LUXEMBOURG (dpa-AFX) - Aroundtown subsidiary Grand City Properties (GCP) has returned to profit in the first quarter. The bottom line was a profit of 43.7 million euros, as the SDax group announced in Luxembourg on Thursday. A year earlier, the devaluation of the portfolio had resulted in a loss of just under 12 million euros. In 2023 as a whole, the company had slipped even further into the red due to a lower valuation of the properties.

In day-to-day business, however, demand for residential space dominated the picture. Net rental income rose by four percent to just over 105 million euros in the three months to the end of March. However, higher costs, such as for financing, weighed on the operating profit (FFO1) in the reporting period. Compared to the same period last year, this fell by four percent to just over 45 million euros.

The company remains cautious for the current year and confirms its profit target. The Around subsidiary is still aiming for an operating profit of 175 to 185 million euros in the current year. This means that both a decline and a slight increase would be possible./mne/jha/