Aroundtown SA announces 9M 2017 results, with strong growth and profitability

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS

AROUNDTOWN ANNOUNCES 9M 2017 RESULTS, WITH STRONG GROWTH AND PROFITABILITY

- Rental and operating income of EUR374 million, increased from EUR183 million in 9M 2016

- Adjusted EBITDA increased to EUR303 million, up 65% from EUR184 million

- FFO I increased to EUR204 million, reflecting growth of 80% YOY

- FFO I per share of EUR0.26, an increase of 44% YOY. The annualized FFO I per share for 9M 2017 is EUR0.35

- Net profit amounted to EUR1.1 billion, an increase of 51% YOY

- EPS (basic) resulted to EUR1.15, up 32% YOY; diluted EPS up 50% to EUR0.99

- EPRA NAV incl perpetual notes EUR6.9 billion (EUR7.4 billion including the Oct equity issuance) , up 60% YOY; EUR7.5 per share increased 39% YOY

- EPRA NAV of EUR5.7 billion, up 48% YOY; EUR6.2 per share up 27% YOY

- Equity increased 64% to EUR6.5 billion; strong equity ratio of 54%. Equity proforma incl the equity issuance in Oct is at EUR6.9 billion

- Investment property grew 67% to EUR8.4 billion from EUR5 billion Dec 2016

- LTV decreased to 37% as of September 2017; 33% on a pro forma basis

- Continuously strong credit position highlighted by an ICR of 5.6x

- Strong like-for-like results maintained with a total net rent LFL of 5.8%, with 2.3% from occupancy and 3.4% from in-place rents increases

27 November 2017.

Strong operational results maintained amid continued rapid growth

Aroundtown (the 'Company' or 'AT') exceeded in the first nine months of 2017 its full year profit for 2016 with a net profit of EUR1.1 billion, demonstrating the Company's strong value generation abilities. The operational profits increased by 44% with an FFO I of EUR204 million. Including the annualized effect of the portfolio held at the end of September 2017 and with acquisitions after the reporting period, the FFO I increased further to EUR339 million on a monthly annualized basis as of December 2017, equivalent to EUR0.36 per share and reflecting a strong FFO yield of 6% and a dividend yield of 3.9%.

Milestones and achievements continue to highlight AT's successful growth
In tandem with the strong and growing financial results, Aroundtown was able to achieve several notable milestones in the first nine months of 2017. Following the uplisting to the Prime Standard of the Frankfurt Stock Exchange in June and the re-domiciliation of the corporate seat to Luxembourg in September, AT was included in the SDAX index of the Deutsche Börse as well as the the Stoxx 600 index in October resulting in greater market visibility. At the same time, AT's strategic investment GCP was added to the MDAX index, further affirming its position among the top residential real estate companies in Germany.

Aroundtown's continuing efforts on the sustainability front also yielded strong results: in August the Company was ranked in the 88^th percentile among nearly 300 global peers for its ESG efforts, also ranking as Outperformer in all sub-categories. Additionally, Aroundtown was awarded the EPRA BPR Gold award in September, the highest award for financial reporting standards.

After reporting date, in October 2017, Aroundtown issued EUR450 million equity, strengthening the equity structure and increasing the EPRA NAV incl perpetual notes to EUR7.4 billion on a pro forma basis, and the equity to EUR6.9 billion.

Aroundtown raised during 2017 in the global capital markets EUR4.1 billion of equity and long term bonds, thus being the largest real estate issuer in 2016-2017 YTD in Europe.

The 9M 2017 financial report is available on the Company's website:
http://www.aroundtownholdings.com/downloads.html

About the Company
Aroundtown SA (trading symbol: AT1 on the regulated market (Prime Standard) of the Frankfurt Stock Exchange) is a specialist real estate company with a focus on value-add and income generating properties primarily in the German/NL real estate markets. Aroundtown SA (ISIN: LU1673108939) is a public limited liability company (société anonyme) established under the laws of the Grand Duchy of Luxembourg, registered with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés Luxembourg) under number B217868, having its registered office at 1, Avenue du Bois, L-1251 Luxembourg, Grand Duchy of Luxembourg.

Contact

Timothy Wright

T: +352 285 7741

E: [email protected]

www.aroundtownholdings.com

DISCLAIMER

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.

THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES.

THIS ANNOUNCEMENT IS DIRECTED AT AND IS ONLY BEING DISTRIBUTED IN THE UNITED KINGDOM TO (I) PERSONS WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE ORDER), (II) HIGH NET WORTH ENTITIES, AND OTHER PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED FALLING WITHIN ARTICLE 49 OF THE ORDER, AND (III) PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS RELEVANT PERSONS). THIS COMMUNICATION MUST NOT BE READ, ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS.

IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA (EEA), THIS ANNOUNCEMENT AND ANY OFFER IF MADE SUBSEQUENTLY IS DIRECTED ONLY AT PERSONS WHO ARE 'QUALIFIED INVESTORS' WITHIN THE MEANING OF ARTICLE 2(1)(E) OF DIRECTIVE 2003/71/EC, AS AMENDED (THE PROSPECTUS DIRECTIVE) (QUALIFIED INVESTORS). ANY PERSON IN THE EEA WHO ACQUIRES THE SECURITIES IN ANY OFFER (AN INVESTOR) OR TO WHOM ANY OFFER OF THE SECURITIES IS MADE WILL BE DEEMED TO HAVE REPRESENTED AND AGREED THAT IT IS A QUALIFIED INVESTOR. ANY INVESTOR WILL ALSO BE DEEMED TO HAVE REPRESENTED AND AGREED THAT ANY SECURITIES ACQUIRED BY IT IN THE OFFER HAVE NOT BEEN ACQUIRED ON BEHALF OF PERSONS IN THE EEA OTHER THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEEN ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN THE EEA TO PERSONS WHERE THIS WOULD RESULT IN A REQUIREMENT FOR PUBLICATION BY AROUNDTOWN OR ANY OF THE MANAGERS OF A PROSPECTUS PURSUANT TO ARTICLE 3 OF THE PROSPECTUS DIRECTIVE.

THIS ANNOUNCEMENT MAY CONTAIN PROJECTIONS OR ESTIMATES RELATING TO PLANS AND OBJECTIVES RELATING TO OUR FUTURE OPERATIONS, PRODUCTS, OR SERVICES, FUTURE FINANCIAL RESULTS, OR ASSUMPTIONS UNDERLYING OR RELATING TO ANY SUCH STATEMENTS, EACH OF WHICH CONSTITUTES A FORWARD-LOOKING STATEMENT SUBJECT TO RISKS AND UNCERTAINTIES, MANY OF WHICH ARE BEYOND THE CONTROL OF AROUNDTOWN SA. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.