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 increased the price target from EUR 13.70 to EUR 14.40.

Abstract
Q2 reporting again featured a good operating performance led by 3.4% LFL rental growth, while financing costs came in lower than expected. Good market dynamics prompted management to bump up their 2024 outlook, and we have raised our 2024 forecasts to the midpoint of the new FFO 1 guide (€180m to €190m). Post reporting, the landlord also successfully issued its first bond since 2021. The Series Y €500m bond was 7x oversubscribed, and GCP also bought back some €238m in outstanding bonds to lengthen debt maturities and further bolster the balance sheet. With the Fed likely to cut rates in September, it appears GCP has weathered the worst of the storm, and we believe the landlord’s revamped balance sheet should pass muster with even jaded investors. We maintain our Buy rating with a €14.4 TP (old: €13.7).