FRANKFURT (dpa-AFX) - The planned expansion of Aroundtown's stake lifted shares of Grand City Properties into positive territory on Wednesday. Shares of the SDax-listed residential real estate company rose by as much as three percent, but later pared gains in a subdued environment for European real estate stocks, closing up 1.5 percent. In contrast, Aroundtown shares lost 3.2 percent in value following news that the commercial real estate specialist wants to increase its Grand City stake to nearly 90 percent through a share swap.
The share prices of both companies adjusted on Wednesday in line with the pattern that investors in Grand City, currently trading at 10.62 euros, could receive a similar value in four Aroundtown shares. Based on the previous day's closing prices, this represents a premium of just under seven percent.
Analyst Stephanie Dossmann of Jefferies was not convinced by these figures and the circumstances. She was unsure whether Grand City shareholders would want a stronger commitment to Aroundtown, the expert wrote. She pointed to higher debt levels and the parent company's greater focus on office real estate, and expressed doubts about the success of the offer.
Both companies also reported annual figures and provided outlooks for 2026. Regarding Aroundtown, Dussmann wrote that the operating result achieved (FFO I) was at the lower end of the target range, and the outlook for 2026 for this metric, at 250 to 280 million euros, fell short of expectations. The vacancy rate, especially in the office segment, had increased, the expert noted.
As for Grand City, several experts agreed that the annual figures reported for 2025 were solid. Kai Klose of Berenberg Bank wrote that the solid results were mainly due to the extremely attractive location in the German residential property market as well as the extensive rental portfolio in London. His expectations for 2026 are in line with the FFO I target range set by the company./tih/gl/stk
