First Berlin – GRAND CITY Properties S.A. Research Update (13/03/2018)

First Berlin Equity Research has published a research update on GRAND CITY Properties S.A. (ISIN: LU0775917882). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 26.00 price target.

Abstract
Investors should use the recent dip in the property sector to buy Grand City shares. The company has demonstrated the ability to grow operations during the late stage of the residential cycle (9M/17: FFOPS +6%; NAVPS +11%), thanks to its sizable portfolio (86k units) with embedded operational upside of 30%. Evidence we see today suggests operational growth will continue over the near term. We expect the recent negative sentiment towards property stocks to erode once investors closely examine fundamentals, several of which remain quite solid. Our rating remains Buy with an €26 price target.