Earnings release
Page 1
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS AROUNDTOWN ANNOUNCES H1 2026 RESULTS IN LINE WITH GUIDANCE, SUPPORTED BY SOLID OPERATIONS AND INCREASED GCP STAKE - Net rental income of €591 million in H1 2026, remaining stable compared to €591 million in H1 2025, driven by like-for-like rental growth of 2.7%, which offsets the impact of net disposals. - Adjusted EBITDA amounting to €500 million, stable year-over-year. - FFO I in the amount of €144 million, lower by 4% compared to €150 million in H1 2025, in-line with guidance and primarily impacted by higher finance expenses, partially offset by a higher stake in GCP and lower perpetual notes coupons. On a per share basis, FFO I amounted to €0.13, compared to €0.14 in H1 2025, supported by the share buyback program executed during the period. - Full portfolio external valuation conducted as part of the H1 2026 report, resulting in a stable valuation result as operational performance offset macroeconomic volatility. Profit for the period of €218 million and basic and diluted earnings per share of €0.08, driven by solid operational performance, offset by higher finance expenses. - LTV stood at 43% as of June 2026, compared to 41% as of December 2025, with unencumbered assets of 69% of the portfolio by rent, reflecting a total value of €17 billion as of June 2026. - EPRA NTA stood at €9.1 billion and €8.0 per share as of June 2026, higher by 3% on a per-share basis compared to €8.5 billion and €7.8 per share as of December 2025. Increase driven by profits and share buybacks at steep discount, offset slightly by provision for dividend paid after the reporting date. - Completed disposals around book values (-1%) amounting to €350 million during H1 2026. - Increased holding in GCP from 62.5% to 84% year-to-date, following the completion of the voluntary exchange offer and subsequent opportunistic purchases in the open market. - Raised year-to-date ca. €1.6 billion and repaid ca. €2.3 billion of bonds, of which in H1 2026 ca. €550 million issued and ca. €475 million repaid, further extending the maturity profile and reducing gross debt year-to-date. - FY 2026 Guidance confirmed.
Page 2
26 August 2026. Aroundtown SA ('the Company' or 'AT') announces results for the first six months of 2026. Net rental income amounted to €591 million, stable compared to €591 million in H1 2025, primarily impacted by solid like-for-like rental growth of 2.7%, which offset the impact of net disposals over the recent periods. Adjusted EBITDA amounted to €500 million, stable compared to €501 million in H1 2025. FFO I reached €144 million, or €0.13 per share, compared to €150 million and €0.14 per share in H1 2025, mainly as a result of higher finance expenses, partially offset by the increased holding in Grand City Properties S.A. ('GCP') and a lower perpetual notes attribution. The FFO I result was in-line with the Company’s 2026 guidance. As part of its H1 2026 report, the Company conducted a full external revaluation of its portfolio, resulting in stable valuations compared to December 2025. Profit for the period amounted to €218 million, and basic and diluted earnings per share amounted to €0.08, driven by robust operational performance. EPRA NTA amounted to €9.1 billion as of June 2026, or €8.0 on a per share basis, as a result of the profit recorded in the period and the increased holding in GCP, partially offset by the execution of the share buyback program and the recognition of dividend. On a per share basis the share buyback supported the NTA per share, whereas the increased holding in GCP had a slight negative impact. At the Annual General Meeting held on 24 June 2026, the shareholders of Aroundtown resolved to distribute a dividend of €0.08 per share, which was recognized during the period and paid after the reporting period on 6 July 2026, marking the resumption of dividend payments following the suspension since the 2022 financial year. ACCRETIVE CAPITAL ALLOCATION THROUGH INCREASED STAKE IN GCP AND SHARE BUYBACK PROGRAM During the second quarter of 2026, Aroundtown completed the voluntary exchange offer for the shares of GCP. Together with subsequent opportunistic purchases of GCP shares in the open market, the Company's stake in GCP increased from 62.5% to 84% as of the date of the publication of this report, supporting a higher FFO I base going forward. The increased holding further strengthens Aroundtown's positioning as a diversified real estate platform. Additionally, the Company practically completed its highly accretive share buyback program during the reporting period. CONVERSION AND REFURBISHMENT PROGRESS TO LIFT INTERNAL GROWTH POTENTIAL The Company has continued to make strong progress on conversion and refurbishment projects, with further converted projects handed over to tenants and the pipeline of projects further expanded. Aroundtown has in execution several office-to-serviced apartment conversions and hotel refurbishments and expansions. The current pipeline is expected to generate a yield on capex of over 10%, and including the rent ramp up from previously completed projects, the total rental upside amounts to expected €55
Page 3
million until 2030. Through these projects, the Company is proactively adapting its portfolio to current market dynamics, repositioning assets to their best use and reducing vacancy, while capturing the value- add potential of its central locations. STRENGTHENED FINANCIAL PROFILE THROUGH STRONG ACCESS TO CAPITAL MARKETS ACROSS INSTRUMENTS AND CURRENCIES During H1 2026, the Company raised ca. €550 million in new bonds, and in parallel, repaid ca. €475 million of bonds through buybacks and at maturity, further extending its maturity profile. After the reporting period, Aroundtown further demonstrated its strong access to the capital markets, issuing ca. €1 billion of senior unsecured notes, and in parallel, the Company repaid €1.8 billion of bonds, including ca. €0.7 billion of buybacks, and ca. €1.1 billion of redemptions at maturity, thereby reducing gross debt year-to-date, reducing near-term refinancing needs, and extending its average debt maturity. Following these measures, the Company’s average debt maturity increased to 3.9 years, or 4.7 years when including cash and liquid assets. The Company also concluded the perpetual note refinancing exercises. In January 2026, the Group issued a new €750 million perpetual note at a coupon of 5.125%, followed by GCP's issuance of a €600 million perpetual note at a coupon of 5.25% in May 2026. Proceeds from these issuances were used to refinance and repay perpetual notes carrying a 2026 first call date, of which one series was fully redeemed in July 2026, shortly after the reporting period, as well as select notes carrying a higher coupon. Following the completion of these transactions, the Company has no near-term perpetual first call dates remaining. The refinancing was executed at coupons in-line with the Company’s guidance. CONTINUED PROGRESS ON GREEN CERTIFICATIONS WITH FIRST BREEAM OUTSTANDING PROPERTY Aroundtown continued to make progress in green building certifications, reaching a certification level of 76% of the commercial portfolio. Following the Company’s first BREEAM Excellent Score property earlier this year, Aroundtown achieved a further Excellent score in Berlin and its first BREEAM Outstanding Score, the highest possible score, in Frankfurt am Main, making it the first property in Germany to reach Outstanding through a recertification and one of only four BREEAM Outstanding-rated properties in the country. This achievement further validates the success of the Company’s Core BREEAM Strategy, which uses the BREEAM methodology to build a transparent and efficient pathway for improving the portfolio’s sustainability metrics. The Interim Consolidated Report for H1 2026 is available on the Company’s website: https://www.aroundtown.de/investor-relations/publications/financial-reports/
Page 4
For definitions and reconciliations of the Alternative Performance Measures, please see the relevant sections in the pages 38-44 of the Interim Consolidated Report for H1 2026. You can find the Interim Consolidated Report for H1 2026 on AT’s website under Investor Relations > Publications > Financial Reports or under this link: https://www.aroundtown.de/aroundtown.de/Data_Objects/Downloads/Financial_Reports/H1_2026_Fina ncials/AT_Q2_2026.pdf About the Company Aroundtown SA (symbol: AT1), trading on the Prime Standard of the Frankfurt Stock Exchange, is the largest listed German commercial real estate company. Aroundtown invests in income generating quality properties with value-add potential in central locations in top tier European cities primarily in Germany, the Netherlands, and London. Aroundtown SA (ISIN: LU1673108939) is a public limited liability company (société anonyme) established under the laws of the Grand Duchy of Luxembourg, registered with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés, Luxembourg) under number B217868, having its registered office at 37, Boulevard Joseph II, L-1840 Luxembourg, Grand Duchy of Luxembourg. Contact Timothy Wright T: +352 288 313 E: info@aroundtown.de www.aroundtown.de DISCLAIMER THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES. THIS ANNOUNCEMENT IS DIRECTED AT AND IS ONLY BEING DISTRIBUTED IN THE UNITED KINGDOM TO (I) PERSONS WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE ORDER), (II) HIGH NET WORTH ENTITIES, AND
Page 5
OTHER PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED FALLING WITHIN ARTICLE 49 OF THE ORDER, AND (III) PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS RELEVANT PERSONS). THIS COMMUNICATION MUST NOT BE READ, ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS. IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA (EEA) AND THE UNITED KINGDOM, THIS ANNOUNCEMENT AND ANY OFFER IF MADE SUBSEQUENTLY IS DIRECTED ONLY AT PERSONS WHO ARE “QUALIFIED INVESTORS” WITHIN THE MEANING OF REGULATION (EU) 2017/1129, AS AMENDED (THE PROSPECTUS REGULATION) (QUALIFIED INVESTORS). ANY PERSON IN THE EEA OR THE UNITED KINGDOM WHO ACQUIRES THE SECURITIES IN ANY OFFER (AN INVESTOR) OR TO WHOM ANY OFFER OF THE SECURITIES IS MADE WILL BE DEEMED TO HAVE REPRESENTED AND AGREED THAT IT IS A QUALIFIED INVESTOR. ANY INVESTOR WILL ALSO BE DEEMED TO HAVE REPRESENTED AND AGREED THAT ANY SECURITIES ACQUIRED BY IT IN THE OFFER HAVE NOT BEEN ACQUIRED ON BEHALF OF PERSONS IN THE EEA OR THE UNITED KINGDOM OTHER THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEEN ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN THE EEA OR THE UNITED KINGDOM TO PERSONS WHERE THIS WOULD RESULT IN A REQUIREMENT FOR PUBLICATION BY AROUNDTOWN OR ANY OF THE MANAGERS OF A PROSPECTUS PURSUANT TO ARTICLE 3 OF THE PROSPECTUS REGULATION. THIS ANNOUNCEMENT MAY CONTAIN PROJECTIONS OR ESTIMATES RELATING TO PLANS AND OBJECTIVES RELATING TO OUR FUTURE OPERATIONS, PRODUCTS, OR SERVICES, FUTURE FINANCIAL RESULTS, OR ASSUMPTIONS UNDERLYING OR RELATING TO ANY SUCH STATEMENTS, EACH OF WHICH CONSTITUTES A FORWARD-LOOKING STATEMENT SUBJECT TO RISKS AND UNCERTAINTIES, MANY OF WHICH ARE BEYOND THE CONTROL OF AROUNDTOWN SA. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.