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
Q2 operations were characteristically steady, but the capital allocation story is beginning to move. LFL rental growth (+3.3%) remains metronomic, vacancies look largely tapped out, and valuations remain positive. More importantly, GCP is starting to recycle capital more actively into higher-yielding assets without materially compromising financial headroom. The remaining near-term drag is financing related rather than operational. In our view, the next proof point is whether this more active deployment can translate the sturdy operating platform into renewed FFOPS growth and narrow the still considerable gap between market valuation and underlying company value. We remain Buy-rated on GCP with a €14.8 TP (55% upside).