Aroundtown SA Reports Strong FY 2023 Performance Amidst Market Challenges

Aroundtown SA disclosed its fiscal year 2023 outcomes, emphasizing robust liquidity and solid operations despite a turbulent economic landscape. The company completed disposals exceeding €1.2 billion, enhancing liquidity while reducing leverage. Significant strides in liability management were made, including repurchasing €1.3 billion in shorter-term bonds at a discount. Additionally, Aroundtown secured approximately €1 billion in new bank debt in 2023.

The firm’s liquidity balance surged to €3 billion, with net debt diminishing by €0.9 billion throughout the year. However, property revaluations experienced a downturn of €3.2 billion, indicating an 11% devaluation on a like-for-like basis. The loan-to-value (LTV) ratio saw a modest increase to 43%, partially mitigated by disposals and proactive liability management measures.

Regarding earnings, net rental income reached €1.2 billion, marking a slight 2% decrease from the previous year, attributable to net disposals offset by a 3.2% increase in like-for-like rental income. Adjusted EBITDA remained stable at €1 billion, mirroring the performance in 2022. However, the firm recorded a net loss of €2.4 billion primarily due to negative property revaluations. The adjusted Funds From Operations I (FFO I) also witnessed a decrease, aligning with the top range of the 2023 guidance albeit lower than 2022 figures.

In response to the prevailing economic conditions, Aroundtown announced it would not issue a dividend for 2023 but highlighted progress in its Environmental, Social, and Governance (ESG) initiatives. The company continued to advance its green building certifications, with a significant portion of its office portfolio now green certified, contributing to the overall ESG goals.