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Aroundtown – Q2 Update

The Long Thesis is intact, despite macro headwinds.

September 21, 2026 – Viceroy remains long Aroundtown S.A. (AT1:DE). Since our 17 February 2026 report the stock has fallen 37% from €2.83 to €1.78, alongside Vonovia (-35%), LEG (-32%) and TAG (-31%). The sector was sold on rates: the 10-year Bund moved from below 2.75% to 3.51% and the ECB hiked in June and September.

Agaisnt backdrop of rates environment: Aroundtown remains a serially undervalued.

  • H1 results continue to validate thesis – Aroundtown has sold €353m of book value at 1% below mark and 55% above cost. EPRA NTA per share +3% to €8.0. The €250m buyback completed at an average €2.54, 67% below NTA.

  • What moved against us - LTV 41% to 43% (44% pro forma for July settlements) on the back of dividends and buybacks. As we have stated: AT1 buying its own shares at enormous discounts to NAV is accretive to shareholders, as are dividends. ICR is still strong at 3.3x as cot of debt shifts up slightly

  • We reiterate our belief that asset disposals, even at modest discounts to book, and the repurchase of company shares is the most shareholder-favorable strategy. We do not believe that the purchase of assets at par that trade at 0.22x NTA are effective allocations of capital in this circumstance. We have communicated this with management.

2026 results to-date validate our thesis. Book values held, FFO printed in line with guidance, buybacks happened, and the dividend is back.  The activist call has been answered. We reiterate that Aroundtown is severely mispriced and presents a ~100% upside on our base case.

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