Grand City Properties SA Maintains BUY Rating and Increases Target Price

First Berlin Equity Research GmbH recently updated their analysis of Grand City Properties SA, reaffirming their BUY recommendation with an increased target price of EUR 12.90, up from the previous EUR 12.50. The analysis was performed by analyst Ellis Acklin.

The update highlighted the successful outcomes of Grand City Properties' exchange and tender offers related to two series of its perpetual notes. The primary goal was to restore the equity component of the notes as per Standard & Poor's methodology. This was necessary because notes not called are considered debt. Approximately 82% of note holders participated, contributing to a nominal value of around €449 million.

As part of the financial strategy, Grand City Properties plans to issue new perpetual notes valued at €410 million and repurchase €34 million of notes under the tender offer. These moves are expected to improve the company's Standard & Poor's metrics and save over €2 million in coupon payments, positively impacting the company's FFO 1.