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 3.40 price target.

Aroundtown announced results of the exchange and tender offers of four series of its perpetual notes alongside two series of its subsidiary’s (Grand City) perpetual notes. The aim was restore the notes‘ equity component according to S&P methodology, since non-called notes are regarded as debt by the ratings agency. Some 74% of noteholders accepted the offers equal to a nominal value of ~€1.8bn. The landlord will also issue €1.6bn in new notes and repurchase €136m of perpetual notes via the tender offer. Aside from shoring up the S&P metrics, AT will save around €10m in coupon payments starting in 2025, thereby positively impacting bottom line FFO 1. We are Buy-rated on Aroundtown with an unchanged €3.4 TP.