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 Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..