Aroundtown posts $2.64 bln annual loss amid German property crisis (updated)

LEG Immobilien SE

27/03/2024 06:45

(Corrects second paragraph to reflect the 2023 loss was wider
than the 2022 loss, not narrower)
       March 27 (Reuters) - Aroundtown  AT1.DE , one of
Germany's largest listed landlords, posted a 2.436 billion euro
($2.64 billion) loss in 2023 amid Germany's worst real-estate
crisis in decades, the company reported on Wednesday.     
    The property firm's loss was wider than the 457.1 million
euro loss reported in 2022. It reported funds from operations
excluding disposal gains - a measure of recurring free cash flow
and the company's key indicator of operational strength - of 332
million euros, meeting its 310 to 340 million euro guidance for
2023. 
    On Tuesday the MDax-listed company announced the suspension
of its dividend due to market uncertainties and a focus on cash
preservation. 
    German real estate firms are leaving behind a decade-long
boom fuelled by low interest rates with Germany's largest
property company Vonovia  VNAn.DE  this month posting a record
loss of more than 6 billion euros for 2023. 
    In its annual report, Aroundtown reported property
revaluations amounting to negative 3.2 billion euros, a
like-for-like devaluation of 11%. 
($1 = 0.9236 euros)

 (Reporting by Marleen Kaesebier and Chiara Holzhaeuser; Editing
by Kim Coghill and Jamie Freed)
 ((Marleen.Kaesebier@thomsonreuters.com;
chiara.holzhaeuser@thomsonreuters.com))