Today, the real estate expert Aroundtown announced its half-year financial results, with a net loss of more than one billion euros as a result of significant real estate portfolio devaluations. But let’s do it incrementally:
The recurring net rental revenue decreased from January to June 2023 by just 2%, to 589 million euros. Sales accounted for virtually all of the reduction. Sales from the real estate portfolio have been completed so far this year, totaling 545 million euros.
Adjusted operating profits before interest, taxes, depreciation, and amortization (EBITDA), which were 498 million euros, decreased by 3% from the previous year.
FFO I, or funds from operations or operational profit, was worth 175 million euros, or 0.16 euros per share, an essential
The large number of disposals is the main cause of the reductions. Without them, the rental market would have grown by 3.4 percent.
billions of dollars lost after portfolio write-downs
After being evaluated by an outside party, Aroundtown’s whole portfolio had to be discounted by 6%, or 1.7 billion euros. The portfolio’s current worth per square meter is 2.518 euros.
In the first half of 2023, negative real estate values led to a net loss of 1.3 billion euros, as opposed to a profit of 471 million euros during the same time in the previous year.
Full-year prediction increased somewhat
Aroundtown’s management is cautiously enthusiastic about the entire year and has increased its prediction for FFO I from the previous 300 to 300 million euros to 310 to 340 million euros because even modest growth was achieved in the rental sector without disposals.
Aroundtown shares started trading with a little rise.
Since hitting a record low of EUR 0.87 at the end of May, Aroundtown shares, which are included in the German second-tier index SDAX, have rebounded dramatically in recent weeks.
The gains from the low in May have now increased by a total of 62 percent. But the shares are still down a sizable 35 percent in the current stock market year 2023.
Share in town: Should I buy or sell? The following new Aroundtown study on 30 August reveals the solution:
The most recent Aroundtown statistics make it evident that Aroundtown shareholders must take immediate action. Is buying worth it, or is selling a better option? You can find out what to do right now by reading the free analysis for today, August 30.