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LUXEMBOURG - Aroundtown SA, a leading commercial real estate company, reported a significant increase in its first-quarter net profit and a stable funds from operations (FFO I), according to a press release statement. The company’s net profit for Q1 2025 soared to €319 million, marking a 211% increase from the €102 million recorded in Q1 2024, while earnings per share jumped to €0.20 from €0.04 year-over-year.
Net rental income rose modestly by 1% to €295 million, with a 3% like-for-like rental growth offsetting the impact of property disposals. Adjusted EBITDA also grew by 1% to reach €251 million. Despite the positive operational performance, FFO I remained stable at €76 million, or €0.07 per share, as growth was balanced by higher perpetual notes attribution.
The company also reported a positive revaluation of its property portfolio, with a 0.8% increase on a like-for-like basis for approximately 15% of its assets. This revaluation contributed to the rise in net profit. The EPRA Net Tangible Assets (NTA) stood at €8.4 billion or €7.6 per share as of March 2025, showing a 2% and 3% increase respectively since December 2024.
Aroundtown’s balance sheet was further strengthened with loan-to-value (LTV) decreasing to 41% in March 2025 from 42% in December 2024. The company also maintained a high unencumbered assets ratio of 71%, equating to a value of €17 billion, and reported an interest coverage ratio (ICR) of 4.3x.
In light of market conditions, S&P lowered Aroundtown’s credit rating to BBB stable from BBB+ negative in April 2025. The rating agency cited concerns over market volatility and a weakening German economy potentially affecting the company’s deleveraging progress. Nevertheless, Aroundtown has confirmed its full-year 2025 guidance.
Following the quarter’s end, the company successfully issued a €750 million senior unsecured bond with a 3.5% coupon, which was three times oversubscribed. This issuance, along with a tender offer to repurchase certain bond series, is part of Aroundtown’s strategy to manage and extend its debt maturity profile. Year to date, the company has repaid €1.3 billion in debt.
In a move to maintain a conservative financial position, Aroundtown’s board of directors decided not to recommend a dividend payment for 2024. The full interim consolidated report for Q1 2025 is available on the company’s website, providing further details on the financial performance and outlook.
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