DGAP-News: Grand City Properties S.A.
/ Key word(s): Annual Report/Real Estate
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 2020 RESULTS DRIVEN BY ROBUST OPERATIONSAND DISPOSALS
- Net rental income for 2020 amounted to €372 million as compared to €383 million in 2019, decreasing by 3% due to high volume of disposals during the year.
- Adjusted EBITDA of €300 million for 2020, up 1% as compared to 2019, supported by internal growth.
- FFO I per share before perpetual notes attribution for 2020 at €1.27, resulting in a dividend of €0.82 per share (subject to AGM approval) and an attractive dividend yield of 4%.
- FFO I for 2020 at €182 million, higher by 2% offsetting marginal decline in net rental income, driven by higher operational efficiencies.
- FFO I per share for 2020 remained stable at €1.07 as compared to 2019, yielding 5.2% based on a share price of €20.7.
- Beginning from 2021, dividend payout policy is 75% of FFO I per share.
- Profit for the year of 2020 amounted to €449 million, with a basic EPS of €2.13 and diluted EPS of €2.01.
- Disposals of approx. €970 million in 2020, generating profits over total costs (including capex) of €302 million and a premium of 6% over net book values. Accordingly, FFO II amounted to €484 million in 2020, up 39% from 2019.
- EPRA NTA at the end of December 2020 amounted to €4.6 billion and €26.5 per share, increasing by 5% and 2% respectively.
- Solid equity base maintained with total equity amounting to €5.6 billion and equity ratio at 51%.
- Significant optimization of the debt profile resulting in historically low cost of debt of 1% with a long average debt maturity of 7 years as of the reporting date.
- Conservative credit profile further evident in the low LTV at 31%, large level of unencumbered assets at €6.7 billion (82% of total portfolio value) and an ICR of 5.7x
- Net rental incomes increasing by 1.8% on a like-for-like basis, with 0.9% attributable to in-place rent increases, despite delayed rent increases in solidarity with tenants, and 0.9% pertaining to occupancy increases.
- Guidance for FY 2020 met and guidance for FY 2021 published.
During the year, GCP disposed assets amounting to approx. €970 million, located primarily in secondary cities mainly in North-Rhine Westphalia, Saxony-Anhalt, Thüringen and Bavaria.
Although the coronavirus pandemic presented the Company with new challenges, GCP's adaptability was instrumental in ensuring business operations continued uninterrupted. Further, the Company worked towards safeguarding the health and well-being of current and prospective tenants along with its employees by digitalizing various business processes and enabling systems for employees to work from home. Accordingly, GCP was not meaningfully impacted by the pandemic.
In 2020, GCP generated a total profit of €302 million from disposals during the year reflects a premium of 6% over net book values. The Company also completed accretive acquisitions amounting to approx. €600 million, primarily located in London and Berlin. GCP acquired over 1,400 units at an average multiple of 21x. Additionally, the Company acquired over 800 units in the pre-letting stage which are expected to be leased in the following periods. As a result of the profitable disposal of assets in various secondary cities and the accretive acquisitions during the year, GCP was able to further enhance the quality of the investment property portfolio, which as of December 2020 is valued at €1,858/sqm with a rental yield of 4.5%.
GCP significantly improved its debt profile through the €1 billion bond issuance at a record low coupon of 0.125% in January 2021, along with total debt repayments of over €1 billion (including after reporting period repayments). As a result, the current cost of debt is at a historically low level of 1% while maintaining the long average debt maturity of 7 years.
The annual report for FY 2020 includes for the first time, the new EPRA net asset value metrics based on the revised EPRA best practice recommendations and accordingly GCP's EPRA Net Tangible Asset (NTA) value amounts to €4.6 billion and €26.5 per share as of the end of December 2020, as compared to €4.4 billion and €25.9 at the end of December 2019. For further details on the calculation of all EPRA net asset value metrics, please refer to page 64 of the annual report for FY 2020.
In 2020, GCP's commitment to sustainability measures was recognized by Sustainalytics, a leading sustainability rating agency. Further, the Company was ranked in the 75th percentile within the real estate peer group in the Corporate Sustainability Assessment (CSA) by S&P Global.
Refael Zamir, CEO of Grand City Properties: "Despite the challenges faced in 2020, GCP has emerged undeterred, delivering steady operational profitability and shareholder value creation in the year and fuel its liquidity balance as a preparation towards future potential opportunities. Looking ahead, we will continue to focus on enhancing the quality of our portfolio, thereby benefiting all stakeholders, including our shareholders, tenants along with the environment and communities around our portfolio locations. I am grateful for the invaluable efforts of each member of the organization and am confident of successfully facing all that the next year has to offer."
Financial statements for FY 2020 are available on the Company's website:
About the Company
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 1, Avenue du Bois, L-1251 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.
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.
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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 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.
|Company:||Grand City Properties S.A.|
|1, Avenue du Bois|
|Phone:||+352 28 77 87 86|
|Fax:||+352 28 77 87 84|
|ISIN:||LU0775917882, XS1130507053, XS1191320297, XS1220083551, XS1491364953, XS1373990834, XS1654229373, XS1811181566, XS1706939904, XS1763144604, XS1781401085, CH0401956872|
|WKN:||A1JXCV , A1ZRRK, A1ZW4K, A1ZZ49, A186BF, A18YJ1, A19ZQE, A19MBW, A1V4P0, A19WVU, A19WU2|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Dublin, Luxembourg Stock Exchange, SIX|
|EQS News ID:||1175432|
|End of News||DGAP News Service|