Aroundtown - comment

Strong results from Aroundtown, with management raising guidance for the remainder of FY26. However, given current trading levels and spreads, this update is unlikely to materially move bond trading levels. Q1 was an active quarter as the company increased its stake in Grand City Properties from 62.5% to 81.5% and is close to completing its €250m share buyback at an average price of €2.55 while also refinancing its perpetual bonds, leaving no near-term refinancing needs.

Operational momentum remains strong. Office vacancy fell to 13% with 1.5% lfl rental growth driven by indexation, and the Hotel segment delivered 4% lfl rental growth. Since 2020, disposals totalled €1.4bn and included €800m of vendor loans with less than €30m outstanding as of March 2026 and maturing later this year, while around €300m of vendor notes have been converted into properties.