Grand City Properties (GYC) Q4 2024 earnings summary

Executive summary

• 2024 marked a pivotal year with strong operational growth, surpassing expectations and guidance, driven by like-for-like rental growth of 3.8%, low vacancy, and improved property valuations.

• Net rental income rose 3% to €423 million, and adjusted EBITDA increased 5% to €335 million year-over-year.

• Net profit reached €242 million, reversing a €638 million loss in 2023, supported by operational gains and positive revaluation.

• Disposals of non-core assets strengthened the balance sheet, with €350 million signed and €270 million completed in 2024, mostly at or near book value.

• S&P reaffirmed investment grade rating (BBB+), though outlook remains negative and dividend decision is key for rating stability.

Financial highlights

• Net rental income: €423 million (+3%); adjusted EBITDA: €335 million (+5%); FFO I: €188 million (+2%, €1.08/share).

• Profit for the year: €242 million (vs. €-638 million in 2023); positive property revaluations of €44 million.

• Cash and liquid assets: €1.5 billion (+23%); net debt reduced to €2.9 billion (from €3.2 billion); total equity up 4%.

• EPRA NTA: €4.3 billion (€24.3/share, +7%); EPRA LTV: 46% (down from 48%).

• LTV reduced to 33% (from 37%); net debt/EBITDA improved to 8.7x; ICR at 5.7x; cost of debt stable at 1.9%.

Outlook and guidance

• FY 2025 FFO I guidance: €185–195 million; FFO I per share: €1.05–€1.11.

• Dividend per share expected at €0.78–€0.83, targeting 75% of FFO I/share, subject to AGM approval.

• Like-for-like net rent growth expected at ~3.5%; LTV to remain below 45%; focus on maintaining a strong balance sheet.

• Low single-digit adjusted EBITDA increase anticipated, with operational growth offsetting disposal impacts.

• Company positioned for accretive growth opportunities, supported by strengthened balance sheet.