AroundTown - comment

Recent strong investor demand has continued to push new issuance coupons tighter for AroundTown. The most recent issuance reduces AroundTown’s average cost of debt to 2.2% with an average maturity of 4.5 years. Investor confidence is also reflected in the Company’s operational performance: Q3 results show 3.1% rental income growth and stable EBITDA after net disposals. LTV stands at 41% and ICR remains above 4.0x. The Company has reaffirmed its FY25 guidance.

We have expected the Company will pivot to growth and CAPEX earlier but despite some commentary in that direction, management remains focused on deleveraging and strengthening the balance sheet. However, the pivot will eventually come.