Aroundtown SA reported stable first-half 2026 net rental income of €591 million, matching the prior-year period, as rising debt costs offset portfolio growth. Adjusted EBITDA held at €500 million, while Funds from Operations (FFO1) declined 4% to €144 million from €150 million in H1 2025.
Like-for-like rental growth reached 2.7%, driven by residential at 3.5% and hotels at 4.4%, though offices grew just 0.9%. The group’s total portfolio value increased to €25.2 billion, generating a 5% annualized rental yield on €1.16 billion in annualized income. Aroundtown’s EPRA net asset value per share rose 3% to €8.0, while net profit fell to €218 million from €578 million in the prior-year period.
Financing costs weighed on profitability, with FFO1 per share declining to €0.13 from €0.12 despite a 3% increase in EPRA net revaluation value per share to €9.6. The company returned €340 million to shareholders via dividends and buybacks in 2026. Management flagged potential FFO1 pressure in 2027-2028 as lower-rate debt matures and refinances at higher levels, with 2029 expected as a turning point.
Portfolio composition remained diversified, with offices at 34%, residential at 33%, and hotels at 20%. Germany, the Netherlands, and London accounted for 89% of assets, led by Berlin (23%) and London (9%). Green certification reached 76% of the commercial portfolio, including 81% of offices. The weighted average lease term stood at 7.6 years, with a 7.6% vacancy rate.
Aroundtown executed €350 million in disposals in H1 and signed an additional €390 million year-to-date, primarily at rental multiples near 17x. Acquisitions focused on high-quality residential assets at yields above 7%, while office-to-service-apartment conversions and hotel repositionings targeted yields of 14% and 13%, respectively. The company also increased its stake in Grand City Properties at a 10% FFO yield, adding €10 million in annual FFO from 2027 onward.
Full-year 2026 FFO1 guidance was set at €275 million to €305 million, with dividend expectations of €0.12 to €0.135 per share. Management projected additional rental income of €100 million over three to four years from like-for-like growth and €55 million by 2030 from conversions and repositioning projects.
