Aroundtown SA announces FY 2023 results with strong liquidity and solid operations - Seite 2

Aroundtown (‘the Company’ or ‘AT’) announces results for the year 2023 in the top range of full year guidance, successfully navigating a volatile macroeconomic environment. Net rental income amounted to €1.2 billion in 2023, slightly lower year-over-year, as a result of the ca. €2.8 billion of disposals since the start of 2022. AT recorded like-for-like rental growth of 3.2%, driven by the solid in-place rent growth of 3.6%, mainly by indexations and high reversionary potential, offsetting the negative 0.4% occupancy like-for-like decrease. Adjusted EBITDA remained stable year-over-year at €1 billion as organic growth and efficiencies offset impact of disposals. Higher rent collection from the hotel portfolio further supported the FFO I which amounted to €332 million and €0.30 per share, lower compared to €363 million and €0.33 per share in 2022 due to higher finance expenses and perpetual notes attribution.

PROACTIVE BALANCE SHEET MANAGEMENT MAINTAINS CONSERVATIVE LEVERAGE

Aroundtown continued its proactive liability measures and reduced net debt by €0.9 billion during the year. In 2023, AT completed over €1.2 billion of disposals and repurchased approx. €1.3 billion of mostly shorter-term bonds at a discount. 16% of total debt maturing in 2024 to 2026 has been repurchased extending the debt maturity profile and reducing the refinancing risk. The current liquidity position covers the debt maturities until mid-2026. Additionally, Aroundtown signed ca. €1 billion in new bank debt during 2023 from a variety of different banks, utilizing the strong banking relationships. The new bank debt was raised at an average maturity of over 7 years and margin of 1.4% over Euribor, of which €0.9 billion has been drawn in 2023.

The full portfolio was revalued by independent and certified third-party appraisers for the 2023 annual report, resulting in a like-for-like revaluation loss of 11%, of which 5% was recorded in H2 2023. The revaluation loss is the result of the higher discount and cap rates driven by the higher interest rates. Despite the negative revaluations, LTV increased by 3% as the proactive deleveraging measures counteracted the impact. Collectively these measures will continue to support AT’s strategy in strengthening the balance sheet and reducing leverage.