CONSUS Real Estate AG has a successful start to the year – results of the first quarter of 2019 demonstrate our strong development potential
- Leading property developer in Germany’s Top 9 Cities: GDV of EUR 9.6 billion, and forward sales of EUR 2.5 billion as at March 31, 2019, additional c. EUR 200 million forward sold after reporting date
- Pro Forma Adjusted EBITDA LTM of EUR 260 million, reported Adjusted EBITDA for the first quarter of 2019 of EUR 46.1 million (Q1 2018: EUR 40.0 million)
- Forward sales of EUR 170 million and one upfront sale of EUR 884 million signed in Q1 2019
- Acquisitions agreed for three further attractive development projects with a GDV of EUR 993 million after reporting date
- First milestone to optimise the financing structure achieved: EUR 400 million bond placement with institutional investors at the beginning of May 2019
In the first three months of 2019, Consus achieved a total revenue of EUR 118.4 million, and an overall performance of around EUR 132.1 million, with the majority being attributable to the real estate development segment. Our key performance indicator EBITDA pre PPA and pre-one offs (“Adjusted EBITDA”) reached EUR 46.1 million in the first quarter (Q1 2018: EUR 40.0 million) and resulted in an Adjusted EBITDA margin of 38.9%. Reported EBITDA was EUR 26.9 million (Q1 2018: EUR 28.6 million). The Pro Forma Adjusted EBITDA of the last twelve months amounted to EUR 260 million (31 December 2018: EUR 253 million). The consolidated profit after tax for the first quarter amounted to EUR – 9.9 million (Q1 2018: EUR 4.9 million). The decrease is mainly due to higher financial expenses of EUR 51.4 million (Q1 2018: EUR 26.1 million) primarily due to the SSN Group acquistion.
First milestone achieved for a more attractive and flexible capital structure
Net debt at the reporting date of the first quarter slightly increased to EUR 2,171 million (December 31, 2018: EUR 2,104 million). Consus’ equity amounted to EUR 1,154 million (December 31, 2018: EUR 1,161 million) at the reporting date.
Net debt/Pro Forma Adjusted EBITDA stood at 8.3x due to the increase in the pro forma Adjusted EBITDA, offset by the marginal increase in net debt compared to FY 2018. Net debt/Market GAV was c. 71 %, unchanged compared to end of last year (December 31, 2018: 71%).
After the reporting date, on 3 May 2019 Consus Real Estate AG successfully placed a senior secured corporate bond with a total nominal amount of EUR 400,000,000. The rating agencies Fitch and Standard & Poor’s rated Consus B and the notes B and B-, respectively. With the placement, Consus AG has reached a first milestone in its realignment towards a long-term financing strategy utilising the capital markets to reduce the cost of its project financing.
High development potential: increase in forward sales and further acquisitions
The gross development volume (“GDV”) remained unchanged compared to the end of 2018 and the reporting date of the first quarter at EUR 9.6 billion. Consus’ development portfolio comprised 64 projects with a total area of 2.1 million m² as at March 31, 2019.
As of March 31, 2019, the volume of projects forward sold amounted to EUR 2.5 billion. After the reporting date, the company has increased the projects forward sold by c. EUR 200 million of GDV to EUR 2.7 billion, corresponding to 28% of the development portfolio by GDV. Foward sold includes executed forward-sale agreements, letters of intent agreed and under negotiation and condominiums sold to private purchasers. Consus is targetting upfront sales of around EUR 1.8 billion, with the sale of the project “416” in Leipzig with a GDV of EUR 884 million expected to close in Q3.
On development project acquisitions, the Consus group has following the end of Q1 agreed the purchase of three projects with a planned GDV of EUR 993 million. The new development projects are “Benrather Gärten” in Duesseldorf with a GDV of EUR 763 million, the “Wachendorff Quartier” in Bergisch Gladbach (Cologne area) with a GDV of EUR 147 million and the “Braugold-Quartier” in Erfurt (Leipzig area) with GDV of EUR 82 million. Consus expects to close these transactions in the second half of 2019.
Consus continues to plan for 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: “After the extraordinary growth step towards the end of 2018, we started the year 2019 as expected. With the potential of the development portfolio with a GDV of nearly EUR 10 billion, we plan to further increase earnings from the expansion of our forward sales to institutional real estate investors. Combined with the achievement of a first milestone to optimise our financing structure, we see ourselves well positioned to achieve our strategic and economic goals in the financial year 2019 and beyond as planned.”
The report for the first quarter of fiscal year 2019 have been published on the website of the company under investors/ financial reports and presentations (https://www.consus.ag/financial-reports-presentations-2019).
Invitation to the conference call on 19 June 2019
The Management Board of CONSUS Real Estate AG invites all investors and interested parties to the results presentation of the first quarter of 2019 in a telephone conference on 19 June 2019 at 14:00 (CET). The results presentation will also be broadcast live via webcast. Please use the link https://webcasts.eqs.com/consus20190619/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: +1 929-477-0402
France: +33 (0)1 76 77 22 57
Switzerland: +41 (0)44 580 1022
Head of Investor Relations
About CONSUS Real Estate AG
CONSUS Real Estate AG (“Consus”), with headquarters in Berlin, is a leading German real estate developer with a total development volume of EUR 9.6 billion. The focus of the company’s business activities is on residential real estate in the nine economically strongest metropolitan areas in Germany. Consus focuses on the development of neighbourhoods and standardised multi-storey residential buildings. By means of forward sales to institutional investors, the digitalisation of construction processes and industrial series production, the company operates along the entire value chain of real estate development. The implementation of projects, from design to execution to handover, property management and related services, is carried out by Consus through its CG and SSN divisions. The shares of Consus Real Estate AG are listed in the Scale Segment of Deutsche Börse and the m:access Segment of the Munich Stock Exchange and are traded on XETRA in Frankfurt, among others.