Aroundtown (AT1) Q3 2024 earnings summary

Executive summary

• Net rental income for the nine months ended September 30, 2024, was €883 million, down 1% year-over-year, mainly due to disposals, partially offset by like-for-like rental growth of 3% across all asset classes.

• Adjusted EBITDA increased by 1% to €758 million, reflecting operational resilience and efficiency measures.

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

• FFO I amounted to €236 million, down 8% year-over-year, with FFO I per share at €0.22, mainly impacted by higher finance expenses and perpetual notes.

• Portfolio remains highly diversified across office, residential, and hotel assets, with a strong ESG focus and 89% located in Germany, the Netherlands, and London.

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 NAV at €9.6 billion (€8.8/share) and EPRA NTA at €7.8 billion (€7.1/share) as of September 2024.

• 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 to EBITDA at 11.0x; average debt maturity of 4 years.

Outlook and guidance

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

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

• Net financing costs expected to remain stable, with no major refinancing needs in 2025.

• Further LTV reduction anticipated through disposals and vendor loan repayments.

• Dividend decision for 2024 remains pending, subject to leverage, rating, and market clarity.