EQS-News: Grand City Properties S.A.
/ Key word(s): Annual Report
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 FY 2022 WITH SOLID OPERATIONAL PERFORMANCE DESPITE MACRO-ECONOMIC UNCERTAINTY
Luxembourg, March 16, 2023– Grand City Properties S.A. (“GCP” or the “Company”) announces results for the financial year 2022. Net rental income in 2022 amounted to €396 million, increasing by 6% as compared to 2021. This solid growth was the result of the impact of net acquisitions that were made in past periods and the strong operational result. In 2022, the Company recorded like-for-like rental growth of 2.9% which comprised of 2.2% from in-place rent growth and 0.7% from occupancy increases. The strong letting performance resulted in the portfolio reaching an all-time low vacancy rate of 4.2% and continues a strong trend of vacancy reduction. FFO I also grew 3% on both a nominal and per share basis to €192 million or €1.14 in 2022 from €186 million or €1.11 in 2021.
In 2022, the Company made accretive acquisitions in the amount of approx. €250 million which consisted of approx. 1,000 units in Berlin and London. During the same period, the Company made disposals in the amount of €18 million of mostly non-core assets, development, and condominiums. The Company’s held-for-sale portfolio increased to approx. €330 million, of which over €170 million disposals have been signed. For the full year 2022, GCP recorded portfolio like-for-like valuation gains of 1% but recorded devaluations of 1% in Q4 2022 as compared to September 2022. GCP’s portfolio valuations remain well below replacement costs and the structural supply demand imbalance in the German residential market, support valuations in the medium to long term.
GCP continues to maintain a conservative financial profile with a low LTV of 36% and large pool of unencumbered assets worth €8.7 billion and representing 88% of total portfolio value. In 2022, GCP repaid over €615 million in debt which included redeeming the €450 million Series F convertible bonds and prepaying over €165 million in shorter maturity secured financing while raising a total of €135 million in new bank debt at rates below current public market rates. The Company’s average cost of debt remains low at 1.3% with a long average maturity of 5.9 years. GCP also retains a strong liquidity position with €429 million in cash and liquid assets that represent 11% of total debts and cover debt maturities until Q2 2025. The company’s debts have a 95% interest hedging ratio, which is expected to reduce to 91% as some interest rate hedging matures throughout 2023, and the operational profitability of the business substantially covers interest payments as exemplified by the ICR of 6.6x.
As the market environment has deteriorated and there is greater uncertainty surrounding macro-economic risks, GCP has put greater emphasis on preserving liquidity. As a result, GCP announced this morning its intention not to pay the 2022 dividend. The Company believes that preserving cash and equity, will enable GCP to better navigate through these times and come out stronger and better positioned.
Refael Zamir, CEO of Grand City Properties: "Throughout 2022, we continued our focus on delivering solid operational improvements that have brought portfolio vacancy to a record low of 4.2% and met 2022 guidance targets. I want to thank every member of the organisation for their hard work in 2022 and look forward to delivering on all our goals in the year ahead.”
Financial statements for FY 2022 are available on the Company's website:
For definitions of the alternative performance measures please see the relevant section in the pages 76 - 83 of the consolidated annual report for FY 2022, which you can find on the website under investor relations > publications > financial reports or follow this link:
About the Company
The Company is a specialist in residential real estate, value-add opportunities in densely populated areas primarily in Germany. 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.
Grand City Properties S.A.
Investor Relations Team:
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.
|Grand City Properties S.A.
|37, Boulevard Joseph II
|+352 28 77 87 86
|+352 28 77 87 84
|LU0775917882, LU0775917882 , XS1491364953, XS1811181566, XS2271225281, XS1220083551, XS1654229373, XS1706939904, XS1706939904, XS1763144604, XS1781401085, CH0401956872, XS1827041564, XS1851265527, XS1953786222, XS1964638446, CH0482172415, XS2016885159, XS2033380820, XS2035328223, XS2154325562, XS2282101539,
|A1JXCV , A1ZRRK, A1ZW4K, A1ZZ49, A186BF, A18YJ1, A19ZQE, A19MBW, A1V4P0, A19WVU, A19WU2
|Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Dublin, Luxembourg Stock Exchange, SIX
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|EQS News Service