Aroundtown (AT1) Q4 2025 earnings summary

Executive summary

• Achieved FY 2025 guidance with stable operational performance, strong liquidity of EUR 4 billion plus EUR 900 million undrawn RCF, and a diversified portfolio across residential, office, hotel, and development assets in Germany, the Netherlands, and London.

• Launched a voluntary share-for-share tender offer for Grand City Properties (GCP) to increase stake and consolidate resilient residential cash flows.

• Announced resumption of dividend for 2025 after three years, reflecting improved market conditions and financial strength.

• Share buyback program of EUR 250 million launched for 2026, with expected total shareholder return over EUR 330 million.

• Affirmed S&P investment grade credit rating (BBB/Stable) in December 2025.

Financial highlights

• Net rental income for 2025 was EUR 1,183 million, stable year-over-year, with 3% like-for-like rental growth offsetting disposals.

• Adjusted EBITDA nearly EUR 1 billion, down less than 1% from 2024.

• FFO I at EUR 288 million, down from EUR 316 million in 2024, mainly due to higher finance expenses.

• EPRA NTA per share increased 5% to EUR 7.8; EPRA LTV reduced by 2% to 58%.

• Liquidity increased to EUR 4 billion plus EUR 900 million in unused credit lines.

• Proposed dividend of EUR 0.08 per share for 2025 (30% payout ratio), with a EUR 250 million share buyback program for 2026.

• Profit for the year was EUR 1.13 billion, up from EUR 309 million in 2024, driven by one-time deferred tax income.

Outlook and guidance

• FY 2026 FFO I guidance: EUR 250–280 million (EUR 0.24–0.27 per share), excluding GCP transaction impact.

• Dividend policy updated to 50% of FFO I payout from 2026 onward; dividend per share guidance EUR 0.120–0.135.

• Like-for-like rental growth expected at 2–3% for 2026, with continued focus on operational improvements and accretive conversions.

• Share buyback expected to increase FFO I per share by ~7% and NAV per share by ~5% if fully executed.

• Positive drivers include rent increases, acquisitions, cost efficiency, lower perpetual note coupons, and share buyback; negative drivers are full-year impact of 2025 disposals, expected 2026 disposals, and refinancing above current cost of debt.