REG-Grand City Properties S.A. Grand City Properties S.A. announces Q1 2026 results with robust operational performance and reinstates dividends after 3 years

Grand City Properties SAAnnouncement

Tue 06:00

============

Grand City Properties S.A. (IRSH)
Grand City Properties S.A. announces Q1 2026 results with robust operational performance and reinstates dividends after 3 years

12-May-2026 / 06:51 CET/CEST
The issuer is solely responsible for the content of this announcement.

══════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════

     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 Q1 2026 RESULTS WITH ROBUST OPERATIONAL PERFORMANCE AND REINSTATES DIVIDENDS AFTER 3 YEARS

  • Net rental income in Q1 2026 amounted to €109 million, increasing by 2% compared to €106 million in Q1 2025.
  • Strong like-for-like rental growth continued at 3.5%, mainly from in-place rental growth. Vacancy remains low at 3.6%.
  • Adjusted EBITDA of €86 million in Q1 2026, higher by 1% from €85 million in Q1 2025, despite net disposals year over year.
  • FFO I of €46 million in Q1  2026, lower by 4% compared to  €48 million in Q1 2025, as  a result of higher finance expenses  offsetting
    adjusted EBITDA growth. Accordingly, FFO I per share amounted to €0.26 per share in Q1 2026, also lower by 4% compared to Q1 2025.
  • Profit for the period amounted to €42 million, with basic earnings per share of €0.17, GCP did not revalue its portfolio in Q1 2026.
  • Maintain strong liquidity position with €1.6 billion in cash and liquid assets as of March 2026, representing 36% of total debt.
  • Conservative financial profile maintained,  with a low  LTV ratio of 32%,  high coverage ratios  with an ICR ratio  of 4.8x, and  €6.4
    billion in unencumbered assets (71% of total portfolio value)
  • EPRA NTA amounted to €4.5 billion, or €25.7 per share, as of March 2026, slightly up compared to €25.6 in December 2025.
  • FY 2026 guidance confirmed.
  • Dividend for the year 2025 proposed at €0.30 per share, for financial year 2026 onward, dividend policy to be adjusted to 50% of FFO I
    per share.
  • After the  reporting period,  the Company  successfully issued  €600 million  perpetual notes,  with proceeds  used to  refinance  the
    perpetual notes with a first call date in 2026. Following  this transaction, GCP has fully refinanced its perpetual notes stack,  with
    the next reset events occurring only in 2031.

Luxembourg, May 12, 2026 – Grand City Properties S.A. (“GCP” or the “Company”) announces its results for Q1 2026, underpinned by continued
strong operational performance. GCP reported net rental income of  €109 million, a 2% increase year-on-year, driven by strong  operational
performance, reflected in solid like-for-like rental growth of 3.5%, which  more than offset the impact of net disposals. Adjusted  EBITDA
increased by 1% to €86 million, driven by higher net rental income, partially offset by slightly higher operating expenses. FFO I amounted
to €46 million, impacted by higher finance expenses, partially offset by higher adjusted EBITDA and a lower perpetual note attribution  in
the current period. FFO I per share  amounted to €0.26. The Company confirms  its FFO I guidance for full  year 2026 in the range of  €175
million to €185 million.

In 2026 YTD, GCP continued to execute on its disciplined capital recycling strategy. The Company completed disposals, comprising primarily
properties in non-core locations and condominiums, with a total volume of €13 million. These disposals were completed at a slight  premium
of 1%. After the reporting period, the Company closed €75 million of acquisitions in Germany which were signed during Q1 2026, and  closed
half of the acquisition of over €100 million  of new built properties in London, with  the remainder expected to be completed towards  the
end of Q3 2026. 

As of March 2026,  the Company’s liquidity  position stood at  €1.6 billion, representing  36% of total  debt. The Company’s  conservative
financial profile was further supported by a low LTV of 32%, slightly higher compared to December 2025 mainly as a result of the repayment
of ca. €40 million of perpetual  notes in the beginning of  2026, connected to the transaction  executed in December 2025. GCP’s  interest
coverage ratio  was 4.8x,  and the  Company maintained  €6.4 billion  in unencumbered  assets, representing  71% of  the total  portfolio,
positioning the Company well  to capitalise on potential  growth opportunities. The average  cost of debt was  2.1%, with an average  debt
maturity of 4.0 years.

After the reporting period, the Company issued €600 million perpetual notes bearing a coupon of 5.25%. The proceeds were used to refinance
the Company’s outstanding €602.7  million perpetual notes with  a first call date  in 2026. Following completion  of the transaction,  the
Company has refinanced its full perpetual notes stack and has no  further perpetual note reset dates until 2031. The issuance was  in-line
with guidance expectation, and thus the higher perpetual notes coupons resulting from the transaction going forward do not impact the  FFO
I guidance.

Based on  the strong  financial position  and stable  operating results  of the  Company, the  Board of  Directors of  GCP recommends  the
reinstatement of a dividend of  €0.30 per share for the  year 2025. In addition, the  dividend policy has been adjusted  to 50% of FFO  I,
providing an attractive dividend yield for shareholders, while maintaining healthy headroom to fund growth opportunities.

Refael Zamir, CEO of  Grand City Properties:  “We are pleased  to announce our  results for Q1  2026, which reflects  the strength of  our
operating platform and the resilience of  our portfolio. Through disciplined capital allocation  and prudent balance sheet management,  we
have strengthened our financial position, enabling us to recommend the reinstatement of a dividend while maintaining flexibility to pursue
value-accretive growth opportunities.”

Financial       Statements        for       Q1        2026        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 pages 30-34 of the financial statements for  Q1
2026, 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_Objects/Downloads/Financial_Reports/Q1_2026_Financials/GCP_Q1_2026.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.

══════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════

Dissemination of a Regulatory Announcement, transmitted by  4 EQS Group.
The issuer is solely responsible for the content of this announcement.

View original content:  5 EQS News

══════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════════

   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,
                  XS3246991981, XS3362208079
   Category Code: QRF
   TIDM:          IRSH
   LEI Code:      5299002QLUYKK2WBMB18
   Sequence No.:  427064
   EQS News ID:   2325696


    
   End of Announcement EQS News Service

   ══════════════════════════════════════════════════════════════════════════

References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=572a7a11a9f4d65d9beb026beb0b36bd&application_id=2325696&site_id=reuters~~~6aa99418-46f7-48b9-89fd-959a8d2e4912&application_name=news
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=34bc9dbde1042a92e4a73e15b8c32a65&application_id=2325696&site_id=reuters~~~6aa99418-46f7-48b9-89fd-959a8d2e4912&application_name=news
   3. mailto:gcp-ir@grandcity.lu
   4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=f5d50dc7e8798b6eb177f7955e598e60&application_id=2325696&site_id=reuters~~~6aa99418-46f7-48b9-89fd-959a8d2e4912&application_name=news
   5. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=8db201cac91b3aa0638eb8a19e9e2ace&application_id=2325696&site_id=reuters~~~6aa99418-46f7-48b9-89fd-959a8d2e4912&application_name=news


============