,317.6 | 1,581.8 | |||||||
Perpetual notes investors | 57.8 | 46.1 | |||||||
Non-controlling interests | 343.2 | 161.3 | |||||||
Total comprehensive income for the year | 1,718.6 | 1,789.2 | |||||||
9 | Aroundtown SA | Preliminary Consolidated Financial Statements
Consolidated Statement Of Financial Position
December 31, | ||||
2019 | 2018 | |||
Unaudited | Audited | |||
in € millions | ||||
Assets | ||||
Equipment and intangible assets | 19.8 | 33.1 | ||
Investment property | 18,127.0 | 14,174.0 | ||
Advanced payments for real estate transactions | 181.4 | 48.6 | ||
Investment in equity-accounted investees | 2,505.9 | 2,214.8 | ||
Derivative financial assets | 158.7 | 22.0 | ||
Other non-current assets | 628.3 | 369.8 | ||
Deferred tax assets | 80.8 | 76.6 | ||
Non-current assets | 21,701.9 | 16,938.9 | ||
2,191.7 | ||||
Cash and cash equivalents | 1,242.8 | |||
Short-term deposits | 4.7 | 4.7 | ||
Financial assets at fair value through profit or loss | 842.2 | 352.0 | ||
Trade and other receivables | 453.9 | 277.0 | ||
Derivative financial assets | 36.1 | 14.4 | ||
Assets held for sale | 214.2 | 211.0 | ||
Current assets | 3,742.8 | 2,101.9 | ||
Total Assets | 25,444.7 | 19,040.8 | ||
Aroundtown SA | Preliminary Consolidated Financial Statements | 10
December 31, | |||||
2019 | 2018 | ||||
Unaudited | Audited | ||||
in € millions | |||||
Equity | |||||
Share capital | 12.2 | 11.3 | |||
Retained earnings and other reserves | 9,573.3 | 7,818.2 | |||
Equity attributable to the owners of the Company | 9,585.5 | 7,829.5 | |||
Equity attributable to perpetual notes investors | 2,484.0 | 1,547.7 | |||
Equity attributable to the owners of the Company and perpetual | |||||
notes investors | 12,069.5 | 9,377.2 | |||
Non-controlling interests | 1,309.4 | 567.1 | |||
Total Equity | 13,378.9 | 9,944.3 | |||
Liabilities | |||||
Loans and borrowings | 620.6 | 1,092.9 | |||
Straight bonds | 9,138.9 | 6,351.6 | |||
Derivative financial liabilities | 71.7 | 61.5 | |||
Other non-current liabilities | 270.6 | 102.6 | |||
Deferred tax liabilities | 1,107.4 | 882.3 | |||
Non-current liabilities | 11,209.2 | 8,490.9 | |||
245.9 | |||||
Current portion of long-term loans and loan redemptions | 27.0 | ||||
Trade and other payables | 342.8 | 450.8 | |||
Tax payable | 24.9 | 10.0 | |||
Provisions for other liabilities and charges | 149.1 | 106.5 | |||
Derivative financial liabilities | 51.5 | - | |||
Liabilities held for sale | 42.4 | 11.3 | |||
Current liabilities | 856.6 | 605.6 | |||
Total Liabilities | 12,065.8 | 9,096.5 | |||
Total Equity and Liabilities | 25,444.7 | 19,040.8 | |||
11 | Aroundtown SA | Preliminary Consolidated Financial Statements
Consolidated Statement Of Cash Flows
Year ended December 31, | ||||||||
2019 | 2018 | |||||||
Unaudited | Audited | |||||||
in € millions | ||||||||
Cash flows from operating activities | ||||||||
Profit for the year | 1,709.1 | 1,827.8 | ||||||
Adjustments for the profit: | ||||||||
Depreciation and amortization | 1.7 | 1.6 | ||||||
Property revaluations and capital gains | (1,217.5) | (1,536.4) | ||||||
Share in profit from investment in equity-accounted investees | (298.7) | (251.6) | ||||||
Finance expenses and other financial results | 96.0 | 208.4 | ||||||
Current and deferred tax expenses | 350.7 | 257.3 | ||||||
Share-based payment agreements | 4.5 | 3.3 | ||||||
Change in working capital | (36.7) | (42.1) | ||||||
Dividend received | 61.4 | 50.9 | ||||||
Tax paid | (56.9) | (46.4) | ||||||
Net cash provided by operating activities | 613.6 | 472.8 | ||||||
Cash flows from investing activities | ||||||||
Acquisitions of equipment and intangible assets, net | (3.1) | (4.7) | ||||||
Investment and acquisitions of investment property, | (538.2) | |||||||
capex and advances paid, net | (915.1) | |||||||
(Acquisitions)/ disposals of investees and loans, | (1,772.8) | |||||||
net of cash acquired/ (disposed) | (1,829.2) | |||||||
Proceeds from/ (investments in) traded securities | (575.7) | |||||||
and other financial | assets, net | (175.3) | ||||||
Net cash used in investing activities | (2,889.8) | (2,924.3) | ||||||
Berlin
Year ended December 31, | |||||||
2019 | 2018 | ||||||
Unaudited | Audited | ||||||
in € millions | |||||||
Cash flows from financing activities | |||||||
Proceeds from issuance of ordinary shares, net | 595.4 | 600.5 | |||||
Proceeds from issuance of straight bonds, net | 2,653.9 | 2,455.5 | |||||
Proceeds from perpetual notes investors, net | 878.5 | 352.1 | |||||
Proceeds (repayments) from/(of) loans from | (484.5) | ||||||
financial institutions and others, net | 157.1 | ||||||
Amortizations of loans from financial institutions | (21.7) | (24.6) | |||||
Transactions with non-controlling interests | (24.5) | (265.4) | |||||
Dividend distribution | (209.4) | (225.7) | |||||
Interest and other financial expenses paid, net | (159.8) | (96.6) | |||||
Net cash provided by financing activities | 3,227.9 | 2,952.9 | |||||
Net changes in cash and cash equivalents | 951.7 | 501.4 | |||||
Assets held for sale - change in cash | (4.1) | 5.9 | |||||
Cash and cash equivalents as at January 1 | 1,242.8 | 736.4 | |||||
Effect of movements in exchange rates on cash held | 1.3 | (0.9) | |||||
Cash and cash equivalents as at December 31 | 2,191.7 | 1,242.8 | |||||
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Disclaimer
Aroundtown SA published this content on 18 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2020 12:32:09 UTC