ACCENTRO (A4Y) Q3 2022 earnings summary

Executive summary

• Navigated a challenging German economic environment marked by energy cost hikes, rising construction costs, supply chain disruptions, and higher interest rates.

• Achieved solid business performance in the first nine months of 2022, with revenues up 15.3% year-over-year to EUR 144.6 million.

• Rental income rose 47.2% to EUR 9.7 million, supported by new leases and successful lettings, though total rental revenues declined due to strong privatisation sales and asset disposals.

• EBIT fell to EUR 9.6 million from EUR 31.0 million year-over-year, mainly due to the absence of prior-year valuation gains and new impairments.

• Earnings per share for the nine-month period was EUR -0.22, compared to EUR 0.25 in the previous year.

Financial highlights

• Consolidated revenues increased to EUR 144.6 million from EUR 125.4 million year-over-year, driven by inventory property sales.

• EBIT dropped to EUR 9.6 million from EUR 31.0 million, with prior year including EUR 16.3 million in valuation gains; adjusted EBIT excluding valuation allowance was EUR 13.6 million.

• Consolidated net income was EUR -7.1 million, down from EUR 9.6 million year-over-year.

• Cash flow from operating activities improved to EUR 69.9 million from EUR 47.2 million year-over-year.

• Cash and cash equivalents remained stable at EUR 121.7 million.

Outlook and guidance

• Management Board revised 2022 guidance: expects consolidated revenues of EUR 160–170 million (previously EUR 200–220 million) and EBIT of EUR 8–10 million (previously EUR 45–50 million).

• Demand slowed sharply in H2 2022 among both private and institutional buyers; no improvement expected for the remainder of the year.