Aroundtown 1Q26 Conf. call: Accretive capital allocation driving growth against improving backdrop

Research evidence excerpt

Aroundtown 1Q26 Conf. call: Accretive capital allocation driving growth against improving backdrop

Neil Green, CFA AC Europe Equity Research

(44-20) 7134-4478 27 May 2026 J P M O R G A N

neil.d.green@jpmorgan.com

• Refinancing risk is largely mitigated, with all near-term perpetual note obligations

addressed (next calls: 2029 for AT, 2031 for GCP), and future coupon burden expected

below 2025 levels.

• Regulatory changes (Bau-Turbo) are a clear tailwind, accelerating approvals and

expanding the economically viable conversion pipeline. Early engagement with

municipalities has been positive (~120k sqm identified), with potential for broader

market impact by structurally reducing office supply - supporting both conversion

economics and residual office fundamentals over time.

• The company views the increased GCP stake as an attractive growth lever (~10%

FFO yield), with further purchases possible opportunistically but no fixed

ownership target.

• Office market commentary remains cautious but gradually improving. Demand is

still below normal levels given weak macro (flat German growth), but early signs of

recovery are emerging, supported by low new supply and a structural reduction in office

stock (including conversions).

• On balance sheet dynamics, LTV increased due to the negative impact of buybacks

(equity reduction), partially offset by the accretive impact of the higher GCP stake

and upcoming disposals (which should reduce LTV in Q2).

• Investment market conditions remain mixed. While transaction activity is still

selective, the group continues to dispose of assets at around book value across asset

classes. Valuations are currently supported by operational growth, but management

acknowledges that market volatility (and potential yield expansion) is likely to dampen