First Berlin – Aroundtown SA Research Update (04/07/2019)

First Berlin Equity Research on 04/07/2019 initiated coverage on Aroundtown SA (ISIN: LU1673108939/ Bloomberg: AT1 GR). Analyst Ellis Acklin placed a BUY rating on the stock, with a EUR 9.50 price target.

Abstract
We recently had an opportunity to tour several of AT's commercial assets around Berlin. Aroundtown controls some €2.7bn in Berlin commercial properties constituting some 21% of its regional footprint. We stopped by several hotel and office properties to gain deeper insight into the landlord's successful acquisition and repositioning strategy. The gleaned insight underscores the strong operational performance of the maturing business. We expect the positive operational trajectory to continue supported by good commercial market dynamics. Our rating remains Buy with a €9.5 price target.