Grand City Properties net income rises on rental growth; raises FY26 FFO I outlook

Grand City Properties SA

Yesterday 05:56

Overview
Luxembourg residential property firm's 9M 2026 net rental income rose 4% yr/yr
Adjusted EBITDA for 9M 2026 up 4%, while FFO I declined 4% yr/yr
Company raised FY 2026 FFO I guidance after acquiring 20% stake in LEG Immobilien

Outlook
Grand City Properties raises FY 2026 FFO I guidance to €185 mln-€195 mln
Company expects full-year impact from LEG investment to be seen in 2027
Company says strong liquidity and conservative financial profile support outlook

Result Drivers
RENTAL GROWTH - Net rental income rose 4% in 9M 2026, supported by like-for-like rental growth of 3.3% and low vacancy rates
HIGHER FINANCE EXPENSES - FFO I declined mainly due to higher finance expenses, increased perpetual notes attribution and higher minority contribution
LOWER REVALUATION GAINS - Profit for the period fell, mainly due to lower revaluation gains and absence of prior year one-off deferred tax income

Company press release: ID:nEQ7tQ8Fna

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
9M Rental Income
 
EUR 331 mln
 
9M Net Income
 
EUR 182 mln
 
9M Adjusted EBITDA
 
EUR 265 mln
 
9M FFO
 
EUR 136 mln
 
9M Like-For-Like
 
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", 5 "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 €8.35, about 6.9% above its November 10 closing price of €7.81
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Nov 10 - TAG Immobilien FFO I rises on rental growth; raises 2026 outlook
Nov 10 - Germany's HAMBORNER REIT 9M FFO falls 6%, raises outlook
Nov 10 - German commercial property prices dip again in third quarter, data show

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.)