First Berlin – Aroundtown SA Research Update (30/08/2018)

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 9.00 price target.

Abstract
Second quarter reporting featured strong operational performance with all headline figures again growing at a mid double digit clip. The performance mirrored the strong pace set in Q1 and showed no indication of a slowdown. Net rent climbed 43% Y/Y to €152m, thanks to external and internal portfolio expansion, which spurred 4.6% like-for-like (LFL) total rental income growth. Commercial assets now top €11.9bn after acquisitions of €1.4bn YTD. We look for the strong operational performance to persist, thanks to the full pipeline, abundant financial firepower, and a good market environment. Our valuation model still yields a €9 price target. We reiterate our Buy rating.