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 24.50 to EUR 24.00.

Second quarter reporting was close to FBe and has Grand City tracking towards confirmed guidance. Headline figures outperformed the prior year comps and were led by a 5.4% Y/Y increase in net rent, which spurred a 5.1% Y/Y rise in FFOPS 1. Although operating costs are rising, so are rents (3.0% LFL). The company is also helping its renters brace for much higher energy bills this winter by encouraging pre-payments now, and management do not expect the energy-shock to compromise tenants‘ ability to meet rent obligations. We remain Buy-rated on GCP with a €24 target price after adjusting the share count for the scrip dividend shares (old: €24.5).