Aroundtown Profit Falls 62% as German Property Prices Decline
Frankfurt, August 27, 2026: Germany's major listed landlord Aroundtown reported a sharp decline in profit for the first half of 2026, as falling commercial property prices and higher financing costs weighed on its financial performance.
The company's net profit fell 62% year-on-year to €218 million, compared with the previous year. The decline was mainly linked to lower property valuations, while higher borrowing costs and inflationary pressures added to the financial pressure.
Falling Property Prices Hit Profit
Aroundtown said the decline in German commercial property prices during the second quarter affected its valuation results. Germany's property market has continued to face challenges, with weak valuations and expensive financing conditions affecting real estate companies.
The impact was particularly visible in the company's net profit, although analysts said the decline was largely valuation-driven rather than due to a major deterioration in its core operations.
FFO I Declines Marginally
Aroundtown's Funds From Operations (FFO I), an important measure of operating performance for real estate companies, stood at €144 million in the first half of 2026, compared with €150 million a year earlier.
Despite the decline, analysts at Warburg Research said the company's adjusted core earnings and FFO were broadly in line with or slightly above their expectations.
Company Maintains Full-Year Guidance
Despite the fall in net profit, Aroundtown maintained its full-year FFO I guidance of €275 million to €305 million.
The company expects its operating performance to remain supported by rental income and its portfolio of commercial and residential properties.
Grand City Properties Stake Supports Growth
Aroundtown has also increased its stake in Grand City Properties from 62.5% to 84% during 2026. Analysts believe the larger holding is providing a positive contribution to Aroundtown's FFO.
Aroundtown's shares were down less than 1% in early Frankfurt trading following the results.
Grihik Takeaway: Aroundtown's results show how falling property valuations and higher financing costs continue to pressure real estate companies. However, the relatively limited decline in operating funds and maintained annual guidance indicate that the company's underlying business remains comparatively stable.