DGAP-News

Grand City Properties S.A. announces Q1 2021 results - Seite 2

- Robust organic growth sustained with net rental income increasing by 1.8% on a like-for-like basis, with 1.1% increase attributable to in-place rent increases and 0.7% as a result of occupancy increases.

- FY 2021 guidance confirmed.

Luxembourg, May 18, 2021 - Grand City Properties S.A. ("GCP" or the "Company") reported results for the first quarter of 2021, with net rental income marginally decreasing to €91 million as a result of disposals of non-core assets. This decrease was partially offset by the like-for-like net rental income increase of 1.8%. During the first quarter of 2021, GCP posted an adjusted EBITDA of €73 million, marginally lower as compared to Q1 2020. FFO I of €47 million, remaining stable as compared to the same period in 2020.

GCP completed disposals amounting to €220 million during the first quarter of 2021, generating a high profit margin of 35% over total costs (including capex). These disposals comprised mainly of assets held-for-sale and other non-core assets, located in Eastern Germany and secondary cities, and were carried at a multiple of 17x. The Company also repurchased shares amounting to €89 million, at a discount to NAV, which will support increasing shareholder value in the following periods. Additionally, GCP also acquired quality assets amounting to €100 million, predominantly located in London, at a multiple of 18x.

The Company implemented several debt optimisation measures during the first quarter of 2021 with the issuance of its largest ever straight bond of €1 billion, at a record low coupon of 0.125%, while also prepaying debt of over €750 million. As a result of these measures, GCP's average cost of debt at the end of March 2021 decreased to 1%, from 1.3% as of December 2020. The Company continues to maintain a long average debt maturity period of 7 years. Furthermore, the robust capacity for profit generation resulted in a strong ICR of 6.2x.

Refael Zamir, CEO of Grand City Properties: "We begin the year with a solid financial and business platform, positioning us well to deliver on our goals for the year and to create further growth in the years to come."

Financial statements for Q1 2021 are available on the Company's website:
https://www.grandcityproperties.com/investor-relations/publications/fi ...