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 4.10 price target.

Abstract
Full year reporting highlighted the continued strength of Aroundtown’s operating business with solid growth seen across all major asset classes. LFL rental income increased 3.0% in 2025 reflecting resilient tenant demand across the office, residential and hotel portfolios, while LFL revaluations of +3.1% signalled further stabilisation in property markets following the devaluation phase of the past two years. Although higher financing costs continued to weigh on FFO I, the recently launched share buyback offers up to 7% FFOPS accretion in 2026. Now the landlord is gradually shifting from more defensive capital structure optimisation towards a more balanced capital allocation combining internal growth, capital recycling and selective external opportunities. Against this backdrop, the proposed exchange offer for Grand City Properties could further strengthen AT’s platform and operations by increasing economic participation in GCP’s residential cash flows (lower minority leakage), while simplifying the group structure. We maintain our Buy rating and €4.1 TP (upside: 79%).