Aroundtown, the largest German commercial real estate company, has revealed valuers marked down its portfolio by 11% for 2023.
The company made a loss of €2.4 bn it also stated on Wednesday delivering annual results. Shareholders will not receive a dividend from 2023 activities.
Despite the 2023 horror show, shares by midday Wednesday were up 2.31%. It said the company possessed strong liquidity and solid operations and that results were in the top range of previously provided full year guidance.
The company cut net debt by €900 mln and made disposals of €1.2 bn last year and also repurchased €1.3 bn of mostly shorter-term bonds at a discount.
The full year valuation downgrade saw valuers cut 5% off in the second half of 2023, a slightly softer approach than the 6% devaluation for the first six months.
Higher interest rates were blamed for the revaluation loss.
Explaining the reason for cancelling the dividend at the annual general meeting, the board said it continued to see “market uncertainties” which limited visibility regarding future developments and their full impact on transaction markets and property valuations, and as a result, the cost of financing.
It will continue to focus on strengthening liquidity and deleveraging.
