AANNF - Aroundtown: This European Real Estate Player Is A Turnaround Candidate

2024-07-18 16:33:29 ET

Summary

• Like the European real estate sector, Aroundtown shares decreased significantly since 2022. Shares have recovered but are still down more than 60%.
• Aroundtown is engaged in the Office and Hotel properties sectors. The company also has significant exposure to German residential real estate through its stake in Grand City Properties.
• Operational performance has been good over the last quarters and Aroundtown prioritized liquidity management and asset disposals.
• The net value of assets is EUR 7.4 per share versus a share price of EUR 2.1. With an LTV ratio of 60.8%, Aroundtown is quite leveraged. However, this can improve results at the end of a downturn and before a cyclical upswing starts.

(Note: All amounts in the article are in EUR unless stated otherwise. At the current exchange rate, 1 EUR is around 1.09 USD. Per share figures refer to the AANFF ticker.)

Investment Thesis

Aroundtown SA ( OTPK:AANFF ) is a European real estate company focusing on Office (40% of assets by value), Residential (33%), and Hotel properties (21%). The company is incorporated in Luxembourg, but most of its assets are in Germany. Less than 15% of assets are in the Netherlands and London....

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