First Berlin Equity Research Updates Grand City Properties SA Recommendation

First Berlin Equity Research released an update on Grand City Properties S.A., maintaining a BUY recommendation while decreasing the target price from €15.40 to €14.40. The adjustment follows an analysis of the preliminary results for 2024, which preceded the annual report slated for 17 March.

The company reported healthy financial metrics, with like-for-like (LFL) rental growth of 3.8% leading to a funds from operations (FFO) of €188 million. This was within the expected range of €180 million to €190 million. A significant €50 million positive property revaluation brought net earnings back into positive territory, following a net loss in the previous year.

Grand City Properties ended 2024 with a strong liquidity position of €1.5 billion and reduced its loan-to-value (LTV) ratio to 33% from 37%. The positive market fundamentals in the German residential sector are expected to continue supporting operational performance into 2025, prompting the reiteration of the buying recommendation.