Aroundtown's Profit Slashes by 50% to €118.9 Million in Q1 2026
GDANSK: 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. 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). This decline is attributed to the property revaluation recorded in the same period of 2025, which did not occur this year.
That was despite a continued rise in German commercial property prices after years of declines. 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. However, 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 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. 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.
The company's management noted that while the current market conditions present challenges, they remain focused on optimizing their portfolio and managing costs to navigate the uncertain economic landscape. Aroundtown's strategic approach includes a mix of asset sales, refinancing, and operational efficiencies to maintain financial stability and long-term growth.
Despite the challenges, the resilience of German property prices and the potential for recovery in the real estate market remain positive indicators. The company is closely monitoring the evolving situation and is prepared to adapt its strategies as needed to ensure sustainable performance in the coming quarters.
