Berlin, 3 November 2017 – ACCENTRO Real Estate AG (WKN: A0KFKB, ISIN: DE000A0KFKB3) has continued its brisk performance of recent years. The company reaffirmed its annual forecast of approximately 34 million euros in EBIT for the year as a whole. It is planned – subject to the performance during the remainder of the 2017 financial year – to propose to the annual general meeting a dividend over at least the same amount disbursed last year.
Successful Expansion Policy to be Stepped up
“Our strategy to expand into other German cities, and to collaborate with developers on construction projects, has paid off,” stated Jacopo Mingazzini, CEO of ACCENTRO Real Estate AG. The units at the company’s first developer project on Flughafenstrasse in Berlin have been almost entirely sold off except for a few remaining flats, and this just six months after the start of sales and eight months prior to the contractually agreed completion date. “Sales for a follow-on project in Berlin-Neukölln are to kick off in early 2018. Next, we are planning projects in other cities and on Berlin’s periphery,” Mingazzini added.
The expansion into markets outside Berlin is also beginning to bear fruit. For instance, some of the assets in Bonn were already resold, and the response to the properties in the Leipzig metro area has far exceeded expectations.
Additional Growth Upside
Despite sales revenues in the amount of 82 million euros during the reporting period, the inventory assets increased by more than 53 million euros since year-end 2016. These figure do not even include the recently announced sale of a residential property portfolio of altogether eight assets for 43.78 million euros. “We are operating successfully in a fiercely competitive housing market. Going forward, we will continue to earmark the sales proceeds mainly for our ongoing expansion,” said Mingazzini.
Substantial Increase in Sales Volume Expected for Concluding Quarter of 2017
The consolidated revenues came to 89.0 million euros by the end of the first nine months of the 2017 financial year, and thereby fell short of the prior-year quarter. ACCENTRO assumes that the 2017 financial year will end with a brisk fourth quarter. Several large-scale transactions are expected to seriously boost the sales total toward year-end and take the annual revenues well beyond the prior-year total (125.1 million euros). The consolidated income for the nine-months period equalled 12.3 million euros (reference period: 18.8 million euros), also as planned and predicted.
Consistent Repayment of Financial Liabilities
The balance sheet structure has improved noticeably since year-end 2016. The buy-back of the bond during the first half-year of 2017 and the disproportionate repayment of financial liabilities from sales proceeds made it possible to lower the loan-to-value ratio (LTV) from 51.6 percent to 47.2 percent as of 30 September 2017.
On 20 October 2017, ADLER Real Estate AG announced that it had divested itself of the majority of its shares in ACCENTRO. The shares were acquired by a partnership that is advised by Vestigo Capital Advisors LLP. The transaction is expected to be closed in late November. It will trigger the obligation to submit a takeover bid. ACCENTRO will issue a comment on the takeover bid as soon as its specifics are published.
About ACCENTRO Real Estate AG
ACCENTRO Real Estate AG is a listed residential property company. Its core business consists of tenant-sensitive housing privatisations. The company’s subsidiary ACCENTRO GmbH is the market leader for housing privatisation services in Germany. In addition to Berlin, current project and property locations include Leipzig, Hanover, Hamburg and – since July 2017 – Cologne.
ACCENTRO Real Estate AG has its registered office in Berlin and is listed on the Prime Standard of the Frankfurt Stock Exchange (German securities code number [WKN]: A0KFKB).
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