Grand City Properties S.A. / Key word(s): Half Year Results/Interim Report
18.08.2015 07:01
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OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN,
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GRAND CITY PROPERTIES S.A. ANNOUNCES H1 2015 INTERIM RESULTS DISPLAYING
STRONG GROWTH AND HIGHER PROFITS
- Rental and operating income increased to EUR143 million, up 51% YOY
- EBITDA at EUR235 million, up 64% compared to H1 2014
- Adjusted EBITDA increased to EUR75 million, up 51% YOY
- FFO I increased to EUR55 million, up 61% compared to H1 2014;
- FFO I per share after Hybrid Notes attribution at EUR0.41, up 41% YOY
- Net profit at EUR195 million, up 60% YOY; EPS at EUR1.47 +56% YOY
- Equity rose to EUR1.64 billion, up 58% YTD; Equity ratio up to 45% from
40% year-end 2014
- EPRA NAV climbed to EUR1.64 billion, up from EUR1.44 billion year-end
2014
- Leverage decreased to an LTV of 39%, compared to 45% year-end 2014
- LTV assuming conversion of the convertible bond is at 32% (share price
is 70% premium to the conversion price)
- Conservative financing approach with ICR of 6.1 and DSCR of 4.5
- Cash and liquid assets at EUR454 million, supported by Hybrid Notes
issuance in Q1 and Series E issuance in Q2. Hybrid Notes tap up of
EUR100 million in July provided further acquisition firepower
- Like-for-like in-place rent growth is 2.5% p.a., l-f-l occupancy growth
is 2.6% p.a.
Luxembourg, August 18, 2015 - Grand City Properties S.A. (the "Company",
"GCP") announces the interim results for the first half of 2015. The
figures display strong portfolio growth and the fruit borne by the
successful refinancing activities of the Company.
Substantial portfolio growth and capital structure improvement
GCP's portfolio grew strongly from investment property value of EUR2.2
billion from year-end 2014 to EUR3 billion in the first 6 months of 2015.
Currently, as of July 2015, GCP owns 66 thousands units, up from 43
thousands units at the end of 2014. Adding the 22 thousands units owned by
third parties, the total number under management amounted to 88 thousands
units. The effect of this growth combined with the operational improvements
in terms of rent and occupancy increase of the existing portfolio boosted
rental income, with the July portfolio generating rental and operating
income at a run rate of EUR355 million. This in turn fed down to the bottom
line, substantially increasing the net profit, and further to the EPRA NAV.
Throughout the strong growth the Company held on to its conservative
capital structure approach and was able to further improve upon its
excellent financial ratios. Its LTV of 39%, ICR of 6.1 together with the
high firepower of cash and liquid assets will support its external
portfolio growth strategy in the foreseeable future.
Successful refinancing activities boost profits
With the aim of lowering financing costs and retaining a high degree of
flexibility in the future, GCP succeeded in progressing its refinancing
activities, raising EUR800 million through the issuance of perpetual notes
and Series E straight bonds (1.5% coupon) in the first 6 months of the
year. This, combined with the refinance of the Series B straight bonds
(6.25% coupon) with Series D straight bonds (2.0% coupon) at the end of
2014, significantly reduced the proportional financing costs of the Company
in the first half of 2015.
GCP had a sharp rise in profits from operations, with FFO growing by 61%,
substantially above the 51% increase in rental income. Main drivers behind
the increase were operational increases and improvements and proportionally
lower cost of debt achieved through the refinancing of the Company's
liabilities.
Christian Windfuhr, CEO of Grand City Properties, comments: "We are pleased
with our progress over the first half of 2015, having exceeded growth and
operational expectations. Now we look towards the future, will continue the
successful turnaround of our assets and use our improved financial
profitability to generate market-leading returns for our investors."
The full H1 2015 interim report is available on the Company's website:
http://grandcityproperties.com/en/downloads.html
About the Company:
Grand City Properties is a specialist real estate company focused on
investing in and managing turnaround opportunities in the real estate
property market in Germany, primarily in densely populated areas. The
Company's strategy is to improve its properties through targeted
modernization and intensive tenant management, and then create value by
subsequently raising occupancy and rental levels. Further information:
www.grandcityproperties.com
Grand City Properties (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 24, Avenue Victor Hugo, L 1750
Luxembourg and being registered with the Luxembourg trade and companies
register (Registre de Commerce et des Sociétés Luxembourg) under number B
165560. Since May 2012, Grand City Properties is listed on the Frankfurt
Stock Exchange.
Contact:
Grand City Properties S.A.
24, Avenue Victor Hugo
L-1750 Luxemburg
T: +352 28 77 87 86
E: [email protected]
www.grandcityproperties.com
Press Contact:
Katrin Petersen
Grand City Properties S.A.
T: +49 (30) 374 381 5218
E: [email protected]
Disclaimer:
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OF AN OFFER TO BUY ANY SECURITIES.
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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
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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
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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
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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 GRAND
CITY PROPERTIES S.A. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A
NUMBER OF FACTORS.
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