Grand City Properties S.A.
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About the company
Grand City Properties S. A. is a Luxembourg-headquartered company primarily focused on the residential property sector, with operations extending across Germany, the United Kingdom, and other international markets.
- CEO
- Refael Zamir
- IPO
- 2018
- Employees
- 614
- HQ
- Luxembourg City, LU, LU
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- Market Cap
- $1.95B
- P/E
- 4.13
- PEG
- -0.50
- P/S
- 2.19
- P/B
- 0.40
- EV/EBITDA
- 12.53
- Div Yield
- 3.25%
- Gross Margin
- 63.31%
- Op Margin
- 62.63%
- Net Margin
- 61.69%
- ROE
- 11.29%
- ROIC
- 4.01%
Latest fiscal year · YoY change
- Revenue
- $428.75M+1.4%
- Gross Profit
- $174.75M+3.4%
- Op Income
- $602.72M
- Net Income
- $511.88M+114.2%
- EPS
- $2.66+133.3%
- OCF Growth
- -1.4%
- FCF Growth
- -1.4%
- 52W High
- $13.23
- 52W Low
- $10.35
- 50D MA
- $12.50
- 200D MA
- $13.05
- Beta
- 0.97
- RSI (14)
- 5
- Avg Volume
- 6
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Grand City Properties delivered solid H1 2026 operating growth, kept leverage conservative, and reaffirmed full-year guidance despite a more volatile geopolitical and financing backdrop.· August 12, 2026
- Net rental income rose 3% to EUR 219 million and adjusted EBITDA rose 3% to EUR 174 million in H1 2026.
- FFO I was EUR 91 million, or EUR 0.52 per share, in line with full-year expectations; full-year FFO I guidance was reaffirmed at EUR 175 million to EUR 185 million.
- Like-for-like rental growth was 3.3%, vacancy stayed low at 3.7%, and management expects around 3.5% like-for-like growth for 2026.
- The portfolio revaluation was slightly positive, with 0.2% like-for-like value growth net of CapEx and 0.6% including CapEx.
- The company refinanced its perpetual notes stack, now with next call dates only in 2031, and updated its dividend policy to 50% of FFO I per share.
H1 2026 net rental income was EUR 219 million, up 3% year over year, and adjusted EBITDA was EUR 174 million, also up 3%. FFO I came in at EUR 91 million versus EUR 95 million a year ago, or EUR 0.52 per share versus EUR 0.54. Basic EPS was EUR 0.49 versus EUR 0.92 in H1 2025, and profit was EUR 129 million versus EUR 210 million. The portfolio saw a 0.2% positive like-for-like revaluation net of CapEx and 0.6% including CapEx; EPRA NTA was EUR 4.6 billion, or EUR 25.8 per share. LTV was 33% versus 31% at year-end 2025, net debt-to-EBITDA was 8.7x, interest cover was 4.7x, cash and liquid assets were EUR 1.4 billion, and the cost of debt was 2.1%. For 2026, management reaffirmed guidance for like-for-like rental growth of around 3.5%, FFO I of EUR 175 million to EUR 185 million, FFO I per share of EUR 0.99 to EUR 1.05, and a dividend of EUR 0.50 to EUR 0.53.
Christian Windfuhr emphasized that the operating backdrop remains supportive, with structurally constrained housing supply in Germany and strong rental demand in both Germany and London. He said the company sees no material impact from geopolitical volatility on operations and that capital markets remain open, while the fully refinanced perpetual note stack reduces near-term market risk. His tone was confident and defensive: focus on balance-sheet strength, steady rental growth, and preserving flexibility for growth and downside protection.
Idan Hadad highlighted that H1 net rental income increased to EUR 219 million and adjusted EBITDA to EUR 174 million, while finance expenses rose to EUR 37 million due to the full-period effect of debt raised earlier. He said the company recorded EUR 56 million of property revaluations and capital gains, maintained LTV at 33%, kept EUR 1.4 billion of cash and liquid assets, and held leverage metrics at 8.7x net debt-to-EBITDA and 4.7x interest cover. He also noted the May perpetual notes refinancing: EUR 600 million issued at a 5.25% coupon and EUR 603 million redeemed at 1.5%, and said the new dividend policy is 50% of FFO I per share.
Analysts focused on the rental growth trajectory, valuation outlook, leverage, acquisitions/disposals, Aroundtown’s stake, and refinancing liquidity. Management said the 3.3% like-for-like rental growth was driven by 2.1% re-letting and 1.2% indexation, and that they expect steady progress toward around 3.5% for 2026. On valuation, they said yields were broadly stable and any near-term transaction slowdown was tied to market volatility, while on liquidity they said EUR 1.4 billion of cash plus unencumbered assets gives room to refinance opportunistically rather than under pressure. They also confirmed Aroundtown increased its stake from 81.5% to 83% through market purchases, and said the leverage increase to 33% mainly reflected acquisitions and investments.
The call showed continued operating momentum: rental growth stayed above 3%, vacancy remained low, and management sees this supporting further organic value growth. The balance sheet looked solid with EUR 1.4 billion of cash, 71% of the portfolio unencumbered, and perpetual notes pushed out to a 2031 next call date, which should reduce near-term financing risk.
FFO I declined year over year despite higher EBITDA because of higher perpetual note attribution, finance costs, and minority contributions, showing that funding costs are still weighing on earnings. Management also acknowledged that transaction volumes slowed in recent months due to market volatility, and leverage ticked up to 33% because of acquisitions and investments, even if still conservative.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 31.0%
- Shares Outstanding
- 176.13M
- Float Shares
- 54.60M
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