Grand City Properties S.A. (GCP) has announced its Q1 2025 results, showcasing robust operational and financial performance. Net rental income increased by 1% to €106 million, compared to €105 million in Q1 2024, driven by a strong like-for-like rental growth of 3.8%. This growth reflects sustained positive operational momentum through in-place rent increases, although it was partially offset by net disposals.

Adjusted EBITDA rose by 3% to €85 million, up from €82 million in Q1 2024, supported by increased operational efficiency. Funds From Operations I (FFO I) increased by 6% to €48 million in Q1 2025. FFO I per share amounted to €0.27, compared to €0.26 in the prior-year period. The company has confirmed its FFO I guidance for the full year 2025.

GCP maintains a conservative financial structure with a Loan-to-Value (LTV) ratio of 32% as of March 2025, compared to 33% as of December 2024. The company's liquidity position remains strong, with nearly €1.7 billion in cash and liquid assets, supported by €120 million in disposals and repayment of vendor loans. The average cost of debt is 1.9%, and the average debt maturity is 4.6 years.

In April 2025, Standard & Poor's lowered GCP's credit rating by one notch to BBB with a stable outlook, aligning with actions taken on Aroundtown. However, GCP's stand-alone credit profile (SACP) remains unchanged at bbb+. The company has decided not to recommend a dividend payment for 2024, focusing instead on strengthening its financial position and reducing leverage.

Refael Zamir, CEO of Grand City Properties, expressed satisfaction with the company's Q1 2025 results, highlighting the robust operational performance driven by solid like-for-like rental growth.

Grand City Properties specializes in residential real estate, focusing on value-add opportunities in densely populated areas, primarily in Germany and London. The company's strategy involves improving properties through repositioning and intensive tenant management to increase occupancy and rental levels.