- Revenue increased by 15.3% to EUR 144.6 million in the first nine months of 2022
- Gross profit margin of 24.5%, only slightly below the prior-year level
- EBIT of EUR 9.6 million
- New forecast for fiscal year 2022: EUR 160–170 million in revenue, EUR 8–10 million in EBIT
Berlin, November 30, 2022 – ACCENTRO Real EstateAG , a residential real estate investor and Germany’s leading residential privatization company, has reported solid business performance after the first nine months of fiscal year 2022, despite the current extremely challenging market environment.
“We are living in difficult times. All economic forecasts predict that the German economy is heading toward or is already in a recession. The only open question is how long and how deep the economic downturn will be,” says Lars Schriewer, CEO of ACCENTRO Real Estate AG. This negative situation has also weighed heavily on the German housing market in the second half of the year. “As a result, we are currently seeing a great deal of uncertainty among our customers—investment decisions are taking significantly longer or are being postponed entirely.” At the same time, financing costs have risen enormously. Consequently, more and more customers are being forced to postpone or even reverse their purchases.
“Even though we cannot escape the currently challenging market environment and must adjust our forecast for this year, I am very confident about the future of our company. The German residential market is and remains an attractive growth market. ACCENTRO is excellently positioned to benefit from this. Our sales strength, with a sales portfolio of around EUR 300 million, and our growing and successfully developing rental business form the broad foundation for our success,” said Schriewer upon presenting the nine-month results. Solid Business Performance in a Challenging Market Environment
In this difficult market environment for the entire industry, ACCENTRO increased consolidated revenue by 15.3% to EUR 144.6 million in the first nine months of 2022 (previous year: EUR 125.4 million). The main driver of this growth was residential property sales, which saw revenue rise by 20.6% to EUR 130.7 million (previous year: EUR 108.4 million). At the same time, the profit margin in this segment remained stable at a high level of 25.9% (previous year: 26.5%).
Rental income from our existing portfolio once again showed a very encouraging trend, rising by 47.2% to approximately EUR 9.7 million. In addition to acquisitions, successful leasing activity in our “Central Germany” portfolio contributed to this positive development. Since the beginning of the year, 377 apartments in this portfolio have been newly leased. As a result, the vacancy rate has fallen further. Total rental revenue amounted to EUR 12.7 million (previous year: EUR 15.3 million). This decline is attributable solely to the strong privatization business and the sale of a larger portfolio in southern Germany last year.
Consolidated earnings before interest and taxes (EBIT) for the reporting period, at EUR 9.6 million, were significantly below the prior-year figure (prior year: EUR 31.0 million). However, last year’s earnings performance included positive valuation effects of EUR 16.3 million resulting from major portfolio acquisitions, whereas the routine valuation of the portfolio as of June 30, 2022, did not result in any adjustments. Additionally, impairment charges on inventories and receivables totaling EUR 4.1 million weighed on earnings in the first nine months of 2022. Earnings per share amounted to -0.22 EUR (previous year: 0.25 EUR). The equity ratio increased to 28.4% (December 31, 2021: 28.0%) despite a slight decline in total assets. New Forecast for Fiscal Year 2022
Based on business performance and in light of the challenging market environment, the Executive Board is adjusting its forecast for the 2022 fiscal year. Both demand from private customers for apartments in individual privatization transactions and demand from institutional investors for block sales of rental properties weakened very significantly in the second half of the year. Against this backdrop, the Executive Board now expects consolidated revenue of EUR 160 to 170 million (previously: EUR 200–220 million) and consolidated EBIT of EUR 8 to 10 million (previously: EUR 45–50 million) for the 2022 fiscal year.
However, Schriewer emphasized in this context that the real estate market in Germany is characterized by strong excess demand in the medium to long term. “ACCENTRO is ideally positioned to continue growing.”
With regard to the upcoming repayment of the EUR 250 million bond, the company is in advanced and constructive discussions regarding an extension of the bond.
About ACCENTRO Real Estate AG
ACCENTRO Real Estate AG is a residential real estate investor and the market leader in residential privatization in Germany. As of September 30, 2022, its real estate portfolio comprised approximately 5,200 units. In addition to Berlin, its regional focus includes major cities and metropolitan areas in central Germany as well as the Rhine-Ruhr metropolitan region. ACCENTRO’s business activities encompass three core areas: the sale of apartments to private owner-occupiers and investors at market-rate rents; the sale of real estate portfolios to institutional investors; the development and management of its own real estate portfolio; and services for third parties. The shares of ACCENTRO Real Estate AG are listed on the Prime Standard segment of the Frankfurt Stock Exchange (WKN: A0KFKB, ISIN: DE000A0KFKB3). www.accentro.de
Investor Relations Contact:
Thomas Eisenlohr
ACCENTRO Real Estate AG
Kantstraße 44/45
10625 Berlin
Email: eisenlohr@accentro.de
Phone: +49 (0)30 88 71 81 272