Consus Real Estate AG (CC1); releases FY18 results

Published on 18-04-2019 14:55:00
Author Michal Mierzwiak

Consus released its final FY18 results yesterday, posting sales of €615m and adjusted EBITDA at €204m, which translated into an EBITDA margin of 33%. Net income amounted to €1m and the company achieved a positive cash flow from operating activities of €132m. Consus also increased its Gross Development Value (GDV) by €5bn to €9.6bn.

The consolidation of CG Gruppe,  the disposal of commercial portfolio and its acquisition of SSN, which all took place in the reporting period, partly lead to pro-forma sales of €656m and adjusted EBITDA at €253m, after removing €15.5m of one-off costs on advisory fees related to the above.

Positive developments have also been recorded with operating cash flow that reached €132m, on the back of significant prepayments. Overall, with forward sale GDV at €2.5bn, together with a €1.8bn in outright sales (both finalized and with a signed Letter of Intent) Consus has basically secured financing for almost half of its portfolio.

Another €3.4bn will add to the forward sales and would put the total amount of presold GDV at €7.6bn, representing 80% of the portfolio. In the first quarter of year, Consus has already signed three forward sales agreements with a total GDV of €170m as well as one letter of intent. The company also sold a development project in Leipzig and is currently negotiating another 6-7 material forward sales.

Strong condition in the German real estate market, has the company hoping to improve its transaction multiples. In 2018 company managed to exceed 24.0x and reach almost 26.0x on the latest sale of the Cologneo I Campus. This compares with the range of 20-25x targeted by management.

Overall, Consus expects that its adjusted EBITDA will increase to €450m in 2020, with an EBITDA margin of around 20%. In the medium term, the company guides net debt to an adjusted EBITDA ratio of 3x, although according to management, the improvement in 2019 will come from an operational profit increase only, as the refinancing activities will not gain significant momentum until 2020-2021.

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