First Berlin – Aroundtown SA Research Update (25/11/2021)

First Berlin Equity Research has published a research update on Aroundtown SA (ISIN: LU1673108939). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 8.60 price target.

Abstract
Third quarter reporting was close to our targets and characterised by the ongoing disposal of non-core and mature assets and the first time consolidation of Grand City Properties. Portfolio quality is on the rise, and management confirmed 2021 guidance (FFOPS 1: €0.29 to €0.31). The hotel sector is facing new pandemic headwinds but remains open to fully vaccinated travellers. 9M net rent tallied €773m, and FFOPS 1 climbed 5% Y/Y to €0.23 supported by the share buyback. On a non-adjusted basis, FFOPS 1 increased 11% Y/Y, and NTAPS is up 3% YTD to €9.8. We remain Buy-rated on Aroundtown with an unchanged €8.6 target price.