Aroundtown at all-time low, analysts flag gloomy outlook

LEG Immobilien SE

28/03/2023 10:45

** Shares in Aroundtown  AT1.DE  hit record low, down 10%
ahead of the German real estate company's FY results on
Wednesday
    ** Exane Paribas sees more downside risk to stock despite a
significant price decline since the broker double-downgraded the
stock in January, saying it has a materially negative view on
outlook
    ** The broker models earnings dropping by over 30% over next
two years, and is 38% below consensus earnings expectations, it
adds
    ** Dividend cut is now "highly likely" with a probability
close to a 100%, it says
    ** It points to dividend suspension by Grand City Properties
 GYC.DE , of which Aroundtown is the largest shareholder, and
cuts or suspensions to distributions by a number of German
resident landlords    
    ** Warburg Research sees significant devalaution of
properties of EUR 2.7 bln in Q4, FY 2023 and FY 2024
    ** Deutsche Bank says it believes european real estate is
half way through the downward cycle, with potential recovery of
investment markets expected within next 6-9 months, "clearly
with uncertainties attached"
    ** Shares in peers Grand City Properties, LEG Immobilien
 LEGn.DE , Vonovia  VNAn.DE , TAG Immobilien  TEGG.DE , Deutsche
Wohnen  DWNG.DE  fall 3% to 5%
 



 (Reporting by Linda Pasquini)
 ((Linda.pasquini@thomsonreuters.com))