First Berlin Equity Research has published a research update on Aroundtown SA (ISIN: LU1673108939). Analyst Ellis Acklin reiterated his BUY rating and increased the price target from EUR 3.40 to EUR 3.50.

Abstract
Q1 reporting again featured a solid operating performance led by 2.8% LFL rental growth, while the rise in financing costs is tailing off. We expect operations to remain steady with good tailwinds for the resi and hotel segments offsetting the still challenging office sector. The capital structure has been revamped over the past year by deleveraging measures, increased secured debt, and, most recently, the successful perpetual note exchange offer. The latter will be FFO accretive starting in 2025 owing to ~€35m in coupon savings. We think the landlord has cleared a number of major hurdles over the past quarters and remain Buy-rated on AT with a €3.5 target price (old: €3.4).