Grand City Properties (GYC) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw improved operational performance, with net rental income up 1% year-over-year to €106.2 million, driven by 3.8% like-for-like rental growth and stable 3.8% vacancy rates.

• Profit for the period more than doubled to €88.3 million, supported by €55 million in property revaluations and higher operational profits.

• The company maintained a disciplined, long-term approach, reducing leverage and deciding not to distribute a dividend for 2024 to preserve financial flexibility.

• Portfolio fundamentals remain robust, supported by demographic trends, urbanization, and a persistent supply-demand imbalance in key metropolitan areas.

• Portfolio consists of 61,000 units in densely populated German cities and London, with strong geographic and tenant diversification.

Financial highlights

• Net rental income: €106.2 million (+1% YoY); adjusted EBITDA: €85 million (+3% YoY); FFO I: €48.2 million (+6% YoY); FFO II: €100 million; AFFO: €29 million.

• Net profit doubled to €88.3 million from €43.7 million in Q1 2024, driven by operational performance and positive property revaluation.

• EPRA NTA increased to €4.3 billion (€24.6 per share), and liquidity rose to €1.7 billion.

• Basic and diluted EPS doubled to €0.35 from €0.17 year-over-year.

• Revenue increased to €151 million from €149 million year-over-year.

Outlook and guidance

• 2025 guidance confirmed: FFO I between €185–195 million, FFO I per share €1.05–1.11, and like-for-like rental growth around 3.5%.

• No significant acquisitions expected in 2025; disposals to be lower than 2024, with a focus on capital recycling.

• Dividend distribution expected to resume next year, maintaining a 75% payout policy, subject to market conditions and AGM approval.

• Higher net finance expenses anticipated due to lower interest income; perpetual notes expenses stable.

• Management expects continued solid rental growth, supported by strong urban demand and value-add strategies.