Aroundtown (AT1) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered solid operational growth, with net profit surging to €319 million, driven by diversified asset classes, strong performance in top-tier locations, and positive property revaluations.

• Portfolio is highly diversified across office, residential, and hotel assets, with 80–88% located in Germany, the Netherlands, and London.

• Maintained a defensive portfolio with a strong tenant base, limited dependency on single tenants, and a continued focus on ESG, with 53% of the commercial portfolio green certified.

• No material impact from macroeconomic or geopolitical volatility was observed in Q1, but S&P downgraded the credit rating to BBB (stable) post-period.

Financial highlights

• Net rental income rose 1% year-over-year to €295 million, with like-for-like rental growth of 3%.

• Adjusted EBITDA increased to €251 million (+1% YoY), supported by rental growth and cost efficiencies; FFO I stable at €76 million.

• Basic EPS at €0.20, up from €0.04 YoY, driven by property revaluations and capital gains.

• EPRA NTA per share increased 3% to €7.6 compared to December 2024.

• Cash and liquid assets at €3.4 billion, representing 24% of total debt.

Outlook and guidance

• FY 2025 FFO I guidance confirmed at €280–310 million (€0.26–0.28 per share), reflecting continued rental growth, hotel repositioning, cost efficiencies, and hedging benefits, partially offset by disposals and higher perpetual note coupons.

• Like-for-like rental income is expected to grow 2–3% in 2025.

• Dividend distribution is paused for 2024, with potential resumption in 2025 depending on further balance sheet strengthening and market conditions.