REG-Grand City Properties S.A. Grand City Properties S.A. announces FY 2024 results with strong performance across all metrics

Grand City Properties SAAnnouncement

17/03/2025 06:00

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Grand City Properties S.A. (IRSH)
Grand City Properties S.A. announces FY 2024 results with strong performance across all metrics

17-March-2025 / 06:48 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 FY 2024 RESULTS WITH STRONG PERFORMANCE ACROSS ALL METRICS

  • Top range of FY 2024 updated guidance achieved.
  • Net rental income of €423 million, higher by 3% as compared to €411 million in FY 2023.
  • Solid like-for-like rental growth of 3.8%, driven by in-place rent growth.
  • Adjusted EBITDA of €335 million in FY 2024, higher by 5% as compared to €320 million in FY 2023.
  • FFO I of €188  million in 2024  (1.08 per share),  2% higher as compared  to €184 million  in 2023, driven  robust growth in  adjusted
    EBITDA, partially offset by the higher finance expenses and perpetual notes attribution.
  • Full year positive property  revaluation of +0.5% on  a like-for-like basis,  following devaluation in H1  and marking first  positive
    revaluation result in 2 years, driven by operational growth and underlining shift in momentum.
  • Signed €350 million disposals in FY 2024, of which €125 million in Q4 2024 alone, up from €190 million in 2023. In 2024, €270  million
    disposals have been closed, carried at a slight 2% discount  to book value, and supporting deleveraging and strengthening the  balance
    sheet. 
  • LTV ratio down 4% to 33% as of December 2024, compared to 37% in December 2023.
  • ICR ratio of 5.7x and €6.4 billion of unencumbered assets (73% of total portfolio value).
  • Profit of €242 million as a result of strong operational profits, supported by the positive property revaluation. 
  • EPRA NTA amounted to €4.3 billion or €24.3 per share as of December 2024.
  • 2025 FFO I guidance in the range of €185 million to €195 million. 

Luxembourg, 17 March 2025 – Grand City Properties S.A. ("GCP" or the "Company") reports its financial results for the 2024 financial year,
with net rental income of €423 million, an  increase of 3% compared to €411 million in  2023. The rise in net rental income was  primarily
driven by like-for-like  rental growth of  3.8%, stemming  from in-place rent  growth and  extraction of the  portfolio’s embedded  growth
potential. Positive impacts  from operational  growth were partially  offset by  the impact of  net disposals.  The Company’s  operational
performance was reflected in an adjusted EBITDA of €335 million, up 5% from €320 million in 2023. FFO I for 2024 amounted to €188 million,
2% higher as  compared to €184  million in 2023.  Solid operational growth  was offset by  a higher finance  expenses and perpetual  notes
attribution. FFO I per share stood at €1.08  in 2024, 1% higher compared to €1.07 in  2023, with full-year FFO I guidance achieved at  the
upper end of the expected range.

As part of its  consolidated annual report,  GCP conducted a  full revaluation of  its portfolio, recording  property revaluations of  €50
million, representing a like-for-like change of +0.5% compared to December 2023. Independent external valuers assessed the full portfolio,
ensuring an up-to-date status  of the portfolio value.  In the second half  of 2024, market conditions  improved while strong  operational
growth continued, leading to a recovery in property values compared to the first half of the year. Rental yield has increased slightly  to
4.9% as of December 2024, from 4.8%  in December 2023, as revaluations gains came  from rental like-for-like growth and high  reversionary
potential embedded in the portfolio.  As of December 2024, the  rental yield has returned to  its December 2018 level, highlighting  GCP's
conservative valuation  approach over  the  years and  consequently  resulted in  reduced valuation  volatility  over time,  while  better
positioning GCP going forward.

In 2024, GCP continued to take a proactive approach to its balance sheet and liquidity management through property disposals and  dividend
suspension, strengthening its financial position and reducing financing risk. During the year, GCP successfully disposed assets  amounting
to ca. €270 million around  book values. The Company maintains  a sizeable disposal pipeline, but  has become more selective, focusing  on
price optimization over  liquidity. During 2024,  GCP also  launched perpetual exchanges  and tender  offers for perpetual  notes with  an
aggregate nominal amount of €550 million, which was well received  in the market, achieving an acceptance rate of over 85%.  Additionally,
the Company issued  its Series  Y bond  with a  volume of  €500 million and  a coupon  of 4.375%,  which was  oversubscribed seven  times,
reflecting strong investor  demand. The proceeds  were used to  repay short-term debt  in the amount  of ca. €570  million, enhancing  the
maturity profile and supporting balance sheet stability. The Company’s liquidity position reached €1.5 billion as of December 2024, driven
by operational cash flows and proceeds from  disposals. The Company reported an LTV ratio  of 33%, significantly lower compared to 37%  in
2023. This  decrease reflects  both  the positive  revaluations  recorded in  H2  2024 and  the  Company's ongoing  deleveraging  efforts,
strengthening its position to pursue accretive growth opportunities. The average  cost of debt was 1.9%, with an average debt maturity  of
4.8 years as of 2024.

The results for 2024 reflect an improvement in the market situation, allowing GCP to strengthen its balance sheet and reduce  uncertainty.
While credit rating metrics have improved in 2024, the rating outlook remains negative and headroom to the rating threshold is limited. As
GCP is strongly committed to its credit rating, and a dividend distribution could potentially harm the Company’s efforts to stabilise  the
rating, the decision whether to recommend a dividend for 2024 has not been made yet and will be given before the AGM in June 2025.

Refael Zamir, CEO of Grand City Properties: "We are proud to present our 2024 results, marking a pivotal year in which we have  successful
addressed the challenges we have encountered. The actions we took in 2024, supported by positive improvement in the market, are putting us
in a strong position for the year ahead."

Financial       statements        for       FY        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 174-180 of the financial  statements
for FY 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_Objects/Downloads/Financial_Reports/FY_2024_Financials/GCP_FY_2024.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, XS2799494633, XS2855975285
   Category Code:  MSCM
   TIDM:           IRSH
   LEI Code:       5299002QLUYKK2WBMB18
   OAM Categories: 1.1. Annual financial and audit reports
   Sequence No.:   379184
   EQS News ID:    2101224


    
   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=2101224&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=d240634dba161dad7934c3ae8b847bd3&application_id=2101224&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
   3. mailto:gcp-ir@grandcity.lu


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