ACCENTRO Increases Revenues – but Revises 2022 Forecast due to Challenging Market Environment

• Revenues increased by 15.3% to EUR 144.6 million during first nine months of 2022
• Gross profit margin just slightly below prior-year level at 24.5%
• EBIT of EUR 9.6 million
• New forecast for 2022 financial year: Revenues of EUR 160-170 million, EBIT of EUR 8-10 million

Berlin, 30 November 2022 – ACCENTRO Real Estate AG, an investor in residential real estate and Germany’s leading housing privatisation company, achieved a solid business performance during the first nine months of the 2022 financial year despite the extremely challenging current market environment.

“We are going through difficult times. Every economic forecast now sees the German economy either heading for, or already in, a recession. The only question left open is how long and how bad the economic downturn will be,” said Lars Schriewer, CEO of ACCENTRO Real Estate AG. This combination of adverse factors has also impacted the German housing market during the second half of the year. “We are currently seeing a high degree of uncertainty among our customers – with investment decisions taking significantly longer or being postponed altogether.” At the same time, financing costs have risen enormously. More and more customers are therefore forced to postpone or even cancel their purchases.

“Even though we cannot escape the currently challenging market environment and have to adjust our forecast for the ongoing year, I face the future of our company with great confidence. Germany’s housing market has been, and remains, an attractive growth market. ACCENTRO is superbly positioned to benefit from the fact. Our sales strength, our sales portfolio worth c. EUR 300 million and the growing and prospering rental business constitute the broad-based foundation of our success,” said Schriewer on the presentation of the nine-month-figures.

Solid Business Development within a Challenging Market Environment

In this market environment, which is difficult for the entire industry, ACCENTRO managed to increase its consolidated revenues by 15.3% to EUR 144.6 million (previous year: EUR 125.4 million) during the first nine months of 2022. The growth was mainly driven by apartment sales, which registered a revenue increase of 20.6% up to EUR 130.7 million (previous year: EUR 108.4 million). At the same time, the profit margin in this segment remained stable on a high level at 25.9% (previous year: 26.5%).

The rental income from our proprietary rental portfolio continued to follow a very reassuring trend as it rose by 47.2% to c. EUR 9.7 million. Among the factors that contributed to this positive development were, in addition to further acquisitions, the successful lettings in our “Central Germany” portfolio. Since the beginning of the year, 377 apartments belonging to this portfolio were let on new leases. As a result, the vacancy rate continued to decline. Total letting revenues amounted to EUR 12.7 million (previous year: EUR 15.3 million). The decline is attributable exclusively to strong privatisation sales and the disposal of a larger portfolio in southern Germany last year.

Consolidated earnings before interest and tax (EBIT) equalled EUR 9.6 million at the end of the reporting period, trailing far behind the prior-year figure (previous year: EUR 31.0 million). However, the earnings performance of the previous year reflected positive valuation effects due to large-scale portfolio acquisitions in an amount of EUR 16.3 million, whereas the periodic valuation of the portfolio by the key date of 30 June 2022 returned no adjustments. In addition, impairments of inventories and accounts receivable in the amount of EUR 4.1 million weighted down on the earnings of the first nine months of 2022. Earnings per share equalled EUR -0.22 (previous year: EUR 0.25). The equity ratio rose to 28.4% (31 December 2021: 28.0%) while the total assets experienced a modest decline.

New forecast for the 2022 Financial Year

Based on the current business development and considering the challenging market environment, the Management Board has adjusted its forecast for the 2022 financial year. Demand slowed down dramatically during the second half of the year, both among private customers looking for individual apartments and among institutional investors looking for block sales of rental properties. Against this background, the Management Board now expects to see consolidated revenues in the amount of EUR 160 to 170 million (previously: EUR 200 - 220 million) and consolidated EBIT in the amount of EUR 8 to 10 million (previously: EUR 45 - 50 million) by the end of the 2022 financial year.

However, Schriewer emphasised in this context that the real estate market in Germany is characterised by a strong demand overhang in the medium to long term. “ACCENTRO is optimally positioned to maintain its successful growth trajectory.”

In view of the upcoming repayment of the EUR 250 million bond, the company is in advanced and constructive discussions regarding an extension of the bond. 

About ACCENTRO Real Estate AG

ACCENTRO Real Estate AG is a residential property investor and Germany’s market leader in housing privatisations. Its real estate portfolio consisted of around 5,200 units as of 30 September 2022. In addition to Berlin, regional focal points include central German cities and conurbations, as well as the Rhine-Ruhr metro region. The business activity of ACCENTRO comprises three core divisions. They are the tenant-sensitive retailing of apartments to private owner-occupiers and buy-to-let investors as well as the selling of real estate portfolios to institutional investors, and the build-up and management of a proprietary real estate portfolio, plus the provision of services for third parties. The shares of ACCENTRO Real Estate AG are listed on the Prime Standard segment of the Frankfurt Stock Exchange (German securities number WKN: A0KFKB, ISIN: DE000A0KFKB3).

Investor Relations Contact:

Thomas Eisenlohr
ACCENTRO Real Estate AG
Kantstrasse 44/45
D-10625 Berlin
E-mail:
Tel. +49 (0)30 88 71 81 272

Press and Public Relations Contact:

Ulrich Porwollik
Ulrich Porwollik Communications GmbH
Kückallee 35
D-21465 Reinbek
E-mail:
Tel. +49 (0)171 2239876