DJ Grand City Properties S.A. announces H1 2024 results with increased guidance
Grand City Properties S.A. (IRSH)
Grand City Properties S.A. announces H1 2024 results with increased guidance
14-Aug-2024 / 06:51 CET/CEST
The issuer is solely responsible for the content of this announcement.
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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 H1 2024 RESULTS WITH INCREASED GUIDANCE
-- Net rental income of EUR212 million in H1 2024, higher by 3% as compared to EUR204 million in H1 2023.
-- Solid like-for-like rental growth of 3.4%, driven by in-place rent growth.
-- Adjusted EBITDA of EUR166 million in H1 2024, higher by 4% as compared to EUR160 million in H1 2023.
-- FFO I of EUR94 million and EUR0.54 per share in H1 2024, stable as compared to H1 2023, as higher perpetual
notes attribution is offset by operational growth and finance expenses are kept stable.
-- Valuation of the full portfolio conducted in H1 2024, with a like-for-like value decline of 2%, resulting
in a portfolio net rental yield of 5.0% as of June 2024.
-- Net loss of EUR74 million and basic loss per share of EUR0.38, driven mainly by negative property
revaluations recognized in the period, partially offset by strong operational results.
-- EPRA NTA amounted to EUR3.9 billion or EUR22.8 per share as of June 2024.
-- Strong liquidity position with EUR1.1 billion of cash and liquid assets as of June 2024, reflecting 26% of
total debt.
-- Conservative financial position maintained with an LTV of 37% as of June 2024, ICR ratio of 6.0x in H1
2024 and EUR6.1 billion of unencumbered assets (72% of total portfolio value).
-- Successful capital markets transactions executed in Q2 and Q3 of 2024.
-- FY 2024 guidance increased.
Luxembourg, August 14, 2024 - Grand City Properties S.A. ("GCP" or the "Company") announces financial results for the
first half of 2024 with net rental income amounting to EUR212 million, higher by 3% as compared to the EUR204 million
recorded in the comparable period of 2023. This is primarily the result of like-for-like growth of 3.4% as of June
2024, driven by in-place rent growth. Supported by a higher operational efficiency, Adjusted EBITDA is up 4%
year-over-year at the EUR166 million. FFO I is stable at EUR94 million as well as on a per share basis of EUR0.54 compared to
H1 2023 as the negative impact of the higher perpetual notes attribution was offset by strong operational growth while
finance expenses remained stable. Based on the strong results and improved outlook GCP increased its FFO I guidance
from EUR175-EUR185 million to EUR180-EUR190 million.
The Company conducted a full revaluation of the portfolio in the first six months of 2024, resulting in a like-for-like
value decline of 2%. GCP recorded property revaluation and capital losses in the amount of EUR198 million in H1 2024.
This is primarily explained by slight yield expansion, partially offset by operational growth. The negative revaluation
recorded in the period was a third as compared to H1 2023, indicating a significantly softer devaluation momentum as a
result of improved market dynamics and signalling a potential stabilisation in valuations.
In the first half of 2024, the Company signed disposals totalling ca. EUR220 million of which ca EUR100 million were not
closed in H1 2024. In this period, EUR160 million of disposals were completed, including properties signed in 2023. The
closed disposals were primarily located in London, as well as NRW, Berlin and Hessen, and were closed at a slight
discount to book value. The Company raised EUR100 million of new bank debt and redeemed bonds amounting to ca. EUR270
million in this period. As of June 2024, GCP's average cost of debt was 1.9% with an average maturity of 5.1 years. In
April 2024 the Company executed its perpetual exchange, which was highly successful with an acceptance rate of over
80%, resulting in EUR2 million in annualised coupon reduction and recovery of equity content for exchanged notes under S&
P methodology. After the reporting period, GCP continued the pro-active management of its debt maturities and issued a
new unsecured bond of EUR500 million, which was more than 7x oversubscribed, channelling the proceeds into a bond tender
through which ca. EUR240 million nominal outstanding amount of bonds were bought back. As a result of these activities,
and including expected proceeds of signed disposals, the Company now covers all its debt maturities until the end of
2027. The conservative financial profile of the Company is further shown by its low LTV ratio of 37%, stable compared
to year-end 2023 despite devaluations.
Refael Zamir, CEO of Grand City Properties: "We are happy to report our results for the first half of 2024. Positive
market momentum allows us to continue to drive strong operational growth. At the same time, we have been able to
mitigate the negative impacts from the higher interest rate environment through pro-active management of our balance
sheet and interest exposure, supporting our increased guidance and positioning GCP well for future growth."
Financial statements for H1 2024 are available on the Company's website:
ttps://www.grandcityproperties.com/investor-relations/publications/financial-reports/
For definitions of the alternative performance measures please see the relevant section in the pages 32-36 of the
financial statements for H1 2024, which you can find on the website under investor relations > publications > financial
reports or follow this link:
https://www.grandcityproperties.com/grandcityproperties.com/Data%20Objects/Downloads/Financial%20Reports/
H1%202024%20Financials/GCP_Q2_2024.pdf
About the Company
The Company is a specialist in residential real estate, value-add opportunities in densely populated areas primarily in
Germany and London. 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.
Contact:
Grand City Properties S.A.
37, Boulevard Joseph II,
L-1840 Luxembourg
T: +352 28 77 87 86
E: info@grandcity.lu
www.grandcityproperties.com
Investor Relations Team:
Grand City Properties S.A.
E: gcp-ir@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.
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