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Aroundtown, one of Germany’s largest listed landlords, reported a 62% decline in net profit for the first half of 2026 as falling German commercial property prices affected its valuation results. Net profit stood at EUR 218 million, compared with the previous year, while higher financing costs also weighed on earnings. Funds from operations (FFO I), a key measure of operating performance for real estate companies, declined to EUR 144 million from EUR 150 million. Despite the weaker profit, Aroundtown retained its full-year FFO I guidance of EUR 275 million to EUR 305 million.
Aroundtown reported net profit of EUR 218 million for the first half of 2026, down 62% from a year earlier, as German commercial property prices declined during the second quarter. The lower valuation result and higher financing costs were the main factors behind the decline.
The Luxembourg-based real estate company, which invests in commercial and residential income-generating properties mainly in Germany, the Netherlands and London, also reported FFO I of EUR 144 million. This was lower than the EUR 150 million recorded in the corresponding period last year.
Aroundtown had set its full-year FFO I guidance at between EUR 275 million and EUR 305 million in April. The company retained this guidance despite the weaker first-half net profit. FFO I is closely watched in the real estate sector as it reflects the operating performance of property companies and excludes certain valuation-related effects.
The decline in property valuations continues to affect the financial performance of European real estate companies, although Aroundtown's operating funds remained relatively close to the previous year's level. The company is also continuing to focus on its property portfolio across Germany and other European markets.
Aroundtown's financial report for the first half of 2026 was released this week, with the company maintaining its outlook for the year. Its next scheduled financial report is for the third quarter, due in November.
Source Reuters
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