DJ Grand City Properties S.A.announces FY 2018 results
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Grand City Properties S.A. (IRSH)
Grand City Properties S.A.announces FY 2018 results
18-March-2019 / 07:01 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
*NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE
UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE
U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN
MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA
(THE 'UNITED STATES') OR IN OR INTO OR TO ANY PERSON RESIDENT OR LOCATED IN
ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO PUBLISH OR DISTRIBUTE THIS
DOCUMENT.*
*GRAND CITY PROPERTIES S.A. ANNOUNCES ROBUST FULL YEAR 2018 RESULTS SUPPORTED
BY A STRONGER PORTFOLIO*
*- Rental and operating income grew 10% to EUR545 million from EUR495 million
the previous year*
*- Adjusted EBITDA for 2018 was EUR276 million, up 11% YOY*
*- Steady FFO I growth continued with an 11% increase to EUR198 million from
EUR178 million in 2017*
*- FFO I per share of EUR1.19, as compared to EUR1.12 a year earlier,
reflecting an FFO I yield of 5.3%. FFO I after perpetual attribution was
EUR1.01, 5% increase YOY *
*- Dividend of EUR0.77 per share based on a payout ratio of 65% of FFO I per
share (subject to AGM approval), reflecting a dividend yield of 3.4%. Net
Profit amounting to EUR583 million resulting in an EPS (basic) of EUR2.95*
*- FFO II increased 64% YOY to EUR334 million driven by disposals of nearly
half a billion euros*
*- EPRA NAV including perpetual notes expands 20% to EUR4.8 billion as of Dec
2018; EUR28.7 per share up 19% from EUR24.2 as of Dec 2017*
*- EPRA NAV per share as of Dec 2018 was EUR22.5, up 11% from Dec 2017*
*- Total Equity at EUR4.7 billion was 21% higher than Dec 2017 with a strong
equity ratio of 53%*
*- Conservative financial structure maintained with a low LTV of 34%, compared
to 36% in Dec 2017 *
*- Robust financial platform reinforced with substantial debt issuances
leading to long average debt maturity of over 8.3 years, low cost of debt of
1.6%, a strong ICR of 6.0x and substantial unencumbered ratio of 65% (EUR4.8
billion in value)*
*- Top-line progress driven by sustained organic growth, displayed in the
like-for-like rental growth of 3.4%; in-place rent accounting for 3.1% of the
growth, while occupancy growth contributing 0.3% to the like-for-like growth*
*Luxembourg, March 18, 2019 *- Grand City Properties S.A. ('*GCP*' or the
'*Company*') is pleased to present its results for the full year 2018,
completing another year of strong operational profitability demonstrated by
the 11% increase in Adjusted EBITDA as well as FFO I to EUR276 million and
EUR198 million respectively, compared to the previous year. GCP was also
successful in realizing some of the portfolio's rent reversionary potential,
driving strong top-line growth with like-for-like rent increases of 3.4%
during the year. The Company's value creation credentials were demonstrated
with the EPRA NAV per share (including perpetual notes) growing 19% to EUR28.7
from EUR24.2 as of December 2017.
During the year, the Company executed capital recycling measures leading to
the disposal of half a billion euros of assets which were mature and/or
non-core in nature. These disposals were executed at a 38% profit over total
costs and 4% above the net book value, validating GCP's conservative
valuations. Accordingly the FFO II increased by 64% to EUR334 million as
compared to 2017. On the other hand, GCP has acquired over 2,200 units in
London, Berlin and NRW. Additionally further 735 units in London have been
acquired which are in the pre-letting and final snagging stage. The improved
asset quality is demonstrated by a higher value per square meter of EUR1,257
(up 9%) as well as an improved average in-place rent per square meter of
EUR6.0 (up 6%).
GCP maintains a conservative financial structure which is displayed by the
long average debt maturity of over 8.3 years as well as a low average cost of
debt of 1.6%.The long maturity profile is the result of issuing long term debt
while repaying shorter maturities. GCP's commitment to sustainability was once
again recognized by Sustainalytics, an independent sustainability rating
agency in February 2019. The Company was ranked in the 95th percentile, moving
up by 4 notches as compared to 2017. In addition, for the second year running,
EPRA awarded GCP with the EPRA BPR Gold Award as well as the EPRA sBPR Gold
Award in September 2018 for its high standards of transparency and reporting
in the 2017 annual financial report as well as for its sustainability
reporting.
Christian Windfuhr, CEO of Grand City Properties: '2018 has been yet another
successful year for GCP, with a robust operational performance, an improved
asset quality as well as strong gains on disposals. We remain committed to
realizing the significant growth potential inherent in our portfolio while
also evaluating attractive acquisition opportunities based on our acquisition
criteria. I am thankful for the invaluable contributions of the entire team at
GCP and look forward to another rewarding year in 2019.'
The financial statements for FY 2018 are available on the Company's website:
https://www.grandcityproperties.com/investor-relations/publications/financial-
reports/ [1]
For definitions of the alternative performance measures please see the
relevant section in the pages 70-75 of the financial statements for FY 2018
which you can find on the website under investor relations > publications >
financial reports or follow this link:
https://www.grandcityproperties.com/fileadmin/user_upload/03_investor_relation
s/Downloads/2018/GCP_FY_2018_Report.pdf [2]
*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 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 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.
*Contact: *
Grand City Properties S.A.
1, Avenue du Bois
L-1251 Luxemburg
T: +352 28 77 87 86
E: info@grandcity.lu
www.grandcityproperties.com
*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.
ISIN: LU0775917882, XS1130507053, XS1191320297, XS1220083551,
XS1491364953, XS1373990834, XS1654229373, XS1811181566,
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