Grand City Properties (GYC) Q2 2025 earnings summary

Executive summary

• Net profit reached €210 million in H1 2025, reversing a €74 million loss in H1 2024, driven by positive property revaluations, operational improvements, and rental growth.

• Net rental income rose 1% to €213 million, supported by like-for-like rental growth of 3.7% and acquisitions, partially offset by disposals.

• Portfolio repositioning included €60 million in acquisitions (mainly London) and €131 million in disposals at or above book value, focusing on capital recycling and growth.

• Vacancy rate reached a historic low of 3.7%, with strong rental growth in Germany (3.5%) and London (4.7%).

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

Financial highlights

• Adjusted EBITDA increased 2% to €169 million; FFO I up 1% to €95 million; FFO I per share stable at €0.54.

• EPS was €0.92 (vs. -€0.38 in H1 2024), reflecting profit turnaround from revaluations.

• EPRA NTA per share increased 4% to €25.2; EPRA NRV per share up 3% to €28.7.

• Cash and liquid assets at €1.5 billion, representing 34% of total debt.

• Loan-to-value ratio improved to 32% (from 33% in Dec 2024); EPRA LTV at 44% (from 46%).

Outlook and guidance

• FY 2025 FFO I guidance reaffirmed at €185–195 million; FFO I per share €1.05–1.11; like-for-like rental growth ~3.5%.

• Dividend per share expected at €0.78–€0.83, subject to market conditions and AGM approval.

• Acquisitions in H1 2025 will have full-year impact in 2026.

• Operational growth and efficiency gains to offset disposal impacts; higher finance expenses anticipated.

• Company maintains a conservative financial profile, with significant liquidity and headroom for future opportunities.