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LUXEMBOURG - Aroundtown SA (IRSH) disclosed its financial results for the fiscal year 2024, indicating a solid operational performance despite a slight decrease in net rental income, which was reported at €1.18 billion, down 1% from €1.19 billion in 2023. The dip was attributed to asset disposals but was counterbalanced by a 2.9% like-for-like rental growth. The company’s Adjusted EBITDA saw a 1% rise from the previous year, reaching €1.01 billion.
The firm’s Funds From Operations I (FFO I) fell to €316 million, or €0.29 per share, representing a 5% and 3% decrease respectively compared to the prior year. This was mainly due to the disposals and an increase in perpetual note attribution. Despite these challenges, Aroundtown turned a net profit of €309 million for the year, a significant improvement from the €2.4 billion net loss reported in 2023. The recovery in property values in the second half of 2024 played a substantial role in this turnaround, nearly offsetting the revaluation losses from the first half and resulting in a year-end revaluation loss of €127 million.
The company’s proactive balance sheet management, including the repayment of €1.3 billion in debt and the reduction of leverage, led to a lower Loan-to-Value (LTV) ratio of 42% at year-end 2024, compared to 43% in December 2023. The Interest Coverage Ratio (ICR) stood at 4.0x, with unencumbered assets totaling €16.9 billion, or 71% of total rent.
Aroundtown also continued to make strides in its Environmental, Social, and Governance (ESG) initiatives, achieving green certifications for 65% of its office portfolio and 30% of its total hotel portfolio. The company’s efforts in sustainability have been recognized with several awards and inclusion in various ESG indices.
Looking ahead, the company has issued FFO I guidance for FY 2025 in the range of €280 million to €310 million. The decision on whether to recommend a dividend distribution for 2024 will be made before the Annual General Meeting in June 2025.
The information presented in this article is based on a press release statement from Aroundtown SA.
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