REG-Grand City Properties S.A. Grand City Properties S.A. announces results for 9m 2024 driven by strong operational results

Grand City Properties SAAnnouncement

14/11/2024 05:45

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Grand City Properties S.A. (IRSH)
Grand City Properties S.A. announces results for 9m 2024 driven by strong operational results

14-Nov-2024 / 06:44 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 RESULTS FOR 9M 2024 DRIVEN BY STRONG OPERATIONAL RESULTS

  • Net rental income of €317 million for 9M 2024, higher by 3% as compared to €307 million in 9M 2023.
  • Solid like-for-like  rental  growth of  3.5%  driven  by in-place  rent  increases,  underlining the  portfolio’s  strong  operational
    fundamentals.
  • Adjusted EBITDA of €250 million in 9M 2024, increasing by 5% as compared to €240 million in 9M 2023.
  • FFO I of €141 million  in 9M 2024, stable as  compared to €141 million  in 9M 2023 mainly as  strong operational growth mitigated  the
    expected higher financing costs and perpetual notes attribution.
  • Loss of €17 million in 9M  2024 primarily as a result  of negative property revaluations carried out  in H1 2024, partially offset  by
    solid operational results.
  • Strong liquidity position, with cash and liquid assets of €1.5 billion as of September 2024.
  • Conservative financial position with a stable LTV ratio of 36% as of September 2024, ICR ratio of 5.8x in 9M 2024 and €6.2 billion  of
    unencumbered assets (72% of total portfolio value).
  • EPRA NTA of €4 billion or €23.1 per share as of the end of September 2024, stable compared to December 2023.
  • FY 2024 guidance confirmed.

Luxembourg, November 14, 2024 –  Grand City Properties S.A. (“GCP”  or the “Company”) announces results  for the nine-month period  ending
September 2024 (“9M 2024”) in-line with the guidance for the year driven by strong operational performance. Net rental income increased by
3% to €317 million, mainly due to the solid like-for-like rental growth of 3.5%. Coupled with further operational efficiencies, the strong
operational performance led to  an increase in  the adjusted EBITDA  of 5% to €250  million. The strong  operational growth mitigated  the
expected higher perpetual notes attribution and higher  finance expenses, resulting in a stable  FFO I year-over-year at €141 million  and
€0.82 per share. FY 2024 FFO I guidance is confirmed in the range of €180 - €190 million.

In the third quarter of 2024, the portfolio was not revaluated. The company revalued its full portfolio as part of its H1 2024  financials
and will provide the next update as part  of its full year results. The Company  continued its proactive approach of reducing leverage  in
order to maintain its conservative financial profile, reflected by a stable LTV ratio over recent periods, standing at 36% as of September
2024, compared to 37% as  at year-end 2023. In the  nine-month period, GCP signed disposals  amounting to ca. €230 million.  Approximately
€170 million of disposals were closed within the period, around book value and further ca. €100 million of properties have been signed for
disposals and are expected to close in  the coming periods. Furthermore, as part of  its pro-active liability management, GCP bought  back
bonds amounting to ca. €240 million at a discount and repaid €270  million of bonds at maturity, while issuing €500 million of new  senior
unsecured bonds. As of September 2024,  GCP’s cost of debt is 2.1%  with an average debt maturity of  5.1 years. The company has a  strong
liquidity position of €1.5 billion of cash and liquid assets.

Refael Zamir, CEO of  Grand City Properties: “We  are successfully utilizing  the strong market fundamentals  of our portfolio  locations,
which resulted in accelerated  strong operational performance. We  expect this trend to  continue in the long  term due to the  persistent
supply and demand  gap. We  believe to  be at  an inflection  point for  an upcoming  market recovery  as valuations  are stabilizing  and
transaction market activity is picking up, supported by the start of the interest rate cut cycle. Our proactive management actions enabled
us to navigate the previous challenges effectively and position us well going forward.”

Financial       statements        for       9M        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 30 - 34 of the financial  statements
for 9M 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/Q3_2024_Financials/GCP_Q3_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:  QRT
   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.:   358967
   EQS News ID:    2029631


    
   End of Announcement EQS News Service

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References

   Visible links
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   3. mailto:gcp-ir@grandcity.lu


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