Grand City Properties SA First Half 2025 Earnings Call Transcript

Grand City Properties SA held a half-year earnings call for 2025, with Chairman and director Christian Winthrop, CEO Rafael Zamir, and CFO Michael Bao participating. The call was focused on the company's financial performance for the first half of the year. Participants were in listen-only mode, but were encouraged to ask questions via email.

Grand City Properties S.A. (ETR: GYC) reported its first half-year (H1) 2025 results, showcasing a robust financial performance. The German property company reported a 1% year-over-year increase in funds from operations (FFO I) to €95 million, with per-share FFO remaining flat at €0.54 [1].

The company confirmed its full-year 2025 guidance, projecting FFO I between €185 million and €195 million, or €1.05-€1.11 per share, representing a broadly flat outlook at the midpoint [1]. Like-for-like net rental income growth remained robust at 3.7% year-over-year, compared to 3.8% in the first quarter and 4.4% for full-year 2024 [1]. This performance compares favorably with German peers, outpacing TAG Immobilien’s 2.9% growth while trailing Vonovia’s 4.4% and exceeding LEG’s 3.2% [1].

Grand City maintained a stable vacancy rate of 3.7%, slightly improved from 3.8% in December 2024 [1]. During the first half, the company completed €131 million in property disposals at book value and acquired €60 million worth of properties in London [1]. The company reported a positive like-for-like property revaluation of 1.6% in the first half, up from 0.6% in the first quarter [1]. This revaluation rate exceeded Vonovia’s 1.1% and was comparable to TAG’s 1.4% in Germany and LEG’s 1.2% [1]. The rental yield remained steady at 4.9% [1].

EPRA Net Tangible Assets (NTA) per share increased 3.7% year-to-date to €25.2, representing a 10.5% rise year-over-year [1]. The loan-to-value (LTV) ratio decreased by 100 basis points compared to December 2024, reaching 32% [1]. The EPRA LTV, which includes perpetual notes as debt, stood at 44% at the end of June, down 200 basis points year-to-date [1]. The company’s net debt to EBITDA ratio improved to 8.4x from 8.7x at the end of December 2024, while the interest coverage ratio slightly decreased to 5.4x from 5.7x [1]. The cost of debt remained stable at 1.9%, with an average debt maturity of 4.5 years and a hedge ratio of 95% [1].

References:
[1] https://www.investing.com/news/stock-market-news/grand-city-properties-reports-solid-h1-results-confirms-2025-outlook-93CH-4187176