First Berlin Equity Research Reaffirms Buy Rating for Grand City Properties SA

First Berlin Equity Research has announced an update on Grand City Properties S.A. Analyst Ellis Acklin reaffirmed his BUY recommendation, raising the price target from EUR 13.70 to EUR 14.40.

The six-month report indicated solid operational performance, driven by a 3.4% rental growth on a like-for-like basis, while financing costs were lower than anticipated. Positive market conditions led the management to revise their 2024 outlook upwards. Consequently, First Berlin Equity Research adjusted its 2024 forecasts to the midpoint of the new FFO 1 guidance (€180m to €190m).

Following the report, Grand City Properties successfully issued its first bond since 2021. The €500m Series Y bond was oversubscribed sevenfold. Additionally, the company repurchased €238m of outstanding bonds to extend debt maturities and strengthen the balance sheet. With a potential rate cut by the Fed in September, the company appears well-positioned to endure upcoming challenges.