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Aroundtown reported a nine-month profit of 882.3 million euros (USD 1.0 billion), recovering from a loss of 154 million euros in the same period last year. The gain was largely supported by 383.7 million euros in property revaluations and capital gains, reversing last year's loss of 591 million euros. Funds from operations fell slightly to 221 million euros from 235.6 million euros, reflecting ongoing stabilization in rental income. The company maintained its full-year guidance and highlighted cost-saving measures, signaling continued recovery and careful management in a recovering property market.
Aroundtown, one of Germany's largest listed property companies, reported a profit of 882.3 million euros (USD 1.0 billion) for the first nine months, reversing a loss of 154 million euros during the same period last year. This follows the company's first annual profit in three years, achieved earlier this year, signaling steady progress in its recovery from the country's property downturn. Advertisement
Germany's largest real estate group, Vonovia, also returned to profit in the first nine months, supported by upward revaluations of its extensive apartment portfolio. Aroundtown benefited from a similar trend, with 383.7 million euros in property revaluations and capital gains between January and September. This was a major improvement from a loss of 591 million euros in the same period last year.
The company's funds from operations (FFO I), a key measure of property income, declined slightly to 221 million euros from 235.6 million euros in the previous year. Aroundtown confirmed its full-year guidance and emphasized that cost-saving measures had contributed positively to its results. Analysts note that the gains from revaluations reflect broader market trends, while the dip in FFO I shows that rental and operational income is still stabilizing.
These results highlight how Aroundtown is gradually regaining stability, balancing capital gains from property revaluations with ongoing operational performance. The company's focus on efficiency and careful management is helping it navigate remaining uncertainties in Germany's property market.
Source Reuters
5th Jun, 2025
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