First Berlin – Aroundtown SA Research Update (05/01/2018)

First Berlin Equity Research has published a research update on Aroundtown SA (ISIN: LU1673108939). Analyst Ellis Acklin reiterated his BUY rating and increased the price target from EUR 8.10 to EUR 8.20.

Aroundtown (AT) has published an operational update confirming the current growth phase. According to the new run rates for February, the value of the investment property portfolio has grown +5.7% to €9.3bn. This compares to €8.8bn reported for December. In-place rent for commercial properties is now €9.0/sqm with an EPRA vacancy of 9.4%. The February net rent run rate for the commercial portfolio now stands at €512m (December €485m) with adjusted EBITDA at €422m. FFOPS I edged higher to €0.37 (December €0.36) corresponding to a 5.7% yield. The new operational figures are ahead of our targets for Q1/18. We have adjusted our 2018 targets to reflect the stronger than anticipated figures resulting in a price target of €8.20 (old: €8.10). We stick to our Buy rating.