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Highlights

  • Stable Financial Performance: Net rental income at €1.18 billion, with like-for-like rental growth of 2.9%.

  • Strategic Debt Management: Issued €2.6 billion in perpetual notes, repaid €1.3 billion in debt, and reduced leverage to 42%.

  • Progress in Sustainability: Increased green building certifications, expanded energy efficiency initiatives, and earned top ESG rankings.

Aroundtown (AT) has released its financial results for 2024, achieving performance at the top range of its guidance. The company reported a net rental income of €1.18 billion, a slight 1% decrease from 2023 due to asset disposals. However, like-for-like rental growth stood at 2.9%, supported by contributions from its residential and hotel portfolios, which make up 56% of the overall portfolio.

Adjusted EBITDA rose by 1% year-over-year to reach €1.01 billion, reflecting steady operational efficiency. Meanwhile, Funds from Operations (FFO I) amounted to €316 million (€0.29 per share), representing a 5% and 3% decline, respectively, due to asset sales and higher perpetual note attributions. Looking ahead, the company has set its 2025 FFO I guidance between €280 million and €310 million (€0.26–€0.28 per share).

Successful Return to Capital Markets

A major milestone in 2024 was AT’s re-entry into capital markets. The company successfully launched exchange and tender offers for its perpetual notes, with an 85% acceptance rate, leading to the issuance of €2.6 billion in new perpetual notes.

In addition, AT issued two bonds for the first time since 2021—€650 million through Aroundtown and €500 million through GCP—both of which attracted substantial investor interest. The funds from these issuances were directed towards repaying short-term debt, helping to extend the company’s debt maturity profile.

Financial Position Reinforced with Proactive Debt Management

Aroundtown continued to reinforce its financial stability through strategic debt reduction and balance sheet optimization. The company successfully repaid €1.3 billion in debt and reduced the nominal value of its perpetual notes by approximately €300 million, which is expected to lower future coupon payments. An additional €360 million in bank loans further enhanced liquidity.

The company’s real estate portfolio underwent external revaluation, resulting in a minimal like-for-like valuation decline of 0.5%—a notable improvement compared to the 11% loss recorded in 2023. In the second half of 2024, AT saw a 1.9% increase in property values compared to June 2024, largely offsetting earlier valuation declines. These improvements were driven by stable rental yields and ongoing operational gains.

As a result of these financial strategies, AT’s loan-to-value (LTV) ratio improved to 42% by December 2024, down from 43% at the end of 2023 and 45% in mid-2024. While these measures have positively impacted credit rating metrics, further progress is needed before a potential credit rating upgrade. Accordingly, a decision on dividend distribution for 2024 will be announced before the Annual General Meeting in June 2025.

Advancing ESG Commitments and Green Certifications

Aroundtown made significant strides in its environmental, social, and governance (ESG) efforts in 2024. The proportion of its office portfolio with green building certifications rose to 65% from 36% in the previous year. Additionally, the company began certifying its hotel properties, achieving a 30% certification rate. AT plans to expand these efforts further in the coming years.

Energy efficiency remained a key focus, with investments in solar panels, heating system upgrades, and electric vehicle charging stations. Building enhancements, including improvements to insulation, roofing, and lighting, were also undertaken to optimize energy use.

On the social front, AT supported over 100 community and charity initiatives. In governance, the company enhanced transparency and reporting, securing recognition through multiple awards. These included inclusion in the MDAX ESG+, Bloomberg Gender Equality Index, and the Dow Jones Sustainability Index Europe (DJSI Europe). Additionally, AT was ranked among the top 5% in its industry by S&P’s Corporate Sustainability Assessment (CSA) and was named in the Sustainalytics 2025 ESG Top-Rated Companies list, placing in the top 4%.

The company also received the EPRA BPR Gold Award for the eighth consecutive year and the EPRA sBPR Gold Award for the seventh year in a row, underscoring its commitment to financial transparency. More details on these initiatives are included in the FY 2024 Consolidated Report, which integrates both financial and non-financial disclosures.