First Berlin Equity Research Updates Aroundtown SA Rating

First Berlin Equity Research GmbH has issued a research update concerning Aroundtown SA, reaffirming a BUY recommendation. Analyst Ellis Acklin has raised the target price from €4.00 to €4.20. The recent nine-month report highlighted strong operational performance alongside unexpected positive developments. A 3% like-for-like (LFL) rental growth positions Aroundtown towards the higher end of its €290 million to €320 million FFO 1 guidance.

Management's outlook has improved significantly since the end of the previous year, buoyed by a reinforced balance sheet and promising trends across asset classes, notably the hotel portfolio. Additionally, indications that the current downtrend is subsiding are observed. Aroundtown's initiatives include launching an app geared towards flexible workplaces and entering the PropTech sector with two venture capital partners to establish an accelerator.

While Aroundtown will not release 2025 forecasts until the year-end 2024 report, the groundwork for a favorable year is evident, particularly if the transaction market gains momentum.