Aroundtown reports Q2 loss at Rs.432 million amid stabilising market

30 Aug 2024 CW Team

German landlord Aroundtown raised its annual profitability forecast on Wednesday, signaling a stabilising property market amidst Germany's most severe real estate crisis in decades.

After years of growth fuelled by low interest rates, the German property sector has been hit hard by soaring inflation and rising borrowing costs over the past year. However, Aroundtown, one of the country's largest listed landlords, reported a narrower second-quarter loss of Rs.432 million, down from 1.27 billion euros a year earlier.

The reduction in losses was primarily due to a smaller decline in property valuations, which fell by 2.4% on a like-for-like basis, supported by improving economic conditions and market sentiment.

"We've definitely moved away from the trough. Devaluations in the residential segment should remain fairly stable for the rest of the year," said Oschrie Massatschi , Chief Capital Markets Officer.

Earlier this month, industry leader Vonovia also reported a narrower loss, suggesting the real estate crisis might be easing. However, Massatschi cautioned that challenges remain, pointing to high interest rates and a struggling German economy.

Aroundtown now expects its funds from operations (FFO I) "a key industry profitability metric" to reach 290-320 million euros this year, up from the previous forecast of 280-310 million euros. This outlook upgrade follows a similar move by its 62%-owned subsidiary, Grand City Properties, earlier in August.

"A 3% guidance increase in this environment indicates a certain level of stability," said Andre Remke, Analyst, Baader Helvea.

Aroundtown completed asset disposals worth around 340 million euros in the first half of 2024 and plans to continue selling assets this year. The company also issued two bonds to bolster cash liquidity, setting the stage for potential acquisitions in 2025.

(ET)

Infrastructure Urban

06 Apr 2026

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..