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 3.50 price target.
AT started the year on a positive note with Q1 results tracking slightly ahead of 2023 guidance (FFO 1: €300m to €330m). However, management cautioned that the upcoming quarters will see a greater impact from the reset perpetual notes and higher financing expenses with more bank debt. Reporting was close to FBe. LFL rental growth of 3.5% was led by the office and residential segments. Cash and liquid assets topped €3bn (~20% of debt), thanks to another €460m in closed Q1 disposals, which allowed AT to repurchase €710m in bonds at a discount. We remain Buy-rated on AT1 shares with a €3.5 TP. The markets have placed virtually all landlords in the leverage ?sin bin?, and AT1 shares have sold off sharply despite progress with its deleveraging measures. We reckon investor ennui over the property sector will persist over the near term.