REG-Grand City Properties S.A. Grand City Properties S.A. announces results for FY 2022 with solid operational performance despite macro-economic uncertainty

Grand City Properties SAAnnouncement

16/03/2023 06:15

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Grand City Properties S.A. (IRSH)
Grand City Properties S.A. announces results for FY 2022 with solid operational performance despite
macro-economic uncertainty

16-March-2023 / 07:01 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 FY 2022 WITH SOLID OPERATIONAL PERFORMANCE DESPITE
                                           MACRO-ECONOMIC UNCERTAINTY

  • In 2022, net rental income of €396 million, increasing 6% as compared to €375 million in 2021.
  • Portfolio vacancy reached a historic low at 4.2%  as of December 2022 continuing strong declining trend  from
    5.1% as of December 2021 and 6.2% as of December 2020.
  • Like-for-like rental growth of 2.9% with 2.2% from in-place rent increases and 0.7% from occupancy increases.
  • Adjusted EBITDA of €308 million in 2022, up by 3% as compared to €299 million in 2021.
  • Solid FFO I growth, with FFO I  for 2022 amounting to €192 million, 3%  higher YOY. FFO I per share of  €1.14
    per share in 2022, increasing by 3% as compared to €1.11 per share in 2021.
  • Strong liquidity position with cash and liquid assets of €429 million as of December 2022 which cover debt
    maturities until Q2 2025.
  • Conservative financial profile with a low LTV of 36% and  strong ICR of 6.6x as of December 2022. Large  pool
    of unencumbered assets amounting to €8.7 billion and  representing 88% of total portfolio value. Low  average
    cost of debt of 1.3% and a long average debt maturity of 5.9 years.
  • Profit for the year of  2022 amounted to €179 million  reflecting a basic EPS of  €0.77 and a diluted EPS  of
    €0.76
  • Full year 2022 property revaluation of 1% positive like-for-like growth.
  • EPRA NTA of €5.1 billion and €29.6 per share as of December 2022.
  • Guidance for FY 2022 met and guidance for FY 2023 published.
  • Due to macro-economic uncertainty, the company will not pay divided for 2022.

Luxembourg, March 16, 2023 – Grand City Properties S.A. (“GCP” or the “Company”) announces results for the
financial year 2022. Net rental income in 2022 amounted to €396 million, increasing by 6% as compared to 2021.
This solid growth was the result of the impact of net acquisitions that were made in past periods and the strong
operational result. In 2022, the Company recorded like-for-like rental growth of 2.9% which comprised of 2.2%
from in-place rent growth and 0.7% from occupancy increases. The strong letting performance resulted in the
portfolio reaching an all-time low vacancy rate of 4.2% and continues a strong trend of vacancy reduction. FFO I
also grew 3% on both a nominal and per share basis to €192 million or €1.14 in 2022 from €186 million or €1.11 in
2021.

In 2022, the Company made accretive acquisitions in the amount of approx. €250 million which consisted of approx.
1,000 units in Berlin and London. During the same period, the Company made disposals in the amount of €18 million
of mostly non-core  assets, development,  and condominiums. The  Company’s held-for-sale  portfolio increased  to
approx. €330 million, of which over €170 million disposals have been signed. For the full year 2022, GCP recorded
portfolio like-for-like valuation gains of 1% but recorded devaluations of 1% in Q4 2022 as compared to September
2022. GCP’s portfolio valuations remain well below  replacement costs and the structural supply demand  imbalance
in the German residential market, support valuations in the medium to long term.

GCP continues to maintain a conservative financial profile with  a low LTV of 36% and large pool of  unencumbered
assets worth €8.7 billion and representing 88% of total portfolio value. In 2022, 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 while raising a total of €135 million in new bank debt at rates below  current
public market rates. The Company’s average cost of debt remains  low at 1.3% with a long average maturity of  5.9
years. GCP also retains a strong  liquidity position with €429 million in  cash and liquid assets that  represent
11% of total  debts and cover  debt maturities until  Q2 2025. The  company’s debts have  a 95% interest  hedging
ratio, which  is expected  to reduce  to 91%  as some  interest rate  hedging matures  throughout 2023,  and  the
operational profitability of the  business substantially covers  interest payments as exemplified  by the ICR  of
6.6x.

As the market environment has deteriorated and there is greater uncertainty surrounding macro-economic risks, GCP
has put greater emphasis on preserving  liquidity. As a result, GCP announced  this morning its intention not  to
pay the 2022 dividend. The Company believes that preserving  cash and equity, will enable GCP to better  navigate
through these times and come out stronger and better positioned.

Refael Zamir,  CEO of  Grand  City Properties:  "Throughout 2022,  we  continued our  focus on  delivering  solid
operational improvements that  have brought  portfolio vacancy  to a record  low of  4.2% and  met 2022  guidance
targets. I want  to thank  every member of  the organisation  for their  hard work in  2022 and  look forward  to
delivering on all our goals in the year ahead.”

Financial statements for FY 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 76 - 83  of
the consolidated  annual report  for FY  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_FY_2022.pdf

 

About the Company

The Company  is a  specialist in  residential real  estate, value-add  opportunities in  densely populated  areas
primarily in Germany. 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 Luxemburg
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:  ACS
   TIDM:           IRSH
   LEI Code:       5299002QLUYKK2WBMB18
   OAM Categories: 1.1. Annual financial and audit reports
   Sequence No.:   230185
   EQS News ID:    1583777


    
   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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