After three quarters, Aroundtown believes it is well on its way to achieving its annual goals.
In the first nine months, the commercial real estate specialist was able to keep its net rental income roughly stable at 886 million euros despite the sale of properties. On a comparable basis, there was rental growth of 3.1 percent, as the group announced on Wednesday. The bottom line is that Aroundtown benefited in particular from valuation effects that already came from the first half of the year: As a result, profits for the first nine months also increased to a good 882 million euros. In the previous year, Aroundtown had made a loss of 154 million euros due to value adjustments in the real estate portfolio.
For the year as a whole, however, management continues to expect a decline in operating profit (FFO 1) to between 280 million and 310 million euros. After three quarters, a value of 221 million euros was reached, after 236 million euros in the same period last year.
This is how the stock reacts
Aroundtown’s shares temporarily fell by 5.77 percent to 3.01 euros on Wednesday morning after the presentation of nine-month figures. However, at their lowest level since June, they initially held their simple 200-day line, which they had last fallen below in May. This means that Aroundtown shares once again failed to break out of their correction trend, which they have been in since the annual high in August.
This may also have been the reason for the quite significant setback. Experts like Jonathan Kownator from Goldman Sachs actually did not expect a major price reaction, even if the commercial real estate specialist slightly missed expectations with its operating result (FFO). However, the liabilities compared to the property value remained quite high and the influence on the refinancing costs was immense.
Stephanie Dossmann from the investment bank Jefferies highlighted that the decline in operating profit (FFO) had accelerated compared to the first half of the year.
LUXEMBOURG (dpa-AFX) / FRANKFURT (dpa-AFX Broker)
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