First Berlin – GRAND CITY Properties S.A. Research Update (17/11/2020)

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 27.50 price target.

Nine month reporting showed steady results as the company continues to optimise the portfolio by disposing of non-core properties, while growing the Berlin and London portfolios. Net rent was lower Y/Y on net disposals, but adjusted EBITDA was up on an annualised basis thanks to lower property operating expenses. GCP confirmed 2020 guidance (FFOPS 1: €1.27 to €1.31), and €1.3bn in liquid assets provides good flexibility to react to fast changing markets. We remain Buy-rated on Grand City with an unchanged €27.5 price target.