THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS
AROUNDTOWN ANNOUNCES Q1 2025 RESULTS WITH STRONG OPERATIONS
- Net rental income of €295 million in Q1 2025, higher by 1% year-over-year, supported by like-for-like rental income growth of 3%, more than offsetting the impact of disposals.
- Adjusted EBITDA of €251 million, higher by 1% driven by solid operational growth and solid cost base.
- FFO I amounting to €76 million and €0.07 per share in Q1 2025, stable year-over-year.
- Net profit of €319 million and basic earnings per share of €0.2 in Q1 2025, higher by 211% and 400% respectively, compared to €102 million and €0.04 per share in Q1 2024.
- Positive property revaluation of +0.8% on a like-for-like basis, on around 15% of the portfolio, supported by operational growth.
- EPRA NTA of €8.4 billion and €7.6 per share as of March 2025, higher by 2% and 3% respectively, compared to €8.2 billion and €7.4 per share as of December 2024.
- Ca. €150 million of disposals were completed during Q1 2025. YTD signed ca. €140 million.
- LTV decreased to 41% as of March 2025, from 42% as of December 2024. Unencumbered assets ratio of 71%, reflecting a value of €17 billion as of March 2025 and ICR of 4.3x in Q1 2025.
- Aroundtown successfully completed a €750 million senior unsecured bond issuance in May 2025 (3.5% coupon) and repaid debt of €1.3bn YTD.
- FY 2025 Guidance confirmed.
28 May 2025.
Aroundtown (‘the Company’ or ‘AT’) announces results for the first three months of 2025. Net rental income amounted to €295 million, 1% higher compared to Q1 2024. This increase was driven by a like-for-like rental growth of 3%, which offset the impact of net disposals during the period. Adjusted EBITDA rose by 1% year-over-year to €251 million. FFO I reached €76 million, or €0.07 per share in Q1 2025, remaining stable as the growth in adjusted EBITDA was offset by higher perpetual notes attribution. In Q1 2025, the Company revalued 15% of its portfolio, resulting in a +0.8% like-for-like value increase compared to December 2024. Net profit for the period was €319 million and earnings per share for the quarter stood at €0.20, driven by strong operational results and positive property revaluations. EPRA NTA amounted to €8.4 billion as of March 2025, equivalent to €7.6 per share.
The Company continued to strengthen its balance sheet. In Q1 2025, the Company closed €149 million in disposals around book value. Ca. €140 million of disposals were signed YTD. LTV stood at 41% as of March 2025, reducing further compared to 42% as at December 2024 and down from 45% in June 2024. Aroundtown continues to benefit from a significant pool of unencumbered assets, totaling €17 billion or 71% of rent as of March 2025. These assets provide substantial flexibility and access to further secured financing. The ICR increased to 4.3x in Q1 2025, driven by the growth in adjusted EBITDA and reduction in finance expenses.
S&P LOWERS CREDIT RATING TO BBB STABLE FROM BBB+ NEGATIVE
In April 2025, S&P revised Aroundtown’s credit rating lower by one notch to BBB with a stable outlook. Consequently, the credit rating on the Company’s bonds now stands at BBB, and its perpetual notes at BB+. According to S&P, the downgrade reflects S&P’s concerns over increased market volatility and a weakening German economy, which may slow the Company’s deleveraging progress. Despite this, Aroundtown remains firmly committed to maintaining a strong financial profile and continues to maintain significant headroom to all financial bond covenants.
SUCCESSFUL €750 BILLION BOND ISSUANCE AND €1.3BN DEBT REPAYMENT YTD EXTENDING DEBT MATURITY PROFILE
Following the end of the reporting period, Aroundtown successfully completed a €750 million 5-year senior unsecured bond issuance. The new bond carries a 3.5% coupon, significantly lower compared to the 4.8% of the last issuance in July 2024. The offer was met with strong investor demand, being three times oversubscribed during the day. Simultaneously, the Company launched a tender offer to repurchase certain bond series with short term maturities as well as relatively higher coupons and through which it bought back ca. €600m nominal amount of bonds. The objective of the liability management exercise is to proactively manage and extend the Company’s debt maturity profile. In addition to the bonds bought back as part of the tender offer, the Company has repaid ca. €660 million of scheduled bond repayments in 2025 YTD, bringing total debt repayments to €1.3 billion YTD.
AROUNDTOWN DECIDED NOT TO RECOMMEND A DIVIDEND PAYMENT FOR 2024
The board of directors Aroundtown has decided not to recommend a dividend payment for 2024 in order to maintain a conservative financial position.
The Interim Consolidated Report for Q1 2025 is available on the Company’s website:
https://www.aroundtown.de/investor-relations/publications/financial-reports/
For definitions and reconciliations of the Alternative Performance Measures, please see the relevant sections in the pages 39-44 of the Interim Consolidated Report for Q1 2025. You can find the Interim Consolidated Report for Q1 2025 on AT’s website under Investor Relations > Publications > Financial Reports or under this link:
https://www.aroundtown.de/aroundtown.de/Data_Objects/Downloads/Financial_Reports/Q1_2025_Financials/AT_Q1_2025.pdf
About the Company
Aroundtown SA (symbol: AT1), trading on the Prime Standard of the Frankfurt Stock Exchange, is the largest listed German commercial real estate company. Aroundtown invests in income generating quality properties with value-add potential in central locations in top tier European cities primarily in Germany, the Netherlands, and London.
Aroundtown SA (ISIN: LU1673108939) is a public limited liability company (société anonyme) established under the laws of the Grand Duchy of Luxembourg, registered with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés, Luxembourg) under number B217868, having its registered office at 37, Boulevard Joseph II, L-1840 Luxembourg, Grand Duchy of Luxembourg.
Contact
Timothy Wright
T: +352 288 313
E: info@aroundtown.de
www.aroundtown.de
DISCLAIMER
THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES.
THIS ANNOUNCEMENT IS DIRECTED AT AND IS ONLY BEING DISTRIBUTED IN THE UNITED KINGDOM TO (I) PERSONS WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE ORDER), (II) HIGH NET WORTH ENTITIES, AND OTHER PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED FALLING WITHIN ARTICLE 49 OF THE ORDER, AND (III) PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS RELEVANT PERSONS). THIS COMMUNICATION MUST NOT BE READ, ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS.
IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA (EEA) AND THE UNITED KINGDOM, THIS ANNOUNCEMENT AND ANY OFFER IF MADE SUBSEQUENTLY IS DIRECTED ONLY AT PERSONS WHO ARE “QUALIFIED INVESTORS” WITHIN THE MEANING OF REGULATION (EU) 2017/1129, AS AMENDED (THE PROSPECTUS REGULATION) (QUALIFIED INVESTORS). ANY PERSON IN THE EEA OR THE UNITED KINGDOM WHO ACQUIRES THE SECURITIES IN ANY OFFER (AN INVESTOR) OR TO WHOM ANY OFFER OF THE SECURITIES IS MADE WILL BE DEEMED TO HAVE REPRESENTED AND AGREED THAT IT IS A QUALIFIED INVESTOR. ANY INVESTOR WILL ALSO BE DEEMED TO HAVE REPRESENTED AND AGREED THAT ANY SECURITIES ACQUIRED BY IT IN THE OFFER HAVE NOT BEEN ACQUIRED ON BEHALF OF PERSONS IN THE EEA OR THE UNITED KINGDOM OTHER THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEEN ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN THE EEA OR THE UNITED KINGDOM TO PERSONS WHERE THIS WOULD RESULT IN A REQUIREMENT FOR PUBLICATION BY AROUNDTOWN OR ANY OF THE MANAGERS OF A PROSPECTUS PURSUANT TO ARTICLE 3 OF THE PROSPECTUS REGULATION.
THIS ANNOUNCEMENT MAY CONTAIN PROJECTIONS OR ESTIMATES RELATING TO PLANS AND OBJECTIVES RELATING TO OUR FUTURE OPERATIONS, PRODUCTS, OR SERVICES, FUTURE FINANCIAL RESULTS, OR ASSUMPTIONS UNDERLYING OR RELATING TO ANY SUCH STATEMENTS, EACH OF WHICH CONSTITUTES A FORWARD-LOOKING STATEMENT SUBJECT TO RISKS AND UNCERTAINTIES, MANY OF WHICH ARE BEYOND THE CONTROL OF AROUNDTOWN SA. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.
