Aroundtown SA Maintains Growth Trajectory

First Berlin Equity Research has reiterated its "Buy" recommendation for Aroundtown SA, with a maintained target price of €4.10. This follows the release of Aroundtown’s 2025 annual report, which underscored the robustness of its operational business. Despite higher financing costs impacting FFO I, the real estate company reported a 3.0% increase in like-for-like rental income, showing stable demand across office, residential, and hotel sectors.

The company's financial results also reflected a 3.1% rise in like-for-like property valuations, signaling market stabilization after previous years' devaluation. The recent share buyback could enhance 2026's FFOPS by up to 7%. Aroundtown is transitioning to a balanced capital allocation strategy, emphasizing internal growth, capital recycling, and selective external opportunities. The proposed Grand City Properties exchange offer may enhance Aroundtown's operations by increasing economic benefits from residential cash flows and simplifying its structure.