LUXEMBOURG (dpa-AFX) - Aroundtown subsidiary Grand City Properties slipped into the red last year. The bottom line was a loss of around 638 million euros due to a devaluation of the real estate portfolio, as the SDax group announced in Luxembourg on Wednesday. In the same period last year, Grand City Properties had reported a profit of a good 179 million euros. The company devalued its real estate portfolio by nine percent.

In day-to-day business, however, demand for residential space dominated the picture. Net rental income rose by four percent to 411.3 million euros by the end of December. However, higher financing costs weighed on operating profit (FFO1) in the reporting period. This fell by four percent year-on-year to EUR 183.9 million. As already announced on Tuesday, the real estate group once again does not intend to pay a dividend for 2023.

Meanwhile, the company is cautious for 2024. The Around subsidiary is targeting an operating profit of 175 million to 185 million euros in the current year. This would allow for both a decline and a slight increase. Net rents are expected to increase by three percent on a comparable basis./mne/mis