Grand City Properties reports steady Q1 growth

Published 14/05/2025, 05:56
Grand City Properties reports steady Q1 growth

LUXEMBOURG - Grand City Properties S.A. (IRSH) has announced its financial results for the first quarter of 2025, highlighting a modest increase in net rental income and a solid rise in funds from operations (FFO I). The company reported a net rental income of €106 million for Q1 2025, a 1% increase from the €105 million earned in the same period of the previous year, despite property disposals.

The residential real estate company experienced a 3.8% like-for-like rental growth, which the company attributes to strong operational performance and favorable market conditions. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved by 3% year-over-year to €85 million. FFO I, a key profitability metric for real estate companies, reached €48 million, or €0.27 per share, marking a 6% and 4% increase respectively compared to Q1 2024.

Grand City Properties also reported a positive revaluation of its properties, with a 0.6% increase on a like-for-like basis for 20% of its portfolio. The company completed €120 million in disposals at book value during the quarter. Net profit doubled to €88 million, with basic earnings per share rising from €0.17 to €0.35.

The company maintains a strong liquidity position, with nearly €1.7 billion in cash and liquid assets as of March 2025, equivalent to 37% of total debt. The loan-to-value (LTV) ratio stood at a conservative 32%, and the interest coverage ratio (ICR) was 5.5x in Q1 2025. Additionally, the company has €6.3 billion in unencumbered assets, representing 71% of the total portfolio value.

The EPRA Net Tangible Assets (NTA) reached €4.3 billion, or €24.6 per share, a 1% increase from December 2024. The company confirms its full-year guidance for 2025.

In April 2025, credit rating agency Standard & Poor’s downgraded Grand City Properties’ credit rating by one notch to BBB with a stable outlook, following a similar action on Aroundtown. However, the company’s stand-alone credit profile remains unchanged at bbb+. Despite the downgrade, the company has decided not to recommend a dividend payment for 2024, opting instead to strengthen its financial position and maintain flexibility.

CEO Refael Zamir expressed satisfaction with the Q1 results, emphasizing the company’s continued operational strength and rental growth. The financial statements for Q1 2025 are available on Grand City Properties’ website.

This article is based on a press release statement from Grand City Properties S.A.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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