DGAP-News: CONSUS Real Estate AG: Full year results 2018

CONSUS Real Estate AG: Full year results 2018

Strategic and economic targets achieved

Pro forma Adjusted EBITDA of EUR 253m

Reported Adjusted EBITDA of EUR 204m

Operating Cash Flow at EUR 132m

GDV of EUR 9.6bn

Forward sales of EUR 2.5bn

Berlin, 17 April 2019 -CONSUS Real Estate AG ("Consus", ISIN DE000A2DA414, CC1) published its 2018 annual results today, and has successfully achieved both the strategic and economic goals of the management.

Consus achieved its key strategic goal of transitioning to a residential-focused developer and the Company is now the leading property developer in Germany's top 9 cities. The Gross Development Value ("GDV") is EUR 9.6bn at year end, a growth of 109% versus the EUR 4.6bn at year end 2017, driven in part by the successful acquisition of SSN.

Consus achieved strong economic growth in 2018, with revenues of EUR 615m and EBITDA pre-PPA and pre-one offs ("adjusted EBITDA") of EUR 204m, and the adjusted EBITDA margin was 33%. Total operating cashflow was EUR 132m, reflecting strong forward sales. The net debt at year end amounted to EUR 2,1054m, and total equity to EUR 1,162m. Strong growth is expected in 2019 and 2020.

Leading property developer in Germany's Top 9 Cities

As of December 31, 2018, Consus' development portfolio comprised 64 residential projects with a Gross Development Value (GDV) of around EUR 9.6bn, and a total net area of 2.1m square meters. The significant increase in scale was achieved through the acquisition of SSN with a GDV of EUR 3.6bn and other organic additions with a net GDV of EUR 1.4bn. In addition, Consus signed agreements to further increase its stake in CG Gruppe to 75% on a fully diluted basis.

As at 31 March 2019, the company had achieved EUR 2.5bn GDV forward sales, either contracted or with LOIs signed or in negotiation with major institutional buyers.

Strong performance: Consus Operating Cash Flow at EUR 132m

Consus reports sales of EUR 615m and an overall performance EUR 468m for 2018, driven by strong forward sales and development activity. Adjusted EBITDA amounted to EUR 204m, with reported EBITDA at EUR 108m. Reported financial expenses were EUR 122m, relating to both project level as well as group financing. Reported net income amounted to EUR 1m. In 2018, Consus achieved a positive cash flow from operating activities of EUR 132m and therefore reached its target for this key performance indicator as planned.

The net debt at year end was EUR 2,104m, with Consus achieving underlying net debt reduction prior to the acquisition of SSN of EUR 397m. Total equity including minority interests amounted to EUR 1,162m.

Increased scale: Consus pro forma adjusted EBITDA of EUR 253m

Following the acquisition of SSN, the Consus group has increased materially. The pro forma financials have been prepared assuming the acquisition of SSN and the disposal of the commercial properties as of 1 January 2018.

Pro forma sales of Consus group are EUR 656 m and overall performance to EUR 624 m for 2018. Pro forma Adjusted EBITDA is EUR 253m, pro forma financial expenses are EUR 210m and the pro forma adjusted net income is EUR 73m.

The increased scale of the business is reflected in these figures and will be the basis for expected future growth.

Q1 2019 with continued momentum in forward sales and development activity

Consus continued its strong momentum in residential real estate development in Q1 2019. Three forward sales with a total GDV of EUR 170m were signed, one additional LOIs signed and four in negotiation. Furthermore, Consus sold a material development project in Leipzig as part of rebalancing its portfolio and is in negotiations regarding a further significant sale.

Outlook confirmed

Consus believes that the favorable conditions across the German real estate market will continue, with continued strong demand for housing, especially in the middle-income bracket in the nine largest German cities where Consus is focused. On this basis, Consus expects to further increase sales and adjusted EBITDA as well as cash flow going forward.

Consus continues to target an Adjusted EBITDA of approx. EUR 450m in 2020, and an adjusted EBITDA margin of approx. 20% and a target Net Debt / adjusted EBITDA of around 3x in the medium term. Consus provides targets for Adjusted EBITDA as this reflects the underlying performance of the business prior to fair value accounting adjustments and one-off effects.

"We had very ambitious strategic and economic goals for the year 2018, which we were able to fulfil within a very short amount of time", says Andreas Steyer, CEO of Consus, and he adds: "Now Consus is now the leading real estate developer in the top 9 cities in Germany. We have a strong market position and a business model which generates sustainable operating cash flows. Our core competence is the development of urban, affordable residential property. With that, we create attractive supply to the ever-increasing demand for residential space in cities and at the same time offer an attractive investment to our stakeholders."

The current company presentation as well as the annual report 2018 have been published on the website of the company under investors/ financial reports and presentations (https://www.consus.ag/financial-reports-presentations-2019)

Contact

Investor Relations
[email protected]
+49 30 965 357 90 260

About Consus Real Estate AG

Consus Real Estate AG ("Consus") the leading German property developer in the top 9 cities with EUR 9.6bn (GDV) in properties under development as per 31 December 2018. The Company focuses on residential property and specialises in the development of entire neighbourhoods ('quartiers') and standardised flats. The use of forward sales to institutional investors and the digitalisation of construction processes allow the Company to operate along the entire property development value chain. Consus implements projects - from the planning phase through to construction and transfer of ownership, as well as property management and the associated services - via its subsidiaries CG Group AG and SSN GROUP. Consus Real Estate AG's shares are listed in the Scale segment of the Frankfurt Stock Exchange and m:access segment of the Munich Stock Exchange and are traded on XETRA in Frankfurt, among others.