Bond.az - Aroundtown SA (XETRA:AT1) reported a 7% decline in funds from operations per share for the first quarter of 2026, driven by higher interest costs and lower contributions from joint ventures, according to financial results released Wednesday.
FFO I came in at €70.2 million, down 8% from the prior year, with per-share figures reaching approximately €0.07.
The decline was fueled by a 6% increase in total financial expenses and a drop in joint venture contributions to €6 million from €13 million in Q1 2025.
Net rental income rose 0.6% to €296.7 million, while adjusted EBITDA remained flat at €236.1 million before joint venture contributions.
Like-for-like net rental growth held steady at 3%, though office properties showed weakness with only 1.5% growth. The office vacancy rate climbed to a record 13.2%.
Residential properties posted 3.7% rental growth, while hotels achieved 4% growth.
The company completed €27 million in asset disposals during the quarter at a 1% premium to book value. Following the quarter end, Aroundtown sold €270 million of Penta hotels. The group also closed €125 million in acquisitions signed in 2025.
EPRA net tangible assets per share increased 5% year-over-year to €8.0, up 3.2% from December 2025.
The EPRA loan-to-value ratio rose to 59% on a pro-forma basis. Net debt to EBITDA increased to 11.1 times, while the interest coverage ratio declined to 3.4 times from 3.9 times in the previous quarter.
Aroundtown maintained its 2026 guidance for FFO I per share at €0.24 to €0.27, despite raising its absolute FFO I guidance range to €275 million to €305 million from €250 million to €280 million.
The company's liquidity position stood at €4.1 billion at the end of March 2026. The average cost of debt remained stable at 2.3%.
This article was generated with the support of AI and reviewed by an editor.
