First Berlin – Aroundtown SA Research Update (29/08/2019)

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 9.50 to EUR 9.80.

Q2 headline figures were close to our forecasts and showed strong annualised growth led by net rental income (+19%) and FFO 1 (+23%). Commercial assets topped €16.2bn after some €1.2bn in H1 acquisitions. The good H1 performance translated into 11% Y/Y FFOPS 1 growth and a 7.8% NAVPS increase (excluding perpetuals) YTD?including the dividend, the latter KPI was up 11%. Management raised FFO guidance to €490m (old: €460m to €470m) on the good operational performance. Our price target moves to €9.8 (old: €9.5) on the brighter outlook. We stick to our Buy rating.