In This Article:
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Net Rental Income: 423 million, an increase of 3%.
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Adjusted EBITDA: 335 million, up by 5%.
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FFO: 188 million, reflecting a growth of 2%.
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Net Profit: 242 million, compared to a loss of 638 million in 2023.
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Cash and Liquid Assets: 1.5 billion, a 23% increase from 1.2 billion in 2023.
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Total Equity: Increased by 4%.
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Loan to Value (LTV) Ratio: Decreased to 33% from 37% in 2023.
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Net Debt to EBITDA: Reduced to 8.7x from 10x in the previous year.
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Interest Coverage Ratio (ICR): 5.7x.
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Cost of Debt: Stable at 1.9%.
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Unencumbered Assets: 6.4 billion, representing 73% of the portfolio.
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Annualized Net Rental Income: 413 million, up from 406 million in 2023.
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Like-for-Like Rental Growth: 3.8%.
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Vacancy Rate: 3.8%, unchanged from the previous year.
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Portfolio Value: 8.6 billion, with a positive revaluation of 0.5% for 2024.
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Rental Yield: Increased to 4.9% from 4.8% in 2023.
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Disposals: 350 million signed, 270 million completed in 2024.
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In-Place Rent: 9.2 per square meter, a 7% increase from 8.6 in 2023.
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EPRA NTA: 4.3 billion, a 7% increase.
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EPRA NTA Per Share: 24.3, a 5% increase.
Release Date: March 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Grand City Properties SA (GRNNF) reported a net profit of 242 million in 2024, a significant turnaround from a loss of 638 million in 2023.
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Net rental income increased by 3% to 423 million, driven by strong like-for-like rental growth.
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The company achieved a positive revaluation of its property portfolio by 0.5% for the full year 2024, indicating a recovery in property values.
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Operational efficiencies led to a 5% increase in adjusted EBITDA, amounting to 335 million.
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The company's liquidity position improved, with cash and liquid assets increasing by 23% to 1.5 billion.
Negative Points
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The vacancy rate slightly increased to 3.9% during the year, although it eventually settled at 3.8%.
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The company's credit rating outlook remains negative, despite improvements in rating metrics.
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Finance expenses increased slightly due to higher perpetual note coupons and net debt raised at higher rates.
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The company has not yet decided on dividend distribution, pending further market developments.
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Despite improvements, the company remains cautious about potential regulatory changes in Germany post-elections.
Q & A Highlights
Q: Could you give an update on the market and operating conditions in your portfolio locations? How do you see these dynamics going forward? A: Operating conditions remain strongly positive, driven by long-term structural factors like urbanization and net migration, leading to a significant supply-demand gap. Demand is high due to urbanization and smaller household sizes, while supply is constrained by high construction costs and regulatory hurdles. This supports sustainable rent growth and low vacancy rates, particularly in Germany and London, where softer rent regulations allow for faster market rent increases.