First Berlin – Aroundtown SA Research Update (27/11/2019)

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 9.80 to EUR 10.00.

Abstract
Q3 headline figures were close to our forecasts and showed strong annualised growth led by net rental income (+19%) and FFO 1 (+22%). Commercial assets reached €17.9bn after some €1.5bn acquisitions in Q3. Including signed deals, acquistions will top €3bn for the third consecutive year. The good 9M performance translated into 10% Y/Y FFOPS 1 growth and a 10% YTD NAVPS increase (excluding perpetuals). Management raised FFO guidance for the second time this year to >€500m (old: ~€490m) on the good operational performance and higher impact of new properties. Our price target moves to €10 (old: €9.8) on the improved outlook. We stick to our Buy rating.