THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, 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 H1 2017 RESULTS: CONTINUOUS GROWTH AND STRONG PERFORMANCE

- Rental and operating income increased to EUR239 million, up from EUR208 million

- Adjusted EBITDA up by 12% YOY to EUR121 million

- FFO I up YOY to EUR85 million, FFO I per share increase of 10% YOY to EUR0.55 and after perpetual notes attribution to EUR0.47 (+7% YOY)

- Net profit resulted in EUR225 million; earnings per share of EUR1.24

- Equity at EUR3.4 billion, increased 10% since year-end 2016; equity ratio of 50%

- EPRA NAV incl. perpetual notes increased 10% from year-end 2016 to EUR3.5 billion; EUR21.4 per share, up from EUR20.7 per share

- EPRA NAV increased 13% to EUR2.9 billion and EUR17.4 per share, up from EUR16.4 per share

- LTV of 35% maintained, cost of debt decreased to 1.5% and debt maturity profile extended to 7.5 years

- Credit metrics remain strong with ICR of 6.2x and DSCR of 5.0x

- Like-for-like occupancy growth of 2.3% p.a. and like-for-like in-place rent growth of 2% p.a.

Luxembourg, August 18, 2017 - Grand City Properties S.A. (the "Company", "GCP") successfully continued its growth with an increase in portfolio value of 13% year-to-date to EUR5.4 billion as of June 30, 2017, resulting from further portfolio additions and value-add improvements. The portfolio grew to 86k units as at the end of June 2017, with a further increase to 87k units as of August.

In the first half of 2017, GCP achieved double-digit FFO I growth of 11% year-over-year to an annualized level of EUR170 million, increasing further to EUR177 million on an annualized run rate basis as of August. The resulting FFO I per share of EUR1.15 reflects an FFO yield of 6.4% and dividend yield of 4.2% based on the payout ratio policy of 65%.
GCP's shareholder value creation remains strong as evident in its increased EPRA NAV including the perpetual notes to EUR3.5 billion (EUR21.4 per share).

Reinforcing the conservative financing and capital structure
Having establishing a EUR1.5 billion EMTN programme, GCP optimized its debt structure in July with the issuance of EUR600 million Series G straight bonds due 2026 with a coupon of 1.375%, while in parallel redeeming EUR321 million of its outstanding Series D straight bonds due 2021 with a higher coupon of 2%. The average cost of debt decreased to 1.5% and the average debt maturity increased to 7.5 years. The LTV remained unchanged from year-end 2016 at 35% while maintaining a stable equity ratio of 50%, providing a comfortable headroom to pursue further market opportunities. The equity base was also expanded during the period through the EUR198 million equity increase in June 2017, with the Company's shares remaining in high demand with investors.

Christian Windfuhr, CEO of Grand City Properties: "We are very pleased with the progress made in the first half of the year and can look towards yet another successful year in 2017. We continue to work hard on all levels of the Company as we pursue accretive growth opportunities, and are delighted to have joined the DAX family in June with our addition to the SDAX. This achievement represents another highlight along our successful growth path, with the resulting increase in visibility paving the road for inclusion in further major indices in the future, such as the MDAX."

The full H1 2017 report is available on the Company's website:
http://grandcityproperties.com/en/downloads.html

About the Company:
Grand City Properties is a specialist in residential real estate, value-add opportunities in densely populated areas 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 (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 and being registered with the Luxembourg trade and companies register (Registre de Commerce et des Sociétés Luxembourg) under number B 165 560. Since May 2012, Grand City Properties is listed on the Frankfurt Stock Exchange.

Contact:

Grand City Properties S.A.

1, Avenue du Bois

L-1251 Luxembourg

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.