Aroundtown (AT1) Q4 2024 earnings summary

Executive summary

• 2024 marked a year of stabilization and strong operational growth, especially in residential and hotel segments, with proactive measures addressing macroeconomic challenges and improving financial positioning.

• Property valuations began recovering in H2 2024, supported by ECB rate cuts and improved refinancing rates.

• Liquidity and leverage improved through capital market transactions, asset disposals, and perpetual note exchanges.

• Maintained BBB+ credit rating with negative outlook, affirming financial stability.

Financial highlights

• Net rental income was EUR 1.18 billion, down 1% year-over-year due to disposals, offset by 2.9% like-for-like rental growth.

• Adjusted EBITDA reached EUR 1.01 billion, up 1% year-over-year; FFO1 was EUR 316 million, down 5% year-over-year.

• Net profit was EUR 309 million, reversing a EUR 2.4 billion loss in 2023.

• EPRA NTA per share was EUR 7.4, unchanged or up 1% from 2023.

• LTV decreased to 42% from 43% in 2023; cash and liquid assets stood at EUR 3.6 billion.

Outlook and guidance

• 2025 FFO1 guidance is EUR 280–310 million (EUR 0.26–0.28 per share), reflecting conservative rent increases, hotel repositioning, and cost efficiencies, offset by disposals and higher perpetual coupon payments.

• Like-for-like rental growth of 2–3% expected in 2025.

• Continued focus on deleveraging, asset disposals, and maintaining credit rating.

• Positive drivers include cost efficiency and impact of hedging and debt repayments; negative drivers include full-year impact of disposals and hotel repositioning.