Aroundtown SA shares tumbled 3% after the Luxembourg real estate firm slashed its 2026 earnings forecast below analyst estimates, citing mounting debt costs and rising office vacancies. The company reported 2025 funds from operations of €288 million, down 9% year-on-year, as higher perpetual note coupons and weaker joint venture contributions squeezed profitability.

For 2026, Aroundtown guided funds from operations between €250 million and €280 million, or €0.24-€0.27 per share, falling short of the €0.28 per share consensus estimate. Adjusted EBITDA declined 1.5% to €999.3 million, while the EPRA vacancy rate climbed to 7.6%, with office vacancies hitting 13%.

The company's financial stress showed in its interest coverage ratio slipping to 3.9 times from 4.2 times, and average debt costs rising 30 basis points to 2.3%. Aroundtown reinstated its dividend at €0.08 gross per share for 2025 and launched a voluntary exchange offer to increase its stake in Grand City Properties SA to 89.5% from 62%.