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 12.80 to EUR 12.60.

Abstract
LFL rental growth of 3.1% led good operational performance in Q3. Management bumped up their LFL guide to ~3.0% (old: >2.0%), while hinting that 2024 could see similar growth shaped by the steadfast low supply and high occupancy rates of German resi. As anticipated, FFO 1 took a small hit in Q3 (-1.3%) due to higher financing costs and perpetual note attribution. Cash and liquid assets tallied €1.1bn and cover debt maturities until Q2/26. Property stocks and GCP shares (+8%) caught a bid Tuesday on America’s new inflation data showing that real estate investors are still laser focused on interest rate expectations. We remain Buy-rated on GCP with a €12.6 target price (old: €12.8).