The real estate conglomerate Signa of billionaire René Benko is insolvent. Are other real estate companies now also in a precarious situation? Aroundtown focuses on properties in Germany and the Netherlands, mainly on commercial and residential properties in good locations with good value growth. Most of the real estate portfolio is located in Berlin, NRW, Frankfurt and Munich, as well as other major cities in Germany and the Netherlands.

Revenue declines In the 3rd quarter, the company achieved a turnover of 394.4 million euros compared to 410.8 million euros in the previous year. The net loss amounted to 37.1 million euros compared to a net profit of 52.4 million euros the year before.

Massive loss in the last 9 months In the first nine months, the turnover amounted to 1.21 billion euros compared to 1.20 billion euros a year ago. The net loss was 1.01 billion euros compared to a net profit of 392.7 million euros a year ago.

Inflation makes real estate sector difficult The entire real estate sector has recently been affected by high inflation and rising interest rates. The influences had put an abrupt end to the long real estate price boom in Germany.

Strong half year, weak 5-year chart Conclusion: You can clearly see the difficult market situation in the chart above. Since 2021, the share has lost 70%. Despite the massive loss in the last 9 months, the real estate share has been in an impressive uptrend since this summer.

The expectations of the analysts are mixed. 6 of 16 analysts recommend buying, 7 want to hold and 3 analysts want to sell. An important point for you as an investor: The analysts‘ short-term goals are extremely far apart. Specifically: the average analyst target price is 2.25 euros, giving you 0% potential. The highest analyst target price is 3.50 euros. But now watch out: the lowest analyst target price of 1.20 euros reveals a downside potential of -46%. Therefore, you should wait and see how Aroundtown develops in the current market situation.