Grand City Properties S.A.announces H1 2019 results

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS

GRAND CITY PROPERTIES ANNOUNCES SOLID H1 2019 RESULTS WITH STABLE GROWTH

- Rental and operating income at EUR278 million, up 4% compared to H1 2018.

- Adjusted EBITDA of EUR146 million for the first half of 2019 was up 7% YOY

- FFO I increased to EUR106 million, up 7% YOY, demonstrating the robust nature of business profitability.

- On a per share basis, FFO I during H1 2019 was EUR0.64, up 7% YOY. FFO I per share after perpetual attribution increased 4% to EUR0.54 for the H1 2019 period.

- Successful disposal of properties 7% over book value at the amount of EUR187 million pushed up the FFO II to EUR191 million

- The profit for the period amounted to EUR250 million, EPS basic at EUR1.28 and EPS diluted at EUR1.21

- EPRA NAV grew to EUR3.9 billion and EUR23.1 per share, at the end of the first half of 2019, increasing by 6% (dividend adjusted) since December 2018

- As of 30^th June 2019, EPRA NAV including perpetual notes was EUR4.9 billion which was EUR29.2 per share.

- Total Equity was EUR4.7 billion as of June 2019, showing a 4% dividend adjusted increase compared to the end of December 2018. Equity ratio remains strong at 51%

- Strong credit metrics preserved with the low LTV of 34%

- Steady like-for-like rental growth of 3.8%, with 3.5% contributed from in-place rent increases and 0.3% contributed from occupancy increases.

- Guidance for 2019 confirmed

Luxembourg, August 19, 2019 - Grand City Properties S.A. ('GCP' or the 'Company') witnessed another solid performance supported by strong like-for-like rental growth of 3.8% demonstrating the underlying potential of the portfolio. Adjusted EBITDA increased 7% to EUR146 million for the first half of 2019 over the corresponding period in 2018 and the FFO I also improved 7% YOY, highlighting the Company's scalable platform at marginal cost.

Capital recycling measures during the first half of 2019 included disposals of EUR187 million of mature and non-core assets, at a profit over cost (including capex) of EUR85 million reflecting a 7% gain over book values. In addition, the Company acquired assets worth approx. EUR300 million and continues to generate further improvements in the portfolio's asset quality demonstrated by the 8% growth in value to EUR1,359 per sqm since year-end 2018.

GCP's financing structure retains its conservative nature with an average cost of debt of 1.4% and a long average debt maturity of 8.4 years. Furthermore, the sustainable character of the financing structure is reflected in the strong ICR of 6.4x and the growing proportion of unencumbered assets as seen in the unencumbered assets ratio of 76% which amounts to EUR5.9 billion in value. As of June 2019, GCP liquid assets stand on EUR769 million, providing the Company ample firepower to pursue attractive opportunities.

Christian Windfuhr, CEO of Grand City Properties: 'GCP completed yet another successful quarter with a strong performing portfolio. At the halfway mark of the year, the Company is well placed and confident of meeting its guidance for the full year 2019.'

Financial statements for H1 2019 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 42 - 45 of the financial statements for H1 2019, 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/2019/GCP_H1_2019.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 by repositioning 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.

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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 THE COMPANY. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.