Aroundtown S.A.

For 2025, net rental income was EUR 1.18 billion, stable versus 2024. Adjusted EBITDA was EUR 999 million, down 1% year over year, and FFO I was EUR 288 million, down from EUR 316 million in 2024. FFO I per share was EUR 0.26 versus EUR 0.29 in 2024, while EPRA NTA was EUR 7.8 per share, up 5% year over year, and EPRA NRV was EUR 10.3 billion, up 3%. The portfolio revaluation showed 3.1% like-for-like growth including CapEx and 1.6% net of CapEx, and EPRA LTV was 58%, down 2%. For 2026, Aroundtown guided FFO I of EUR 250 million to EUR 280 million, or EUR 0.24 to EUR 0.27 per share. Management also said overall like-for-like rental income growth is expected in the range of 2% to 3% for 2026. The dividend proposal is EUR 0.08 per share for 2025, and the 2026 share buyback is expected to be EUR 250 million.

Barak Bar-Hen framed 2025 as a year of progress, helped by ECB rate cuts, better inflation, improved sentiment, and more transaction activity. He stressed that Aroundtown is using a disciplined capital recycling model: selling lower-yield assets, reinvesting selectively, and using buybacks when the share price is at a steep discount to NAV. He was upbeat on 2026, highlighting internal growth from conversions and refurbishments, a stronger financing backdrop, and the potential contribution from the GCP share-to-share transaction.

Jonas Tintelnot highlighted stable operating income but higher financing pressure. He said net rental income was EUR 1.18 billion, operating and other income was EUR 360 million, property operating expenses were EUR 549 million, and finance expenses increased to EUR 243 million from EUR 235 million in 2024. He also noted deferred tax income of EUR 459 million, a EUR 239 million goodwill impairment, average debt maturity of 3.7 years, a 97% hedging ratio, and a cost of debt of 2.3%. On funding, he said Aroundtown raised EUR 3.3 billion of new debt and repaid EUR 2.6 billion in 2025, and pointed to 2026 perpetual note transactions as a way to keep annual coupons below 2025 levels.

Analysts asked about the revised growth strategy after the buyback, and management said the recovery in transaction markets supports capital recycling, while the GCP transaction should be neutral per share but help FFO by reducing minority FFO contribution and adding residential exposure. On office leasing and future vacancy, management said demand is still muted but improving, with 160,000 square meters renewed at 5.1 years WALT and 140,000 square meters of new leases signed at rents around 8% above prior levels. They also said office conversions into residential, service apartments, and data centers remain an important value lever. On hotels and held-for-sale assets, management said 11 hotels in Germany, Belgium and France were placed for sale due to advanced buyer discussions, and reiterated that hotel performance is improving but geopolitics remains a risk.