Asset volume grows to EUR 967.3 million (30.09.2019: EUR 917.6 million)
Aves One AG, a strongly growing holder of long-life logistics assets, continues its growth course in the first nine months of the 2020 financial year. Group revenues increased by 9.1% to EUR 93.6 million (previous year: EUR 85.8 million) compared to the same period of the previous year. Adjusted for the proceeds from the sale of the last real estate activity, revenues amounted to EUR 90.2 million in the reporting period. EBITDA reached EUR 63.2 million and thus remained at a high level (previous year: EUR 63.6 million). EBT adjusted for the exchange rate effects reported in the financial result amounted to EUR 2.3 million (previous year: EUR 8.9 million). The operating cash flow increased to EUR 64.1 million (previous year: EUR 63.8 million). The asset volume rose to EUR 967.3 million as of 30 September 2020 (30 September 2019: EUR 917.6 million). Continuous investments in the rail portfolio more than compensated the decline in the container segment. Aves One thus consistently continues its strategic focus on its core business "Rail".
Significant growth in the rail segment
In the first nine months of the 2020 financial year, Aves One invested EUR 73.4 million in the rail segment. The completed transactions with an average age of around five years contribute to the further diversification of the portfolio and increase its resilience in difficult market phases. As a result, the core business was further strengthened as planned. The asset volume in the rail segment rose to EUR 722.3 million (previous year: EUR 629.5 million) as of the reporting date. The Rail segment's share of the total portfolio volume thus increased to 74.7% (previous year: 68.6%). During this period, segment revenues rose significantly to EUR 62.7 million (previous year EUR 55.6 million). EBITDA grew by 17.6% to EUR 50.3 million (previous year: EUR 42.8 million). The segment earnings also showed a continuous positive development over the course of the year. EBITDA for the Rail segment rose from EUR 15.1 million in the first quarter to EUR 17.3 million in the second quarter and to EUR 17.9 million in the third quarter of 2020. The positive development is also reflected in the rental situation. The capacity utilisation rate remained at a high level of 91.3% in the first nine months and confirms the continued stable demand for freight cars. In addition, a number of expiring leases were even extended at better conditions.
Continuing challenges in the container segment
The challenging market environment continues to impact the business development in the container segment: Aves One recorded a 4.5% decline in segment sales to EUR 26.5 million (previous year: EUR 27.7 million) compared to the same period of the previous year. EBITDA fell even more sharply by 26.0% to EUR 17.4 million (previous year: EUR 23.6 million). The main drivers of this development were the absolute decline in the container portfolio, the development of rental prices and the price development on the secondary market for used sea containers. The secondary market has decoupled from its traditional link to the price development for new containers. Since spring 2020, new container prices have been above the long-term average price, while prices for used containers have stagnated at a lower level. This development led to EBITDA-relevant book losses on container sales of EUR 3.0 million. However, the capacity utilisation rate remained at a high level in the first nine months, at 94.2%.
Strengthening the financing structure with successful refinancing measures
In the reporting period, the listed bond "Aves One 06/2020 - 05/2025" (WKN: DE000A289R74) with a volume of EUR 30 million was successfully placed on the market. The issue proceeds will be used to continue the growth course with a well-filled pipeline in the rail segment. In addition, the bond represents a further building block in the diversification and optimisation of the financing structure. After the end of the reporting period, the bond volume was increased to EUR 50 million due to high demand. The successful refinancing measures in the first nine months of 2020 further reduced financing costs and strengthened the financing structure.
Business performance with strong rail segment in line with the 2020 forecast
"Over the past twelve months, we have been able to reduce the asset volume of our sea containers by 16.5% through sales. As of 30 September 2020, the sea container portfolio comprised around 116,200 units and thus only represented around 20.4% of our asset volume. We will continue to sell off the sea container portfolio and focus consistently on expanding the rail segment. The conversion to 'rail only' was thus successfully continued during the COVID-19 pandemic. We are very confident that we will close the 2020 financial year in line with our sales and earnings forecast," adds Tobias Aulich, member of the Management Board of Aves One AG. The management expects a sales volume of more than EUR 117 million and an EBITDA of more than EUR 84 million.
For more detailed explanations of the key figures, please refer to the interim report Q3-2020, which will be available for download from 20 November 2020 at 18.00 under the following link: www.avesone.com/en/finanzberichte