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Grand City Properties S.A. (IRSH)
Grand City Properties S.A. announces full year 2017 results, with
achievements across the board
19-March-2018 / 07:03 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
*THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY
OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, 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 FULL YEAR 2017 RESULTS, WITH
ACHIEVEMENTS ACROSS THE BOARD*
*- Rental and operating income increased to EUR495 million from EUR436
million in 2016*
*- Adjusted EBITDA increased to EUR248 million, up 10% from EUR225 million
YOY*
*- FFO I grew by 11% to EUR178 million from EUR160 million *
*- FFO I per share of EUR1.12, increased 7% year-over-year*
*- Dividend per share of EUR0.73 based on a payout ratio of 65% (subject to
AGM approval)*
*- Net profit amounted to EUR639 million; basic earnings per share of
EUR3.35*
*- EPRA NAV incl. perpetual notes increased by 24% from year-end 2016 to
EUR4 billion; EUR24.2 per share, up from EUR20.7 per share*
*- EPRA NAV of EUR3.3 billion, increased 31% from EUR2.5 billion at year-end
2016; EUR20.2 per share, up from EUR16.4 per share*
*- Investment property value at EUR6.4 billion, growth of EUR1.6 bn (+33%)
since year-end 2016 *
*- Equity increased to EUR3.85 billion, up 26% since year-end 2016; equity
ratio up to 51% *
*- Low leverage maintained with LTV of 36% at year-end 2017, Strong
financial position highlighted by increased average debt maturity of 8.5
years and maintained low average cost of debt of 1.6%, ICR of 6.2x and 64%
unencumbered ratio*
*- Continued strong organic growth with total like-for-like net rental
income increase of 3.5% in 2017, with 2.3% from in-place rents growth and
1.2% from occupancy growth *
*Luxembourg, March 19, 2018* - Grand City Properties S.A. (the 'Company',
'GCP') is pleased to report a successful year, which saw the Company
generate increasing operational profits while experiencing continued growth
across the board. Through demonstrated management expertise and its strong
operational platform, GCP was able to deliver double-digit growth in
operational results. The FFO I per share of EUR1.12 represents a yield of
5.8%, demonstrating the Company's proven ability to generate shareholder
value through its successful business model and accretive growth, which is
also reflected in the growth in the EPRA NAV per share incl. perpetual notes
to EUR24.2. Based on a dividend payout policy of 65%, the Board of Directors
dividend proposal for the AGM will be EUR0.73 per share, which reflects a
yield of 3.8%. The consistently high profitability is supported by the
Company's best in class financial position and credit profile with two high
investment-grade credit ratings; GCP received a further credit rating
upgrade to Baa1 by Moody's in September 2017 complementing the S&P rating of
BBB+.
*Corporate and capital markets achievements topped by MDAX inclusion*
GCP successfully undertook various initiatives to further reinforce its
strong market position, beginning with the uplisting of the Company's shares
to the Prime Standard of the Frankfurt Stock Exchange in May 2017 and
subsequently leading to MDAX inclusion in September 2017. Inclusion into key
indices, which also included the Stoxx index family during the year,
resulted in further capital markets visibility and a widened investor base.
2017 saw GCP continue its strong activity and achieved progress on the
capital markets front, with EUR1.8 billion issued since the beginning of
2017 until year-to-date mainly targeted at proactive debt redemption
management resulting in long average maturities of 8.5 years while
maintaining a low cost of debt of 1.6%. Notably, GCP established its first
EMTN program, facilitating the ability to issue debt in a variety of
currencies and maturities, further expanding the financial flexibility at
the Company's requirements. As a result, GCP has since issued its first
foreign currency issues in Hong Kong dollars (HKD) and Swiss Francs (CHF)
with currency swapped to Euro until maturity, marking another milestone in
capital markets and increasing the investor base globally.
The Company also made strides in its ambitions to be an active and
responsible corporate player, with a strengthened focus on ESG initiatives
undertaken during the year and reflected through several distinctions,
including a Sustainalytics ranking of 91st percentile and Outperformer among
over 300 real estate companies globally. The Company's high governance and
ESG standards were also recognized by EPRA with the EPRA BPR Gold and Most
Improved Company awards, sBPR Gold and Most Improved Company awards, and 1st
place for Outstanding Contribution to Society, making GCP the most awarded
company at the EPRA conference.
Christian Windfuhr, CEO of Grand City Properties: '2017 was a highly
successful year for us in which we accomplished several notable
achievements. Our portfolio of high quality assets with strong embedded
potential allows us to enjoy the benefits of a growing and secure cash flow
stream while also creating sustainable value by continuously materializing
on the upside potential of our assets, such as further reducing vacancies
and bringing rents closer to market levels as we have done in 2017. Going
into 2018, we will continue to focus on internal value generation within our
portfolio while continuing to realize on attractive acquisition
opportunities as they arise. I would like to thank the entire GCP family for
their great contribution to the successful year we had and look forward to
another great year in 2018.'
The full year 2017 annual report is available on the Company's website:
http://grandcityproperties.com/en/downloads.html [1]
*About the Company:*
Grand City Properties is a specialist in residential real estate, with a
focus on value-add opportunities in densely populated areas in Germany. The
Company's strategy is to improve its properties through repositioning 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 1, Avenue du Bois, L 1251
Luxembourg and being registered with the Luxembourg trade and companies
register (Registre de Commerce et des Sociétés Luxembourg) under number B
165 560. Since May 2012, Grand City Properties is listed on the Frankfurt
Stock Exchange.
*Contact:*
Grand City Properties S.A.
1, Avenue du Bois
L-1251 Luxembourg
T: +352 28 77 87 86
E: info@grandcity.lu
www.grandcityproperties.com [2]
*Press Contact:*
Katrin Petersen
Grand City Properties S.A.
T: +49 (30) 374-381 5218
E: katrin.petersen@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 GRAND CITY
PROPERTIES S.A. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A
NUMBER OF FACTORS.
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March 19, 2018 02:03 ET (06:03 GMT)
