Grand City Properties S.A. Delivers Solid FY 2023 Results With Operational Growth and Financial Stability

Grand City Properties S.A. revealed its financial year 2023 results, showcasing a sustained operational performance and a strong financial position. Achieving the top range of its fiscal year 2023 guidance, the company reported a net rental income of €411 million, a 4% increase compared to €396 million in the previous year. This growth was driven by a solid like-for-like rental growth of 3.3%, including an in-place rent increase of 3.1% and an occupancy increase of 0.2%. Notably, the company achieved a historic low vacancy rate of 3.8% as of December 2023.

Adjusted EBITDA for FY 2023 was €320 million, a 4% rise from €308 million in FY 2022. However, the FFO I saw a 4% decrease to €184 million in 2023, attributed mainly to higher financing costs and perpetual notes attribution. Despite a full year negative property revaluation of -9%, mainly due to higher discount and cap rates, the company's financial position remained robust. Its loan-to-value (LTV) ratio stood stable at 37%, and the company increased its liquidity position by €800 million to €1.2 billion, covering debt maturities until the end of 2026.

In response to the current macro-economic climate, Grand City Properties S.A. has opted not to distribute a dividend for 2023, prioritizing a conservative approach to capital and liquidity management.