German landlord Aroundtown returns to profit in Q1, but FFO I falls (updated)

Aroundtown SA

29/05/2024 07:11

(Adds context, debt, EBITDA; paragraphs 2, 6-8)
       May 29 (Reuters) - Aroundtown  AT1.DE , one of Germany's
largest listed landlords, on Wednesday reported a return to
profit in the first quarter, but its FFO I fell as the country
still struggles with its worst property crisis in decades.
    After boom years driven by low interest rates, the German
property market was hit hard by inflation and higher borrowing
costs.
        In 2023, the property firm had posted an annual 
    loss of 2.436 billion euros. 
    The first quarter profit came in at 102.3 million euros
($110.95 million), compared with a loss of 21.6 million euros in
the same period a year ago. 
    Meanwhile FFO I, a key figure for real estate companies,
fell by 10% to 76.1 million euros from 84.6 million euros in the
first quarter last year. 
        Aroundtown said it borrowed 240 million euros and signed
deals to sell assets worth 200 million euros in 2024 so far,
adding that its liquidity covers debt maturities until mid-2026.
  
        Adjusted earnings before interest, taxes, deprecation
and amortization (EBITDA) grew by 1% year-on-year to 247 million
euros in January through March.
  
        The Luxembourg-based company said the growth was offset
by higher finance expenses and perpetual notes attribution, but
confirmed its full year guidance for 2024.
  

($1 = 0.9220 euros)

 (Reporting by Marleen Kaesebier, editing by Andrey Sychev)
 ((Marleen.Kaesebier@thomsonreuters.com))