Noratis AG explains portfolio development in view of the bondholders' meeting on 10 September 2024 and invites to investor call on 29 August 2024

Eschborn, 21 August 2024 – Noratis AG (Shares: ISIN: DE000A2E4MK4 / WKN: A2E4MK, Bond: ISIN: DE000A3H2TV6 / WKN: A3H2TV, ISIN: DE000A3E5WP8 / WKN: A3E5WP), a leading portfolio developer of residential properties in Germany, has recognised write-downs of around EUR 31 million on its property portfolio based on the expert valuation as of 30 June 2024 (see ad hoc dated 14 August 2024). Given the market value of the property portfolio of EUR 483 million at the end of 2023, this corresponds to a write-down of around 6% (like-for-like). In addition to the purely market-related adjustments, the write-downs reflect in particular the effects of Noratis AG's restructuring plans. Lower and delayed investments in the further development of individual properties mean that the properties currently have lower potential sales prices. In addition, the planned marketing strategy for individual projects has been changed. Properties previously intended for individual sale are now being prepared with a view to a portfolio sale. This means that an entire property or sub-portfolio can be sold with one sale, but the price expectations are lower compared to a time-consuming individual sale.

The devaluations made and the continuing weak property transaction market in Germany underline the need for the proposed restructuring of the 5.5% Noratis bond 2020/2025 (ISIN: DE000A3H2TV6 / WKN: A3H2TV). The reported portfolio effects have already been taken into account in the financial planning for the restructuring of the bond, so that there is no change with regard to the planned restructuring.

Investor call on 29 August 2024 at 11:00 a.m.
 

The Management Board of Noratis AG will explain the planned restructuring of the bond and the commissioned expert opinion in the form of an Independent Business Review (IBR) to investors during an investor call on 29 August 2024 at 11:00 a.m. and will then be available to answer questions.

Registration link to the investor call: https://montegaconnect.de/event/j1elmqfry20stpxby3wcru5pj9ms64mp

The webcast will be held in German. However, participants are also welcome to ask their questions in English.

The extension of the 2020/2025 bond to 31 December 2028 proposed for the bondholders' meeting on 10 September 2024, combined with an early repayment option for the issuer, offers Noratis AG the necessary flexibility for the planned property sales. As a result, properties can be sold at a more favourable time and higher cash inflows can be achieved from the sales. In this way, Noratis AG can secure substance for the repayment of the bond at the end of the term extension.

Noratis AG asks the bondholders to participate in the meeting on 10 September 2024 in Eschborn or to be represented there. The necessary registration can be made by mail (Noratis AG, c/o Computershare Operations Center, 80249 Munich) or by e-mail to noratis@computershare.de by 7 September 2024 (24:00 CEST). Investors require a ‘Special Proof and Blocking Notice’ for participation, which must be requested from the custodian bank. Corresponding sample forms for the registration and the Special Proof and Blocking Notice are available on the website of Noratis AG at https://noratis.de/investor-relations/ in the ‘Bondholders’ Meeting’ section. Instead of attending in person, bondholders also have the option of authorising the company's proxies with voting instructions. A sample of this authorisation is also available for download at the aforementioned address. For the bondholders' meeting to be quorate, at least half of the outstanding nominal amount of the Noratis Bond 2020/2025 must be represented. If the required quorum is not achieved, a second bondholders' meeting with the same agenda items will be convened at short notice. With regard to the restructuring of the Noratis Bond 2020/2025, this meeting will have a quorum if at least 25% of the nominal amount of the outstanding bond.

As announced, Noratis AG has recognised an earnings-relevant depreciation requirement of EUR 20.8 million as a result of the adjustments made by experts to the valuations of the properties, which also has a negative impact on EBIT and EBT. The necessary adjustment of the annual forecast now assumes a significantly negative EBT and a significantly negative EBIT. The preliminary half-year figures 2024 of Noratis AG according to IFRS are, as announced, an EBIT of around EUR -18.4 million and an EBT of around EUR -26.2 million. 

Further information on the bondholders' meeting can be found at https://noratis.de/investor-relations/.

About Noratis:

Noratis AG (www.noratis.de, ISIN: DE000A2E4MK4, WKN: A2E4MK) is a leader in the development of residential property in Germany. The company recognises and realises potential for tenants and investors. In this way, Noratis creates and maintains attractive living space throughout Germany that is also affordable. Noratis specialises in upgrading ageing residential properties, mostly company-owned flats, neighbourhoods and estates in cities with a population of 10,000 or more and in peripheral locations in conurbations. Following successful development, the properties remain in the portfolio or are sold in the medium term to investors or in individual sales to existing tenants, investors and owner-occupiers. In doing so, Noratis creates tangible and sustainable added value for all stakeholders: from investors/shareholders, buyers/sellers, service providers and employees to current and future tenants. Noratis AG is listed on the Frankfurt Stock Exchange.

Contact for bondholders:

IR.on AG

Jonas Schneider, Fabian Kirchmann

Tel: 0221/91 40 97-33

E-Mail: agv24@noratis.de

Contact Investor & Public Relations:

edicto GmbH

Dr. Sönke Knop

+49 (0)69 905 505 51

noratis@edicto.de

Eschersheimer Landstraße 42

60322 Frankfurt am Main