Grand City Properties S.A. announces Q1 2022 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 S.A. ANNOUNCES RESULTS FOR Q1 2022 WITH CONTINUED ROBUST OPERATIONAL PERFORMANCE AND IN LINE WITH GUIDANCE

- Net rental income for Q1 2022 amounted to 97.1 million up by 7% YOY.

- Strong operational performance reflected by like-for-like rental growth of 2.8% comprising of 2.3% in-place rent increases and 0.5% occupancy increases.

- Low portfolio vacancy of 5.1% as of the end of Q1 2022, driven by stable operational performance.

- FFO I of 48.4 million for the first three months of 2022, up by 3% YOY.

- FFO I per share for Q1 2022 at 0.29 per share, up by 7% YOY supported by full effect of the accretive share buybacks executed in 2021 and yielding 7.1%, based on a share price of 16.4.

- Profit for the period amounted to 46.5 million, reflecting a basic EPS of 0.18 and a diluted EPS of 0.17.

- EPRA NTA at the end of March 2022 of 5.1 billion and 30.8 per share, compared to 5.0 billion and 30.4 per share at year end 2021.

- Strong equity base maintained in Q1 2022 with total equity amounting to 5.9 billion, reflecting an equity ratio of 53%.

- Company financial platform improved through 615 million in debt repayments in Q1 2022 resulting in a low average cost of debt of 1.1%, long average debt maturity of 6.6 years, low LTV of 35%, large pool of unencumbered assets amounting to approx. 8.7 billion (92% of total portfolio value), and strong interest coverage with an ICR of 6.7x.

- FY 2022 guidance confirmed.

Luxembourg, May 17, 2022 Grand City Properties S.A. (GCP or the Company) announces results for the first quarter of 2022. Net rental income in the first 3 months of 2022 amounted to 97.1 million, 7% higher as compared to the 90.6 million recorded in the same period of 2021. The improvement in net rental income was primarily due the impact from net acquisitions throughout 2021 as well as from strong operational performance reflected in the like-for-like rental growth of 2.8% between the two periods.

Adjusted EBITDA in the Q1 2022 amounted to 76.4 million, an increase of 5% in in comparison to the 72.6 million generated in the first quarter of 2021 supported by the higher level of net rental income. FFO I in March 2022 amounted to 48.4 million, growing by 3% as compared to the same period in 2021. The FFO I per share increased 7% to 0.29 from 0.27, primarily as due the full effect of the accretive share buybacks executed in 2021.

GCP continued optimizing its financial profile in the first 3 months of 2022. The company pre-paid short-term bank loans amounting to over 165 million which further increased the proportion of unencumbered assets to 92%, representing a total value of 8.7 billion. Furthermore, GCP redeemed its 450 million Series F convertible bonds at maturity in March 2022. These measures have allowed the Company to maintain a low cost of debt of 1.1%, while the average debt maturity has increased to 6.6 years as of March 2022 from 6.0 years as of year-end 2021. The total debt repayments amounting to over 615 million were funded using GCPs strong liquidity position, which remains high at approx. 550 million as of March 2022 following the repayments.

Refael Zamir, CEO of Grand City Properties: "We begin 2022 with strong operational profits generated by a high-quality portfolio and an improved financial platform that enables us to adequately address challenges, capitalise on opportunities, and deliver on our goals.

Financial statements for Q1 2022 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 26 - 29 of the financial statements for Q1 2022, 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/2022/GCP_Q1_2022.pdf

About the Company

The Company is a specialist in residential real estate, value-add opportunities in densely populated areas primarily in Germany and London. The Companys 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 40, Rue du Curé, L-1368 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.
40, Rue du Curé,
L-1368 Luxembourg
T: +352 28 77 87 86
E: info@grandcity.lu
www.grandcityproperties.com

Investor Relations Team:
Grand City Properties S.A.
E: gcp-ir@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 THE COMPANY. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.