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PRESS RELEASE: Consus Real Estate AG: Consus Real Estate AG has a successful first quarter 2020 - continued growth and substantial pro forma debt reduction

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DGAP-News: CONSUS Real Estate AG / Key word(s): Quarterly / Interim
Consus Real Estate AG: Consus Real Estate AG has a successful first quarter
2020 - continued growth and substantial pro forma debt reduction

2020-05-29 / 08:13
The issuer is solely responsible for the content of this announcement.

*Consus Real Estate AG has a successful first quarter 2020 - demonstrating
our continued growth and achieving substantial pro forma debt reduction *

- Adjusted LTM EBITDA of EUR 373 million (FY 2019: EUR 344 million)

- 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 *
Pro forma for the announced transactions, net debt would be circa EUR
1,750m, leading to a Pro Forma Net Debt / Adjusted LTM EBITDA below 5x, a
very significant decrease.

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

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*
Consus announced in May 2020 two separate upfront sales for a combined GDV
of EUR 4.3 billion, resulting in pro forma GDV of EUR 8.0 billion for the
remaining portfolio as at 31 March 2020. Total transaction value will be
around EUR 1.1 billion, with a reduction of over EUR 850 million of gross
debt directly related to the projects. Consus will have materially exceeded
its upfront sales target of GDV EUR 2 billion as it delivers on its
deleveraging strategy.

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

*Acquisition of minority stake in Consus RE *
Consus has in principle decided to acquire the remaining 25% minority stake
in Consus RE AG (formerly CG Gruppe AG) for a preliminary consideration of
24.75m Consus shares and a EUR 27.5m cash component, subject to further
steps. The acquisition of the minority in Consus RE, the largest subsidiary,
is the final step in simplifying Consus corporate structure, including fully
unifying management across all assets.

*Coronavirus update*
All construction sites are continuing to operate, and significant disruption
is not expected going forward. The impact in the short-term was therefore a
limited rise in costs and limited delays to completion. Future forward sales
to institutions are currently delayed. Condominium sales slowed while
restrictions on movement were in place, but interest has now increased again

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.

*Guidance confirmed*
Consus continues to maintain its previously communicated guidance of an
Adjusted EBITDA of approx. EUR 450m in 2020, an adjusted EBITDA margin of
approx. 20% and a target Net Debt / adjusted EBITDA of around 3x in the
medium term.

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 [1].

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.

Passcode: 399742
*Location* *Phone Number*
Germany , Frankfurt ; +49 (0)69 2222 13426
France , Paris ; +33 (0)1 76 77 22 73
Switzerland , Zurich ; +41 (0)44 580 7230
United Kingdom , Local ; +44 (0)330 336 9104
United States , Brooklyn ; +1 929-477-0630

Investor Relations
+49 30 965 357 90 264

*About Consus Real Estate AG*
Consus Real Estate AG ("Consus"), with its headquarters in Berlin, is the
leading real estate developer in the top 9 cities in Germany. As of 31 March
2020, Consus' development portfolio had a gross development value (GDV) of
EUR 12.3 billion. Pro forma for the two upfront sales announced in May 2020,
the development portfolio has a GDV of EUR 8.0 billion. Consus focuses on
the development of neighbourhoods and standardised multi-storey residential
construction, which are sold to institutional investors through forward
sales. Due to its own construction expertise and the digitalisation of
construction processes, Consus operates along the entire value chain of real
estate development. Consus provides the realisation of projects from
planning and execution to handover, property management and related services
through its subsidiaries Consus RE AG and Consus Swiss Finance AG. The
shares of Consus are included in the scale segment of the Frankfurt Stock
Exchange and the m:access segment of the Munich Stock Exchange and are
traded via XETRA in Frankfurt, among others.

2020-05-29 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
Language: English
Company: CONSUS Real Estate AG
Kurfürstendamm 188-189
10707 Berlin
Phone: +49 (0)30 965 357 90 300
E-mail: info@consus.ag
Internet: www.consus.ag
ISIN: DE000A2DA414
Listed: Regulated Unofficial Market in Dusseldorf, Frankfurt (Scale),
Munich (m:access), Stuttgart, Tradegate Exchange
EQS News ID: 1058505

End of News DGAP News Service

1058505 2020-05-29

1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=180614c0dc7654448d04bf2a80381940&application_id=1058505&site_id=vwd&application_name=news

(END) Dow Jones Newswires

May 29, 2020 02:13 ET ( 06:13 GMT)

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