Grand City Properties S.A. Reports Financial Year 2023 Results: Highlights Growth and Stability

Grand City Properties S.A. disclosed its financial results for the year 2023, presenting a picture of resilient operational growth and sustained financial stability. The company successfully achieved its guidance's top range, with a net rental income increase of 4% to €411 million from €396 million in the prior year. This performance stems from a 3.3% like-for-like rental growth, owing to a 3.1% in-place rent increase and a 0.2% rise in occupancy. The company also reported a historic low vacancy rate of 3.8% as of December 2023, a continuation of the declining trend witnessed over the previous years.

Another area of success was the adjusted EBITDA, which saw a 4% year-over-year growth to €320 million. However, the company faced a 4% decrease in FFO I to €184 million in 2023, primarily due to higher financing costs. Despite these challenges, Grand City Properties S.A. managed a robust liquidity position, further strengthening by €800 million to €1.2 billion, covering the next three years of debt maturities.

The company maintained a stable Loan to Value (LTV) ratio of 37% by the year's end, demonstrating careful financial management amid uncertain market conditions. This caution extended to the company's decision not to issue a dividend for 2023, reflecting a conservative approach towards capital and liquidity. Asset disposal and proactive repayment strategies played crucial roles in maintaining a resilient financial position, with successful disposals amounting to €306 million at a slight discount.

These results underscore Grand City Properties S.A.'s robust operational performance and strategic financial positioning, even as the company navigated a challenging macroeconomic landscape and significant property revaluation pressures.