Aroundtown Stock: Shares Surge Past €3 on Upbeat Outlook

Aroundtown's stock has witnessed a significant breakthrough, crossing the crucial €3 threshold on the back of optimistic forecasts for the upcoming fiscal year. The real estate company has revised its outlook upward, projecting its Funds From Operations (FFO 1) to reach the higher end of the €290-320 million range for 2024. This positive momentum is further reinforced by the company's impressive financial performance in the first nine months of 2023, during which it substantially reduced its losses to €154 million, down from €1.4 billion in the previous year. The absence of additional property write-downs has particularly bolstered investor confidence.

Operational Performance Highlights

Despite a slightly contracted portfolio, Aroundtown has maintained robust operational metrics. The company recorded rental income of €883 million, representing only a marginal 1% decline from the previous year. This stability was supported by a notable 3% like-for-like rental growth, which helped offset the impact of net disposals. The adjusted EBITDA showed resilience with a 1% increase to €758 million, while operating costs decreased from €496.2 million to €412.3 million, further strengthening the company's financial position.