Grand City Properties S.A. (IRSH)
Grand City Properties S.A. announces FY 2019 results
16-March-2020 / 06:54 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, 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 ANNOUNCES FY 2019 RESULTS WITH INCREASED OPERATIONAL
PROFITABILITY AND IMPROVED ASSET QUALITY*
*- Net rental income for 2019 higher by 5% to EUR 383 million.*
*- Adjusted EBITDA for FY 2019 increased 8% YOY, to EUR 298 million.*
*- FFO I for 2019 up by 7% to EUR 212 million as compared to EUR 198 million
in 2018.*
*- FFO I per share increased by 7% to EUR 1.27 from EUR 1.19 in 2018,
reflecting an FFO I yield of 7.3%. FFO I per share after perpetual notes
attribution grew by 6% YOY to EUR 1.07.*
*- Dividend of EUR 0.8238 per share (subject to AGM approval), 7% higher as
compared to 2018, yielding 4.7% *
*- Profit for the year in 2019 was EUR 493 million, with basic EPS at
EUR 2.43 and diluted EPS at EUR 2.30.*
*- Capital recycling measures including acquisitions of approx. EUR 650
million and disposals amounting to EUR 500 million, reinforcing the solid
asset quality of the portfolio and generating an FFO II of EUR 381 million in
FY 2019, an increase of 14% compared to last year. *
*- EPRA NAV as of December 2019 amounted to EUR 4.1 billion, up by 10% and
EUR 24.5 per share, 9% higher as compared to year-end of 2018.*
*- EPRA NAV including perpetual notes amounted EUR 5.2 billion and EUR 30.6
on a per share basis.*
*- Total Equity amounted to EUR 5.0 billion, growing by 6% as compared to
year-end 2018 (equity ratio at 50%).*
*- Proactive debt optimization measures were successful with cost of debt
lowered to 1.3% as of December 2019 from 1.6% as of December 2018, strong ICR
of 6.6x, long average debt maturity at 8 years, LTV at 33% as of December 2019
with substantial unencumbered asset ratio of 79% amounting to EUR 6.5
billion. *
*- Strong like-for-like rental growth of 3.6%; 2.9% from in-place rent
increases and 0.7% from occupancy increases.*
*- Guidance for 2019 comfortably met. Guidance for 2020 published reflecting
further growth*
*Luxembourg, March 16, 2020 *- Grand City Properties S.A. ('GCP' or the
'Company') is presenting the results for the financial year ending 31 December
2019 which exhibited increasing efficiencies and coupled with solid top-line
development demonstrated by the like-for-like rental growth of 3.6% has led to
strong operational profitability growth year-over-year. Accordingly, the
adjusted EBITDA and FFO I, increased by 8% and 7%, respectively as compared to
FY 2018.
The Company further strengthened its portfolio by continuing its strategic
capital recycling program during the year 2019 with disposals amounting to
approx. EUR 500 million in the year. These were mostly concentrated in the
regions of NRW, Berlin, Halle and Kaiserslautern. The disposals generated a
profit margin of 52% over total costs including capex and were sold at 7% over
their book values. In parallel, GCP acquired assets worth approx. EUR 650
million in 2019, primarily located in London, Berlin and Munich at an average
multiple of 21x. The enhanced asset quality was further displayed in the
increased value per sqm of EUR 1,543, which is higher by 23% in comparison to
December 2018.
The Company's policy of maintaining a proactive stance with regards to its
conservative financing structure has been particularly beneficial in 2019, as
the average cost of debt decreased from 1.6% to 1.3% as of the end of December
2019 and the long average debt maturity period stands at 8 years. For the year
2019, the business generated operational profits sufficient to cover its
financial costs (ICR) 6.6 times over, highlighting the solid and stable
financing structure of the Company.
Christian Windfuhr, CEO of Grand City Properties: 'The year 2019 witnessed
accretive capital recycling, strong operating efficiency gains and a steadily
increasing top-line, coming together to drive profitability and growth. Moving
into 2020, we continue our focus on value creation internally by capturing the
inherent value in our portfolio as well as externally, through net accretive
acquisitions meeting our acquisition criteria. I am thankful for the vital
contributions of every member of the organization and together as a team, we
are well placed to take on 2020.'
Financial statements for FY 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 66 - 70 of the financial statements for FY 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_FY_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 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 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 THE COMPANY.
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: ACS
TIDM: IRSH
LEI Code: 5299002QLUYKK2WBMB18
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 52514
EQS News ID: 997795
End of Announcement EQS News Service
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March 16, 2020 01:54 ET (05:54 GMT)
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