This article first appeared on GuruFocus .
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Net Rental Income:EUR1.2 billion, stable compared to 2024.
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Adjusted EBITDA:Nearly EUR1 billion, a decrease of less than 1% from 2024.
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FFO I:EUR288 million, down from EUR316 million in 2024.
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Like-for-Like Rental Growth:3% overall; Residential 3.6%, Hotels 3.5%, Offices 1.8%.
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EPRA NTA per Share:EUR7.8, a 5% increase from December 2024.
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Liquidity:EUR4 billion plus EUR900 million in unused credit lines.
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EPRA LTV:Reduced by 2% to 58%.
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Proposed Dividend per Share:EUR0.08, based on a payout ratio of around 30% of FFO I.
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Portfolio Value:EUR25 billion, generating EUR1.15 billion in annualized recurring rental income.
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EPRA Vacancy Rate:7.6%, up from 7.5% in December 2024.
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Net Profit:EUR1.13 billion, compared to EUR309 million in 2024.
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Per Share FFO I:EUR0.26, compared to EUR0.29 in 2024.
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EPRA NRV:EUR10.3 billion, a 3% increase from December 2024.
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Average Debt Maturity:3.7 years, extended to 4.6 years with liquidity position.
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Cost of Debt:2.3%.
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ICR:3.9 times, compared to 4 times in 2024.
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Net Debt to EBITDA:10.9 times in 2025, compared to 10.7 times in 2024.
Release Date: March 04, 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 ) announced a share-to-share voluntary tender offer for GCP shares, aiming to increase its stake in Grand City Properties, which is expected to enhance FFO through stable cash flows.
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The company reported a positive like-for-like value growth of 3.1% including CapEx, driven by operational developments, and a 5% increase in EPRA NTA per share compared to December 2024.
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Aroundtown SA ( AANNF ) plans to resume dividend payments for 2025 after three years, proposing a dividend of EUR0.08 per share, reflecting a payout ratio of around 30% of FFO I.
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The company has a strong liquidity position with EUR4 billion in cash and EUR900 million in unused credit lines, maintaining wide covenant headroom.
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Aroundtown SA ( AANNF ) has successfully executed capital market transactions, extending its debt maturity profile and enhancing funding diversification, with a BBB rating affirmed by S&P.
Negative Points
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Net rental income remained stable at EUR1.2 billion, with adjusted EBITDA slightly decreasing by 1% compared to 2024, mainly due to higher finance expenses.
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FFO I decreased to EUR288 million from EUR316 million in 2024, primarily due to higher finance expenses and lower contributions from joint ventures.
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The office portfolio faced challenges with a vacancy rate increase to 13%, reflecting broader market headwinds and pressure on occupancy.
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The hotel portfolio experienced a negative like-for-like revaluation of 0.2% for 2025, despite repositioning efforts and CapEx investments.
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The market is facing uncertainties due to geopolitical tensions, such as the war in Iran, which could escalate and impact market stability.
Q & A Highlights
Q: Could you provide an updated assessment of your growth strategy? Do you expect changes now that you launched a share buyback? A: The recovering market environment and increased transaction volumes have allowed us to focus on capital recycling, selling properties at low yields and acquiring new ones at higher yields. The share-to-share transaction with GCP will support FFO growth by reducing minority contributions. The transaction is neutral on a per-share basis and is expected to contribute to per-share growth with strong cash flows from the residential portfolio. We continue to explore market opportunities and have initiated a EUR250 million share buyback program, aiming to repurchase shares at a significant discount, enhancing FFO per share by nearly 10%.
Q: Can you update us on your like-for-like rental growth across regions and asset types as well as your outlook? A: As of December 2025, we recorded a like-for-like rental growth of 3% across the portfolio, with strong contributions from Berlin, Leipzig, and London. Residential assets saw a 3.6% growth, hotels 3.5%, and offices 1.8%. We expect continued positive momentum, particularly in residential and hotel segments, supported by favorable market fundamentals. In offices, we anticipate slight positive growth, supported by indexation and re-letting, despite some vacancy pressures. Overall, we expect like-for-like rental income growth of 2%-3% for 2026.
Q: Can you provide a brief update on hotel portfolio performance and your outlook for the coming period? A: Our hotel portfolio performed well in 2025, with a 3.5% like-for-like rental growth, supported by European hospitality recovery and strategic repositioning. Demand in major cities remains strong, driven by business travel, public sector activity, and leisure. We are refurbishing hotels in Frankfurt and Hanover, expected to reopen in the coming years. Growth will be driven by repositioning strategies, rent step-ups, and collaboration with strong brands. We remain mindful of geopolitical risks and address them through diversification.
Q: Why do you have hotels under held for sale and where are those located? A: We are in advanced negotiations with a potential buyer for 11 hotels located in Germany, Belgium, and France, which is why they are classified as held for sale.
Q: What trends are you seeing in office leasing and occupancy? And do you anticipate pursuing further office conversions? When do you expect vacancy levels to go down? A: Office demand remains muted due to a softer macro environment in Germany, but improvements in business sentiment and fiscal stimulus are expected to increase demand. New supply is limited, supporting a balanced long-term dynamic. Our office vacancy rates have increased slightly, but we continue to deliver solid results with positive rental growth. We are actively pursuing conversions to alternative uses, such as service apartments and residential, supported by the Bau-Turbo framework.
Q: Could you provide some more details on your current valuations and expectations for valuation results for the coming year? A: The year-end revaluation showed a stable and positive trend, with a 1.6% like-for-like increase excluding CapEx, and 3.1% including CapEx. Residential assets saw a 3.6% growth, offices 4.8%, and hotels were impacted by repositioning efforts. We expect room for yield improvement over the medium term, particularly in residential and hotels, as market conditions strengthen.
Q: What is your assessment of the new Bau-Turbo regulation to support your conversion plans? A: The Bau-Turbo regulation streamlines change of use processes, making conversions from commercial to residential more practical. We have received positive feedback from municipalities for about 120,000 sqm of office space. The German government plans to offer subsidies for such projects, expected to be disclosed this summer, which could provide strong upside potential.
Q: Why did you decide to recommend a dividend distribution in 2026? And why did you change the payout ratio? A: We have strengthened our position over the past years, allowing us to navigate difficult market conditions. With market recovery, positive valuations, and improved financing conditions, we initiated dividend distributions. We recommend a partial dividend payment of EUR0.08 per share, reflecting around 30% of our FFO I per share. Going forward, we amended the payout ratio to 50% of FFO I per share from 75% previously.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
