NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (THE "UNITED STATES") OR IN OR INTO OR TO ANY PERSON RESIDENT OR LOCATED IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO PUBLISH OR DISTRIBUTE THIS DOCUMENT.

GRAND CITY PROPERTIES S.A. ANNOUNCES ROBUST FULL YEAR 2018 RESULTS SUPPORTED BY A STRONGER PORTFOLIO

- Rental and operating income grew 10% to EUR545 million from EUR495 million the previous year

- Adjusted EBITDA for 2018 was EUR276 million, up 11% YOY

- Steady FFO I growth continued with an 11% increase to EUR198 million from EUR178 million in 2017

- FFO I per share of EUR1.19, as compared to EUR1.12 a year earlier, reflecting an FFO I yield of 5.3%. FFO I after perpetual attribution was EUR1.01, 5% increase YOY

- Dividend of EUR0.77 per share based on a payout ratio of 65% of FFO I per share (subject to AGM approval), reflecting a dividend yield of 3.4%. Net Profit amounting to EUR583 million resulting in an EPS (basic) of EUR2.95

- FFO II increased 64% YOY to EUR334 million driven by disposals of nearly half a billion euros

- EPRA NAV including perpetual notes expands 20% to EUR4.8 billion as of Dec 2018; EUR28.7 per share up 19% from EUR24.2 as of Dec 2017

- EPRA NAV per share as of Dec 2018 was EUR22.5, up 11% from Dec 2017

- Total Equity at EUR4.7 billion was 21% higher than Dec 2017 with a strong equity ratio of 53%

- Conservative financial structure maintained with a low LTV of 34%, compared to 36% in Dec 2017

- Robust financial platform reinforced with substantial debt issuances leading to long average debt maturity of over 8.3 years, low cost of debt of 1.6%, a strong ICR of 6.0x and substantial unencumbered ratio of 65% (EUR4.8 billion in value)

- Top-line progress driven by sustained organic growth, displayed in the like-for-like rental growth of 3.4%; in-place rent accounting for 3.1% of the growth, while occupancy growth contributing 0.3% to the like-for-like growth

Luxembourg, March 18, 2019 - Grand City Properties S.A. ("GCP" or the "Company") is pleased to present its results for the full year 2018, completing another year of strong operational profitability demonstrated by the 11% increase in Adjusted EBITDA as well as FFO I to EUR276 million and EUR198 million respectively, compared to the previous year. GCP was also successful in realizing some of the portfolio's rent reversionary potential, driving strong top-line growth with like-for-like rent increases of 3.4% during the year. The Company's value creation credentials were demonstrated with the EPRA NAV per share (including perpetual notes) growing 19% to EUR28.7 from EUR24.2 as of December 2017.

During the year, the Company executed capital recycling measures leading to the disposal of half a billion euros of assets which were mature and/or non-core in nature. These disposals were executed at a 38% profit over total costs and 4% above the net book value, validating GCP's conservative valuations. Accordingly the FFO II increased by 64% to EUR334 million as compared to 2017. On the other hand, GCP has acquired over 2,200 units in London, Berlin and NRW. Additionally further 735 units in London have been acquired which are in the pre-letting and final snagging stage. The improved asset quality is demonstrated by a higher value per square meter of EUR1,257 (up 9%) as well as an improved average in-place rent per square meter of EUR6.0 (up 6%).

GCP maintains a conservative financial structure which is displayed by the long average debt maturity of over 8.3 years as well as a low average cost of debt of 1.6%.The long maturity profile is the result of issuing long term debt while repaying shorter maturities. GCP's commitment to sustainability was once again recognized by Sustainalytics, an independent sustainability rating agency in February 2019. The Company was ranked in the 95^th percentile, moving up by 4 notches as compared to 2017. In addition, for the second year running, EPRA awarded GCP with the EPRA BPR Gold Award as well as the EPRA sBPR Gold Award in September 2018 for its high standards of transparency and reporting in the 2017 annual financial report as well as for its sustainability reporting.

Christian Windfuhr, CEO of Grand City Properties: "2018 has been yet another successful year for GCP, with a robust operational performance, an improved asset quality as well as strong gains on disposals. We remain committed to realizing the significant growth potential inherent in our portfolio while also evaluating attractive acquisition opportunities based on our acquisition criteria. I am thankful for the invaluable contributions of the entire team at GCP and look forward to another rewarding year in 2019."

The financial statements for FY 2018 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 2018 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/2018/GCP_FY_2018_Report.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 through targeted modernization 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.

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 GRAND CITY PROPERTIES S.A. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.