Aroundtown Sa U/Adr

Dear ladies and gentlemen, welcome to the conference call of Round 1 FA regarding the presentation of the Q3 2020 results. As our customers request, this conference will be recorded. As a reminder, all participants will be in the surrounding booth after the presentation. If there is difficulty hearing the conference, please press the star key followed by 0 on your telephone for operator assistance. May I now hand you over to Mr. Villegas. Head of Communications and Sustainability, who will start today's conference call. Please go ahead.

Good morning, everybody. Thank you for joining us for Around Town's Q3 2020 results call. You should have received our press release and can view this presentation at Around Town's website, either on the home section or under financial reports of the investor relations section. I'm Sylvie Largis, Around Town's Head of Communications and Sustainability. With me today will be co-CEO Shmuel Mayo, co-CEO Barak Berhen, CFO Eyal Ben-Wadid, and Chief Capital Markets Officer Oshri Masachi. For the duration of the call, all participants will be on a listen-only mode. Following our presentation, you will have the opportunity to ask questions. Please feel free to send us your questions via email also during the presentation. The email address is info at aroundtown.de. With that, I'd like to pass you over to Oshri Masati, who will start presenting you our results.

Thank you, Sylvie. Good morning, everyone, and welcome to our Q3 2020 earnings call. In our last call back in August, we already informed you that our portfolio, excluding the hotels, returned to behave nearly at pre-corona levels, and therefore we continue to focus on the improvement of assets and our disposal pipelines, as we will report at length in this call. On slides 3 and 4, we summarize our financial and business highlights for the first nine months of the year. We will go into more details of each KPI later in the presentation. And we will also confirm our guidance for the full year 2020. By accelerating our successful disposal program during 2020, we have reiterated the sound valuations of our portfolio. Slide 5 highlights the achievements of our €2.1 billion signed disposals year-to-date, a 3% margin over book value and a rent multiple of 18 times, of which over €770 million were closed by September. The margin over total cost, including capex, amounted to 57% on average. As you can see on the chart, the disposals were made up of 76% retail and wholesale, 17% office, and the remaining 7% a mix of hotel and development rights. Currently, we are in advanced negotiations for additional disposals worth about half a billion euros. Selling these non-core and mature assets further enhance our overall portfolio quality, support debt repayment, funding our buyback program, and of course, strengthening our balance sheets. The proceeds of our disposals have benefited several strategic decisions. Please turn to slide 6 for an overview. €290 million of share buybacks have been completed by Q3 and nearly all the €1 billion programme has been completed year-to-date. As the weighted average share price was €4.9, we achieved a 47% discount to our Q3 APRA NAV of €9.3 per share. making the share buyback program highly accretive for all per share KPIs in the coming period and therefore creating further shareholder value. Essentially, we increased our portfolio quality through the disposals and reinvested part of the proceeds into our own properties well below transaction levels. We also used the disposal proceeds to repay over 1 billion euros of debt during the period and the proceeds also further strengthen our liquidity profile for future acquisition opportunities. Moreover, as we are now able to better assess the pandemic potential impact on the full year 2020 results, we propose to our shareholders a balanced dividend distribution of 14 cents per share, which reflects 50% of the company's dividend distribution policy and is subject to the OGM approval next month. On the next few slides, Shmuel will give you an update of our strong investment locations and portfolio diversification.