Grand City Properties S.A. Sees Positive Q3 Results and Target Price Increase

First Berlin Equity Research has issued a research update on Grand City Properties S.A. The report, authored by analyst Ellis Acklin, maintains a BUY recommendation and raises the target price from €15.10 to €15.40. This revision follows a strong Q3 performance highlighting a 3.5% like-for-like rental growth and other operational gains, compensating for the increased costs of perpetual notes, maintaining FFO 1 at €141 million, matching last year's performance.

Management's outlook has improved since the end of 2023, with a focus shifting towards capitalizing on favorable market conditions rather than previous leverage and balance sheet challenges. Moving forward, management expects FFO 1 towards the upper range of €180 million to €190 million, prompting First Berlin to adjust estimates in line with this guidance while reiterating their BUY rating.