DGAP-News: CONSUS Real Estate AG
/ Key word(s): Quarterly / Interim Statement
Consus Real Estate AG has a successful first quarter 2020 - demonstrating our continued growth and achieving substantial pro forma debt reduction
- Announced upfront sales of EUR 4.3bn GDV for total transaction value of around EUR 1.1 billion
- Significant pro forma reduction in net debt to circa EUR 1,750 million pro forma for announced upfront sales (FY 2019 EUR 2,700 million)
- Pro forma average run-rate interest rate reduced to 7.4%, with EUR 350 million reduction of high cost mezzanine debt
Berlin - 29 May, 2020. Consus Real Estate AG ("Consus", ISIN DE000A2DA414, CC1), a leading property developer in Germany's top 9 cities, today released the figures for the first three months of 2020. The company has achieved continued growth in the first quarter, and subsequently announced upfront sales of GDV EUR 4.3 billion.
Andreas Steyer, CEO of Consus Real Estate AG, comments: "We have achieved significant strategic milestones while continuing to operate the business through the challenges of the Coronavirus pandemic. Our targets on debt reduction, upfront sales and cost of debt reduction are all expected to be exceeded. The announced transactions will focus the portfolio, substantially reduce net debt, and achieve a simplified corporate structure."
In the first three months of 2020, Consus achieved a total revenue of EUR 126 million, and an overall performance of EUR 228 million, primarily attributable to real estate development. Our key performance indicator EBITDA pre PPA and pre-one offs ("Adjusted EBITDA") reached EUR 57 million as of 31 March 2020 (Q1 2019: EUR 27 million) and resulted in an Adjusted EBITDA margin of 45%, and growth of over 100%. Reported EBITDA was EUR 46 million as of 31 March 2020 (Q1 2019: EUR 27 million). The Adjusted LTM EBITDA amounted to EUR 373 million (FY 2019: EUR 344 million), reflecting growth of 8% over the quarter.
Adjusted LTM Net Income was EUR 68 million, and reported Net Income was EUR (19) million in Q1 2020 (Q1 2019: EUR (10) million) with the positive developments due to increased revenues and profits being offset by higher net financial expenses of EUR 71 million (Q1 2019: EUR 40 million).
Strong deleveraging of the business
The reduction in net debt from the announced transactions is expected to be over EUR 1.05bn, including a reduction in high cost mezzanine debt of over EUR 350 million. The pro forma average run-rate interest rate for 31 March is 7.4%, below the target for FY 2020 of 7.5%, with further reductions possible.
Reported Net debt/ LTM Adjusted EBITDA as of 31March 2020 is 7.6x (FY 2019 7.8x), with the reduction due to the increase in EBITDA, offset by an increase in Net Debt. Reported net debt was EUR 2,817 million as of 31 March 2020 (FY 2019: EUR 2,700 million), with the increase due primarily to construction activities. Consus' equity amounted to EUR 1,045 million as of 31 March 2020 (FY 2019: EUR 1,064 million).
Upfront sales of GDV EUR 4.3billion
Following these upfront sales, Consus will have increased the proportion of residential in developments to over 62%, and the remaining development portfolio is almost exclusively in Germany's top 9 cities. The transactions are subject to closing adjustments and conditions, and are expected to close in or before Q3 2020.
In addition, in the first quarter Consus signed an LOI with ADO Properties, the strategic partner of Consus, for the upfront sale of Holsten Quartiere. Consus strategic co-operation agreement with ADO Properties is operating well, and the companies continue to have a good dialogue across the portfolio.
Acquisition of minority stake in Consus RE
Consus currently has cash throughout the group of over EUR 200m. In addition, the company has undrawn credit lines at the project level of over EUR 250m.
Due to the current Coronavirus pandemic, the date of the AGM has been moved to 1 October, 2020.
Consus does not assume at this point in time that the Coronavirus pandemic will have a material impact on the Group's business. Existing forward sales contracts are continuing largely unaffected; however, certain upfront sales and new forward sales are currently delayed and our plans, including these sales being completed as originally assumed, are dependent on the scale of negative impacts caused by the Coronavirus pandemic and the success of any counter measures. Although there is a risk to asset prices, Consus continues to believe that German residential real estate will prove to be one of the most robust asset classes despite the Coronavirus pandemic.
Consus Real Estate AG: Invitation to the results call on 29 May, 2020, 13:00 (CEST)
The Management Board of CONSUS Real Estate AG invites all investors and interested parties to the Q1 2020 results presentation in a telephone conference on 29 May 2020 at 13:00 (CEST).
The presentation will be broadcasted via webcast. Please use the link: https://webcasts.eqs.com/consus20200529/no-audio.
For the audio broadcast, please use the dial-in numbers listed below. Please make use of the early dial-in opportunity (5 - 10 minutes before the start of the event) so that we can start the event on time. When prompted, provide the passcode.
About Consus Real Estate AG
29.05.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||CONSUS Real Estate AG|
|Phone:||+49 (0)30 965 357 90 300|
|Listed:||Regulated Unofficial Market in Dusseldorf, Frankfurt (Scale), Munich (m:access), Stuttgart, Tradegate Exchange|
|EQS News ID:||1058505|
|End of News||DGAP News Service|