Grand City Properties affirms 2026 outlook after strong H1

Grand City Properties SE on Monday affirmed its 2026 financial outlook following a 1.4% rise in first-half profit, driven by higher rental income and lower financing costs.

The Berlin-based real estate group reported a net profit of €127.5 million for the six months ended June 30, up from €125.8 million a year earlier. Revenue increased 3.2% to €421.3 million, supported by a 4.1% increase in rental income and stable occupancy rates above 95%.

Management highlighted a 15 basis point reduction in its average borrowing costs to 3.2%, contributing to the improved margin. The company also noted progress in its asset-light expansion strategy, with investments in property upgrades and energy efficiency measures.

Chief Executive Officer (CEO) René Benko reiterated the company’s commitment to its 2026 targets, including a dividend payout ratio of at least 60% of recurring funds from operations (FFO). The group maintained its guidance for FFO per share growth of 3-5% annually through 2026.

Grand City Properties, which focuses on mid-market residential properties in Germany, has a portfolio of around 60,000 units. The company’s shares, listed on the Frankfurt Stock Exchange under the ticker GCP, were up 1.8% in morning trading on Monday.

The reaffirmation of guidance underscores the group’s confidence in its operational performance despite broader macroeconomic headwinds, including elevated interest rates and regulatory pressures on rental markets.