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.

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.