By Marleen Kaesebier
(Reuters) -Aroundtown, one of Germany’s largest listed landlords, posted a half year profit, benefiting from a recovery in German commercial and residential property prices after years of declines.
The company reported a first half profit of 578 million euros ($677 million) having made a 330 million euro loss in the same period in 2024. It had posted its first annual profit in 3 years in March.
Since then the company also tripled its first quarter profit from the year prior.
Aroundtown confirmed its full year guidance.
Its funds from operations (FFO I), a key metric for real estate companies, remained largely consistent in the first half year, down 2% from the same period a year earlier.
Across its hotel, residential and office properties, which lie primarily in Germany and the Netherlands, Aroundtown said it saw its like-for-like rental income grow 3%.
Germany’s largest real estate group Vonovia raised its full year guidance earlier in August.
After being seen up around 2% in early Frankfurt trade, shares of Aroundtown fell around 4% at market open.
“Profit-taking may be a factor here in what is currently a mixed European real estate sector,” ODDO BHF analyst Manuel Martin said.
Aroundtown also announced that its CFO, Ben David, is stepping down after 17 years. Its Deputy CFO Jonas Tintelnot will replace him by the end of 2025.
JPM analysts called the results a “solid update”.
($1 = 0.8542 euros)
(Reporting by Marleen Kaesebier in Gdansk, editing by Matt Scuffham)
