This article first appeared on GuruFocus .
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Net Rental Income:EUR297 million, higher compared to Q1 2025.
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Adjusted EBITDA:EUR250 million, stable compared to EUR251 million in Q1 2025.
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FFO 1:EUR70 million, an 8% decrease from EUR76 million in Q1 2025.
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EPRA NTA per Share:EUR8, a 3% increase from EUR7.8 in December 2025.
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Liquidity:EUR4.1 billion plus EUR1 billion undrawn credit lines.
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Like-for-Like Rental Growth:3% across the portfolio.
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Residential Like-for-Like Rental Growth:3.7%.
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Hotel Like-for-Like Rental Growth:4%.
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Office Like-for-Like Rental Growth:1.5%.
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Portfolio Valuation:EUR25.1 billion.
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Annualized Recurring Rental Income:EUR1.15 billion.
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Rental Yield:5%.
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EPRA Vacancy Rate:7.5%.
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Average Debt Maturity:3.6 years, extending to 4.4 years with liquidity.
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Cost of Debt:Stable at 2.3%.
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Loan-to-Value (LTV):42%.
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Interest Coverage Ratio (ICR):3.4 times.
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Net Debt to EBITDA:11 times.
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FFO 1 Guidance for 2026:EUR275 million to EUR305 million.
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FFO 1 per Share Guidance for 2026:EUR0.24 to EUR0.27.
Release Date: May 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Aroundtown SA ( AANNF ) reported a strong start to 2026 with proactive transactions, including a successful increase in their stake in Grand City Properties and a nearly completed EUR250 million share buyback program.
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The company's living portfolio, comprising residential and hotels, which now accounts for 53% of the portfolio, continues to perform well, tapping into strong internal growth potential.
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Aroundtown SA ( AANNF ) has sufficient liquidity to cover maturities for this and the next year, with a high liquidity position of EUR4.1 billion plus EUR1 billion in undrawn credit lines.
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The company achieved a 3% increase in EPRA NTA per share, driven by the share buyback program and operational profits.
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Aroundtown SA ( AANNF ) has made significant progress in sustainability, with 72% of their commercial portfolio now green-certified, including 80% of offices and 67% of hotel assets.
Negative Points
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The macroeconomic and geopolitical environment remains mixed, creating volatility and uncertainty, particularly due to the conflict in the Middle East.
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FFO 1 decreased by 8% compared to Q1 2025, mainly due to higher finance expenses, despite operational growth and lower perpetual notes coupons.
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The office segment, which makes up 34% of the portfolio, experienced only a 1.5% like-for-like rental growth, indicating ongoing muted market activity.
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The company's profit for the period was EUR119 million, significantly lower than the EUR319 million recorded in the first three months of 2025, mainly due to the absence of revaluations in Q1 2026.
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Aroundtown SA ( AANNF ) faces potential higher refinancing costs due to a more volatile environment, which could offset positive growth drivers.
Q & A Highlights
Q: Could you provide an update on your disposal progress after the reporting period? A: Year-to-date, including after the reporting date, we have signed disposals amounting to circa EUR300 million, representing around half of our properties held for sale. After the reporting period, we completed disposals in the amount of circa EUR270 million, primarily consisting of the company's Penta-branded hotels, which include 11 hotels in Germany, Belgium, and France. These hotel properties were previously classified as held for sale and were excluded from FFO 1 guidance. Therefore, there is no negative impact here.
Q: How complex are office-to-residential and serviced apartment conversions in terms of permitting? And how much space are you currently converting, with what kind of rent upside? A: Office-to-serviced apartment conversions typically follow a relatively straightforward execution path. In most cases, these projects remain within the existing zoning framework and can be implemented with a standard building permit, which is usually obtained within a few months and up to a year. We currently have several projects under execution alongside additional projects in the planning phase. These projects typically achieve higher rents than traditional office use, supported by longer lease terms of 15 to 20 years, which enhances income visibility and stability.
Q: Do you have an update regarding the impact of the Bau-Turbo regulation on your office conversion strategy? A: The Bau-Turbo regulation is a positive development for our conversion strategy, as it streamlines change-of-use processes and significantly shortens approval timelines. This makes conversions from commercial to residential use more practical and broadens the range of economically viable projects. We have already initiated discussions with municipalities across several locations in Germany and have received encouraging feedback for around 120,000 square meters of office space.
Q: How are you approaching your development portfolio, and what role does it play in future value creation? A: Development projects account for approximately 7% of our portfolio and represent an important source of future rental growth and value creation. These projects capture embedded development potential across both land plots and mainly existing buildings. Our efforts are primarily concentrated on the living segment, including residential, hospitality, and mixed-use schemes, where we see strong structural demand and long-term fundamentals.
Q: Given the continued discount to NAV, do you intend to increase the size of the share buyback program? A: The share buyback is an integral part of our capital recycling strategy, allowing us to deploy disposal proceeds in a highly accretive manner. To date, we have completed approximately 93% of the program at an average price of EUR2.55 per share, which represents a discount of around 67% to NAV and delivers meaningful FFO and NAV per share accretion. We are monitoring the current macro environment, which will influence our decision if and when to extend it.
Q: How do you view your new stake in GCP? Do you plan to increase your stake further? A: When we launched the share exchange offer, we set a limit of ownership of up to 89.5% of the total GCP shares. However, please note that we do not have a set ownership goal. We continue to have the option to acquire additional GCP shares in the market, which we will use on an opportunistic basis, as GCPs FFO yield is highly attractive.
Q: Could you provide some details on your updated guidance? What are the main drivers of the increase? A: The main driver of our increased absolute guidance was the increased stake in GCP from 62% to 82%, which was an accretive transaction and is expected to add around EUR35 million of annualized SF01. As a result, we have raised our 2026 SF01 guidance to EUR275 to EUR305 million, reflecting the periodic impact where the per-shared guidance remains unchanged at EUR24 to $0.27.
Q: I have a question related to acquisitions. I see most of the recent deals that have been signed have been in the residential space. Could you provide an update on the pipeline of potential deals? A: We have some acquisition opportunities, but they remain selective because we are very strict in our criteria on what we want to buy. The acquisitions were residential, clearly GCP, when they announced, they gave some more input on those. Were looking mainly at residential and hotels, and we are very active in general. Were looking at a lot of deals; it doesnt necessarily mean we want to take those deals.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
