Aroundtown SA Maintains Strong Performance amidst Market Challenges

First Berlin Equity Research released an update on Aroundtown SA, confirming a BUY recommendation with a target price of €4. A recent Q1 report highlighted solid operational performance across all asset classes, supported by like-for-like rental growth despite negative impacts from asset disposals. The company's FFO 1 reached €76 million, matching last year's figures, driven by a slight increase in AEBITDA.

Revaluations contributed to a 3% quarter-on-quarter rise in EPRA NTAPS to €7.60. Additionally, the balance sheet strengthened post-report through successful bond issuance and buybacks. Despite low office space demand, a shift towards return-to-office trends may alleviate this strain.

Management reaffirmed the FFO 1 outlook between €280 million and €310 million. First Berlin maintains its BUY rating and price target, indicating a 43% upside potential.