Aroundtown (AT1) Q4 2025 earnings summary

Executive summary

• Achieved FY 2025 guidance with stable operational performance, strong liquidity of €4bn including €0.9bn undrawn RCF, and resumption of dividend for 2025 after three years, reflecting improved market and financial conditions.

• Launched a voluntary share-for-share tender offer for Grand City Properties (GCP), aiming to increase stake and consolidate resilient residential cash flows.

• Share buyback program of €250m launched for 2026, with expected total shareholder return over €330m.

• Portfolio highly diversified across residential, hotel, office, and development assets in Germany, the Netherlands, and London.

• Affirmed S&P investment grade credit rating (BBB/Stable) in Dec 2025.

Financial highlights

• Net rental income for 2025 was €1,183m, stable year-over-year, with 3% like-for-like rental growth offsetting disposals.

• Adjusted EBITDA nearly €1bn, down less than 1% from 2024.

• FFO I at €288m, down from €316m in 2024, mainly due to higher finance expenses.

• EPRA NTA per share rose 5% to €7.8; EPRA LTV reduced by 2% to 58%.

• Profit for the year reached €1,127.9m, up from €309.3m in 2024, aided by one-time deferred tax income.

• Liquidity increased to €4bn plus €900m in unused credit lines.

Outlook and guidance

• FY 2026 FFO I guidance: €250–280m (or €0.24–0.27 per share), reflecting full-year impact of 2025 disposals and refinancing.

• Dividend policy updated to 50% of FFO I payout from 2026 onward; dividend per share: €0.120–0.135.

• Share buyback program of €250m for 2026 expected to boost FFO I per share by ~7%.

• Like-for-like rental income growth expected at 2–3% for 2026.

• Positive drivers: rent increases, acquisitions, cost efficiency, lower perpetual note coupons, share buyback; negative drivers: full-year impact of 2025 disposals, expected 2026 disposals, refinancing above current cost of debt.