Business Wire

CONSUS Real Estate AG: Consus Real Estate AG Has a Successful First Half 2019 - Demonstrating Our Strong Growth and Significant Deleveraging

Share

Consus Real Estate AG ("Consus", ISIN DE000A2DA414, CC1), the leading property developer in Germany's top 9 cities, today released the figures for the first sixth months of 2019.

In the first six months of 2019, Consus achieved a total revenue of EUR 256 million, and an overall performance of around EUR 333 million, with the majority being attributable to real estate development. Our key performance indicator EBITDA pre PPA and pre-one offs ("Adjusted EBITDA") reached EUR 138 million as of 30 June 2019 (H1 2018: EUR 57 million) and resulted in an Adjusted EBITDA margin of 54%, and growth of over 140%. Reported EBITDA was EUR 116 million as of 30 June 2019 (H1 2018: EUR 41 million).

The adjusted last 12 months EBITDA pro forma for the SSN acquisition ("Pro Forma LTM Adjusted EBITDA") amounted to EUR 303 million (FY 2018: EUR 253 million), and was a total of EUR 408 million pro forma for the successful upfront sale in July 2019 ("Pro Forma LTM Adjusted EBITDA post sale"). This is a significant increase on the Pro Forma Adjusted EBITDA of EUR 253 million as of 31 December 2018, and reflects the strong growth of the business on a like-for-like basis.

Pro Forma LTM Adjusted Net Income was EUR 78 million, and reported Net Income was EUR 4 million (H1 2018: EUR 3 million) with the positive developments due to increased revenues and profits offsetting higher net financial expenses of EUR 107 million (H1 2018: EUR 68 million) due to increased debt, including the SSN acquisition and the bond issuance.

Strong deleveraging of the business as profitability increases

Pro forma for the successful upfront sale which closed in July 2019, the leverage would be 5.7x as of 30 June 2019, reflecting the positive impact of increased EBITDA and reduced Net Debt. This significant decrease highlights the excellent progress made in the deleveraging of the business, and the underlying strength of the Consus group and its development portfolio.

Net debt/Pro Forma LTM Adjusted EBITDA as of 30 June 2019 is 8.3x, with the reduction due to the increase in EBITDA, offset by the increase in Net Debt, compared to Q1 2019. This is a reduction of 0.4 x versus the leverage as at Q1 2019 pro forma for the bond issue of 8.7x.

Net debt increased to EUR 2,503 million as of 30 June 2019 (Q1 2019: EUR 2,276 million pro forma for bond issuance and EUR 2,171 million as reported), with a EUR 114 million increase due to acquisitions and the remainder due to construction activities and corporate costs netted against debt repayments. Net debt pro forma for the upfront sale is EUR 2,341 million.

Consus' equity amounted to EUR 1,108 million as of 30 June 2019 (FY 2018: EUR 1,161 million).

During Q2 2019, Consus successfully issued a senior secured corporate bond with a total nominal amount of EUR 400 million. The rating agencies Fitch and Standard & Poor's rated Consus B and the notes B and B-, respectively. This was a key milestone in Consus' long-term financing strategy of utilising the capital markets to reduce the cost of its project financing.

Reduction of average interest rate

The average run-rate interest rate is now 7.9%, taking into account recent attractive refinancings at development projects in Berlin, Frankfurt and Hamburg, and the sale in Leipzig. The refinancings and repayments reduced the rate from 8.5% as at 30 June 2019, which reflected the impact of the bond issue. This compares to a level of 8.1% as at 31 March 2019 prior to the bond issue.

In the second half of the year, the company expects to further reduce the average interest rate through the refinancing or repayment of approximately EUR 250 million of mezzanine debt. Consus has a target of reducing the average interest rate by 200 basis points in the medium-term, and has taken significant steps in that direction.

Continued growth in development and in the development portfolio

As of 30 June 2019, and adjusted for a further signed acquisition in Q3 and the sale in Leipzig, the total GDV has increased to EUR 10.0 billion, from EUR 9.6 billion as of 31 March 2019, with the total number of development projects increasing to 68 and a total area to be developed of 2.2 million m², demonstrating the company's continuing ability to grow the project pipeline.

The volume of projects forward sold amounted to EUR 2.8 billion as at 30 June 2019, corresponding to 28% of the development portfolio in terms of GDV, following the signing of a further letter of intent. Projects forward sold includes executed forward-sale agreements, letters of intent agreed and under negotiation and condominiums sold to private purchasers. In addition, Consus is targeting total upfront sales of around EUR 1.8 billion, with the sale of a project in Leipzig with a GDV of EUR 884 million now closed, and with a further upfront sale under LOI, which it expects to sign in Q4 2019 and to close in H1 2020.

Regarding development project acquisitions, the Consus group has agreed the purchase of four projects with a GDV of EUR 1.2 billion in 2019. The new development projects are "Benrather Gärten" in Düsseldorf with a GDV of EUR 700 million, the "Wachendorff Quartier" in Bergisch Gladbach (Cologne area) with a GDV of EUR 150 million and the "Braugold-Quartier" in Erfurt (Leipzig area) with GDV of EUR 82 million signed in the first six months of 2019. Subsequent to the reporting date, the acquisition of the "Otto-Quartier" in Wendlingen (Stuttgart area) with a GDV of EUR 275 million was signed.

Development of the group

Following the expansion of our portfolio to become the leading project developer in the top 9 cities of Germany, we have advanced on our plan to further integrate SSN Group. Consus has renamed SSN Group AG to Consus Swiss Finance AG as part of the integration process following the acquisition at the end of 2018. In the future, SSN Group AG and its subsidiaries will operate uniformly under the CONSUS brand. SSN Group AG has been operating as Consus Swiss Finance AG since the end of August 2019. The project developments of the former SSN Group AG will be managed by Consus Development GmbH going forward. In addition, during the second quarter of the year the direct ownership in CG Gruppe AG increased from 65% to 71%.

Guidance confirmed

Consus continues to target an Adjusted EBITDA of EUR 450 million in 2020 and an Adjusted EBITDA margin of around 20% in the medium term. Consus also intends to reduce its Net Debt/Adjusted EBITDA to approximately 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.

Andreas Steyer, CEO of Consus Real Estate AG, comments: "The first half of 2019 was another key stage in the development of Consus. Our business continued to grow strongly, and we successfully took important steps to optimise our capital structure and reduce our cost of debt. The second half of 2019 will continue to exhibit strong growth, and we are well positioned to achieve our strategic and economic goals in the financial year 2019 and beyond as planned."

The report for the first six month of 2019 has been published on Consus' website under investors/ financial reports and presentations (https://www.consus.ag/financial-reports-presentations-2019).

Invitation to the conference call on 12 September, 2019

The Management Board of CONSUS Real Estate AG invites all investors and interested parties to the results presentation of the first half of 2019 in a telephone conference on 12 September, 2019 at 14:00 (CET). The results presentation will also be broadcast live via webcast. Please use the link https://webcasts.eqs.com/consus20190912/no-audio

A presentation of the results will also be available for download on our website

https://www.consus.ag/financial-reports-presentations-2019?lang=en.

For the audio broadcast, please use the dial-in numbers listed below

Germany: +49 (0)69 2222 2018

United Kingdom: +44 (0)330 336 9411

United States: +1 929-477-0448

France: +33 (0)1 76 77 22 57

Switzerland: +41 (0)44 580 1022

PIN: 7726772

About CONSUS Real Estate AG

Consus Real Estate AG ("Consus") with its headoffice in Berlin is the leading pure-play property developer in the top 9 cities in Germany with a gross development value of EUR 10.0 bn. 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. Consus' 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.

Language:

English

Companies:

CONSUS Real Estate AG

Kurfürstendamm 188-189

10707 Berlin

Germany

Phone:

+49 (0) 30 965 357 90 300

E-mail:

info@consus.ag

Internet:

www.consus.ag

ISIN:

DE000A2DA414

WKN:

A2DA41

Listed

Regulated Unofficial Market in Dusseldorf, Frankfurt (Scale), Munich (m:access), Stuttgart,

Tradegate Exchange

EQS News ID:

872433

Contact information

Investor Relations
Robert Stierwald
Interim Head of Investor Relations
investors@consus.ag
+49 30 965 357 90 260

About Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Boehringer Ingelheim Partners with Inflammasome Therapeutics to Develop Novel Therapies for Patients with Retinal Diseases20.9.2019 12:00:00 CESTPress release

Boehringer Ingelheim and Inflammasome Therapeutics Inc. (Inflammasome) today announced they have entered into a co-development and license agreement to develop up to three therapies for patients with retinal diseases. By combining Inflammasome’s unique intravitreal (IVT) drug delivery technologies with Boehringer Ingelheim’s compounds from its retinal disease pipeline portfolio, Boehringer Ingelheim aims to develop novel therapies for retinal diseases. In 2019 there were an estimated 82 million patients in the seven key countries (U.S., Japan, Germany, U.K., Spain, Italy, France) affected by one of the three major forms of retinal disease: Age related macular degeneration (AMD), diabetic retinopathy (DR), and diabetic macular edema (DME). Globally, the prevalence rates of these and other retinal diseases are expected to increase over the next 10 years primarily due to aging populations and the global diabetes epidemic. Despite therapeutic advances in some disease areas during the past

Visa B2B Connect Expands to 32 New Countries and Announces Integration With Infosys20.9.2019 11:00:00 CESTPress release

Visa Inc. (NYSE:V) today announced that its Visa B2B Connect network has doubled its reach – from 30 global trade corridors at launch in June 2019, to 62, with the goal to expand to over 100 countries in 2020. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190920005082/en/ Visa B2B Connect (Graphic: Business Wire) In addition, Infosys, a global leader in next-generation digital services and consulting, is integrating with the Visa B2B Connect network to bring Visa B2B Connect platform access to their participating financial institutions worldwide. Through this new connection, participating financial institutions worldwide can take advantage of the ability to quickly and securely process corporate cross-border payments globally through Visa B2B Connect.1 “Visa B2B Connect is a fast, secure and more efficient network, designed specifically to overcome obstacles in the cross-border corporate payments space,” said Alan Koenigsbe

Open Day at ISAE-SUPAERO!20.9.2019 09:53:00 CESTPress release

As part of the Science Festival, this year organized on the theme of “Talking about Science, Imagining the Future”, ISAE-SUPAERO will open up its entire campus to the public on Saturday, October 12th from 10 am to 6 pm. Intended for families, companies, partners, journalists and alumni, this event should bring in over 3,000 attendees, as was the case in the three previous years! The program for the day includes many opportunities to discover science today and our vision of the science of the future, with the challenges this entails for the future of our planet. On the program: ➢ Visits to the laboratories and research departments with flight simulators ➢ Visit to the aeroacoustic wind tunnel, unique in Europe, ➢ Demonstrations: how to fly an airplane, Enoskelet, augmented humans, aeroelasticity, drones, use of the gyroscopic effect in space systems, piezoelectric effect, lasers for communicating at the speed of light on Earth and in space, the infinitely small in 3D, Robot Firefighter

William Priest to Step Down as CEO in 2020, Will Remain at Firm as Executive Chairman and Co-CIO20.9.2019 07:00:00 CESTPress release

Epoch Investment Partners, Inc., announced that William Priest will step down as the firm's CEO effective April 1, 2020. He will become Epoch's Executive Chairman and will continue to lead the investment team and serve as co-CIO. He will also retain his portfolio management responsibilities, including his lead portfolio manager role with Epoch's Global Choice and Global Absolute Return strategies. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190920005076/en/ Philipp Hensler (Photo: Business Wire) Philipp Hensler, Epoch's President and COO, will become the firm's CEO. Hensler brings to the role extensive leadership experience at asset management firms globally. His earlier background as a portfolio manager has imbued him with an investment-oriented perspective that aligns with Epoch's investment-centric culture. “Investing remains my lifelong passion," said Priest, who helped found Epoch in 2004. “Best practice suggests a s

Toshiba Memory Holdings Corporation Appoints Lorenzo A. Flores as Vice Chairman20.9.2019 07:00:00 CESTPress release

Toshiba Memory Holdings Corporation, which will officially rebrand as Kioxia Holdings Corporation on October 1, 2019, today announced the appointment of Lorenzo A. Flores as Vice Chairman, effective in November, 2019. Mr. Flores brings a proven track record of strong executive leadership to the company with extensive financial experience in the technology industry. Mr. Flores will work closely with the executive management team to help lead global business expansion. Mr. Flores previously spent eleven years at Xilinx Inc., where he served as Chief Financial Officer since May of 2016, and Executive Vice President since February of 2018. In addition to his finance roles, Mr. Flores had responsibility for the company's Information Technology function. During his tenure as Chief Financial Officer, Xilinx established all-time highs for Revenue, Earnings Per Share, and Operating Cash Flow. Prior to joining Xilinx, Mr. Flores served as Assistant Vice President of Financial Planning and Analys

Fuel50 Earns Accolades at the 2019 HR Innovation Awards for Advancing the Future of Work, Named Best HR Software & Hardware Startup20.9.2019 05:00:00 CESTPress release

Fuel50, creator of the world's fastest-growing talent experience platform, today announced that Zukunft Personal, the largest trade fair for HR managers in Europe and Germany, awarded it an HR Innovation Award in the Software & Hardware Startup category. The HR Innovation Awards recognize dynamic companies that are breaking new ground in HR with their fresh mindset and pioneering products. Each year, Zukunft Personal performs an extensive evaluation of the HR Innovation Award submissions. They also include as a part of the decision-making process input from a panel of outside experts including academics, media representatives and business people. Winning solutions are selected based on their level of innovation, value added to the HR function, intuitiveness for the user and ability to deliver on what they promise. “Companies are rapidly trying to reskill their workforces to deal with automation and new models for work,” said Josh Bersin, global independent analyst and founder of the Jo