AroundTown - comment

AroundTown released its Q1 results this morning, reflecting continued positive momentum. While the pace of disposals was slightly below our expectations, the company remains committed to further asset sales in order to strengthen its balance sheet. Management has indicated that dividend payments are expected to resume in FY26.

Within the results, the office segment recorded like-for-like (LFL) rental growth of 1.6%. Notably, AroundTown is in the process of securing permits to convert select office properties into serviced apartments, with the majority of these projects expected to commence operations in 2026.

The hotel segment delivered a robust performance, posting 3.7% LFL rental growth. This was primarily driven by a steady increase in international arrivals and overnight stays, which continue to support the sector’s recovery.