REG-Grand City Properties S.A. Grand City Properties S.A. announces good start in Q1 2024 driven by strong operations

Grand City Properties SAAnnouncement

16/05/2024 05:45

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Grand City Properties S.A. (IRSH)
Grand City Properties S.A. announces good start in Q1 2024 driven by strong operations

16-May-2024 / 06:40 CET/CEST
The issuer is solely responsible for the content of this announcement.

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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 GOOD START IN Q1 2024 DRIVEN BY STRONG OPERATIONS

  • Net rental income of €105 million in Q1 2024, higher by 4% as compared to €101 million in Q1 2023.
  • Solid like-for-like rental growth of 3.4%, driven mainly by in-place rent growth.
  • Adjusted EBITDA of €82 million in Q1 2024, higher by 3% as compared to €80 million in Q1 2023.
  • FFO I of €45  million and €0.26 per  share in Q1 2024,  lower by 4% as  compared to €47 million  and €0.27 in Q1  2023, as higher perpetual  notes
    attribution offset the operational growth.
  • Successful perpetual notes exchange in April 2024 with high acceptance ratio of 82%, re-establishing GCP in the capital markets and supporting the
    FFO and credit metrics by S&P.
  • Net profit of €44 million and basic earnings per share of €0.17.
  • Strong liquidity position with €1.3 billion of cash and liquid assets as of March 2024, reflecting 29% of total debt and covering debt  maturities
    until the end of 2026.
  • Conservative financial position maintained with  an LTV of 36% as  of March 2024, ICR ratio  of 5.8x in Q1 2024  and €6.6 billion of  unencumbered
    assets (75% of total portfolio value). EPRA LTV (considering perpetual notes as debt) as of March 2024 is 48%. 
  • EPRA NTA amounted to €4.1 billion or €23.5 per share as of March 2024.
  • FY 2024 guidance confirmed. 

Luxembourg, May 16, 2024 – Grand  City Properties S.A. (“GCP” or  the “Company”) announces results for the  three-month period ending March 2024  with
strong operational performance, higher  liquidity position and conservative  financial leverage. Net  rental income increased by  4% to €105  million,
mainly driven by the solid  like-for-like rental growth of 3.4%.  The growth is the result  of in-place rent growth of  3.3%, while the occupancy  was
relatively stable with a like-for-like increase of 0.1%, reflecting strong positive operational dynamics. GCP continues to record low vacancy rate  of
3.9% as of March 2024. Adjusted EBITDA increased to  €82, higher by 3% as compared to €80 million  in Q1 2023. The increase in the adjusted EBITDA  is
the result of the strong operational performance of the Company, driven by the solid like-for-like increase, partially offset by net disposals. FFO  I
decreased by 4% to €45 million in Q1  2024, mainly due to the higher perpetual notes  attribution, as the financing costs remained relatively  stable.
FFO I per share amounted to €0.26 per share in Q1 2024, as compared to €0.27 per share in the comparable period. FY 2024 FFO I guidance is confirmed. 

GCP continues with its  proactive approach of maintaining  a conservative financial profile  with a strong financial  position, by reducing  leverage,
strengthening liquidity, and therefore  reducing refinancing needs,  highlighted by a  stable LTV of  36% as of  March 2024. GCP  did not valuate  its
portfolio in the first quarter  of 2024 and will  carry a portfolio valuation  as part of the  H1 2024 report. In  Q1 2024, GCP successfully  disposed
assets of €30 million, at a 2% premium to book value, and signed additional disposals amounting to over €20 million which are expected to close in the
coming periods. Combined with the strong operational result this allowed  the Company to further strengthen its liquidity position, which amounted  to
€1.3 billion as of March 2023, thereby covering debt maturities until the end  of 2026. As of March 2024, the Company’s average cost of debt  remained
stable at 1.9% as compared to year-end 2023 and the average debt maturity was 5.1 years, as of March 2024.

In April 2024, GCP launched an exchange offer with a tender option to the holders of the two perpetual notes which have passed their first call  date.
The exchange was successful with a high acceptance rate of 82%. The holders had the opportunity to exchange the current notes into new perpetual notes
and a tender option for 15%  of their exchanged notes. The transaction  supports credit metrics as S&P equity  content was regained, with only  little
cash usage. The transaction is also FFO accretive as it saves €2 million of coupon per annum, due to the reduction of the balance of perpetual  notes,
primarily driven by buybacks of €34 million at a discount.

Refael Zamir,  CEO of  Grand City  Properties: "We  entered 2024  with strong  operational results  supported by  solid like-for-like  rental  growth,
capitalizing on the  positive market  momentum. Our  continued proactive  measures to strengthen  our balance  sheet including  the recent  successful
perpetual exchange, along with our strong operational platform, have positioned the Company well to continue to navigate the current environment.”

Financial        statements         for         Q1         2024         are        available         on         the         Company's         website:
 1 https://www.grandcityproperties.com/investor-relations/publications/financial-reports/

For definitions of the alternative performance measures please  see the relevant section in the pages  32-36 of the financial statements for Q1  2024,
which you can find on the website under investor relations > publications > financial reports or follow this link:

 2 https://www.grandcityproperties.com/grandcityproperties.com/Data%20Objects/Downloads/Financial%20Reports/Q1%202024%20Financials/GCP%20Q1%202024.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
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 37, Boulevard Joseph II,  L-1840 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.
37, Boulevard Joseph II,
L-1840 Luxembourg
T: +352 28 77 87 86
E: info@grandcity.lu
www.grandcityproperties.com

 

Investor Relations Team:

Grand City Properties S.A.
E:  3 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.

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Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

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   ISIN:           LU0775917882, LU0775917882 , XS1491364953, XS1811181566,
                   XS2271225281, XS1220083551, XS1654229373, XS1706939904,
                   XS1706939904, XS1763144604, XS1781401085, CH0401956872,
                   XS1827041564, XS1851265527, XS1953786222, XS1964638446,
                   CH0482172415, XS2016885159, XS2033380820, XS2035328223,
                   XS2154325562, XS2282101539,
   Category Code:  QRF
   TIDM:           IRSH
   LEI Code:       5299002QLUYKK2WBMB18
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   321804
   EQS News ID:    1904375


    
   End of Announcement EQS News Service

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References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=572a7a11a9f4d65d9beb026beb0b36bd&application_id=1904375&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=a7cf1f02fc60d34594e921f715e4ef74&application_id=1904375&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
   3. mailto:gcp-ir@grandcity.lu


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