AroundTown - comment

AroundTown are due to report their FY23 on the 27th March. Its 60% owned subsidiary, Grand City Properties reported its FY23 numbers.  GCP announced not to pay a dividend for 2023 to maintain its deleveraging, removing the inflow of dividend into AroundTown.  Operationally, the numbers of GCP are in line with guidance, with GCP continuing to dispose some assets and extending its maturity profile. GCP recorded a 9% reduction in valuations due to yield expansions.  This appears a relatively high decline, bringing GCP’s rental yields back to 2018 levels.  It is worth remembering that GCP is relatively lowly leveraged at 37% LTV and ICR above 5x. and has sufficient liquidity to meet debt maturities until end of 2026.