LUXEMBOURG (dpa-AFX) - Commercial real estate specialist Aroundtown benefited in the first half of the year from higher rents, particularly in its hotel segment and the residential properties of its subsidiary Grand City Properties. Net rental income grew slightly despite property sales, and after posting a loss a year ago, the company returned to profit thanks to a revaluation of its assets. On Wednesday, the MDax-listed group confirmed its targets for the current year. Nevertheless, the stock lost around five percent of its value in early trading, although it had recently experienced significant gains.

Analyst Andre Remke of Baader Bank described the business figures as "solid, but without surprises" in his initial assessment. However, the portfolio revaluation in the first half fell short of his expectations. Stephanie Dossmann, analyst at investment house Jefferies, highlighted what she considered a weak operating result. While rental growth on a like-for-like basis remained stable, it was lower in the office segment compared to the beginning of the year.

Over the first six months, net rental income edged up to just under €591 million. On a like-for-like basis, rents increased by 3 percent. However, operating profit (FFO1) fell by 2 percent to €150.4 million. For the current year, the real estate group continues to anticipate a further decline in operating profit (FFO1), projecting a range between €280 million and €310 million.

At the bottom line, Aroundtown posted a profit of €578 million, primarily due to positive valuation effects. In the same period last year, the company had recorded a loss of nearly €330 million as a result of a devaluation of its property portfolio.

After years of balance sheet consolidation, the real estate group now aims to return to growth. Internally, Aroundtown can expand by repositioning hotels and redeveloping office spaces. In addition, its strong liquidity position and reduced debt level provide leeway to consider acquisition opportunities.

Like many competitors, Aroundtown had struggled for some time with higher interest rates following years of a real estate boom, responding in part by selling properties. In the first half of 2025, properties worth around €400 million changed hands, roughly at book value, according to the company. In recent years, property disposals have enabled the company to significantly reduce its debt.

Meanwhile, there is a change on the Aroundtown management board. Ben David is stepping down as CFO after 17 years, the company further announced. His successor will be Jonas Tintelnot, who has served as David's deputy for the past three years. The board change is part of an orderly leadership transition and will take effect by the end of the year. To ensure a smooth handover, David will initially remain on as an advisor./mne/nas/mis