LUXEMBOURG (dpa-AFX) - The commercial real estate specialist Aroundtown expects a significant decline in operating profit this year, partly due to the sale of properties. In addition, higher borrowing costs following the rise in interest rates are having a negative impact. The key operating figure FFO1, which is important for the real estate industry, will fall to between EUR 280 and 310 million in 2024, the MDax group announced on Wednesday. In 2023, the operating result fell by eight percent to EUR 332 million. At the bottom line, however, the company slipped even deeper into the red. Due to the devaluation of the real estate portfolio, the net loss amounted to 2.4 billion euros after a minus of around 457 million euros a year ago

After years of a real estate boom, the Group - like many of its competitors - has been struggling with high interest rates for some time now and is countering this with sales, among other things. In total, sales with a volume of 1.2 billion euros were made in 2023.

Due to the sales, net rental income fell by two percent to 1.19 billion euros. The management does not intend to pay a dividend for the past year due to the difficult situation, as Aroundtown had already announced on Tuesday evening./mne/mis