Increased Net Rental Income And Revised Guidance

Grand City Properties SA Announces H1 2024 Results with Increased Guidance

Increased Net Rental Income and Revised Guidance

Grand City Properties SA (GCP) has released its financial results for the first half of 2024, showing a rise in net rental income and an upward revision of its full-year guidance.

The company reported a net rental income of €212 million in H1 2024, a 3% increase over the €204 million recorded in H1 2023. This growth is attributed to the continued strength of the commercial real estate market in Europe.

Based on its positive performance, GCP has increased its FY 2024 guidance. The company now expects net rental income to be in the range of €430-440 million, compared to the previous estimate of €420-430 million.

Disposals and Investment Activity

In H1 2024, GCP completed asset disposals worth €160 million at a 2% discount. These disposals are part of the company's ongoing portfolio optimization strategy.

GCP also remained active in the investment market, signing over €220 million of disposals year-to-date in 2024. The company is focused on acquiring high-quality assets in key European markets.

Dividend Suspension

Given the current economic uncertainties, GCP has suspended its dividend payout for 2023. The company believes this decision is prudent and will allow it to maintain a strong financial position.

Conclusion

Grand City Properties SA's H1 2024 results reflect the resilience of the company's business model and its ability to generate strong cash flow. The increased guidance and ongoing investment activity demonstrate GCP's confidence in the future growth prospects of the European commercial real estate market.