Berlin, March 31, 2016 – ACCENTRO Real EstateAG (WKN: A0KFKB, ISIN DE000A0KFKB3), Berlin, closed the 2015 fiscal year with the best consolidated earnings in the company’s history. At EUR 22.8 million, profit after taxes for the 2015 fiscal year was six times higher than the previous year’s result (2014: EUR 3.8 million). Operating profit (EBIT) amounted to EUR 38.9 million, significantly exceeding the EBIT from 2014 (EUR 23.2 million). “ACCENTRO’s focus on residential privatization is progressing rapidly,” explains Jacopo Mingazzini, CEO of ACCENTRO Real Estate AG. “We were very successful in this regard during the reporting year,” adds Mingazzini.
Significant Revenue Growth in Residential Privatization
In the residential privatization segment, ACCENTRO Real Estate AG generated revenue of EUR 39.5 million in 2015. This represents a year-over-year revenue increase of over 80 percent. In 2014, revenue stood at EUR 21.9 million. “We will continue to gradually reduce the weight of our property portfolio,” said Mingazzini. The value of investment property held as financial investments has already decreased from EUR 257.9 million to EUR 168.3 million during the reporting year. The value of inventory properties held as current assets grew from EUR 75.9 million to EUR 156.1 million during the same period.
Sales from the Portfolio Significantly Above Book Value
In the first half of the year, the real estate portfolio in Berlin-Hohenschönhausen was sold for a profit of EUR 15.8 million. The portfolio consisted of 1,174 residential units. The transaction volume amounted to EUR 94.7 million, of which EUR 51.9 million flowed to ACCENTRO as cash. “In addition to the portfolio in Hohenschönhausen, we were able to make further sales at prices above book value,” said Mingazzini. “Despite the sales, we were able to keep total assets roughly constant through the acquisition of properties for privatization in Berlin,” explained Mingazzini. Total assets amounted to EUR 395.2 million (2014: EUR 402.2 million).
Expansion into New Business Areas and Markets
ACCENTRO remains committed to expansion. The company is expanding into new markets and new business areas. “Berlin remains our core market. However, we will also be active outside of Berlin. Decisions on the first acquisitions have already been made,” said Mingazzini. In addition, ACCENTRO has secured a number of contracts in the new construction sector. “Given the massive boom in Germany’s major cities, we expect a further significant increase in new construction volume in the coming years. We have positioned ourselves accordingly,” said Mingazzini.
High hidden reserves offer additional opportunities for the stock price
The stock price has also performed well. While the price stood at 2.01 euros on January 1, 2015, it reached 3.60 euros on December 31, 2015. This represents an increase of just under 80 percent during the fiscal year. Nevertheless, as of December 31, ACCENTRO was valued at a price-to-earnings ratio of 3.9 and a discount of over 20% to the EPRA NAV. “It should be noted that our privatization portfolio is not carried at fair value but primarily at cost. This results in substantial additional hidden reserves. An EPRA NAV calculated taking these hidden reserves into account would amount to 6.66 euros,” said Mingazzini.
Key Figures for the 2015 Fiscal Year (January 1 – December 31, 2015)
Compared with the figures for the prior-year period (January 1, 2014, to December 31, 2014)
- Revenue (in millions of EUR) 157.0 (2015); 66.1 (2014) - Gross profit (in millions of EUR) 47.0 (2015); 41.3 (2014) - EBIT in millions of EUR 38.9 (2015); 23.2 (2014) - Consolidated net income in millions of EUR 22.8 (2015); 3.8 (2014) - Earnings per share, EUR 0.92 (2015); 0.15 (2014) - Total assets, EUR million 395.2 (2015); 402.2 (2014)
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 December 31, 2020, its real estate portfolio comprised approximately 5,200 units. In addition to Berlin, its regional focus includes major cities and metropolitan areas in eastern Germany, as well as the Rhine-Ruhr metropolitan region and Bavaria. ACCENTRO’s business activities encompass four core areas. These include the sale of apartments to owner-occupiers and private investors at rent-like prices, the sale of real estate portfolios to institutional investors, the development and management of its own real estate portfolio, and the marketing of apartments for property owners, investors, and project developers. The shares of ACCENTRO Real Estate AG are listed on the Prime Standard of the Frankfurt Stock Exchange (WKN: A0KFKB, ISIN: DE000A0KFKB3). investors.accentro.de
Contact for Press and Public Relations
Holger Friedrichs
PB3C GmbH
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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