Grand City Properties (GYC) Q1 2026 earnings summary

Executive summary

• Net rental income rose 2% year-over-year to €109 million, driven by 3.5% like-for-like rental growth and stable vacancy at 3.6%.

• Adjusted EBITDA increased 1% to €86 million, while net profit declined 52% to €42 million due to the absence of property revaluation gains.

• FFO I declined 4% to €46 million due to higher finance expenses and perpetual note attribution.

• Dividend reinstated at €0.30 per share for 2025 after three years, with a new policy of 50% of FFO I per share from 2026 onward.

• Portfolio comprised 59,756–60,000 units, focused on Berlin, NRW, Dresden/Leipzig/Halle, and London.

Financial highlights

• Revenue for Q1 2026 was €154 million, up from €151 million in Q1 2025.

• EPS dropped 51% to €0.17, reflecting lower net profit.

• EPRA NTA per share remained stable at €25.7.

• Net debt/EBITDA at 8.3x, LTV at 32%, and EPRA LTV at 44%.

• Cash and liquid assets at €1.6 billion, representing 36% of total debt, with a cost of debt at 2.1% and average debt maturity of 4.0 years.

Outlook and guidance

• FY 2026 FFO I guidance confirmed at €175–185 million, FFO I per share €0.99–€1.05, and dividend per share €0.50–€0.53.

• Like-for-like net rent growth expected at 3.5%, with LTV to remain below 45%.

• Dividend policy adjusted to 50% of FFO I per share for 2026 onward.

• No further perpetual note reset dates until 2031 after recent refinancing.

• Higher perpetual note coupon expenses and net finance costs expected to be partially offset by operational growth and efficiency.