Grand City Properties (GYC) investor relations material

Executive summary

• Net rental income rose 3% year-over-year to €219 million in H1 2026, driven by 3.3% like-for-like rental growth, strong operational performance, and low vacancy of 3.7%.

• Adjusted EBITDA increased 3% to €174 million, maintaining a high margin, while FFO I declined 4% to €91 million due to higher finance expenses and perpetual notes attribution.

• Net profit was €129 million, down 39% from H1 2025, mainly due to lower property revaluation gains and higher finance costs.

• Portfolio expanded to 61,189 units and €9.2 billion in value, with selective acquisitions in Germany and London and disposals of non-core assets.

• Portfolio locations in Germany and London benefit from robust demand and constrained supply, supporting rental growth and portfolio resilience.

Financial highlights

• Net rental income: €219 million (+3% YoY); Adjusted EBITDA: €174 million (+3% YoY); Net profit: €129 million (–39% YoY).

• FFO I: €91 million (–4% YoY); FFO I per share: €0.52 (–4% YoY); EPS: €0.49 (–47% YoY).

• EPRA NTA per share increased 1% to €25.8; EPRA NRV per share up 1% to €29.2.

• Annualized net rent reached €442 million, with estimated market rental value at €530 million, indicating 20% upside.

• Cash and liquid assets at €1.4 billion; 71% of portfolio unencumbered.

Outlook and guidance

• FY 2026 FFO I guidance confirmed at €175–185 million, with FFO I per share expected at €0.99–1.05.

• Like-for-like rental growth guidance for 2026 is around 3.5%.

• Dividend policy updated to 50% of FFO I per share, with expected dividend of €0.50–0.53.

• LTV targeted to remain below 45%.

• Management expects operational growth and efficiency gains to offset higher finance expenses.