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 decreased the price target from EUR 15.40 to EUR 14.40.

Abstract
Grand City Properties reported unaudited preliminary results ahead of the 2024 annual report now slated for 17 March. Headline KPIs were in line with FBe and landed close to the upper end of the guided range. Spurred by 3.8% LFL rental growth, FFO 1 tallied €188m vs guidance of €180m to €190m. Bottom line earnings were back in the black after last year’s net loss. This is traced to a positive property revaluation result of €50m equal to +5% on a LFL basis. The company exited 2024 with a healthy €1.5bn liquidity position and was able to compress LTV to 33% (YE23: 37%). Positive market fundamentals for German resi remain intact and should drive further good operational performance in 2025. We maintain our Buy rating with a €14.4 TP (old: €15.4) after adjusting our WACC estimate for the recent jump in German bond yields.