Berlin, December 20, 2024 – The Federal Financial Supervisory Authority (“BaFin”) announced the results of its audits of ACCENTRO Real Estate AG (“the Company”) in decisions dated December 20, 2024, and reported on them today on its website. The audits concerned solely the Company’s financial reporting regarding the reversal of the acquisition of DIM Holding AG (“DIM Transaction”) in the disclosed annual and consolidated financial statements as of December 31, 2021, and December 31, 2022, as well as the related summary management reports for the fiscal years 2021 and 2022.
In the course of its audits, BaFin identified an error pursuant to Section 109(1), first sentence, of the Securities Trading Act. Accordingly, the current other receivables and other assets recognized in the consolidated balance sheet, as well as the other assets recognized in the balance sheet resulting from the reversal of the acquisition of DIM Holding AG, in the amount of EUR 18.9 million as of December 31, December 2021 were overstated by approximately EUR 5 million, and the “other assets” amounting to EUR 19.8 million as of December 31, 2022, were overstated by approximately EUR 12 million. This conclusion is based on BaFin’s assessment that proper repayment of the total claim was no longer to be expected and that the agreed-upon collateral had been overvalued.
Regardless of the audits, the Executive Board had already recognized a valuation allowance of EUR 13.3 million as of September 30, 2023, in light of developments related to the forced collection of the receivable and the severely deteriorated situation in the real estate market, taking into account initial successful liquidation measures totaling EUR 2.6 million. The outstanding balance of the receivable from the DIM transaction has therefore been carried at only EUR 4.4 million since September 30, 2023. In this respect, BaFin’s finding of an error has no impact on the company’s earnings.
While the company consequently agrees with BaFin’s assessment of the reason for and necessity of an impairment of the receivable, there is a difference of opinion only regarding the relevant—and thus correct—timing of the recognition in a market environment that has become increasingly uncertain over time, with challenging conditions for valuation.
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, 2023, its real estate portfolio comprised 5,731 units with a total area of approximately 334,000 square meters. The book value of the entire portfolio amounted to approximately EUR 590 million. 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 prices; the sale of real estate portfolios to institutional investors; the 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