Grand City Properties S.A.,: ANNOUNCES MOODY'S ASSIGNMENT OF Baa2 ISSUER RATING AND COMPANY SETS FURTHER RATING IMPROVEMENTS AS A STRATEGIC GOAL
09.02.2015
Grand City Properties S.A., / Key word(s): Miscellaneous
09.02.2015 11:58
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GRAND CITY PROPERTIES S.A. ANNOUNCES MOODY'S ASSIGNMENT OF Baa2 ISSUER
RATING AND COMPANY SETS FURTHER RATING IMPROVEMENTS AS A STRATEGIC GOAL
9 February 2015.
Grand City Properties S.A. ("GCP" or the "Company") announces today that
Moody's Investors Service ("Moody's") has assigned a first-time long-term
issuer rating of Baa2 to the Company, with a stable outlook.
Moody's state that the Company's rating is based on moderate leverage,
financial strength metrics stronger than those of similarly rated peers and
good liquidity profile. The rating is supported by the Company's prudent
financial policies and the healthy debt maturity profile.
Moody's view the asset quality of GCP's property portfolio as mixed owing
to its strategy to acquire under-managed properties for their turnaround
potential. Moody's acknowledged that GCP has developed a good track record
of increasing the occupancy and rental income of acquired assets and
reducing their operating and non-recoverable costs.
The rating is positively affected by the mix in major cities and other
densely populated areas geographically diversified across Germany with a
granular tenant base. The Company's scale is still smaller than most of its
rated investment-grade peers.
Looking forward, the Company regards the assigned rating as a supporting
step to reach a higher and improved rating score and further reiterate the
company's strategic goal to continue to improve its rating.
Moody's research on Grand City Properties S.A. is available on the
Company's website:
http://www.grandcityproperties.com/en/downloads
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. For the nine months
ending 30 September 2014, the Company reported an EBITDA of EUR219 million
(YOY increase of 39%), and a net profit of EUR174 million (YOY increase of
27%). EPRA NAV amounts to EUR1,342 million. FFO I run rate for Feb 2015
annualized (Feb*12) is EUR95 million. 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
Grand City Properties S.A. T: +49 (30) 887088-1128
E: [email protected]
http://www.grandcityproperties.com
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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