DJ Grand City Properties S.A. announces H1 2026 results with robust operations confirming FY 2026 guidance
Grand City Properties S.A. (N/A)
Grand City Properties S.A. announces H1 2026 results with robust operations confirming FY 2026 guidance
12-Aug-2026 / 06:56 CET/CEST
The issuer is solely responsible for the content of this announcement.
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THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED
STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF
APPLICABLE LAWS OR REGULATIONS
GRAND CITY PROPERTIES S.A. ANNOUNCES H1 2026 RESULTS WITH ROBUST OPERATIONS CONFIRMING FY 2026 GUIDANCE
-- Net rental income increased by 3% year-on-year to EUR219 million in H1 2026, compared with EUR213 million in
H1 2025, supported by portfolio-wide rental growth.
-- Like-for-like rental growth remained solid at 3.3% as of June 2026, while vacancy remained low at 3.7%.
-- Adjusted EBITDA increased by 3% to EUR174 million, compared with EUR169 million in the prior-year period.
-- FFO I amounted to EUR91 million, a decrease of 4% compared with EUR95 million in H1 2025. FFO I per share
amounted to EUR0.52, compared with EUR0.54 in the prior-year period.
-- The Company completed a full external revaluation in H1 2026 which resulted in a like-for-like value
increase of 0.2% excluding capex and 0.6% including capex.
-- Net profit amounted to EUR129 million, with basic earnings per share of EUR0.49, compared with EUR210 million
and EUR0.92 in H1 2025, with the year-on-year movement primarily reflecting the lower revaluation contribution.
-- The Company maintained a robust liquidity position of EUR1.4 billion in cash and liquid assets as of June
2026, representing 31% of total debt.
-- The Company maintained a conservative balance sheet, with an LTV of 33%, an interest coverage ratio of
4.7x, and EUR6.6 billion of unencumbered assets, which represent 71% of portfolio value.
-- EPRA NTA amounted to EUR4.6 billion, or EUR25.8 per share, as of June 2026, increasing from EUR25.6 per share
at December 2025.
-- In H1 2026, GCP refinanced its full perpetual notes stack, issuing EUR600 million perpetual notes at a
5.25% coupon, resulting in no further reset dates before 2031.
-- Reinstatement of dividend of EUR0.30 per share for 2025 was approved at the Annual General Meeting on 24
June 2026 and paid after the reporting period, on 6 July 2026.
Luxembourg, August 12, 2026 - Grand City Properties S.A. ("GCP" or the "Company") announces its results for the first
half of 2026. Net rental income increased by 3% year-on-year to EUR219 million, driven by sustained like-for-like rental
growth of 3.3%, which more than offset the impact of net disposals completed in H1 2026. Adjusted EBITDA increased by
3% to EUR174 million, as higher rental income was achieved against a broadly stable net operating cost. FFO I amounted to
EUR91 million, a decrease of 4% year-on-year, primarily as a result of higher finance expenses, a higher perpetual notes
attribution and increased minority contributions. On a per-share basis, FFO I amounted to EUR0.52 compared to EUR0.54 in
the prior-year period. Following a full external revaluation conducted in the first half, GCP recorded a property
revaluation and capital gains result of EUR56 million. On a like-for-like basis, values increased by 0.2% excluding capex
and by 0.6% including capex. Net profit amounted to EUR129 million, compared with EUR210 million in the prior-year period,
with the decrease primarily attributable to the lower revaluation result and higher finance expenses, partially offset
by the portfolio's continued operational performance. Basic earnings per share amounted to EUR0.49.
The Company maintained a disciplined approach to capital recycling during the period. Disposals of EUR31 million,
comprising mainly condominiums and properties in non-core locations, were completed at a 13% premium to book value and
a 34% margin over total cost including capex. In parallel, GCP closed EUR75 million of residential acquisitions in
Germany at an average multiple of 14x and completed part of a new-build acquisition in London for over EUR50 million,
with the remaining approximately EUR50 million completed after the reporting period.
The Company's financial position remained solid. Cash and liquid assets of EUR1.4 billion as of June 2026 represented 31%
of total debt, and the conservative profile was reflected in an LTV of 33%, higher than the 31% recorded at December
2025 as a result of acquisitions and investments during the period, partially offset by positive revaluations and
operational cash flow. The Company's interest cover remained strong at 4.7x, and unencumbered assets amounted to EUR6.6
billion, representing 71% of portfolio value. The average cost of debt was 2.1%, with a hedge ratio of 95% and an
average debt maturity of 3.8 years, extending to 5.2 years excluding debt covered by cash and liquid assets.
In H1 2026, the Company refinanced its remaining 2026 perpetual notes in full, issuing EUR600 million of new perpetual
notes at a 5.25% coupon and concurrently redeeming EUR603 million of notes bearing a 1.5% coupon. Following the
transaction, GCP has no further perpetual notes reset dates until 2031. Reflecting the Company's sound financial
position and stable operating results, a dividend of EUR0.30 per share for the 2025 financial year was approved at the
Annual General Meeting on 24 June 2026 and paid on 6 July 2026, amounting to approximately EUR53 million gross. The
dividend policy has been set at 50% of FFO I from financial year 2026, providing shareholders with an attractive yield
while maintaining headroom to fund growth opportunities.
Refael Zamir, CEO of Grand City Properties: "We are pleased to report a solid first half of 2026. Having refinanced our
perpetual notes in full and resumed our dividend, we enter the second half on a strong financial footing, while keeping
the conservative approach that continues to serve us well as we continue executing our accretive capital recycling
strategy of selling lower yielding properties and buying higher yielding ones at a higher quality which will drive
rental income."
Financial Statements for H1 2026 are available on the Company's website: https://www.grandcityproperties.com/
investor-relations/publications/financial-reports/
For definitions of the alternative performance measures please see the relevant section in pages 32-36 of the financial
statements for H1 2026, which you can find on the website under investor relations > publications > financial reports
or follow this link:
https://www.grandcityproperties.com/grandcityproperties.com/Data_Objects/Downloads/Financial_Reports/H1_2026_Financials
/GCP_Q2_2026.pdf
About the Company
The Company is a specialist in residential real estate, value-add opportunities in densely populated areas primarily in
Germany and London. The Company's strategy is to improve its properties by repositioning and intensive tenant
management, and then create value by subsequently raising occupancy and rental levels. Further information:
www.grandcityproperties.com
Grand City Properties S.A. (ISIN: LU0775917882) is a public limited liability company (société anonyme) incorporated
under the laws of the Grand Duchy of Luxembourg, having its registered office at 37, Boulevard Joseph II, L-1840
Luxembourg, Grand Duchy of Luxembourg and being registered with the Luxembourg trade and companies register (Registre
de Commerce et des Sociétés Luxembourg) under number B 165 560. The shares of the Company are listed on the Prime
Standard segment of Frankfurt Stock Exchange.
Contact:
Grand City Properties S.A.
37, Boulevard Joseph II,
L-1840 Luxembourg
T: +352 28 77 87 86
E: info@grandcity.lu
www.grandcityproperties.com
Investor Relations Team:
Grand City Properties S.A.
E: gcp-ir@grandcity.lu
DISCLAIMER:
THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT
REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFERING OF THE
SECURITIES IN THE UNITED STATES.
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