REG-Grand City Properties S.A. Grand City Properties S.A. announces results for 9M 2023 driven by strong operational results and high liquidity position

Grand City Properties SAAnnouncement

15/11/2023 05:45

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Grand City Properties S.A. (IRSH)
Grand City Properties S.A. announces results for 9M 2023 driven by strong operational results and high liquidity
position

15-Nov-2023 / 06:42 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 RESULTS FOR 9M 2023 DRIVEN BY STRONG OPERATIONAL RESULTS AND HIGH  LIQUIDITY
POSITION

  • Net rental income of €307 million for 9M 2023, higher by 4% as compared to €295 million in 9M 2022.
  • Solid like-for-like rental  growth of 3.1%  with 2.8% from  in-place rent increases  and 0.3% from  occupancy
    increases, underlining the portfolio’s strong operational fundamentals.
  • Adjusted EBITDA of €240 million in 9M 2023, increasing by 4% as compared to €230 million in 9M 2022.
  • FFO I of €141 million in  9M 2023, lower by 2%  as compared to €145 million in  9M 2022 mainly driven by  the
    higher financing cost and perpetual notes attribution.
  • Loss of €398 million in  9M 2023 primarily as  a result of negative  property revaluations, offset by  robust
    operational profits.
  • Strong liquidity position,  with cash and  liquid assets  of €1.1 billion  as of September  2023, cover  debt
    maturities until mid-2026 and reflect 25% of total debt.
  • Conservative financial position with a stable LTV ratio of 36% as of September 2023, ICR ratio of 5.7x in  9M
    2023 and €7 billion of  unencumbered assets (76% of total  portfolio value). EPRA LTV (considering  perpetual
    noted as debt) as of September 2023 is 47%.
  • EPRA NTA of €4.3 billion or €24.7 per share as of the end of September 2023, lower by 8% and 9%  respectively
    from December 2022.
  • FY 2023 guidance confirmed.

Luxembourg, November 15, 2023  – Grand City Properties  S.A. (“GCP” or the  “Company”) announces results for  the
nine-month period ending September 2023 with  strong operational performance and conservative financial  leverage
maintained. Net rental  income increased by  4% to  €307 million, mainly  due to the  solid like-for-like  rental
growth of 3.1%. The growth is driven by in-place  rent growth of 2.8% and occupancy increase of 0.3%,  reflecting
strong positive  momentum continuing  in both  in-place  rental growth  and vacancy  reduction. GCP  recorded  an
all-time low vacancy rate of 3.8% as of September 2023,  a decrease of 0.4% from December 2022.  The increase  in
rental income was  partially offset  by net disposals.  The robust  growth lead to  an increase  in the  adjusted
EBITDA, which increased to €240 million in the nine-month period ending September 2023, reflecting a 4%  increase
from €230 million in  the comparable period  in 2022. FFO  I decreased by  2% to €141  million in the  nine-month
period ending September  2023, as compared  to €145 million  in the comparable  period in 2022.  The decrease  is
mainly driven by the higher finance expenses  and perpetual notes attribution offsetting the operational  growth.
FFO I per share was €0.82 per share in 9M 2023, as compared to €0.87 per share in 9M 2022. FY 2023 FFO I guidance
is confirmed.

The Company  continues its  proactive approach  of reducing  leverage and  maintaining a  conservative  financial
profile with a stable LTV ratio. The disposals,  supported by the strong operational performance, the  suspension
of the 2022 dividend and debt repayment  at discount, allowed GCP to maintain  an LTV of 36%, stable compared  to
year-end 2022.  In the nine-month period, GCP closed disposals of €270 million, affirming the company’s  capacity
to successfully market and sell properties even in a difficult economic environment.

GCP enhanced its liquidity position further by signing €550 million in new bank debt year to date, of which  €440
million in the nine-month period of 2023, with additional  bank debt of €110 million signed in Q4. The  Company’s
average cost of debt was 1.9%,  higher compared to December 2022 primarily  as GCP has opted to raise  relatively
higher cost debt compared to  its existing debt, thereby significantly  strengthening its liquidity position  and
extending the time to refinance further. As of September 2023, GCP has an average debt maturity of 5.5 years  and
cash and liquid assets of €1.1 billion covering its debt maturities until mid-2026.

Refael Zamir,  CEO of  Grand City  Properties: "The  nine-month period  of 2023  showcased a  strong  operational
performance in  Germany as  well as  in London.  Despite the  market challenges,  our initiatives  to  strengthen
liquidity were effective during this period, enabling  us to counterbalance the adverse revaluation and  maintain
our leverage at a stable level. I wish to express my gratitude to all our team members for their diligent efforts
and commitment throughout this time.”

Financial     statements     for     9M     2023     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 30 - 34  of
the financial statements for 9M 2023, 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/2023/GCP_Q3_2023.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,
   Category Code:  QRT
   TIDM:           IRSH
   LEI Code:       5299002QLUYKK2WBMB18
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   284890
   EQS News ID:    1773549


    
   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=1773549&site_id=refinitiv&application_name=news
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   3. mailto:gcp-ir@grandcity.lu


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