Grand City Properties reports solid H1 results, confirms 2025 outlook

Published 13/08/2025, 07:42
© Reuters.

Investing.com -- Grand City Properties S.A. (ETR:GYC) reported a 1% year-over-year increase in funds from operations (FFO I) to €95 million for the first half of 2025, with per-share FFO remaining flat at €0.54.

The German property company confirmed its full-year 2025 guidance, projecting FFO I between €185 million and €195 million, or €1.05-€1.11 per share, representing a broadly flat outlook at the midpoint.

Like-for-like net rental income growth remained robust at 3.7% year-over-year, compared to 3.8% in the first quarter and 4.4% for full-year 2024. This performance compares favorably with German peers, outpacing TAG Immobilien’s 2.9% growth while trailing Vonovia’s 4.4% and exceeding LEG’s 3.2%.

The company maintained a stable vacancy rate of 3.7%, slightly improved from 3.8% in December 2024.

During the first half, Grand City completed €131 million in property disposals at book value and acquired €60 million worth of properties in London.

The company reported a positive like-for-like property revaluation of 1.6% in the first half, up from 0.6% in the first quarter. This revaluation rate exceeded Vonovia’s 1.1% and was comparable to TAG’s 1.4% in Germany and LEG’s 1.2%. The rental yield remained steady at 4.9%.

EPRA Net Tangible Assets (NTA) per share increased 3.7% year-to-date to €25.2, representing a 10.5% rise year-over-year.

The loan-to-value (LTV) ratio decreased by 100 basis points compared to December 2024, reaching 32%. The EPRA LTV, which includes perpetual notes as debt, stood at 44% at the end of June, down 200 basis points year-to-date.

The company’s net debt to EBITDA ratio improved to 8.4x from 8.7x at the end of December 2024, while the interest coverage ratio slightly decreased to 5.4x from 5.7x. The cost of debt remained stable at 1.9%, with an average debt maturity of 4.5 years and a hedge ratio of 95%.

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