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 14.80 price target.

Abstract
Full year reporting again highlighted the resilience of GCP’s operating platform that featured steady internal growth and ongoing balance sheet strengthening. Performance was spearheaded by 3.5% LFL rental growth and a further tightening in vacancy to a historic low. GCP continues to execute its disciplined capital recycling strategy, which will remain part of the playbook in 2026. In our view, the landlord is increasingly well positioned to capitalise on emerging dislocations in European real estate markets, thanks to its strong liquidity and conservative leverage profile. The proposed Aroundtown exchange offer forms part of a broader strategic backdrop and could help unlock embedded upside to NAV within a larger, more liquid MDAX platform. The share exchange offer equates to 6.6% premium on previous close on 3 March 2026, but we continue to anchor fair value to a DCF model to reflect the long-duration cash flow profile of the portfolio and operational upside tied to rental reversion and external growth opportunities. We maintain our Buy rating and €14.8 TP (upside: 40%).