REG-Grand City Properties S.A. Grand City Properties S.A. announces 9M 2022 results

Grand City Properties SAAnnouncement

16/11/2022 06:00

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Grand City Properties S.A. (IRSH)
Grand City Properties S.A. announces 9M 2022 results

16-Nov-2022 / 06:50 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

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THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED
   STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
                                   VIOLATION OF APPLICABLE LAWS OR REGULATIONS

  GRAND CITY PROPERTIES S.A. ANNOUNCES RESULTS FOR 9M 2022 WITH CONTINUOUS RENTAL GROWTH AND RECORD LOW VACANCY

  • Net rental income for 9M 2022 amounted to €295 million, increasing by 7% as compared to €276 million recorded
    for 9M 2021.
  • Solid like-for-like rental  growth of 3.1%  with 2.3% from  in-place rent increases  and 0.8% from  occupancy
    increases, underlining the portfolio’s strong operational growth.
  • Portfolio vacancy reaching a new historic low of 4.4% as of September 2022 decreasing by 0.9% as compared  to
    5.3% as of September 2021.
  • Adjusted EBITDA for the first three quarters of 2022 totalling €230 million and increasing 4% YOY.
  • FFO I of €145 million and €0.87 per share for  9M 2022, increasing by 3% and 4% respectively, as compared  to
    €140 million and €0.84 for 9M 2021. FFO yield of 10.7%, based on a share price of €10.8.
  • Optimized debt profile with cash and liquid assets covering debt maturities until mid-2025. Low average  cost
    of debt of 1.2% and  a long average debt maturity  of 6.2 years. Undrawn credit  facilities in the amount  of
    €300 million provides additional flexibility.
  • Low LTV of 35% as of September 2022, down from 36% in December 2021. Strong interest coverage with an ICR of
    6.6x, and large pool of unencumbered assets amounting to approx. €9 billion (90% of total portfolio value)
    underline conservative financial profile.
  • Net Profit of €273 million in the nine-month period ending September 2022, resulting in a basic EPS of  €1.36
    and a diluted EPS of € 1.33.
  • EPRA NTA of €5.2 billion  as of September 2022 as  compared to €5 billion as  of December 2021. EPRA NTA  per
    share of €30.4 at the end of September 2022, increasing 3% year-to-date adjusted for the dividend.
  • Strong equity base exemplified by an equity ratio of 53% at the end of September 2022.
  • FY 2022 guidance confirmed and all financial KPI’s are in line.

Luxembourg, November 16, 2022  – Grand City Properties  S.A. (“GCP” or the  “Company”) announces results for  the
nine-month period ending September of 2022 with a strong operational performance. Net rental income increased  by
7% year-over-year to €295  million, mostly as a  result of net  acquisitions made in past  periods and the  solid
like-for-like rental growth of 3.1%. As a result, FFO I for this period increased by 3% to €145 million including
the increase in operating expenses from the larger portfolio and cost inflation. The FFO I per share increased by
4% to €0.87 from €0.84, more than  on the absolute level, mainly due  to the accretive share buyback executed  in
2021. GCP’s portfolio vacancy amounted to 4.4% at the end  of September 2022, decreasing from 5.3% at the end  of
September 2021.

Throughout the first nine months of  2022, the Company has continued to  take measures to optimize its  financial
platform. GCP repaid over  €615 million in debt  which included redeeming the  €450 million Series F  convertible
bonds and prepaying over €165 million in shorter maturity secured financing. As of September 2022, GCP’s cost  of
debt remains low at 1.2% with an average debt maturity of 6.2 years. The Company remains well positioned with  no
upcoming debt maturities until mid-2024 and cash and liquid assets of approximately €390 million as of  September
2022, covering debt maturities until mid-2025.

Refael Zamir, CEO  of Grand  City Properties:  "Despite market volatility,  GCP remains  well positioned.  Rental
growth and letting momentum continued in  the first nine months of 2022  resulting in a solid operational  result
and portfolio vacancy declining to a historic low of 4.4%. Our proactive approach to debt management in  previous
periods means we retain a conservative financial platform with no near-term maturities providing the Company with
a lot of flexibility to navigate the current environment and to achieve our 2022 targets.”

Financial statements for 9M 2022 are available on the Company's website:

 1 https://www.grandcityproperties.com/investor-relations/publications/financial-reports/

For definitions of the alternative performance measures please see  the relevant section in the pages 26 - 29  of
the financial statements for 9M 2022, which you can find on the website under investor relations > publications >
financial reports or follow this link:

 2 https://www.grandcityproperties.com/fileadmin/user_upload/03_investor_relations/Downloads/2022/GCP_Q3_2022.pdf

About the Company

The Company  is a  specialist in  residential real  estate, value-add  opportunities in  densely populated  areas
primarily in  Germany and  London. The  Company’s strategy  is to  improve its  properties by  repositioning  and
intensive tenant management, and then create value  by subsequently raising occupancy and rental levels.  Further
information: www.grandcityproperties.com

Grand City  Properties  S.A.  (ISIN: LU0775917882)  is  a  public limited  liability  company  (société  anonyme)
incorporated under the  laws of the  Grand Duchy  of Luxembourg, having  its registered office  at 37,  Boulevard
Joseph II, L-1840  Luxembourg, Grand  Duchy of  Luxembourg and  being registered  with the  Luxembourg trade  and
companies register (Registre de Commerce et  des Sociétés Luxembourg) under number B  165 560. The shares of  the
Company are listed on the Prime Standard segment of Frankfurt Stock Exchange.

Contact:

Grand City Properties S.A.
37, Boulevard Joseph II,
L-1840 Luxembourg
T: +352 28 77 87 86
E: info@grandcity.lu

www.grandcityproperties.com

Investor Relations Team:
Grand City Properties S.A.
E:  3 gcp-ir@grandcity.lu

DISCLAIMER:

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.

THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED  STATES
SECURITIES ACT OF 1933,  AS AMENDED (THE SECURITIES  ACT), AND MAY NOT  BE OFFERED OR SOLD  IN THE UNITED  STATES
ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC  OFFERING
OF THE SECURITIES IN THE UNITED STATES.

THIS ANNOUNCEMENT IS DIRECTED  AT AND IS ONLY  BEING DISTRIBUTED IN  THE UNITED KINGDOM TO  (I) PERSONS WHO  HAVE
PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES
AND MARKETS ACT  2000 (FINANCIAL  PROMOTION) ORDER  2005 (THE ORDER),  (II) HIGH  NET WORTH  ENTITIES, AND  OTHER
PERSONS TO WHOM  IT MAY OTHERWISE  LAWFULLY BE COMMUNICATED  FALLING WITHIN ARTICLE  49 OF THE  ORDER, AND  (III)
PERSONS TO  WHOM IT  MAY OTHERWISE  LAWFULLY BE  COMMUNICATED (ALL  SUCH PERSONS  TOGETHER BEING  REFERRED TO  AS
RELEVANT PERSONS). THIS COMMUNICATION MUST  NOT BE READ, ACTED  ON OR RELIED ON BY  PERSONS WHO ARE NOT  RELEVANT
PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH  THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO  RELEVANT
PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS.

IN MEMBER STATES OF THE  EUROPEAN ECONOMIC AREA (EEA),  THIS ANNOUNCEMENT AND ANY  OFFER IF MADE SUBSEQUENTLY  IS
DIRECTED ONLY  AT PERSONS  WHO ARE  “QUALIFIED INVESTORS”  WITHIN THE  MEANING OF  ARTICLE 2(1)(E)  OF  DIRECTIVE
2003/71/EC, AS AMENDED (THE PROSPECTUS DIRECTIVE) (QUALIFIED INVESTORS).  ANY PERSON IN THE EEA WHO ACQUIRES  THE
SECURITIES IN ANY OFFER  (AN INVESTOR) OR  TO WHOM ANY  OFFER OF THE SECURITIES  IS MADE WILL  BE DEEMED TO  HAVE
REPRESENTED AND AGREED THAT IT IS A QUALIFIED INVESTOR. ANY INVESTOR WILL ALSO BE DEEMED TO HAVE REPRESENTED  AND
AGREED THAT ANY SECURITIES ACQUIRED  BY IT IN THE OFFER  HAVE NOT BEEN ACQUIRED ON  BEHALF OF PERSONS IN THE  EEA
OTHER THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEEN ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN THE
EEA TO PERSONS WHERE THIS WOULD RESULT IN A REQUIREMENT FOR PUBLICATION BY THE COMPANY OR ANY OF THE MANAGERS  OF
A PROSPECTUS PURSUANT TO ARTICLE 3 OF THE PROSPECTUS DIRECTIVE.

THIS ANNOUNCEMENT MAY CONTAIN PROJECTIONS  OR ESTIMATES RELATING TO PLANS  AND OBJECTIVES RELATING TO OUR  FUTURE
OPERATIONS, PRODUCTS, OR SERVICES, FUTURE  FINANCIAL RESULTS, OR ASSUMPTIONS UNDERLYING  OR RELATING TO ANY  SUCH
STATEMENTS, EACH OF WHICH  CONSTITUTES A FORWARD-LOOKING  STATEMENT SUBJECT TO RISKS  AND UNCERTAINTIES, MANY  OF
WHICH ARE BEYOND THE CONTROL  OF THE COMPANY. ACTUAL  RESULTS COULD DIFFER MATERIALLY,  DEPENDING ON A NUMBER  OF
FACTORS.

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   ISIN:          LU0775917882, XS1130507053, XS1191320297, XS1220083551,
                  XS1491364953, XS1373990834, XS1654229373, XS1811181566,
                  XS1706939904, XS1763144604, XS1781401085, CH0401956872
   Category Code: QRT
   TIDM:          IRSH
   LEI Code:      5299002QLUYKK2WBMB18
   Sequence No.:  201093
   EQS News ID:   1488779


    
   End of Announcement EQS News Service

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References

   Visible links
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   3. mailto:gcp-ir@grandcity.lu


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