Grand City Properties is investing in value-add residential real estate in densely populated areas predominantly in Germany. The Group’s portfolio is focused on fast growing metropolitan regions in Germany as well as other urban centers such as Berlin, Dresden, Leipzig and Halle, Bremen, Hamburg, Hannover, Nuremberg, Munich, Mannheim, Frankfurt and London. Grand City Properties benefits from favorable fundamentals in major cities in Germany that will underpin financial growth opportunities in the foreseeable future. The company lifts its real estate to full potential through target-oriented modernizations. Grand City Properties orientates its strategy and business model long-term and sustainable with a well-balanced mix of properties.
The Group generated revenues of €535 million for the year of 2020, which compares to €560 million in 2019. Net rental income amounted to €372 million in 2020, decreasing by 3% as compared to the previous year. Operational improvements in the portfolio supported the property revaluations and capital gains amounted to €343 million for 2020 as compared to €401 million for 2019 by long-term fundamentals in portfolio locations. The recorded property operating expenses of €226 million for purchased services provided to tenants in 2020 decreased by 11% as compared to €253 million in 2019. Primarily driven by the lower property revaluation gains, the profit of €449 million for the year of 2020 was 9% lower compared to €493 million reported for the previous year.