Aroundtown (AT1) Q3 2024 earnings summary

Executive summary

• Net rental income for 9M 2024 was €883 million, down 1% year-over-year, with like-for-like rental growth of 3% and adjusted EBITDA up 1% to €758 million, reflecting operational resilience.

• Loss for the period narrowed to €154 million from €1,370 million in the prior year, mainly due to lower property revaluations.

• FFO I was €236 million (down 8% year-over-year), or €0.22 per share (down 4%), mainly due to higher finance expenses.

• Portfolio is highly diversified across office (39%), residential (33%), and hotel (22%) assets, with 89% in Germany, the Netherlands, and London.

• Strong ESG focus, with 58% of office and 12% of hotel portfolios certified as green buildings and clear CO₂ reduction targets.

Financial highlights

• Revenue for 9M 2024 was €1,158 million, down 4% year-over-year, mainly due to lower recoverable utility costs.

• Property revaluations and capital gains losses narrowed to €591 million from €1,889 million year-over-year.

• EPRA NTA stood at €7.8 billion (€7.1 per share), down 3% from December 2023.

• LTV at 44% as of September 2024, with €3.3 billion in cash and liquid assets, covering 23% of debt.

• Interest cover ratio at 4.0x; net debt/EBITDA at 11.0x; average debt maturity 4 years.

Outlook and guidance

• Full-year 2024 FFO I guidance confirmed at the upper end of €290–320 million (€0.27–0.29/share).

• Expect continued strong like-for-like rental growth (2–3%) and operational cost optimization in 2025.

• LTV expected to trend down, supported by disposals and vendor loan repayments.

• Dividend decision for 2024 deferred, pending further clarity on valuations and credit metrics.

• Management anticipates benefits from potential rate cuts and improving transaction market sentiment.