ACCENTRO Reports a Jump in Revenue in the First Half of the Year
-
Revenue in the first half of 2022 increased by 28.1% to EUR 93.5 million
-
Operating profitability improved
-
Portfolio valuation confirmed in a challenging market environment
-
Cash and cash equivalents rose to EUR 150.7 million
-
Refinancing of the 2023 bond expected to be completed in the coming months
Berlin, August 31, 2022 – ACCENTRO Real EstateAG , a residential real estate investor and Germany’s leading residential privatization company, is on track to achieve its announced annual targets and expected growth thanks to strong business performance. Regardless of market conditions, the Group confirms its 2022 annual forecast, provided that the positive business performance of the first six months of 2022 continues into the second half of the year. Following a strong first half-year, ACCENTRO continues to expect revenue of EUR 200 to 220 million (previous year: EUR 192.7 million) and EBIT of EUR 45 to 50 million (previous year: EUR 45.2 million).
Lars Schriewer, CEO of ACCENTRO Real Estate AG, is optimistic about the second half of the year: “Our business performance in the first half of the year gives us confidence that we can stay on course and achieve our annual targets, even though the full impact of volatile market conditions cannot yet be fully assessed. ACCENTRO remains well-positioned even in the current challenging industry and market environment, as demonstrated by the renewed increase in revenue and the value retention of our portfolio. Following a strong first quarter and some caution in April and May, demand picked up significantly again in June and July. As a result, we were able to achieve the best result in the company’s history in the area of individual privatization, apart from the record set in 2021.”
Successful Business Performance
Revenue rose by 28.1% to EUR 93.5 million in the first six months (prev. yr.: EUR 73.0 million). The primary driver of this dynamic growth was apartment sales, which saw revenue increase by 39.0% to EUR 84.8 million (prev. yr.: EUR 61.0 million). At the same time, the segment margin improved significantly to 29.0% (previous year: 16.3%). Revenue from leasing was influenced by the successful sale of apartments and amounted to EUR 7.8 million (previous year: EUR 10.8 million). With a lower vacancy rate, rental income from the company’s own rental portfolio increased.
Earnings, adjusted for valuation effects, improved considerably despite a partial write-down of a receivable. Consolidated earnings before interest and income taxes (EBIT) amounted to EUR 9.0 million, which was below the prior-year figure (prior year: EUR 19.0 million). However, the prior-year result was significantly influenced by positive valuation effects resulting from major portfolio acquisitions totaling EUR 16.3 million. Currently, the routine valuation of the portfolio as of June 30, 2022, again resulted in no adjustments—a clear indication of the properties’ value, particularly in the current challenging market environment. Earnings per share amounted to -0.07 EUR (previous year: 0.10 EUR).
While total assets as of June 30, 2022, remained stable at EUR 927.0 million (December 31, 2021: EUR 929.5 million), cash and cash equivalents increased significantly in the first half of the year to EUR 150.7 million (December 31, 2021: EUR 121.5 million). The equity ratio stood at 27.9% at mid-year (December 31, 2021: 28.0%).
Growth Drivers Remain Intact
“The structural pillars of growth for our business model remain intact. High interest in home ownership continues to be offset by a tight supply, while price levels have remained stable so far. Demand for rental apartments is also expected to remain high, particularly in the segments relevant to ACCENTRO,” commented CEO Schriewer. “The expected business performance rests on a solid foundation, primarily our sales portfolio, which currently has a market value of approximately EUR 370 million. In addition, we are optimizing our real estate portfolio through targeted transactions and continuing to invest in our own rental portfolio to enhance the appeal of our apartments.”
Refinancing of the bond maturing in 2023 to be finalized in the coming months
At the same time, ACCENTRO is focusing on refinancing the bond maturing in February 2023: “To this end, we are continuously reviewing various refinancing options and closely monitoring the financing markets. We currently expect to be able to announce the successful completion of the refinancing in the coming months,” says CEO Schriewer, explaining the current progress.
About ACCENTRO Real Estate AG
ACCENTRO Real Estate AG is a residential real estate investor and the market leader in housing privatization in Germany. As of December 31, 2021, its real estate portfolio comprised approximately 4,900 units. In addition to Berlin, its regional focus includes major East German cities and metropolitan areas, 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 of the Frankfurt Stock Exchange (WKN: A0KFKB, ISIN: DE000A0KFKB3). www.accentro.de
Contact for Press and Public Relations
Christian Dose
WMP EuroCom AG
Barckhaustrasse 1
D-60325 Frankfurt
Phone
c.dose@wmp-ag.de
+49 (0)69 2475689491 / +49 173 6679900
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