Aroundtown's profit more than halves on falling German property prices (updated)

Aroundtown SA

26/08/2026 05:59

Adds context, shares and analyst comments in paragraphs 2-3 and 6-9.
By Paolo Laudani and Isabela Kruczynska
Aug 26 (Reuters) - Aroundtown AT1.DE, one of Germany's largest listed landlords, said on Wednesday its profit slumped by more than a half in the first six months of 2026, after German commercial property prices fell in the second quarter.
It reported a net profit of €218 million ($254 million) for the first half, down 62% from a year ago, due to a lower valuation result and higher financing costs, as Germany continues a stuttering recovery from its worst property crisis in decades.
Aroundtown's earnings are also pressured by the effects of the Iran war, which are compounding inflation risks and driving up borrowing costs.
The Frankfurt-listed firm reported funds from operations, or FFO I, of €144 million, down from last year's €150 million.
It had in April guided for its annual FFO I, a key metric measuring real estate firms' operating performance, to come between €275 million and €305 million. It confirmed that guidance on Wednesday.
Analysts at Warburg Research said Aroundtown's adjusted core earnings and FFO either confirmed or slightly beat their estimates and noted the enlarged stake in Grand City Properties GYC.DE was having the positive FFO impact they had anticipated.
Aroundtown has expanded its stake in unit Grand City Properties from 62.5% to 84% this year.
"The headline misses at EBT, net profit and EPS are purely valuation-driven rather than an operational disappointment," Warburg analysts said in a note to investors.
The company's shares fell less than 1% by 0648 GMT in early Frankfurt trading.
($1 = 0.8574 euros)

(Reporting by Paolo Laudani and Isabela Kruczyńska in Gdansk, editing by Milla Nissi-Prussak)
((Paolo.Laudani@thomsonreuters.com))