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• Net Rental Income: EUR106 million, a 1% increase.

• Adjusted EBITDA: EUR85 million, a 3% increase.

• FFO (Funds From Operations): EUR48 million, a 6% increase.

• Liquidity: EUR1.7 billion.

• EPRA NTA: EUR4.3 billion, 24.6% per share.

• Vacancy Rate: 3.8%.

• Rental Growth: 3.8% total, 3.4% in Germany, over 5% in London.

• Net Profit: EUR88 million, compared to EUR44 million in Q1 2024.

• Earnings Per Share: EUR0.35.

• FFO-1 Per Share: EUR0.27, a 4% increase.

• FFO-2: EUR100 million, up from EUR46 million in Q1 2024.

• CapEx and Maintenance Investment: EUR6.4 per square meter.

• EPRA NAV Per Share: EUR28.1, a 1% increase.

• LTV Ratio: Reduced to 32% from 33% as of December 2024.

• Cost of Debt: Stable at 1.9%.

• Average Debt Maturity: Nearly 4.6 years, extended to 4.8 years post-reporting period.

• Warning! GuruFocus has detected 4 Warning Sign with GRNNF.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Grand City Properties SA (GRNNF) reported a 1% increase in net rental income to EUR106 million, reflecting strong rental growth momentum.

• Adjusted EBITDA rose by 3% to EUR85 million, supported by higher rental income and operational efficiency improvements.

• The company achieved a low vacancy rate of 3.8%, indicating strong demand and effective property management.

• Grand City Properties SA (GRNNF) maintained a strong liquidity position with EUR1.7 billion in liquid assets.

• The company successfully reduced its loan-to-value (LTV) ratio to 32%, demonstrating effective deleveraging efforts.

Negative Points

• Grand City Properties SA (GRNNF) decided not to distribute dividends for 2024, which may disappoint income-focused investors.

• S&P downgraded the company's credit rating to triple B with a stable outlook, reflecting heightened macroeconomic uncertainty.

• The macroeconomic environment remains uncertain, with potential impacts from geopolitical tensions and domestic fiscal changes.

• The company faces potential headwinds from increased volatility in capital markets, which could affect financing conditions.

• Despite strong operational performance, the company anticipates slightly higher finance expenses compared to 2024.

Q & A Highlights

Q: Could you provide your views on the current macroeconomic environment and geopolitical uncertainties and the impacts it may have on GCP? A: Christian Windfuhr, Executive Chairman of the Board, explained that while there is increased volatility and uncertainty, particularly from US tariffs and German government reforms, Grand City Properties (GCP) expects a positive long-term effect. The lack of new housing sector reforms means the demand-supply imbalance persists, but GCP's operational platform remains robust, with low cost of debt and high hedging ratios protecting against interest rate volatility.