First Berlin Research Reaffirms Buy Rating for Grand City Properties

First Berlin Equity Research has released a new update on Grand City Properties S.A. Analyst Ellis Acklin continues to recommend a BUY rating, maintaining the target price at €14.80. The second-quarter report highlights stable operational performance, with a notable shift in capital allocation. Like-for-like rental growth stood at 3.3% and vacancy rates are decreasing, with positive valuations supporting the outlook.

Grand City Properties is reallocating capital into higher-yield assets, enhancing returns without significantly impacting financial capacities. Financing costs remain a concern but not on the operational side. The focus now is on whether this strategy can boost FFOPS growth and reduce the gap between market valuation and the intrinsic company value. There is a 55% upside potential based on the unchanged price target.