Noratis AG publishes business figures for 2023

Noratis AG publishes business figures for 2023

• Earnings before interest and taxes, EBIT, at EUR 3.5 million
• Rental income increased by around 10.7 % to EUR 32.9 million
• Group result minus EUR 11.0 million
• Forecast: Due to the unchanged challenging market environment, a lower but slightly positive EBIT is expected for 2024 with significantly negative earnings before taxes

Eschborn, May 27, 2024. Noratis AG (ISIN: DE000A2E4MK4, WKN: A2E4MK), a leading portfolio developer of residential real estate in Germany, closed the fiscal year 2023 in line with expectations. In a challenging market environment characterized by significantly higher interest rates, price declines on the real estate market and substantially lower real estate transactions, Noratis AG achieved IFRS earnings before interest and taxes, EBIT, of EUR 3.5 million. In the previous year, EBIT amounted to EUR 12.5 million. Rental income increased by around 10.7 % to EUR 32.9 million in 2023, compared to EUR 29.7 million in the previous year. At 4,265 units at the end of 2023, the property portfolio was down on the previous year's figure of 4,548 units.

Noratis AG purchased 18 residential units in the period under review. A total of 301 units were sold, with the majority of sales taking place in the first half of the year. In the previous year, 615 units were purchased, and 279 units were sold. Based on the real estate values determined by experts at the end of the year, there was a need for write-downs on the inventory real estate portfolio of around EUR 6.0 million in 2023, which will have an impact on earnings and not on liquidity. Due to the impairment losses, the significant increase in interest rates and the non-cash maturity-related changes in the market values of interest rate hedges, the consolidated result for 2023 was EUR -11.0 million, compared to a surplus of EUR 8.3 million in 2022. As announced, no properties were reclassified from current assets to non-current assets in 2023, meaning that no hidden reserves were realized.

Noratis AG has responded to the changed market environment with a cost-cutting program. Savings potential also results from the stronger focus on portfolio management. In a market environment that remains challenging, Noratis AG expects a slightly positive, but comparatively lower EBIT than in 2023 and a clearly negative earnings before taxes for 2024 without the need for further writedowns.

André Speth, CFO of Noratis AG, explains: "With the cost savings already initiated and the continued high demand for affordable housing, we have a good starting point to benefit from an improved environment in the future."

The 2023 Annual Report will be available in the Investor Relations section at www.noratis.de from May 27, 2024.   

About Noratis:

Noratis AG (www.noratis.de, ISIN: DE000A2E4MK4, WKN: A2E4MK) is a leader in the development of residential real estate portfolios in Germany. The company identifies and realizes potential for tenants and investors. In this way, Noratis creates and maintains attractive living space throughout Germany that is affordable at the same time. Noratis specializes in upgrading aging residential properties, mostly factory apartments, neighbourhoods and estates in cities with a population of 10,000 or more as well as in secondary locations of metropolitan areas. After successful development, the properties remain in the portfolio or will be sold in the medium term to investors or in individual sales to existing tenants, capital 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 Investor & Public Relations:

edicto GmbH

Dr. Sönke Knop

+49 (0)69 905 505 51

noratis@edicto.de

Eschersheimer Landstraße 42

60322 Frankfurt am Main