GRAND CITY PROPERTIES S.A.
Luxembourg, 26 November, 2013.

Board of Directors reports strong growth and profitability for the first nine months report of 2013. Further measures to strengthen corporate governance and reporting standards.
 

• Net profit for 1-9/2013 amounts to EUR 137 million (EUR 1.603 EPS), 105 % YOY increase
• EBITDA for 1-9/2013 of EUR 157.2 million, 70 % YOY increase
• FFO for 1-9/2013 of EUR 22.4 million (EUR 0.32 FFO per share), 182 % YOY increase
• EPRA NAV as of 30 September 2013 improved to EUR 556 million, 64 % increase from 31 December 2012
• Strong acquisition pipeline in advanced signing stages. Company is considering options to fund the growth of the portfolio including equity, bond or bank financing.
• Corporate governance and reporting standards: Appointment of Mr Windfuhr as CEO, Mr Gabay as Chairman of the Advisory Board, quarterly financial reporting starting with this quarter and going forward.
   

Grand City Properties S.A. (the 'Company') reports on the successful results for the first nine months of 2013. To strengthen reporting and listing standards, the Board of Directors decided to start publishing quarterly financial statements beginning with third quarter 2013 financials.

The Company's profitability is reflected in a EUR 137 million net profit for 1-9/2013 which is 105 % higher in comparison to EUR 67 million for 1-9/2012.
The Company proved its continuous strong performance with reported EBITDA of EUR 157.2 million; 70 % higher than in the last year's period (1-9/2012 EUR 92.7 million).
The 1-9/2013 revenue increased to EUR 64.3 million (1-9/2012 EUR 34.3 million, 88 % increase). Funds from operations (FFO) were improved significantly by 182 % to EUR 22.4 million in 1-9/2013 compared to EUR 7.9 million in 1-9/2012.
The net assets value (EPRA NAV) amounted to EUR 556 million as of 30 September 2013, reflecting an increase of 64 % since 31 December 2012 (EUR 339 million).

The Company's portfolio currently comprises over 22,000 units. The Company intends to continue the successful implementation of its growth strategy and is in an advanced process of signing a string of new acquisitions and options over various under-performing property portfolios with a total volume of more than EUR 200 million.

As of 30 September 2013 the Company has cash and liquid securities at the amount of EUR 165.2 million, a conservative balance sheet with a LTV of 45.8 %, and unencumbered assets at the amount of over EUR 200 million. The debt schedule has maturities ranging from 4 to 13 years with no material maturities until 2017. The average maturity is approximately 6 years. In Q3 2013 the EUR 100 million 2017 convertible bond has been completed the full conversion into equity. This successful full conversion strengthened the Company's equity and reduced its interest payments significantly.
The Board of Directors has decided that the Company's target LTV shall stay conservative below 55% with a strategic target to further improve the corporate rating. At present the Company is considering various options to fund the further growth of the Company's portfolio including potential equity, bond or bank financing.

Furthermore, the Board of Directors appointed Mr Christian Windfuhr as Chief Executive Officer with immediate effect. Mr Windfuhr is envisaged to be elected in the upcoming OGM as fourth member of the Board of Directors. In addition, Mr Yakir Gabay was appointed as the Chairman of the Company's Advisory Board.

The Q3 report 2013 of Grand City Properties S.A. is available on the Company's website: http://www.grandcityproperties.com/en/node/205

About Grand City Properties:
Grand City Properties (ISIN: LU0775917882) focuses on investing in and managing turnaround opportunities in the German real estate property market, especially in large urban high-density areas. The company follows primarily a buy and hold strategy. Efficient management tools enable sustainable and targeted improvement of the real estate properties. The company's portfolio comprises of approximately 22,000 units. Since May 2012, Grand City Properties is listed on the Frankfurt Stock Exchange. Further information: www.grandcityproperties.com.

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

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