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 FY 2020 RESULTS DRIVEN BY ROBUST OPERATIONS AND DISPOSALS

- Net rental income for 2020 amounted to €372 million as compared to €383 million in 2019, decreasing by 3% due to high volume of disposals during the year.

- Adjusted EBITDA of €300 million for 2020, up 1% as compared to 2019, supported by internal growth.

- FFO I per share before perpetual notes attribution for 2020 at €1.27, resulting in a dividend of €0.82 per share (subject to AGM approval) and an attractive dividend yield of 4%.

- FFO I for 2020 at €182 million, higher by 2% offsetting marginal decline in net rental income, driven by higher operational efficiencies.

- FFO I per share for 2020 remained stable at €1.07 as compared to 2019, yielding 5.2% based on a share price of €20.7.

- Beginning from 2021, dividend payout policy is 75% of FFO I per share.

- Profit for the year of 2020 amounted to €449 million, with a basic EPS of €2.13 and diluted EPS of €2.01.

- Disposals of approx. €970 million in 2020, generating profits over total costs (including capex) of €302 million and a premium of 6% over net book values. Accordingly, FFO II amounted to €484 million in 2020, up 39% from 2019.

- EPRA NTA at the end of December 2020 amounted to €4.6 billion and €26.5 per share, increasing by 5% and 2% respectively.

- Solid equity base maintained with total equity amounting to €5.6 billion and equity ratio at 51%.

- Significant optimization of the debt profile resulting in historically low cost of debt of 1% with a long average debt maturity of 7 years as of the reporting date.

- Conservative credit profile further evident in the low LTV at 31%, large level of unencumbered assets at €6.7 billion (82% of total portfolio value) and an ICR of 5.7x

- Net rental incomes increasing by 1.8% on a like-for-like basis, with 0.9% attributable to in-place rent increases, despite delayed rent increases in solidarity with tenants, and 0.9% pertaining to occupancy increases.

- Guidance for FY 2020 met and guidance for FY 2021 published.

Luxembourg, March 15, 2021 - Grand City Properties S.A. ("GCP" or the "Company") announces results for the financial year 2020 with a robust level of operational profitability reflected in the FFO I (previously defined as FFO I after perpetual notes attribution) increasing by 2% year-over-year to €182 million. The FFO I before perpetual notes attribution for 2020 increased to €215 million as compared €212 million in 2019, comfortably within the guidance range. This increase was driven by enhanced business efficiencies and a like-for-like rental growth of 1.8%, partially offsetting a decline in net rental income as a result of disposals during the year. Vacancy as of December 2020 is at 6.2%, a significant improvement from 6.7% in December 2019.

During the year, GCP disposed assets amounting to approx. €970 million, located primarily in secondary cities mainly in North-Rhine Westphalia, Saxony-Anhalt, Thüringen and Bavaria.

Although the coronavirus pandemic presented the Company with new challenges, GCP's adaptability was instrumental in ensuring business operations continued uninterrupted. Further, the Company worked towards safeguarding the health and well-being of current and prospective tenants along with its employees by digitalizing various business processes and enabling systems for employees to work from home. Accordingly, GCP was not meaningfully impacted by the pandemic.

In 2020, GCP generated a total profit of €302 million from disposals during the year reflects a premium of 6% over net book values. The Company also completed accretive acquisitions amounting to approx. €600 million, primarily located in London and Berlin. GCP acquired over 1,400 units at an average multiple of 21x. Additionally, the Company acquired over 800 units in the pre-letting stage which are expected to be leased in the following periods. As a result of the profitable disposal of assets in various secondary cities and the accretive acquisitions during the year, GCP was able to further enhance the quality of the investment property portfolio, which as of December 2020 is valued at €1,858/sqm with a rental yield of 4.5%.

GCP significantly improved its debt profile through the €1 billion bond issuance at a record low coupon of 0.125% in January 2021, along with total debt repayments of over €1 billion (including after reporting period repayments). As a result, the current cost of debt is at a historically low level of 1% while maintaining the long average debt maturity of 7 years.

The annual report for FY 2020 includes for the first time, the new EPRA net asset value metrics based on the revised EPRA best practice recommendations and accordingly GCP's EPRA Net Tangible Asset (NTA) value amounts to €4.6 billion and €26.5 per share as of the end of December 2020, as compared to €4.4 billion and €25.9 at the end of December 2019. For further details on the calculation of all EPRA net asset value metrics, please refer to page 64 of the annual report for FY 2020.

In 2020, GCP's commitment to sustainability measures was recognized by Sustainalytics, a leading sustainability rating agency. Further, the Company was ranked in the 75^th percentile within the real estate peer group in the Corporate Sustainability Assessment (CSA) by S&P Global.

Refael Zamir, CEO of Grand City Properties: "Despite the challenges faced in 2020, GCP has emerged undeterred, delivering steady operational profitability and shareholder value creation in the year and fuel its liquidity balance as a preparation towards future potential opportunities. Looking ahead, we will continue to focus on enhancing the quality of our portfolio, thereby benefiting all stakeholders, including our shareholders, tenants along with the environment and communities around our portfolio locations. I am grateful for the invaluable efforts of each member of the organization and am confident of successfully facing all that the next year has to offer."

Financial statements for FY 2020 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 70 - 75 of the financial statements for FY 2020, 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/2020/GCP_FY_2020.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 1, Avenue du Bois, L-1251 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.
1, Avenue du Bois
L-1251 Luxemburg
T: +352 28 77 87 86
E: [email protected]
www.grandcityproperties.com

Press Contact:
Katrin Petersen
Grand City Properties S.A.
T: +49 (30) 374-381 5218
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.

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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.