Grand City Properties S.A. announces 9M 2018 results

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (THE 'UNITED STATES') OR IN OR INTO OR TO ANY PERSON RESIDENT OR LOCATED IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO PUBLISH OR DISTRIBUTE THIS DOCUMENT.

GRAND CITY PROPERTIES S.A. ANNOUNCES 9M 2018 RESULTS:
WELL ON TRACK TO A PROFITABLE YEAR

- Rental and operating income of EUR404 million, up by 10% YOY from EUR366 million in 9M 2017

- Adjusted EBITDA of EUR204 million, up 11% YOY from EUR183 million in 9M 2017

- FFO I increased to EUR150 million, a growth of 15% YOY from EUR130 million

- FFO I per share grew by 10% YOY to EUR0.91, (EUR1.21 annualized), reflecting a yield of 5.6%. FFO I per share after perpetual notes attribution up by 8% YOY to EUR0.77

- Net profit grew by 9% YOY to EUR441 million; EPS (basic) grew 8% YOY to EUR2.31

- EPRA NAV increased by 10% to EUR3.7 billion and EUR22 per share, up from EUR20.2 per share at year-end 2017

- EPRA NAV incl. perpetual notes grew 17% to EUR4.7 billion and EUR28 per share, from EUR4.0 billion and EUR24.2 per share at year-end 2017

- Equity of EUR4.5 billion, up by 16% since year-end 2017; reflecting an equity ratio of 50%

- Conservative financial profile reinforced; low leverage maintained with 35% LTV, solid credit profile evident in high ICR of 6.0x in 9M 2018, long debt maturity of 8.2 years, low fixed cost of debt of 1.6% and high unencumbered assets ratio of 66% (EUR4.7 billion)

- Organic growth is sustained at high levels, reflected in like-for-like net rents growth of 3.3% as of September 2018, with 2.9% from in-place rents growth and 0.4% from occupancy growth

Luxembourg, November 19, 2018 - Grand City Properties S.A. ('GCP' or the 'Company') presents its first nine months of 2018 results with achievements in both top and bottom-line. Robust growth in the top-line is driven by high like-for-like performance and accretive acquisitions. This is further refined by strong operational performance, leading to a significant FFO I growth of 15% YOY to EUR150 million (EUR0.91 per share), which supports the solid value creation in the portfolio, evident in 10% growth in EPRA NAV to EUR3.7 billion.

Enhanced asset quality through accretive capital recycling program
During the course of 2018, GCP has been pursuing an accretive capital recycling program where the disposals of non-core assets are channeled into attractive acquisitions in high quality locations, especially in London and Berlin. These assets, consisting of non-core and mature properties, were sold for an amount of over EUR400 million, generating a 6% profit over net book value. The profit over total cost of EUR115 million (profit margin of 40%) lifted the FFO II by 72% to EUR265 million.

Strong ESG standards, reflected by EPRA awards
In September 2018, GCP received the EPRA BPR Gold Award for the second consecutive year for its 2017 annual financial report, as well as the EPRA sBPR Gold Award for its EPRA sBPR reporting, highlighting GCP's commitment to the highest standards of transparency and reporting.

Christian Windfuhr, CEO of Grand City Properties: 'During the first nine months of 2018, we continued on our success path by lifting the internal growth potential in our portfolio and demonstrated high operational performance, leading to strong value creation, which is further underlined by the exceptional profits recorded by our capital recycling program. Our results show that we are in a firm position to end 2018 successfully.'

The financial statements for 9M 2018 are available on the Company's website:
https://www.grandcityproperties.com/investor-relations/publications/financial-reports/

For definitions of the alternative performance measures please see the relevant section in the pages 44- 48 of the financial statements for 9M 2018 which you can find on the website under investor relations > publications > financial reports or follow this link:
https://www.grandcityproperties.com/fileadmin/user_upload/03_investor_relations/Downloads/2018/GCP_Q3_2018.pdf

About the Company
The Company is a specialist in residential real estate, value-add opportunities in densely populated areas primarily in Germany. 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. Further information: www.grandcityproperties.com

Grand City Properties S.A. (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 1, Avenue du Bois, L-1251 Luxembourg, Grand Duchy of Luxembourg and being registered with the Luxembourg trade and companies register (Registre de Commerce et des Sociétés Luxembourg) under number B 165 560. The shares of the Company are listed on the Prime Standard segment of Frankfurt Stock Exchange.

Contact:
Grand City Properties S.A.
1, Avenue du Bois
L-1251 Luxemburg
T: +352 28 77 87 86
E: info@grandcity.lu
www.grandcityproperties.com

Press Contact:
Katrin Petersen
Grand City Properties S.A.
T: +49 (30) 374-381 5218
E: katrin.petersen@grandcity.lu

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.