Aroundtown stock faces refinancing risk after Goldman downgrade

Goldman Sachs has put refinancing costs at the center of its latest assessment of Aroundtown. In a report published on October 12, 2026, and reviewed by Investing.com, the bank cut its rating from Neutral to Sell and reduced its 12-month price target from 1.80 euros to 1.30 euros.

The broker expects Aroundtown to refinance 5.6 billion euros of debt maturing between 2026 and 2028 at an assumed cost of 5.5 percent. The debt currently carries an average cost of 1.4 to 1.8 percent, while Aroundtown's average cost of debt stood at 2.4 percent at the end of the first half.

Funding Costs Challenge Earnings

Goldman Sachs forecasts Aroundtown's average cost of debt to rise to about 4.5 percent by 2030. It expects net financing costs to grow by about 18 percent a year from 2025 to 2028, ahead of the roughly 2.4 percent growth forecast for recurring core earnings before interest, taxes, depreciation and amortization.

The broker sees earnings per share declining by about 3 percent a year, with 2028 earnings per share at 0.23 euros versus 0.26 euros for 2025. Interest cover is expected to fall to 2.2 times by 2030 from 3.3 times, moving closer to a covenant level below 1.8 times.

Portfolio Pressure Meets Reporting Date

Goldman Sachs also cut its estimates for Aroundtown's net tangible assets by more than 40 percent. Its assumptions include a 100-basis-point rise in property yields by 2028, which could lift the reported loan-to-value ratio to 48 percent, above the board's 45 percent guidance, or to about 63 percent including hybrids.

Office properties account for 34 percent of portfolio value, according to the broker. Office vacancy rose to 13.6 percent in the first half, while like-for-like office rental growth reached 0.9 percent. About 27 percent of commercial leases expire in 2027 and 2028. Aroundtown is scheduled to publish third-quarter results on November 25.

Aroundtown stock traded at 1.66 euros on Lang & Schwarz at 17:05 CET on Friday, November 6, 2026, 2.47 percent above the Xetra close of Thursday, November 5, 2026. The real-time quote of Aroundtown stock reflects the latest trading indication.

The Euro Stoxx 50 provides the broader regional market backdrop for European property shares as investors assess rates, financing costs and asset valuations.

More news and analyses on Aroundtown stock will track refinancing, portfolio allocation and operating results.