Half Year 2026 Aroundtown SA Earnings Call Transcript
Key Points
- Aroundtown SA (AANNF) reported stable H1 2026 results with net rental income of EUR591 million and adjusted EBITDA of EUR500 million, in line with guidance.
- The company achieved solid like-for-like rental growth of 2.7%, driven by strong performance in residential (3.5%) and hotel (4.4%) segments.
- EPRA NTA per share increased 3% to EUR8.0, supported by an accretive share buyback program executed at a significant discount to NAV.
- Aroundtown SA (AANNF) resumed dividend payments for 2025, returning approximately EUR340 million to shareholders in 2026 through dividends and buybacks.
- The company maintained a strong liquidity position of EUR3.9 billion plus over EUR1 billion in undrawn credit lines, with proactive refinancing extending its debt maturity profile.
- Capital recycling efforts continued with EUR350 million of disposals closed at around book values, and proceeds redeployed into high-yield acquisitions and accretive investments.
- The company progressed on its value-add strategy, with office conversions and hotel repositionings expected to deliver yields of 10-19% on CapEx.
- Aroundtown SA (AANNF) increased its stake in GCP to around 84%, enhancing exposure to the defensive residential market and adding EUR10 million in FFO from 2027.
- The company achieved its first BREEAM Outstanding certification, with 76% of its commercial portfolio now green certified.
- The German federal coalition's commitment to prevent socialization laws was viewed positively, reducing expropriation risk for the residential portfolio.
- FFO 1 declined 4% year-over-year to EUR144 million, primarily due to higher financing expenses.
- Finance expenses increased to EUR142 million in H1 2026, reflecting the impact of refinancing at higher rates.
- The company expects continued pressure on FFO 1 in 2027 and 2028 due to legacy debt maturing at lower coupons, with a potential temporary decline in FFO.
- Loan-to-value ratio increased to 43% from 41% at year-end 2025, driven by share buybacks and investments.
- Interest coverage ratio decreased to 3.3x from 4.2x a year earlier, and is expected to decline further before stabilizing.
- Office segment like-for-like rental growth was only 0.9%, with vacancy rates slowly increasing by about 1% per year.
- The company faces headwinds from higher refinancing costs, with cost of debt rising to 2.6% pro forma from 2.4%.
- Development and investment properties experienced devaluations due to construction cost inflation, offsetting gains in other segments.
- Property operating expenses increased by around 5% due to inflation, while rental income remained flat.
- The company's FFO 1 per share was impacted by a higher effective share count from the GCP transaction, leaving the deal broadly neutral on a per-share basis.
Ladies and gentlemen, welcome to the Aroundtown SA H1 2026 results conference call. I am Moritz, your conference call operator. (Operator Instructions) And the conference is being recorded. (Operator Instructions)
The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to the company. Please go ahead.
Good morning, everybody. Thank you for joining us for Aroundtown's H1 2026 results call. You can view this presentation on Aroundtown's website, either on the home section or under financial reports of the Investor Relations section.
With me today are CEO, Barak Bar-Hen; CFO, Jonas Tintelnot; Executive Director, Frank Roseen; Chief Capital Markets Officer, Timothy Wright; Chief Sustainability Officer, Limor Bermann; Deputy CEO, Kamaldeep Manaktala; and representatives from Grand City Properties are also present.
For the duration of the call, all participants will be on listen-only mode. Following our presentation, you will have the opportunity to ask
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
