Aroundtown Property Holdings, a specialist real estate investment group with a focus on value-add income generating properties in the German market, announced positive H1 results on Monday, with rental and operating income increasing 138% to €110 mln.
The company, which is based in Cyprus, said that net profit rose to €510 mln in the first six months of 2016, up from €505 mln in the same period of last year, while earnings before interest, tax and depreciation (Ebitda) increased to €610 mln in H1 2016 from €536 mln in H1 2015.
Aroundtown, which operates and rents commercial properties and owns and manages residential properties, said results had improved thanks to 'intensive property management, including operational and repositioning activities and generating a strong cash flow and great growth potential.'
The bulk of the group's assets are in the German office sector (37%), followed by industrial & logistics (26%), retail (16%), residential and hotels. Over 50% of the properties it owns are in Berlin, Munich, Hamburg, Frankfurt and Dresden.
The repositioning measures and new acquisitions resulted in the decrease of the vacancy rate of the commercial portfolio to 7.4% in August 2016, Aroundtown said. The company intends to continue adding to its portfolio of assets. The group’s €227mln cash pile and the additional €500 mln raised in the bond issuance completed in July 2016 provide ‘significant firepower for additional acquisitions,’ Aroundtown said.
In June this year rating agency Standard & Poor's upgraded Aroundtown’s credit rating to investment grade rating BBB, reflecting a ‘stable outlook and the view that the portfolio should generate increasing recurring cash flows.'
