REG-Grand City Properties S.A. Grand City Properties S.A. announces H1 2022 results

Grand City Properties SAAnnouncement

15/08/2022 06:00

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Grand City Properties S.A. (IRHS)
Grand City Properties S.A. announces H1 2022 results

15-Aug-2022 / 06:52 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 H1 2022 WITH ROBUST OPERATIONAL PERFORMANCE AT RECORD LOW VACANCY
                                          AND STRONG FINANCIAL PROFILE 

  • Net rental income for H1 2022 amounted to €195 million, up by 6% YOY, driven by like-for-like rental growth of
    3.0% comprising of 2.2% in-place rent increases and 0.8% occupancy increases.
  • Portfolio vacancy at new historic low of 4.7% as of the end of June 2022 as compared to 5.1% at FY2021.
  • Strong financial profile maintained with a low average cost of debt of 1.1%, long average debt maturity of 6.4
    years, low LTV of 35%, high proportion of 95%  interest hedged debt, and strong interest coverage with an  ICR
    of 6.6x. Further supported by strong liquidity position  amounting to approx. €450 million of cash and  liquid
    assets and €300 million of undrawn credit facilities.
  • Strong financial flexibility with unencumbered assets of approx. €9 billion (91% of total portfolio value)
    providing access to low cost bank debt.
  • FFO I of €97 million in the six months of 2022, increasing by 3% YOY.
  • FFO I per share of €0.59, increasing 5% YOY. FFO yield of 8.5%, based on a share price of €13.9.
  • Profit for the period of €234 million, reflecting a basic EPS of €1.21 and a diluted EPS of €1.17.
  • EPRA NTA of €5.2 billion as of June 2022. EPRA NTA per share of €30.6, as of June 2022, compared to €30.4  per
    share, as of December 2021, increasing 3% adjusted for dividend.
  • Robust equity base at the end of H1 2022 with an equity ratio of 53% and total equity amounting to €6 billion.
  • FY 2022 guidance confirmed and all financial policies are in line.

Luxembourg, August 15, 2022 – Grand City Properties S.A. (“GCP” or the “Company”) announces results for the  first
half of 2022 with net rental income  amounting to €195 million, increasing by  6% as compared to the €183  million
recorded in the first half of 2021. The increase was primarily the result of net acquisitions made in past periods
further supported by the  strong rental like-for-like  growth of 3.0%.  For the first  half 2022, adjusted  EBITDA
amounted to €152 million, growing by 3% as compared to €147 million generated in the same period in 2021 primarily
as the result of the  strong rental growth, offset by  cost inflation. FFO I in  H1 2022 amounted to €97  million,
increasing by 3% year over year. The FFO I per share increased to €0.59 from €0.56, primarily due the full  effect
of the accretive  share buybacks executed  in 2021.  The company recorded  revaluations and capital  gains in  the
amount of €234 million in H1 2022, 2.5% on a  like-for-like basis and net of capex or 3.3% including capex,  which
underscore the operational improvements achieved and the quality of the portfolio’s locations.

At the end of the  reporting period, GCP closed approx.  €250 million which were signed  earlier in the year.  The
acquisitions consisted of  approx. 1,000  units mainly located  in London  and Berlin which  will further  support
rental growth in future periods.

In H1 2022, GCP continued optimizing its debt profile. Actions taken include the repayment of over €615 million of
debt which consisted of the redemption of the €450 million Series F convertible bonds and prepayment of over  €165
million of short-term  bank loans. The  debt optimization measures  have resulted in  no upcoming debt  maturities
until 2024  and  sufficient liquidity  to  cover debt  maturities  until mid-2025.  Furthermore,  GCP has  a  high
proportion of 95% interest hedged debt, all of which is either fixed or swapped helping to shield the company from
rising interest rates and the  current volatility in capital markets.  GCP maintains a strong liquidity  position,
with approximately €450 million of cash and liquid assets as well as €300 million of undrawn credit facilities. As
of June 2022, the Company’s cost of debt remains low at 1.1% with an average debt maturity of 6.4 years.

Refael Zamir, CEO of Grand City Properties: "In the first half of 2022, we continued to lift the potential of  our
portfolio which has been exemplified by strong rental growth  and the record low vacancy rate. Our enhanced  asset
quality and strong financial profile puts us in a  strong position to navigate the current market environment  and
deliver on our full year guidance for 2022.”

Financial statements for H1 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 H1 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_Q2_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 40, Rue du  Curé,
L-1368 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. 
40, Rue du Curé,
L-1368 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:  IR
   TIDM:           IRHS
   LEI Code:       5299002QLUYKK2WBMB18
   OAM Categories: 1.2. Half yearly financial reports and audit
                   reports/limited reviews
   Sequence No.:   181213
   EQS News ID:    1420073


    
   End of Announcement EQS News Service

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References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=572a7a11a9f4d65d9beb026beb0b36bd&application_id=1420073&site_id=reuters8&application_name=news
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   3. mailto:gcp-ir@grandcity.lu


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