Grand City Properties S.A., / Key word(s): Final Results
18.03.2014 07:59

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

---

THIS ANNOUNCEMENT IS NOT FOR DISTRIUBTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

Grand City Properties S.A. reports on a remarkable year 2013 with high profitability and significant increases in all key metrics.
- Portfolio increased to 26,000 units, up 120% over 2012
- Revenue increased to EUR170 million, up 181% yoy
- Strong rental and operating income of EUR100 million, up 150% yoy
- Net profit rose to EUR266 million (EUR2.97 EPS), up 186% yoy
- FFO I sprung to EUR 38.1 million, up 233% yoy (FFO I per share was EUR0.50). FFO II results increased to EUR53.2 million, up 85% yoy
  - EBITDA of EUR306.2 million, up 150% yoy 

- EPRA NAV as of December 31, 2013 increased to EUR859.4 million, up 154%     yoy

- LTV down significantly to 35.7% from 44.2% in 2012, reflecting strong     capital and debt structure

- As of December 31, 2013 the Company held EUR167 million of liquid     assets

Luxembourg, March 18, 2014 - Grand City Properties S.A. (the "Company", "GCP") has reported strong results for the full year 2013 driven by operational improvements and successful growth.

Total revenue increased to EUR170 million, up 181% year-on-year, including EUR70 million from sales of buildings. Net profit climbed to EUR266 million (EUR2.97 EPS), up 186% year-on-year. The Company achieved a strong and healthy capital and debt structure, resulting in a high equity ratio of 46.5% and reducing the Loan-to-Value to only 35.7%. As of December 31, 2013 the Company held EUR167 million of liquid assets boosted by additional EUR150 million through an oversubscribed convertible bond issue in February 2014, providing the Company with financial flexibility and firepower to finance the immediate pipeline.

In 2013, the Company's portfolio grew by 14,000 units to around 26,000 units, reflecting a year-on-year increase of approx. 120%. As of February 2014, the portfolio comprised approx. 28,000 units. In 2013 the portion of units in the stabilized stage (i.e. less than 5% vacancy) increased to 33% from 25% in 2012 and the portion of units in early turnaround stage (i.e. vacancy above 15%) decreased to 23% from 42% in 2012.
Christian Windfuhr, CEO of Grand City Properties, comments: "The 2013 results prove the success of our strategy and position the Company as a leading turnaround specialist in the German real estate market. I believe in 2013 we also proved to our shareholders the ability to realize the potential embedded in our assets."

Successfully completed acquisition of a real estate management company In order to support the Company's strategy, its fast growth, takeover of future acquisitions and the capability to generate additional revenue, the Company acquired a real estate management company, providing asset and property management to approx. 18,000 units of third parties with a large focus on GCP's strategic locations. Using GCP's know-how and advanced IT platform, the combined team, now consisting of over 350 employees, will continue to provide management and operational services to the Company's portfolio and to third parties as well.

Mr. Windfuhr points out that: "This acquisition brings significant benefits from synergies and economies of scale, relating to cost saving measures, take over capacities and provides the Company with an additional income driver."

The 2013 report of the Grand City Properties S.A. is available on the Company's website:
http://www.grandcityproperties.com/en/downloads

The Company is attending several conferences in the near future to provide a platform to meet the management for a presentation and Q&A session. A full list can be found under the following link:
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 unique strategy is to improve its properties through targeted modernization and intensive tenant management, and then create value by subsequently raising occupancy and rental levels.
Grand City Properties is a public limited liability company (société anonyme) incorporated under the laws of the Grand Duchy of Luxembourg, registered office 6, Boulevard Pierre Dupong, L-1430 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 Entry Standard (ISIN: LU0775917882). Further information: www.grandcityproperties.com

Contact:
Grand City Properties S.A.
6, boulevard Pierre Dupong
L 1430 Luxembourg
www.grandcityproperties.com

Press Contact:
Katrin Petersen
Grand City Properties S.A.
T: +49 (30) 887088-1128
E: [email protected]
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.


18.03.2014 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---