Grand City Properties (GYC) Q4 2025 earnings summary

Executive summary

• Net profit surged 143% year-over-year to €588 million, driven by strong operational performance, positive property revaluations, and a one-off deferred tax income.

• Net rental income and adjusted EBITDA both increased by 1% year-over-year, reaching €429 million and €340 million, respectively, supported by 3.5% like-for-like rental growth and a historic low vacancy rate of 3.6%.

• Portfolio repositioning included €340 million of disposals at book value and €300 million of high-quality acquisitions, mainly in London and Germany, supporting capital recycling and external growth.

• Successfully executed a €600 million perpetual note transaction, reducing average coupon and strengthening the balance sheet.

• S&P reaffirmed BBB credit rating with a stable outlook in December 2025.

Financial highlights

• Net rental income reached €429 million (+1% YoY); adjusted EBITDA increased to €340 million (+1% YoY); net profit was €588 million (+143% YoY).

• FFO I stable at €188 million (€1.06 per share, -2% YoY); FFO II rose to €351 million from €205 million.

• Basic EPS increased to €2.67 from €1.14 in 2024 (+134% YoY).

• EPRA NAV per share increased by 4% to €28.9; EPRA NTA per share up 5% to €25.6; total equity up 10% to €5,938 million.

• Cash and liquid assets increased 7% to €1,623 million, representing 37% of total debt.

Outlook and guidance

• For 2026, expects like-for-like rental growth of 3.5% and FFO I in the range of €175–185 million (€0.99–1.05 per share); dividend per share: €0.74–0.79.

• Anticipates a low single-digit increase in adjusted EBITDA, with higher net financing expenses due to perpetual note refinancing.

• Maintains a strong balance sheet target with LTV below 45%.