EL7.AI
StocksMediumUpdated×2•Originally published 11 November 2026•Updated 11 November 2026•
3 min read

Grand City Raises 2026 Funds From Operations Forecast to 195 Million Euros

Key Facts

1Grand City raised its 2026 FFO I forecast to 185–195 million euros from 175–185 million.
2Net rental income reached 331 million euros in the first nine months of 2026, up 4% from 320 million.
3Adjusted EBITDA reached 265 million euros, up 4% from 253 million.
4The loan-to-value ratio fell to 34% in September from 31% in December 2025; interest coverage was 4.7 times.
5Management expected the full-year impact of the LEG stake to appear in 2027 and said 2027 guidance would be issued with the 2026 full-year results.

Grand City Properties on November 11 raised its 2026 FFO I forecast to a range of 185–195 million euros, from 175–185 million previously, according to the transcript of the company’s earnings call. Management said the updated guidance includes its proportional share of funds from operations generated by its investment in LEG. The chairman described the results for the first nine months as “another solid set of results” for 2026. The forecast increase came as the company released its third-quarter report on the same date, according to its financial calendar. The new guidance combines performance through September with the expected contribution from the investment.

At the operating level, net rental income reached 331 million euros in the first nine months of 2026, up 4% from 320 million in the same period of 2025, according to the earnings presentation. Adjusted EBITDA rose 4% to 265 million euros, compared with 253 million a year earlier. The company linked EBITDA growth to higher rental income, while net operating expenses remained largely stable. Net profit, however, moved in the opposite direction, falling to 182 million euros from 410 million in the first nine months of 2025. Basic earnings per share declined to 0.69 euros from 1.84 euros; the company attributed the drop in profit to lower revaluation gains in the first half of 2026 and a one-off deferred tax income in the third quarter of 2025.

The increase in the annual forecast depends in part on Grand City’s stake in LEG, which management said amounts to 20% in its comments on the investment. The company expects the stake to add about 30% to FFO I on a proportional basis after financing costs. It said the full-year impact of the investment would appear in 2027 results, not in the results for the nine months ended in September. Management expects FFO I to grow in 2027 compared with 2026, with the LEG stake seen as the main driver of that growth. It said 2027 guidance would be issued with the 2026 full-year results.

On financing, the loan-to-value ratio was 34% in September 2026, compared with 31% in December 2025, while interest coverage stood at 4.7 times. Unencumbered assets totaled 7.0 billion euros, equivalent to 74% of the portfolio’s value, according to the earnings presentation. The company said its 2027 debt maturities were fully covered and that its next refinancing needs begin in 2028. It also confirmed that S&P had maintained the group’s and the standalone company’s ratings after the LEG deal. In trading on November 11, the stock was down 0.77% at 7.75 dollars, compared with a previous close of 7.81 dollars, according to Investing.com data.