REG-Grand City Properties S.A. Grand City Properties S.A. announces H1 2024 results with increased guidance

Grand City Properties SAAnnouncement

14/08/2024 06:00

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Grand City Properties S.A. (IRSH)
Grand City Properties S.A. announces H1 2024 results with increased guidance

14-Aug-2024 / 06:51 CET/CEST
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 H1 2024 RESULTS WITH INCREASED GUIDANCE

  • Net rental income of €212 million in H1 2024, higher by 3% as compared to €204 million in H1 2023.
  • Solid like-for-like rental growth of 3.4%, driven by in-place rent growth.
  • Adjusted EBITDA of €166 million in H1 2024, higher by 4% as compared to €160 million in H1 2023.
  • FFO I of €94  million and €0.54  per share in  H1 2024, stable  as compared to  H1 2023, as  higher perpetual notes  attribution is offset  by
    operational growth and finance expenses are kept stable.
  • Valuation of the full portfolio conducted in H1 2024, with a like-for-like  value decline of 2%, resulting in a portfolio net rental yield  of
    5.0% as of June 2024.
  • Net loss of €74 million and basic loss per share of €0.38, driven mainly by negative property revaluations recognized in the period, partially
    offset by strong operational results.
  • EPRA NTA amounted to €3.9 billion or €22.8 per share as of June 2024.
  • Strong liquidity position with €1.1 billion of cash and liquid assets as of June 2024, reflecting 26% of total debt.
  • Conservative financial position maintained with an LTV of 37% as of June  2024, ICR ratio of 6.0x in H1 2024 and €6.1 billion of  unencumbered
    assets (72% of total portfolio value).
  • Successful capital markets transactions executed in Q2 and Q3 of 2024.
  • FY 2024 guidance increased.

Luxembourg, August 14, 2024 – Grand City Properties S.A. (“GCP” or the “Company”) announces financial results for the first half of 2024 with  net
rental income amounting to €212 million, higher by 3% as compared to the €204 million recorded in the comparable period of 2023. This is primarily
the result of like-for-like growth of 3.4% as of June 2024, driven by in-place rent growth. Supported by a higher operational efficiency, Adjusted
EBITDA is up 4% year-over-year at the €166 million. FFO I is stable at €94 million as well as on a per share basis of €0.54 compared to H1 2023 as
the negative impact of  the higher perpetual notes  attribution was offset by  strong operational growth while  finance expenses remained  stable.
Based on the strong results and improved outlook GCP increased its FFO I guidance from €175-€185 million to €180-€190 million.

The Company conducted a full revaluation of the portfolio in the first  six months of 2024, resulting in a like-for-like value decline of 2%.  GCP
recorded property revaluation and capital losses in the amount of €198 million in H1 2024. This is primarily explained by slight yield  expansion,
partially offset by  operational growth.  The negative  revaluation recorded  in the  period was  a third  as compared  to H1  2023, indicating  a
significantly softer devaluation momentum as a result of improved market dynamics and signalling a potential stabilisation in valuations.

In the first half of 2024, the Company signed  disposals totalling ca. €220 million of which ca €100  million were not closed in H1 2024. In  this
period, €160 million of disposals were completed, including properties signed  in 2023. The closed disposals were primarily located in London,  as
well as NRW, Berlin and Hessen, and were closed at a slight discount to book value. The Company raised €100 million of new bank debt and  redeemed
bonds amounting to ca. €270 million in this period. As of June 2024, GCP’s average cost of debt was 1.9% with an average maturity of 5.1 years. In
April 2024 the Company executed its perpetual exchange, which was highly  successful with an acceptance rate of over 80%, resulting in €2  million
in annualised coupon reduction and recovery of equity content for exchanged notes under S&P methodology. After the reporting period, GCP continued
the pro-active management  of its  debt maturities  and issued  a new  unsecured bond  of €500  million, which  was more  than 7x  oversubscribed,
channelling the proceeds into a bond tender through  which ca. €240 million nominal outstanding amount of  bonds were bought back. As a result  of
these activities, and including expected proceeds of signed disposals, the Company  now covers all its debt maturities until the end of 2027.  The
conservative financial profile of the Company is further shown by its low LTV ratio of 37%, stable compared to year-end 2023 despite devaluations.

Refael Zamir, CEO of Grand City Properties: "We are happy to report our results for the first half of 2024. Positive market momentum allows us  to
continue to drive strong operational growth. At the  same time, we have been able to mitigate  the negative impacts from the higher interest  rate
environment through pro-active management of our balance sheet and  interest exposure, supporting our increased guidance and positioning GCP  well
for future growth.”

Financial statements for H1 2024 are available on the Company's website:
 1 ttps://www.grandcityproperties.com/investor-relations/publications/financial-reports/

For definitions of the alternative  performance measures please see  the relevant section in  the pages 32-36 of  the financial statements for  H1
2024, which you can find on the website under investor relations > publications > financial reports or follow this link:
 2 https://www.grandcityproperties.com/grandcityproperties.com/Data%20Objects/Downloads/Financial%20Reports/H1%202024%20Financials/GCP_Q2_2024.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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Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

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   ISIN:          LU0775917882, LU0775917882 , XS1491364953, XS1811181566,
                  XS2271225281, XS1220083551, XS1654229373, XS1706939904,
                  XS1706939904, XS1763144604, XS1781401085, CH0401956872,
                  XS1827041564, XS1851265527, XS1953786222, XS1964638446,
                  CH0482172415, XS2016885159, XS2033380820, XS2035328223,
                  XS2154325562, XS2282101539, XS2799494633, XS2855975285
   Category Code: IR
   TIDM:          IRSH
   LEI Code:      5299002QLUYKK2WBMB18
   Sequence No.:  340376
   EQS News ID:   1967471


    
   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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