Key Points – Aroundtown lifted its 2026 FFO 1 guidance to EUR 275 million–EUR 305 million after increasing its stake in Grand City Properties to 81.5% from 62.5% through a share-for-share exchange offer.
Management said the deal should add about EUR 35 million of annualized FFO 1 and simplify the corporate structure. – First-quarter net rental income rose to EUR 297 million on 3% like-for-like rental growth, while FFO 1 fell 8% to EUR 70 million because of higher finance costs and profit dropped sharply without last year’s revaluation gains
EPRA NTA increased to EUR 8 per share, helped by operations and the share buyback. – The company said it remains focused on capital recycling and balance-sheet flexibility, with about EUR 300 million of disposals signed year to date, a nearly completed EUR 250 million buyback, and EUR 4.1 billion of liquidity plus EUR 1 billion of undrawn credit lines. Aroundtown also noted improving but still below-prior-year office demand and continued portfolio conversions into higher-yielding uses. Aroundtown (ETR:AT1) reported higher first-quarter rental income and lifted its 2026 absolute FFO guidance after increasing its stake in Grand City Properties, while management said the company remains focused on capital recycling, conversions and balance-sheet flexibility amid a volatile macroeconomic backdrop.
Chief Executive Officer Barak Bar-Hen said the company “started the year strong” and had pursued “highly accretive transactions,” including an increased holding in Grand City Properties and a EUR 250 million share buyback program launched in January that is nearly complete. He said the company’s residential and hotel assets, which together now account for 53% of the portfolio, continue to perform well, while office demand is “slowly picking up” but has not returned to prior-year levels. Bar-Hen said the macroeconomic and geopolitical environment remains mixed, creating volatility and uncertainty, particularly given the conflict in the…