Grand City Properties S.A. announces 9M 2022 results

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 2022 WITH CONTINUOUS RENTAL GROWTH AND RECORD LOW VACANCY

• Net rental income for 9M 2022 amounted to €295 million, increasing by 7% as compared to €276 million recorded for 9M 2021.
• Solid like-for-like rental growth of 3.1% with 2.3% from in-place rent increases and 0.8% from occupancy increases, underlining the portfolio’s strong operational growth.
• Portfolio vacancy reaching a new historic low of 4.4% as of September 2022 decreasing by 0.9% as compared to 5.3% as of September 2021.
• Adjusted EBITDA for the first three quarters of 2022 totalling €230 million and increasing 4% YOY.
• FFO I of €145 million and €0.87 per share for 9M 2022, increasing by 3% and 4% respectively, as compared to €140 million and €0.84 for 9M 2021. FFO yield of 10.7%, based on a share price of €10.8.
• Optimized debt profile with cash and liquid assets covering debt maturities until mid-2025. Low average cost of debt of 1.2% and a long average debt maturity of 6.2 years. Undrawn credit facilities in the amount of €300 million provides additional flexibility.
• Low LTV of 35% as of September 2022, down from 36% in December 2021. Strong interest coverage with an ICR of 6.6x, and large pool of unencumbered assets amounting to approx. €9 billion (90% of total portfolio value) underline conservative financial profile.
• Net Profit of €273 million in the nine-month period ending September 2022, resulting in a basic EPS of €1.36 and a diluted EPS of € 1.33.
• EPRA NTA of €5.2 billion as of September 2022 as compared to €5 billion as of December 2021. EPRA NTA per share of €30.4 at the end of September 2022, increasing 3% year-to-date adjusted for the dividend.
• Strong equity base exemplified by an equity ratio of 53% at the end of September 2022.
• FY 2022 guidance confirmed and all financial KPI’s are in line.

Luxembourg, November 16, 2022 – Grand City Properties S.A. (“GCP” or the “Company”) announces results for the nine-month period ending September of 2022 with a strong operational performance. Net rental income increased by 7% year-over-year to €295 million, mostly as a result of net acquisitions made in past periods and the solid like-for-like rental growth of 3.1%. As a result, FFO I for this period increased by 3% to €145 million including the increase in operating expenses from the larger portfolio and cost inflation. The FFO I per share increased by 4% to €0.87 from €0.84, more than on the absolute level, mainly due to the accretive share buyback executed in 2021. GCP’s portfolio vacancy amounted to 4.4% at the end of September 2022, decreasing from 5.3% at the end of September 2021.

Throughout the first nine months of 2022, the Company has continued to take measures to optimize its financial platform. 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. As of September 2022, GCP’s cost of debt remains low at 1.2% with an average debt maturity of 6.2 years. The Company remains well positioned with no upcoming debt maturities until mid-2024 and cash and liquid assets of approximately €390 million as of September 2022, covering debt maturities until mid-2025.

Refael Zamir, CEO of Grand City Properties: "Despite market volatility, GCP remains well positioned. Rental growth and letting momentum continued in the first nine months of 2022 resulting in a solid operational result and portfolio vacancy declining to a historic low of 4.4%. Our proactive approach to debt management in previous periods means we retain a conservative financial platform with no near-term maturities providing the Company with a lot of flexibility to navigate the current environment and to achieve our 2022 targets.”

Financial statements for 9M 2022 are available on the Company's website:

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 9M 2022, which you can find on the website under investor relations > publications > financial reports or follow this link:

https://www.grandcityproperties.com/fileadmin/user_upload/03_investor_relations/Downloads/2022/GCP_Q3_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 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: [email protected]

www.grandcityproperties.com

Investor Relations Team:

Grand City Properties S.A.

E: [email protected]

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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.

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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.