Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • Grand City's net rental income increased 1% to €213 million in H1 2025, supported by 3.7% like-for-like rental growth.
  • Adjusted EBITDA rose 2% year-on-year to €169 million, with FFO I up 1% to €95 million.
  • Portfolio value increased 1.6% on a like-for-like basis, with net profit reaching €210 million compared to a loss in H1 2024.

Grand City Properties S.A. (GCP) has released its financial results for the first half of 2025, reporting higher rental income, increased adjusted EBITDA, and a positive portfolio revaluation, while maintaining a conservative balance sheet and strong liquidity.

Financial Performance

Net rental income in H1 2025 rose to €213 million from €212 million in the prior-year period, with like-for-like rental growth of 3.7% offsetting the impact of net disposals. Adjusted EBITDA increased 2% to €169 million, reflecting operational efficiency improvements. Funds from operations (FFO I) reached €95 million, up 1% year-on-year, while FFO I per share remained stable at €0.54, equivalent to an annualised yield of around 10%.

The company’s portfolio underwent a full external revaluation during the first half, resulting in capital gains of €154 million and a 1.6% like-for-like increase compared to December 2024. The rental yield remained stable at 4.9% as of June 2025. Net profit for the period was €210 million, with basic earnings per share of €0.92, reversing a €74 million net loss in H1 2024.

Portfolio Activity and Capital Recycling

During the first six months of the year, GCP completed disposals totalling €131 million, slightly above book value, and finalised acquisitions worth €60 million, primarily in London. As the acquisitions were completed towards the end of the reporting period, they are expected to contribute to rental income growth in future periods.

The company raised €55 million in net new bank financing and repaid its Series E bond of approximately €179 million during the period.

Financial Position

As of June 2025, GCP held €1.5 billion in cash and liquid assets, representing 34% of total debt and providing a coverage ratio of 2.6 times current liabilities. The loan-to-value (LTV) ratio was 32%, and the interest coverage ratio (ICR) stood at 5.4x. Unencumbered assets amounted to €6.3 billion, representing 70% of the total portfolio value. EPRA NTA rose 4% since December 2024 to €4.4 billion, or €25.2 per share.

Outlook

The company confirmed its full-year 2025 FFO I guidance, citing a well-positioned portfolio with strong rental growth potential, a solid liquidity position, and a conservative capital structure. GCP stated that the balance sheet profile leaves it well-placed to pursue further growth opportunities in line with its strategy.