First Berlin – GRAND CITY Properties S.A. Research Update (20/03/2020)

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 28.00 price target.

Grand City reported annual results in line with FBe and full year guidance. Earnings outperformed topline growth, thanks to good operational scalability and a portfolio loaded with upside. Management discussed the impact of covid-19 and the Berlin rent cap on the conference call, and 2020 guidance is set. Headline results showed solid mid-single digit annualised growth, which the company expects to continue this year despite the current market turbulence. Operations should not be directly impacted by the coronavirus and Berlin's rent freeze will have only a marginal effect on performance, owing to portfolio diversity. We maintain our Buy rating and €28 price target.