LUXEMBOURG - Aroundtown SA (IRSH), a leading commercial real estate company in Germany, reported its financial results for the first nine months of 2024. Despite a slight 1% decrease in net rental income, which fell to €883 million from €895 million in the same period last year, the company's operational performance remained robust, with a like-for-like rental growth of 3%. The decrease was largely attributed to net disposals, which were somewhat balanced by operational growth.
The company's adjusted EBITDA saw a 1% increase to €758 million, up from €748 million in the previous year, reflecting enhanced operational profitability. However, funds from operations (FFO I) decreased by 8% to €236 million, with FFO I per share at €0.22, down from €0.23 per share in 9M 2023. The net loss reported was €154 million, with a basic loss per share of €0.21, primarily due to negative property revaluations in the first half of the year, which were not revalued in the third quarter.
Aroundtown's EPRA Net Tangible Assets (NTA) stood at €7.8 billion as of September 2024, a decrease from €8.1 billion at the end of December 2023. The loan-to-value (LTV) ratio remained stable at 44%, and the company maintained a high unencumbered assets ratio, representing €16.9 billion of value.
The company confirmed its full-year 2024 FFO guidance at the upper end of the €290-€320 million range, signaling confidence in its financial prospects. This outlook is supported by Aroundtown's proactive balance sheet measures, including the issuance of €1.15 billion of senior unsecured bonds and around €325 million of new bank financing. Moreover, the company engaged in strategic disposals amounting to approximately €630 million year-to-date, with closed disposals around book values totaling €440 million in 9M 2024.
Aroundtown also highlighted its environmental initiatives, having received the first green certifications for its hotels, with 58% of its office portfolio now certified.
This financial update is based on a press release statement issued by Aroundtown SA. The company, listed on the Prime Standard of the Frankfurt Stock Exchange under the symbol AT1, remains the largest and highest-rated (BBB+ by S&P) German commercial real estate company, focusing on income-generating properties with value-add potential in central locations of top-tier European cities.
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