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 ANNOUNCES 9M 2019 RESULTS WITH STEADY OPERATIONAL GROWTH

- Rental and operating income for 9M 2019 increased by 4% to EUR418 million.

- Adjusted EBITDA for 9M 2019 was higher by 8% YOY, at EUR220 million.

- FFO I at EUR160 million for the first nine months of 2019, increased 7%.

- FFO I per share at EUR0.96, up 5%. FFO I per share after perpetual attribution also increased by 5% to EUR0.81.

- Profit for the period at EUR365 million, basic EPS at EUR1.80 and a diluted EPS of EUR1.70.

- Acquisitions for the period amounted to over EUR400 million, primarily in London. Acquisitions included over 1,000 units at an average multiple of 20x, with further 400 units in the pre-letting stage.

- Disposals (including signed deals) amounted to ca. EUR500 million, at 8% above book value, generating a profit margin over total cost of 53%.

- September 2019, EPRA NAV was EUR4 billion and EUR23.7 per share, increasing by 6% and 5% respectively in comparison to year-end 2018.

- EPRA NAV including perpetual notes grew to EUR5 billion and EUR29.8 per share.

- Total Equity increased by 4% since year end 2018 to EUR4.9 billion as of September 2019, resulting in a solid equity ratio of 50%.

- Secure financial base maintained with solid credit metrics such as a low LTV of 33%, a strong ICR of 6.5x, lower CoD at 1.3%, debt duration of 8.2 year and unencumbered ratio of 80% (EUR6.4 billion).

- Strong like-for-like rental growth of 3.6%; 3% attributable to in-place rent increases and 0.6% attributable to occupancy increases.

- Guidance for 2019 confirmed.

Luxembourg, November 18, 2019 - Grand City Properties S.A. ("GCP" or the "Company") presents its results for the nine-month period ended September 2019, with a like-for-like net rental growth of 3.6%. The Company's sustained growth in operational profitability was demonstrated in the 8% YOY increase in adjusted EBITDA to EUR220 million, as well as the 7% YOY increase in FFO I to EUR160 million for the current reporting period.

During the first nine months of 2019, GCP disposed over EUR250 million worth of assets that are mature and non-core in nature. The assets were disposed at a premium of 6% above their book value and generated a significant profit over total cost (including capex) of EUR96 million. Furthermore, funds were channeled into accretive acquisitions of over EUR400 million during the period which, coupled with the operational & repositioning improvements of the existing portfolio, have led to further improvement in GCP's asset quality. GCP further signed over EUR235 million of disposals, totaling to approx. EUR500 million disposals including signed deals.

As at the end of September 2019, GCP had a value per sqm of EUR1,474, up 17% from year-end 2018 and an average in-place per sqm of EUR6.6, increasing 10% from December 2018.

In line with GCP's conservative financial policy, the Company has further reduced its average cost of debt to 1.3%, compared to 1.6% as of December 2018. At the same time, it has maintained its long average debt maturity period of 8.2 years highlighting the robust & sustainable nature of its financing structure.

During the EPRA Conference in September 2019, GCP was awarded the EPRA BPR Gold Award and the EPRA sBPR Gold Award for its 2018 annual financial report and 2018 EPRA sBPR report respectively for the third consecutive year. This recognition underlines the Company's commitment to best practices in its reporting and high standards of transparency.

Christian Windfuhr, CEO of Grand City Properties: "Having completed the first nine months of 2019, GCP is well on-course for yet another accretive year. The portfolio's significant internal growth potential has been an important catalyst for the steady top-line development, which coupled with our excellent operational performance has resulted in consistently strong results"

Financial statements for 9M 2019 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 42 - 45 of the financial statements for 9M 2019, 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/2019/GCP_Q3_2019.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]

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.

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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.