First Berlin – Aroundtown SA Research Update (31/05/2021)

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.

First quarter reporting was in line with our targets and characterised by the ongoing effects of the pandemic as well as the disposal of non-core and mature assets. Net rent tallied €233m, and FFOPS 1 was down 26% Y/Y to €0.07 mainly due to the €38m covid-19 provision. On a non-adjusted basis, FFOPS 1 increased 7% Y/Y demonstrating performance potential post-pandemic. YTD NTAPS edged 1% higher to €9.6. Management confirmed 2021 guidance (FFOPS 1: €0.29 to €0.31), which continues to reflect the assumption that hotels will perform at a similar level to 2020. We remain Buy-rated on Aroundtown with an unchanged €8.6 price target.