Aroundtown's profit halves in Q1 even as German property prices grow
Q1 Financial Results and Market Context
May 27 (Reuters) - Aroundtown, one of Germany's largest listed landlords, reported lower earnings and funds from operations on Wednesday, as a lack of property revaluations and higher finance costs impacted its first-quarter performance.
Quarterly Profit and Contributing Factors
The Luxembourg-based company said its quarterly net profit fell by more than a half from a year ago to €118.9 million ($138.4 million), citing a property revaluation recorded in the same period of 2025, unlike this year.
Impact of Property Revaluations
That was despite a continued rise in German commercial property prices after years of declines.
German Property Market Trends
German property prices rose 2.1% in the first quarter, data from VDP and the Bundesbank showed earlier in May, in a similar trend observed since mid-2024.
Market Uncertainties
But VDP, an association of so-called Pfandbrief banks involved in residential and commercial property financing, warned that the first-quarter figures showed little sign of how warfare in the Middle East was affecting the real estate market, with a potential impact yet to be seen.
Aroundtown's Operating Performance
Aroundtown posted funds from operations, or FFO I, of €70 million, down 8% from last year's €76 million due to higher finance expenses, though they were still within the scope of its guidance.
Guidance for Future Performance
FFO I Forecast
In April, the property firm had guided for the FFO I, a key metric measuring real estate firms' operating performance, to come between €275 million and €305 million in 2026.
($1 = 0.8592 euros)
(Reporting by Paolo Laudani in Gdansk, editing by Milla Nissi-Prussak)
