GRAND CITY PROPERTIES S.A.
Luxembourg, 14 February, 2014

Standard & Poor's Ratings Services raised Grand City Properties S.A. rating to 'BB+' based on stronger capital structure; Outlook Stable
 

Standard & Poor's Ratings Services ('S&P') raised Grand City Properties S.A. (the 'Company') rating from 'BB' to 'BB+' on its long-term corporate credit rating and on the Company's bonds, due in 2020.

S&P provides a stable outlook reflecting their opinion that the Company's steady tenant demand in its main locations should continue to support rental income growth resulting in steady recurring cash flow. Additionally, S&P highlight in their research update the significant portfolio growth GCP has made and the improvement of the assets and tenant diversity.

The rating upgrade is the result of S&P's revised assessment of GCP's improved financial risk profile. Due to the increased equity base, S&P believes that the credit metrics will improve in the coming years. Additionally, S&P's notes the Company's well-capitalized capital structure with an equity ratio of about 50%, a reported loan-to-value (LTV) ratio below 50% and an increased unencumbered asset base to more than 30%.

S&P emphasizes the significant headroom under the debt covenants and projects an increase in occupancy in the assets, which should increase rental values and therefore the headroom under the covenants.

The Standard & Poor's Ratings Services Research Update on Grand City Properties S.A. is available on the Company's website:
http://www.grandcityproperties.com/en/downloads
 

About Grand City
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 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.
Grand City Properites focuses on investing in and managing turnaround opportunities in the real estate property market in Germany, especially in densely populated areas. The company improves the properties through targeted modernization and intensive tenant management, vacancy decrease and cost control and follows primarily a buy and hold strategy. For the nine months ending September 2013, the Company reported an EBITDA of EUR 157 million (YOY increase of 70%), and a net profit of EUR 137 million (YOY increase of 105%). EPRA NAV amounts to EUR 730 million, as of September 30, 2013 including the recent capital increase with proceeds of EUR 175 million. Since May 2012, Grand City Properties is listed on the Frankfurt Stock Exchange Entry Standard. 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