6,294
edits
Aroundtown: Difference between revisions
no edit summary
No edit summary |
No edit summary |
||
| Line 12: | Line 12: | ||
|- | |- | ||
|<code>8</code> Redemption of debt substantially below par value | |<code>8</code> Redemption of debt substantially below par value | ||
| | |Its LTV at the end of 2022 was 40% when only senior debt is included, but when hybrid bonds are added, LTV rises to 55%-above what its closest competitors have (40-45%) | ||
|- | |||
|The fact that it was able to sale assets worth €1.6 billion in 2022 show that its assets have good quality and its valuations are conservative<ref name=":0">https://seekingalpha.com/article/4591130-aroundtown-earnings-depressed-valuation-no-rush-to-buy</ref>. | |||
|Aroundtown expects its office vacancy rate to rise to 5.5% in 2023(2022:4.9%). This will put pressure on rental income<ref name=":0" />. | |||
|- | |||
|It has enough liquidity to cover its bond and loan maturities until 2025. Besides, majority of its assets are free from debt; hence it can raise additional loans if needed<ref name=":0" />. | |||
|It is expected that Aroundtown will fail to call its future hybrid bonds. This will see a rise in borrowing costs, which will negatively impact earnings<ref>https://www.investmentwiki.org/wiki/Aroundtown:Expert_Opinions</ref>. | |||
|- | |- | ||
| | |Aroundtown expects its property values to decline by 5% in the next 12-18 months, which is positive and optimistic considering the current macro environment<ref name=":0" />. | ||
| | | | ||
|- | |- | ||
| | |Aroundtown is able to raise office rent given that majority of its tenants are are large corporates and governments<ref>https://seekingalpha.com/article/4591130-aroundtown-earnings-depressed-valuation-no-rush-to-buy</ref>. Office units account for 39% of its investment properties<ref>https://docs.google.com/spreadsheets/d/1WszlZ36Yy_7hmpzcwaDBHvO_SnFq5W78koXVCXW6tJo/edit#gid=670693869</ref>. | ||
| | | | ||
|} | |} | ||