Luxembourg, July 29, 2020 – Aroundtown, a prominent real-estate firm, announced a net loss of 1.30 billion euros ($1.41 billion) for the first half of the year, citing lower rental income and pretax earnings. Despite this setback, the company remains optimistic and has revised its 2023 guidance based on what it considers to be a solid result.
The loss experienced by Aroundtown was primarily attributed to negative property valuations, a sharp contrast to the net gain of EUR482.1 million in the same period of the previous year.
In terms of financial performance, rental income decreased by 2% to EUR589 million compared to the first half of the previous year. Similarly, earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped by 3% to EUR498 million. Both of these declines were mainly due to a significant number of property disposals, reaching approximately EUR545 million year to date.
To address this challenging situation, Aroundtown has adjusted its expectations for funds from operations (FFO) in 2023. The revised range now stands between EUR310 million and EUR340 million, as opposed to the previous range of EUR300 million and EUR330 million. In the first half of this year, the company reported FFO of EUR175 million, which represents a 6% decrease compared to the same period last year.
While these results may pose additional challenges, Aroundtown remains committed to adapting and thriving in the ever-changing real-estate market.
