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 12.60 to EUR 12.50.

Abstract
LFL rental growth of 3.3% led good operational performance in 2023, and management expect this to continue this year and guide ~3% for the KPI with new build falling further behind targets combined with high occupancy rates of German resi. Meanwhile elevated interest rates continue to gate acceptable refinancing options and property transactions. As anticipated, FFO 1 took another hit in Q4 (-10%) due to higher financing costs and perpetual note attribution. Cash and liquid assets tallied €1.2bn and now cover debt maturities until YE26. The landlord looks well positioned to handle the still challenging property sector. We remain Buy-rated on GCP with a €12.5 target price (old: €12.6).