Aroundtown SA reported a drop in first-quarter profitability metrics, with funds from operations per share down 7% as financing costs rose and joint venture income weakened, according to the company's results released on Wednesday.
FFO and operational metrics
The group posted FFO I of €70.2 million for Q1 2026, an 8% decline from the year-ago quarter. On a per-share basis, the figure translated to approximately €0.07, representing a 7% decrease versus the prior period.
The reduction in FFO was attributed to a 6% rise in total financial expenses and a fall in contributions from joint ventures, which decreased to €6 million from €13 million in Q1 2025.
Net rental income showed modest growth, increasing 0.6% to €296.7 million. Adjusted EBITDA, measured before joint venture contributions, remained unchanged at €236.1 million.
Rental performance and vacancy trends
Like-for-like net rental growth held steady at 3% across the portfolio. Performance varied by property type: office assets recorded only 1.5% growth while residential rents rose 3.7% and hotels delivered 4% rental growth.
However, the office vacancy rate increased to a new high of 13.2%, up 20 basis points from the prior quarter and 60 basis points compared with the same quarter last year.
Asset transactions and balance-sheet movements
The company completed €27 million of asset disposals in the quarter, achieving a 1% premium to book value. After the quarter closed, Aroundtown sold €270 million of Penta hotels. The group also completed €125 million in acquisitions that had been signed during 2025.
On a per-share basis, EPRA net tangible assets rose 5% year-over-year to €8.0, and were 3.2% higher than at December 2025.
Leverage metrics moved higher on a pro-forma basis: the EPRA loan-to-value ratio increased by 100 basis points quarter-over-quarter and year-over-year to 59%. Net debt to EBITDA climbed to 11.1 times, while the interest coverage ratio weakened to 3.4 times from 3.9 times in the previous quarter.
Guidance, liquidity and financing costs
Aroundtown confirmed its 2026 guidance for FFO I per share within a range of €0.24 to €0.27, even as it raised its absolute FFO I guidance range to €275 million to €305 million from the prior range of €250 million to €280 million.
The group held liquidity of €4.1 billion at the end of March 2026. The average cost of debt remained unchanged at 2.3%.
Readers should note the company-provided figures above reflect the results and measures reported by Aroundtown for the first quarter of 2026.