Barclays cuts Grand City Properties to 'underweight' on lowest upside in sector

Grand City Properties SA

04/04/2022 09:05

** Barclays cuts Luxembourg-based real estate company Grand
City Properties  GYC.DE  to "underweight" from "equal weight",
saying it offers lowest upside in German residential sub-sector
    ** The brokerage says the company's 2022 funds from
operations (FFO) guidance of 1.13-1.18 euros/shr is
disappointing, coming in about 7% below its prior estimate of
1.24 euros at the midpoint 
    ** It adds, that the "miss" is looking to be due to lower
EBIT margins and higher tax expenses
    ** Barclays also sees higher marginal cost of finance (2%
vs. 1% previously), which puts FFO 1/shr estimates 5% to 11%
(average -8.6%) lower over 2022-2025
    ** Out of 15 analysts covering the stock, seven rate the
company "buy" or higher, six rate it "hold" and two "sell" or
lower
    

 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))