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

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

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)

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)

Next Story
Infrastructure Urban

Designing Tomorrow: Amaravati’s Net Zero Landmark

Amaravati has achieved a defining landmark in India’s sustainable infrastructure journey with the inauguration of the APCRDA Project Office, the nation’s first government building to earn the IGBC Net Zero Energy Rating – Design Stage. Conceptualised by the Andhra Pradesh Capital Region Development Authority (APCRDA) and certified by the Indian Green Building Council (IGBC), the project exemplifies how governance, design and innovation can converge to deliver measurable environmental impact.A vision rooted in sustainabilitySet within a 4.3-acre site along the Seed Access Road in the Amar..

Next Story
Real Estate

Pidilite Elevates Construction with PPS

Pidilite Industries introduced Pidilite Professional Solutions (PPS) — a dedicated vertical for the construction and interiors ecosystem — at ACETECH Bengaluru 2025. Designed to empower architects, developers, contractors, and interior specialists, PPS delivers comprehensive support that extends far beyond products to ensure project excellence from concept to completion. Kavinder Singh, Joint Managing Director, Pidilite Industries, noted, “At Pidilite, we believe in enabling the construction fraternity to build boldly and sustainably. With Pidilite Professional Solutions (PPS),..

Next Story
Infrastructure Transport

Punjab, Centre Fast-Track Rajpura-Mohali Rail Line Development

The central government has fast-tracked the construction of the Rajpura-Mohali rail line to enhance connectivity in Punjab. This ambitious infrastructure project, aimed at improving transportation links between Rajpura and Mohali, has been identified as a key step in fostering regional economic growth. Union Minister for Railways, Ashwini Vaishnaw, announced the project’s acceleration during a recent assessment of the area. The rail line is expected to play a significant role in reducing travel time, promoting industrial growth, and boosting logistics efficiency in the region. The project,..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?