Q2 2024 Grand City Properties SA Earnings Call Transcript
Key Points
- Grand City Properties SA (GRNNF) reported a 3% increase in net rental income and a 4% increase in adjusted EBITDA year-over-year, demonstrating strong operational performance.
- The company successfully returned to the capital markets with a perpetual exchange and a bond issuance, which were both well-received by investors, indicating strong market confidence.
- Liquidity remains robust with EUR1.4 billion in cash and liquid assets, fully covering debt maturities through 2027, showcasing a strong financial position.
- The company has maintained a low loan-to-value (LTV) ratio of 37%, stable from the previous year, reflecting conservative financial management.
- Grand City Properties SA (GRNNF) has enhanced its corporate governance by adding two new independent directors, increasing the board's independence and diversity.
- The company recorded a 2% like-for-like devaluation in property values, indicating some negative momentum in asset valuations.
- Despite strong operational growth, the FFO I remained stable due to the negative impact of perpetual note resets and higher finance expenses.
- The cost of debt has increased to 2.2% from 1.9% due to the issuance of a higher coupon bond, which could impact future financial flexibility.
- There is a significant reliance on vendor loans in recent disposals, which may indicate challenges in the transaction market.
- The company has suspended dividends, and while there is optimism for future distributions, it remains contingent on market conditions.
Hello, and good morning to everyone. Thanks for joining us today in the name of GCPI. kindly welcome you to our results call for the first half of 2024. With me today are CEO, Refael Zamir; CFO, Idan Hadad; Chairman of the Board of Directors; Christian Windfuhr; COO, Sebastian Remmert-Faltin; and Senior Financial Analyst, Michael Bar Yosef.
Christian Windfuhr, Refael Zamir and Idan Hadad will guide you through the results presentation directly after this introduction. You will find the results presentation for this call on the company website in the section Investor Relations under Publications.
Presentation of the results will be followed by a session with questions and answers. The management is available for questions. We have already asked you in advance to send us your questions by e-mail. Please continue to send us your questions so that we can include them accordingly.
Please send your questions to the following e-mail address [email protected]. I repeat once again, the e-mail address for your questions is [email protected].
With this, I will hand over to
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