Grand City Properties H1 rental income rises

Grand City Properties SA

12/08/2026 06:07

Overview
Luxembourg residential real estate firm's H1 net rental income rose 3% yr/yr
Adjusted EBITDA for H1 grew 3% yr/yr; FFO I declined 4% on higher finance expenses
Company refinanced perpetual notes and reinstated dividend for 2025, paid after period-end

Outlook
Grand City Properties confirms full-year 2026 guidance
Dividend policy set at 50% of FFO I from financial year 2026
Company to continue capital recycling strategy to drive rental income

Result Drivers
RENTAL GROWTH - Net rental income rose 3% yr/yr, driven by sustained like-for-like rental growth of 3.3% and low vacancy
HIGHER FINANCE EXPENSES - FFO I fell 4% yr/yr, primarily due to higher finance expenses, increased perpetual notes attribution and minority contributions
LOWER REVALUATION RESULT - Net profit declined mainly due to a lower property revaluation result and higher finance expenses

Company press release: ID:nEQ8MzGg2a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Rental Income
 
EUR 219 mln
 
H1 Net Income
 
EUR 129 mln
 
H1 Adjusted EBITDA
 
EUR 174 mln
 
H1 FFO
 
EUR 91 mln
 
H1 Like-For-Like Rental Growth
 
3.30%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the real estate rental, development & operations peer group is "buy."
Wall Street's median 12-month price target for Grand City Properties SA is €10.00, about 4.6% above its August 11 closing price of €9.56
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Aug 11 - Germany's TAG Immobilien H1 FFO I rises on rental growth
Aug 10 - German commercial property prices dip after fragile recovery, data show
Aug 10 - Germany's Patrizia H1 core profit surges, helped by reduced expenses

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)