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 15.10 to EUR 15.40.

Abstract
Q3 reporting again featured a good operating performance. Management’s tenor has brightened significantly since YE23. Analyst calls are now more focused on how to capture operating upside fuelled by supportive market dynamics rather than prior deleveraging and balance sheet topics. The September quarter performance was led by 3.5% LFL rental growth and operational positives. The combo helped offset the rise in perpetual note costs allowing FFO 1 to match the prior year result (€141m). Management confirmed guidance but now expect FFO 1 towards the upper end of the range (€180m to €190m). We have nudged our estimates towards the top end of the guide and maintain our Buy rating with a €15.4 TP (old: €15.1).