Grand City Properties S.A. (IRSH)
Grand City Properties S.A. announces a good start into 2019 driven by
operational profitability
20-May-2019 / 06:56 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 A GOOD START INTO 2019 DRIVEN BY
OPERATIONAL PROFITABILITY*
*- Rental and operating income was up 5% YOY to EUR139 million as compared to
the EUR132 million recorded in Q1 2018.*
*- Adjusted EBITDA generated during the first quarter of 2019 was EUR73
million, higher by 7% compared to Q1 2018.*
*- Sustainable operational profitability evident with FFO I growing 6% to
EUR53 million for the first three months of 2019 YOY.*
*- FFO I per share in Q1 2019 reached EUR0.32, a 7% growth YOY. FFO I per
share after perpetual attribution was EUR0.27, 4% growth YOY.*
*- EPRA NAV expanded to EUR3.9 billion and to EUR23.4 on a per share basis as
of the end of March 2019, 4% growth from year-end 2018.*
*- EPRA NAV including perpetual notes increased by 3% to EUR4.9 billion and
increased to EUR29.5 per share.*
*- Total Equity was EUR4.7 billion as at the end of March 2019, resulting in a
stable and secure equity ratio of 53%.*
*- Solid financial platform further reinforced by a longer average debt
maturity of 8.7 years and a lower average cost of debt of 1.5%. *
*- Conservative financial structure retained with a low LTV of 35%, robust ICR
of 6.2x and a significant unencumbered assets ratio of 76%, translating to
EUR5.8 billion in value.*
*- Internal growth enabling top-line development evident in the robust
like-for-like rental growth of 3.9% (3.6% coming from in-place rent increases
and 0.3% from occupancy increases).*
*- Guidance for 2019 confirmed*
*Luxembourg, May 20, 2019 *- Grand City Properties S.A. ('GCP' or the
'Company') had a strong start to the year with the top-line growing 5% from
the corresponding period in 2018, while operational profitability continued to
progress with Adjusted EBITDA growing 7% YOY to EUR73 million and the FFO I
increased to EUR53 million for the first quarter of 2019, up 6% from the
comparable period in 2018. GCP continued to display strong organic growth with
robust like-for-like net rent increases of 3.9% during the quarter, with 3.6%
coming from in-place rent increases.
The Company disposed of assets worth over EUR120 million at a substantial
profit margin of 160% over total cost, reflecting a 10% premium on its last
appraised book values. During the quarter, GCP also acquired properties for
approx. EUR200 million, mainly in London. Overall, the Company continued to
witness an improving asset quality with the value per square meter increasing
to EUR1,314 and the average in-place rent growing 7% YOY to EUR6.15/sqm as of
the end of March 2019.
During the first three months of 2019, GCP prepaid over EUR200 million of high
interest bearing debt with short maturities while also issuing approx. EUR130
million of straight bonds with long maturities and low coupon rates. As a
result of these debt optimizing measures, GCP achieved a longer average debt
maturity period of 8.7 years while reducing its average cost of debt to 1.5%
as of March 2019. In addition, GCP's sources of liquidity were further
reinforced with the unencumbered assets ratio rising 11 percentage points to
76% and EUR5.8 billion in value.
Christian Windfuhr, CEO of Grand City Properties: 'We have begun 2019 with a
strong start and a confidence in our stride. With a robust financial platform
to support our strong portfolio with sufficient growth potential, we confirm
our 2019 guidance and delivering on our goals for the year.'
The financial statements for Q1 2019 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 44-47 of the financial statements for Q1 2019
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/2019/GCP_Q1_2019.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 property 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 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,
XS1706939904, XS1763144604, XS1781401085, CH0401956872
Category Code: QRF
TIDM: IRSH
LEI Code: 5299002QLUYKK2WBMB18
Sequence No.: 8697
EQS News ID: 813231
End of Announcement EQS News Service
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(END) Dow Jones Newswires
May 20, 2019 00:57 ET (04:57 GMT)
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