Grand City Properties S.A. / Key word(s): Half Year Results/Interim Report
18.08.2015 07:01

Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer / publisher is solely responsible for the content of this announcement.

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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 2015 INTERIM RESULTS DISPLAYING STRONG GROWTH AND HIGHER PROFITS

- Rental and operating income increased to EUR143 million, up 51% YOY
- EBITDA at EUR235 million, up 64% compared to H1 2014
- Adjusted EBITDA increased to EUR75 million, up 51% YOY
- FFO I increased to EUR55 million, up 61% compared to H1 2014;
- FFO I per share after Hybrid Notes attribution at EUR0.41, up 41% YOY
- Net profit at EUR195 million, up 60% YOY; EPS at EUR1.47 +56% YOY
- Equity rose to EUR1.64 billion, up 58% YTD; Equity ratio up to 45% from     40% year-end 2014

- EPRA NAV climbed to EUR1.64 billion, up from EUR1.44 billion year-end     2014

- Leverage decreased to an LTV of 39%, compared to 45% year-end 2014
- LTV assuming conversion of the convertible bond is at 32% (share price     is 70% premium to the conversion price)

- Conservative financing approach with ICR of 6.1 and DSCR of 4.5
- Cash and liquid assets at EUR454 million, supported by Hybrid Notes issuance in Q1 and Series E issuance in Q2. Hybrid Notes tap up of EUR100 million in July provided further acquisition firepower
- Like-for-like in-place rent growth is 2.5% p.a., l-f-l occupancy growth     is 2.6% p.a.

Luxembourg, August 18, 2015 - Grand City Properties S.A. (the "Company", "GCP") announces the interim results for the first half of 2015. The figures display strong portfolio growth and the fruit borne by the successful refinancing activities of the Company.

Substantial portfolio growth and capital structure improvement GCP's portfolio grew strongly from investment property value of EUR2.2 billion from year-end 2014 to EUR3 billion in the first 6 months of 2015. Currently, as of July 2015, GCP owns 66 thousands units, up from 43 thousands units at the end of 2014. Adding the 22 thousands units owned by third parties, the total number under management amounted to 88 thousands units. The effect of this growth combined with the operational improvements in terms of rent and occupancy increase of the existing portfolio boosted rental income, with the July portfolio generating rental and operating income at a run rate of EUR355 million. This in turn fed down to the bottom line, substantially increasing the net profit, and further to the EPRA NAV.
Throughout the strong growth the Company held on to its conservative capital structure approach and was able to further improve upon its excellent financial ratios. Its LTV of 39%, ICR of 6.1 together with the high firepower of cash and liquid assets will support its external portfolio growth strategy in the foreseeable future.
Successful refinancing activities boost profits 
With the aim of lowering financing costs and retaining a high degree of flexibility in the future, GCP succeeded in progressing its refinancing activities, raising EUR800 million through the issuance of perpetual notes and Series E straight bonds (1.5% coupon) in the first 6 months of the year. This, combined with the refinance of the Series B straight bonds (6.25% coupon) with Series D straight bonds (2.0% coupon) at the end of 2014, significantly reduced the proportional financing costs of the Company in the first half of 2015.

GCP had a sharp rise in profits from operations, with FFO growing by 61%, substantially above the 51% increase in rental income. Main drivers behind the increase were operational increases and improvements and proportionally lower cost of debt achieved through the refinancing of the Company's liabilities.

Christian Windfuhr, CEO of Grand City Properties, comments: "We are pleased with our progress over the first half of 2015, having exceeded growth and operational expectations. Now we look towards the future, will continue the successful turnaround of our assets and use our improved financial profitability to generate market-leading returns for our investors."
The full H1 2015 interim report is available on the Company's website: http://grandcityproperties.com/en/downloads.html

About the Company:
Grand City Properties is a specialist real estate company focused on investing in and managing turnaround opportunities in the real estate property market in Germany, primarily in densely populated areas. 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 24, Avenue Victor Hugo, L 1750 Luxembourg and being registered with the Luxembourg trade and companies register (Registre de Commerce et des Sociétés Luxembourg) under number B 165560. Since May 2012, Grand City Properties is listed on the Frankfurt Stock Exchange.

Contact: 
Grand City Properties S.A. 
24, Avenue Victor Hugo 
L-1750 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.


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