Aroundtown SA announces 9M 2019 results

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS

AROUNDTOWN ANNOUNCES 9M 2019 RESULTS WITH SOLID PERFORMANCE, LARGER PORTFOLIO AND INCREASED GUIDANCE FOR 2019

- Net rental income grew to EUR555 million, increasing 22% from EUR456 million during the corresponding period in 2018.

- Adjusted EBITDA of EUR557 million, higher by 26% as compared to EUR440 million for the first nine months of 2018.

- FFO I increase by 25% YOY to EUR371 million, reflecting solid operational profitability. Full year 2019 FFO I guidance at over EUR500 million.

- FFO I per share for the period at EUR0.32, higher by 10% over 9M 2018. Full year 2019 FFO I per share guidance at ~EUR0.43, reflecting an FFO I yield of 5.6%.

- FFO I per share after perpetual notes attribution was EUR0.29 up by 12% YOY.

- Disposals of EUR240 million during 9M 2019 at a profit margin over total cost of 26%, resulting in an FFO II of EUR421 million. YTD signed disposals amount to approx. EUR800 million.

- Profit for the period amounted to EUR1.5 billion, 6% higher YOY, leading to a basic and diluted earnings per share of EUR0.94 and EUR0.93, respectively.

- EPRA NAV showing significant growth, increasing 19% to EUR10.4 billion as of the end of September, EPRA NAV per share grew to EUR8.5 up by 14% (dividend adjusted) as compared to the end of 2018.

- EPRA NAV including perpetual notes was EUR12.8 billion and EUR10.5 per share as of the end of September 2019.

- Total Equity as of September 2019 amounted to EUR13 billion, 31% higher as compared to year-end 2018, leading to an equity ratio of 52%.

- Investment property amounted to EUR17.9 billion as of September 2019, increasing 27% from the end of December 2018.

- Conservative capital structure preserved with a low LTV of 34% as of September 2019, supplemented with a solid unencumbered assets ratio of 80% representing EUR13.5 billion in value.

- Robust debt profile with ICR at 4.6x, long average debt maturity period of 7.4 years, and low average cost of debt of 1.7%.

- Strong internal growth supported by the total net rent LFL growth of 4.3%, with 2.4% from in-place rent increases and 1.9% as a result of occupancy increases.

- The 2019 guidance has been increased due to strong internal and external growth

27 November 2019.

Realizing the strong acquisition pipeline complemented by strong like-for-like performance drives strong cash flow generation on a shareholder level Through continuous successful utilization of its strong deal sourcing network, Aroundtown (the "Company" or "AT") has signed year-to-date acquisitions amounting to EUR3.1 billion of mainly offices and hotels in locations with solid fundamentals such as Munich, Berlin, Frankfurt, Cologne, Hamburg, Paris and Benelux. Paired with AT's strong like-for-like performance of 4.3% net rental income growth and a cost-efficient platform, FFO I for the first 9 months increased by 25% YOY to EUR371 million. The 2019 guidance was updated to an FFO I of over EUR500 million and an FFO I per share of ~EUR0.43, which reflects an increase of over 10% over the full year 2018 FFO I per share. Based on the update guidance, the FFO I yield stands at 5.6% and based on the dividend payout ratio of 65% the dividend yield is 3.7%.

Additionally, realizing its active sales pipeline and seizing attractive opportunities, AT disposed non-core and mature properties amounting to EUR240 million in the first 9 months of 2019, at a profit margin of 26% over total cost reflecting a 3% premium over their last appraised book values. Year-to-date, signed total disposals amount to approx. EUR800 million, enabling AT to channel the proceeds into opportunities with higher value-add potential thus further strengthening the portfolio quality and long-term internal growth potential.

Increasing equity base resulting in high shareholder value creation The strong operational performance paired with the extraction of the portfolio's value potential, culminate in the consistent shareholder value creation. This value enhancement including the effects of the equity capital increase and the scrip dividend is reflected in the increase in the EPRA NAV as of September 2019 by 19% to EUR10.4 billion, or EUR8.5 on a per share basis, an increase of 14% adjusted for dividend and 10% net of dividend paid.

Commitment to healthy capital structure and sustainability reaffirmed AT remains committed to its conservative capital structure reflected in a low LTV of 34%, strong interest coverage ratios with an ICR of 4.6x and long average debt maturities of 7.4 years.

For the third year running, Aroundtown received the EPRA BPR Gold award for the highest standards for financial reporting for its FY 2018 annual report in September 2019. Concurrently, for the second consecutive year AT received the EPRA sBPR Gold award in recognition of its sustainability reporting for the year 2018. Aroundtown's Corporate Responsibility Report for 2018 is available to download on the Company's website and details its sustainability efforts and measures.

The financial statements for 9M 2019 are available on the Company's website:

https://www.aroundtown.de/investor-relations/publications/financial-reports

For definitions and reconciliations of the Alternative Performance Measures, please see the relevant sections in the pages 56-58 of the 9M 2019 financial statements. You can find the financial statements in AT's website under Investor Relations > Publications > Financial Reports or under this link:

https://www.aroundtown.de/fileadmin/user_upload/04_investor_relations/downloads/2019/AT_Q3_2019.pdf

About the Company Aroundtown SA (symbol: AT1), trading on the Prime Standard of the Frankfurt Stock Exchange, is the largest listed and highest rated (BBB+ by S&P) German commercial real estate company. Aroundtown invests in income generating quality properties with value-add potential in central locations in top tier European cities mainly in Germany/NL.

Aroundtown SA (ISIN: LU1673108939) is a public limited liability company (société anonyme) established under the laws of the Grand Duchy of Luxembourg, registered with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés, Luxembourg) under number B217868, having its registered office at 40, Rue du Curé, L-1368 Luxembourg, Grand Duchy of Luxembourg.

Contact

Timothy Wright

T: +352 285 7741

E: info@aroundtown.de

www.aroundtown.de

DISCLAIMER

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.

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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 AROUNDTOWN OR ANY OF THE MANAGERS 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 SA. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.