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Highlights
- Rental Income Growth: Net rental income rose by 3% to €317 million.
- Stable Earnings Per Share: FFO I maintained at €141 million, or €0.82 per share.
- Leverage Reduction Efforts: LTV ratio stable at 36% as of September 2024
Grand City Properties S.A. (LSE:GCP) has released its financial results for the first nine months of 2024, aligning closely with its full-year guidance. The company reported robust operational growth, driving a 3% increase in net rental income to €317 million. This boost was primarily due to a like-for-like rental growth of 3.5%, supported by efficient cost management and strategic asset disposals. Adjusted EBITDA climbed 5% year-over-year, reaching €250 million, as operational efficiencies offset rising financing costs.
Despite higher expenses associated with perpetual notes and finance, GCP’s core earnings remained stable. The Funds From Operations I (FFO I) remained unchanged year-over-year at €141 million, translating to €0.82 per share. For the full fiscal year 2024, GCP reaffirmed its FFO I guidance range of €180 to €190 million.
GCP’s proactive approach to balance sheet management also featured prominently in its recent financial activities. The company opted not to revalue its portfolio during Q3, having completed a full revaluation as part of its H1 2024 results. The next portfolio assessment is scheduled with the full-year 2024 results. In line with its strategic goals, GCP continued to reduce leverage, maintaining a stable Loan-to-Value (LTV) ratio of 36% as of September 2024, a slight improvement from 37% at the end of 2023.
Over the nine-month period, GCP made property disposals worth approximately €230 million, with around €170 million of these transactions closed at values close to book price. A further €100 million in property disposals has been signed and is expected to close in the coming months. These efforts are part of GCP’s conservative financial strategy, which includes liability management actions such as bond buybacks and new issuances. During the period, GCP repurchased €240 million in bonds at a discount, repaid €270 million in maturing bonds, and issued €500 million in senior unsecured bonds to support long-term financial stability.
As of September 2024, the company’s debt costs remain at a low average of 2.1%, with an average maturity period of 5.1 years. Its liquidity position is strong, with €1.5 billion in cash and liquid assets, allowing GCP to continue its operations with flexibility and resilience amid economic pressures.
