Grand City Properties - comment

GCP has raised its guidance for FY24 across the board, including its expected dividend per share on the back of higher like-for-like rental growth. GCP is still recording modest revaluation losses, with a further 2% decline in H1 2024.  Yields are now approaching c.5% and with the more favourable capital markets, management sees valuations bottoming out.  GCP enjoys strong liquidity, with debt maturities covered until 2027 and has significant headroom on all its covenants.  

We remain very comfortable with our position as the underlying metrics show signs of improvement and a benign/favourable rate environment.