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Challenging market conditions are weighing on business performance—investment volume and demand for residential real estate loans have plummeted
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Outlook for 2023 confirmed; the real estate market continues to offer attractive opportunities in the medium to long term
Berlin, May 31, 2023 – The persistently challenging market environment in the real estate sector significantly impacted the business performance of ACCENTRO Real Estate AG (“ACCENTRO”), a residential real estate investor and Germany’s leading residential privatization company, in the first quarter of 2023.
According to an analysis by Savills, residential real estate transactions totaled approximately EUR 1.2 billion in the first quarter. As a result, quarterly transaction volume plummeted to a level last seen at the beginning of the crisis year 2011. Demand for residential real estate loans among institutions affiliated with the Association of German Pfandbrief Banks (vdp) also reflects significant customer caution. At EUR 16.3 billion, the figure for the first quarter of 2023 was another 4.2% below the already very low loan volume of the fourth quarter of 2022 and a significant 49.2% below the same period last year.
The sharp decline in demand is reflected in the notarized sales volume for the first quarter. It comprised 12 units with a total sales value of EUR 7.0 million. Consolidated revenue for the first three months of the year amounted to EUR 20.8 million (previous year: EUR 33.7 million), and consolidated earnings before interest and taxes (EBIT) totaled -EUR 4.7 million (previous year: EUR 3.6 million). Partly due to the increase in interest expense resulting from the refinancing of the two bonds, consolidated comprehensive income fell to -11.4 million EUR (previous year: -1.5 million EUR). Accordingly, earnings per share amounted to -0.34 EUR (previous year: -0.05 EUR). The equity ratio rose to 29.1% as of March 31, 2023 (as of December 31, 2022: 28.2%).
Developments in the Retail and Privatization segment are in line with our expectations. Revenue from the sale of apartments amounted to EUR 16.2 million (previous year: EUR 29.3 million). The decline is primarily attributable to the sharp drop in demand for apartments and the resulting extremely low sales volume in the second half of 2022.
Rental income, on the other hand, showed a positive trend. Thanks to the continued expansion of our portfolio last year and rent increases, revenue rose by 12.5% to EUR 4.5 million (previous year: EUR 4.0 million).
Even though the market environment remained challenging in the first few months of the year and it is currently difficult to assess future developments, ACCENTRO confirms the forecast for the 2023 fiscal year, which was first announced at the end of April with the publication of the 2022 Annual Report. We anticipate consolidated revenue of between EUR 100 and 120 million and consolidated earnings before interest and taxes (EBIT) of between EUR 0 and 2 million.
Lars Schriewer, CEO of ACCENTRO Real Estate AG, comments: “Business performance in the first quarter of 2023 is in line with our expectations. Market conditions remain challenging, and investors continue to be cautious. The medium- to long-term outlook for our industry and ACCENTRO remains positive. However, the main priority right now is for all stakeholders—including policymakers—to find new approaches and set the right priorities so that we emerge from this crisis stronger and sufficient housing remains affordable for everyone.”
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 March 31, 2023, its real estate portfolio comprised approximately 180 multi-family buildings and 5,834 apartments with a total floor area of about 340,000 square meters. The book value of the entire portfolio amounted to approximately 600 million EUR. 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 near-rental 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