DGAP-News: Grand City Properties S.A.

DGAP-News: Grand City Properties S.A.,: rating increased to investment grade 'BBB-' by S&P

Grand City Properties S.A., / Schlagwort(e): Sonstiges

21.11.2014 14:36

Veröffentlichung einer Corporate News, übermittelt durch DGAP - ein Service der EQS Group AG. Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich.

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GRAND CITY PROPERTIES S.A. Luxembourg, 21 November, 2014.

Grand City Properties rating increased to investment grade 'BBB-' by S&P

Standard & Poor's Ratings Services ("S&P") raised Grand City Properties S.A. ("GCP" or the "Company") rating from 'BB+' to investment grade rating 'BBB-' on its long-term corporate credit rating and on the Company's convertible and straight bonds.

The upgrade reflects S&P's view that GCP's business profile has improved due to its increased focus on managing a stabilized portfolio of income-producing properties, its increased portfolio size of about EUR2.2 billion, and its greater geographical spread across densely populated regions in Germany. S&P mentioned that GCP increased its geographic presence across Germany and mostly operates in favourable regions with good rental growth prospects and where demand continues to outpace supply from new property developments.

S&P revised upward GCP's business profile due to the Company's property portfolio growth to 43,000 units and due to the good asset and tenant diversity. S&P acknowledged GCP's good track record in acquiring affordable housing blocks that have below-market rents and high vacancies, and successfully lifting occupancy and rent levels.

S&P revised upward their financial projections for 2014-2015, taking into account GCP's recent acquisitions, refinancing activities, and its lower average cost of debt.

S&P has maintained the stable outlook based on the steady tenant demand in GCP's locations which effect rental income growth.

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 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 modernisation 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 Nov 2014 (Nov*12) is EUR91 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 T: +352 28 77 87 86 www.grandcityproperties.com

Press Contact: Katrin Petersen Grand City Properties S.A. T: +49 (30) 887088-1128 E: katrin.petersen@grandcity.lu

www.grandcityproperties.com

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