GRNNF - Grand City Properties: Don't Worry About The Dividend Suspension
2024-03-21 16:09:04 ET
Summary
- Grand City Properties has suspended its 2023 dividend due to market uncertainties and limited visibility on the impact of leverage and financing costs.
- Liquidity preservation, cash on hand, and signed disposals should allow the company to meet all maturities until 2026.
- The company's key performance metric, FFO I, dropped 6% to €1.07/share in 2023, with a 3% decline expected for 2024.
- Compared with Vonovia, Grand City Properties shows higher vacancy and slower growth, more than offset by an attractive valuation.
- Excessive leverage remains the key risk for the company.
Introduction
Grand City Properties ( GRNNF ), or GCP for short, recently suspended its 2023 dividend. As per the press release :
Grand City Properties: Don't Worry About The Dividend Suspension"T he decision was taken as market uncertainties remain elevated and visibility on the full impact on leverage, transaction markets, valuation as well as on the cost of financing remain limited. GCP's management believes that in the current market environment it is more prudent to be conservative in terms of capital and liquidity preservation while the Company continues to focus on deleveraging "